Group 6 Section B

Gillette India Ltd MAK – II Project

Abhishek Anand Abhishek Tiwari Nishit Jalan N P Easwaran Venkata Bhargava Talasila Wasi Rizvi Sec B Group 6 IIM Indore

IIM Indore

Group 6 Section B


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IIM Indore

Group 6 Section B
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Gillette with its wide range of products caters to the premium segment of the men‟s grooming market. With the intense competition Gillette has to cater to the various needs of the consumers.IIM Indore Group 6 Section B 1. Through the project we have found an opportunity for Gillette India in the shaving cream segment which is the biggest segment in Indian shaving preparation market and Gillette has no presence in it. Gillette faces intense competition in the shaving preparations market (shaving gel/foam/cream) whereas the competition in the razor market is not that intense. Executive Summary Gillette has been the leading brand in men‟s grooming industry in India and across the globe. We have suggested a marketing plan for Gillette Shaving Cream along with other suggestions for Gillette to face the competition in the near future and the long run. This project aims at identifying the problems faced by Gillette in the shaving preparation market. The research we conducted also supports this fact. .

We further extended the study to understand the perceptual mapping of brands. gel and foam. We had a Fishbein analysis done on the 84 respondents from Indore to identify how much of buying intension is due to attributes and how much due to influence by referrals. Introduction of project The objective of the study is to understand the consumer attitude and buying behavior for Gillette Shaving Gel And Foam. However Gillette has not performed well with the customers who are slightly price sensitive. This following detailed analysis is presented in our assignment. Our analysis has revealed that the consumer is satisfied with the brand Gillette and its attributes. To understand the former part. we created a focused group questionnaire and conducted a focused Group Discussion (FGD) on Shaving Cream. We analyzed the questionnaire and the FGD to create an extensive questionnaire understanding the buying behavior of consumers of Gillette Shaving gel/foam and other brands.IIM Indore Group 6 Section B 2. .

Klosershav Products Ltd.1. Gillette shave gel.IIM Indore Group 6 Section B 3. Company placed a plant for the manufacture in the first phase. Sheen Dental Products Ltd. More than 60 % of the products sold in India are locally manufactured by Gillette India. are wholly owned subsidiaries of the Company. Company also merged Duracell (India) Pvt. razors and shaving systems. conditioners. History of Gillette Foundation of Gillette India Gillette India was incorporated on 9th February 1984 at Rajasthan. it has also entered the women's shaving product segment. (Gillette).1) owns a majority stake in Gillette India.. U. Gillette Presto ready shaver. with the company. In 1985. During the mid-nineties. Gillette enhanced its range in men‟s shaving products.S. Duracell range of batteries and Luxor and Parker pens. Parent company Gillette (Refer Time Line. promoted it. Gillette India manufactures and markets Gillette Grooming Products and distributes Oral – B and Duracell products. the premium 7 O'Clock. Company introduced new twin blade shaving system called 7 O'Clock Ejtek P II with platinum enriched edges in 1987 and changed the shaving system in the India. and Vanity Cosmetic Ltd. Blades manufactured by the Company were of two types. 3. etc. by acquiring the entire share capital of that company. 7O'Clock Ready-II shaver. This agreement provided technical collaboration by Gillette over the full range of technical know-how and technical assistance for the manufacture of razor blades. the company's product range widened with new products being introduced in the market namely. Company entered into a foreign collaboration agreement with HOPE for setting up of a company for the manufacture of stainless steel razor blades in which Gillette agreed to subscribe 24% of the equity capital. Sabre Pens Ltd. It also started distributing Oral B toothbrushes..A. and Wilkinson Sword India Ltd. In .. the company came out with an IPO for raising Rs 26 million to fund the setting up of its plant at Bhiwadi in Rajasthan. section 10. Gillette Sensor Excel shaving system. House of Poddar Enterprise (HOPE) and Gillette Company. deodorants. Company took over Sharpedge Ltd.. Ejtek Super Platinum and the stainless brand 7 O'Clock Ejtek Super Stainless.. 200 million stainless steel razor blades per annum in the starting. Ltd.

a business dominated by the Malhotras. Gillette India's operating profits rose by a lower 38 per cent to Rs 67. Sensor and Mach III. which will house all P&G subsidiaries in India.3 per cent in 1999.06 relocated its headquarters from Gurgaon to P&G Plaza in Mumbai. This suggests that the merging companies have far lower levels of profitability than Gillette India. with brands like Topaz and Panama. ISPL has chosen to focus on premium products. Instead of going head-on against them in this highly price-sensitive market. Sales Gillette India's sales jumped 106 per cent to Rs 516. Also. by segmenting the market with offerings at different price points . Gillette’s Strategy in India The Indian shaving products market is characterized by a 97% share of double-edged blades . 3.80 crores after the addition of new businesses from the merged companies.6 per cent higher net profit at Rs 61. Structure Post Gillette P&G merger.16 crore. the company decided that it would use Gillette as its pre-eminent brand placing it ahead of the 7O'Clock brand.4.2. from 19. Gillette has adopted the organisation structure of P&G 2006 onwards and effective July 1. As a result. 2004 on 9. 3.IIM Indore Group 6 Section B 1998.22 crores for the 12 months ended December 31.7 O'Clock. ISPL offers a continuing upgrade path for users. The strategy has been to bring more people into the twin-edged segment.Gillette moved from business units based on geographic regions to GBUs based on product lines. 3.57 crores. P&Gs organizational structure is broadly divided into three heads: GBU(Global Business Unit).3. But operating profit margins of the merged entity has dropped to 12.73 per cent growth in sales at Rs 446. and then gradually move them towards even more premium products. Presently Gillette India Ltd today announced 36. MDOs develop market strategies to build business based on local knowledge and GBS bring .9 per cent in 2000. MDO(Market Development Organization)and GBS(Global Business Services).

4 for product line) . thus making it cost-effective. tooth brushes under the well known international brand name Oral-B. Gillette Presto Readyshaver.5. The present structure of P&G is shown in the section 10. Company has strong presence in shaving razor blades market. Company also entered into ladies personal care segment with the launch of the Gillette Sensor Excel for women. Gillette Sensor & Sensor Excel shaving systems which met with an excellent consumer and trade response. 7 O'Clock Ejtek P II shaving system with a metal spine and a shave cream in three variants. It has the premium quality 7 O'Clock Ejtek shaving brush. Gillette India has a wider portfolio of core business of shaving products sold under Gillette. Company has tied up with Rediff-on-the-Net e-commerce to market its product and increase its customer base. Gillette Shave Foam. Readyshaver under the Brand 7 O'Clock Ready II.(Section 10. order management and information technology. new generation triple blade shaving system Mach3Turbo etc. Gillette Aerosol" shaving cream. Company has strong diversified portfolio to increase its male personal products coverage. 7‟0 Clock and Wilkinson brands. 3.3. Product Details Company Manufacture stainless steel razor blades. Battery and flashlights business and oral care products (Oral B). human resource systems.IIM Indore Group 6 Section B together business activities such as accounting.

better and more effectively than its competitors.8% in 1997 to 14. battery. This further declined to less than 1% in the year 2001.82 crores in 2003. Gillette concentrated on reducing overheads and better working capital management to increase profitability. However. Vision and Future Growth The company‟s vision is to build total brand value by innovating to deliver consumer value and customer relationship faster. operating margin declined from 19. blades and razors and stationery business.1. negative sales growth and increased expenses led to a net loss of Rs 28 crores in 2001. It started focusing on the .0% in 2000. This vision statement has led to the development and introduction of various newer products especially in male grooming division and adoption of a more customer oriented approach.2. Net sales increased from Rs 107 crores in 1997 to Rs 477 crores in 2000 representing a growth rate (CAGR) of 45 %. As a result of its restructuring program. 4. the company reported net profit of Rs 44. Over the next 2 years. Restructuring in 2002-03 brought about a major shift in the future strategy of the company. The company decided to disassociate itself from non-profitable and nonstrategic businesses to focus on profitable businesses. This poor financial performance forced the company to undertake a major restructuring program. The company witnessed tremendous growth during the later half of 1990s. company has been growing at a steady rate which has resulted in increased valuation of the company. Gillette has been following a strategy of inorganic growth by acquiring domestic companies in oral care. CAGR for net profits over the same period was over 50%. Further. Analysis of Gillette Financial Analysis Since its entry into India market in 1984.IIM Indore Group 6 Section B 4. Similarly. Since then. 4.

This increased demand has led to higher sales growth especially in personal grooming division. since the market is still driven largely by price and . However. In 2004. Gillette came up with new and improved products like Mach3 Turbo and New Vector Plus to cater to the increasing needs of this section of the market. Gillette currently.IIM Indore Group 6 Section B grooming and oral care business and exited the battery (except Duracell) and household appliances activities. trade friendly policies and improvement in infrastructure have resulted in a steady inflow of global investments into the Indian market which has again resulted in higher income levels due to increased employment opportunities and sustained economic boom. it can be said that due to higher income elasticity of demand. Thus. External Forces The external environmental factors in terms of increasing purchasing power of the Indian consumers and a high level of interest in personal grooming amongst Indian men and a strong focus of the company to create awareness for technologically advanced products have resulted in signs of growth in the triple blade and twin blade systems. The company is also focusing on exploring ways to capture the expanding oral care segment in the near future. which have become an aspiration for many consumers. This increased awareness coupled with the increase in disposable incomes has led to a desire to upgrade lifestyles through owning and using better quality brands. is the market leader in the male grooming division and is expanding very aggressively into female grooming business through introduction of products such as wet shaving products and hair expiation devices. penetration of cable television into the smallest of Indian towns has led to an increased awareness of latest lifestyle trends and brands. The Government's continued focus on liberalization. (Section 10. Oral care segment contributed approximately 13% of company‟s revenues in 2006 as against only 7% a year ago.5 for Financial Analysis) 4.3. demand for personal grooming products are expected to grow at a rate higher than the rise in income levels of people. Further.

IIM Indore Group 6 Section B not quality (typically in rural markets and smaller towns). consumers might not value the potential benefit of paying higher prices for better and safer products. .

The Company has launch of its International Palmolive Shave Gel and Palmolive Shave Foam in the year 2000. They are shown below: .2. It has three variants in the shaving cream/gel/foam category.IIM Indore Group 6 Section B 5. Colpal has shaving products under the brand name Palmolive shaving cream. 5. double-edged blades comprised 78%.1. systems 15% and disposables 7%.1. the industry is expected to undergo a major shift from traditional double-edged razors segment to twin and triple blades razors segment. Personal Grooming Industry – An Outlook Industry Analysis Due to increased awareness and rising income levels. Razor blade market has tripled from Rs 2 billion in 1986 to Rs 6 billion in 2006. cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years.2. In 2004. Within the industry. current consumption is still below many countries in Asia which shows that there are further growth opportunities. The Chairman of Indian Operations mentioned that the company‟s strategy for Personal Care is to remain in top niches. in 2003. Colgate-Palmolive Colgate-Palmolive is one of the largest companies in the FMCG sector. the industry is growing at a decent rate but still is at an infant stage and this offers great opportunities to players like Gillette and Colgate Palmolive to expand their customer base to include higher number of lower middle class people and thereby increase their revenues and profitability. 5. they intended to take 3-4 initiatives. However. with Gillette having the largest market share. the domestic shaving preparations market in 2003 was pegged at Rs 1. Every year.5 billion. Thus. As per AC Nielsen/ORG's estimates. in response to growing consumer interest in skin conditioning benefits. market size of men's personal care segment is estimated at approximately Rs 750 crores. In value terms. Competitor analysis 5.

which is focused on Anticold (Vicks). In the shaving cream/gel/foam category it has a very strong brand in the market.2.1) Weight (gms) 70 70 70 Price (Rs.IIM Indore Colgate-Palmolive‟s Shaving Cream/Gel/Foam: Group 6 Section B The Price of each of these products is mentioned with size of the pack in the table below Product Palmolive Lime Palmolive Moisturizer Palmolive Delux (Section 10. . USA operates in India through three entities. and Feminine Hygiene (Whisper).) 37 39 39 5. 65% subsidiary Procter & Gamble Hygiene & Healthcare (PGHH). Proctor & Gamble Proctor & Gamble. Old Spice.2.6.

gel and foam products are mentioned in the table below: Product Old Spice Foam Old Spice Gel Old Spice Cream Quantity 200 ml 60 gm 70 gm Price (Rs. Proctor & Gamble‟s Shaving Cream/Gel/Foam: The prices of Old Spice shaving cream.IIM Indore Group 6 Section B Old Spice has products in each of the cream.6.(Section 10.) 110 50 45 It can be observed from the table that even the Old Spice Cream is priced higher than the premium products of other competitive brands. These three categories are shown in the form of a tree below.2) . gel and foam category.

It is also very similar to that of Old Spice shaving cream. But HLL does not have any product in the gel or foam category to compete brands like Old Spice and Gillette. It‟s distribution network is very strong. Both of them are very strong brands in the Indian market. is a subsidiary of Unilever (USA). With the help of the its distribution system these brands have a deeper reach to the Indian consumers. It is the largest FMCG company in India. It has over 2000 suppliers and associates and about 7000 redistribution stockists. In the Shaving Cream/Gel/Foam category also HLL has two brands. HLL Hindustan Lever Limited. which is now called as Hindustan Unilever Limited. HLL enjoys commanding position in many FMCG products in Indian market. With this massive distribution network in place.IIM Indore Group 6 Section B 5.3. These brands are shown in the tree below: HLL‟s Shaving Cream/Gel/Foam:  The pricing of shaving products by HLL for both Axe and Denim is almost same. It is also reputed to be the largest exporter of India. .

3) Weight (gms) 70 70 Price (Rs. Fa Fa has two shaving cream products in the market. It has two variants in the shaving cream category. One observation is that even the premium shaving cream from Godrej is priced quite below (44%) below the competitors products of same quantity.6.) 25 25 5.6. Product Godrej Shaving Cream Godrej Premium Shaving Cream (Section 10.5.) 45 43 5. The price of these two is shown in the table below.5) Quantity (gms) 70+21 70+21 Price (Rs. Fa is offering 30% extra shaving cream (21gms) with 70 gms pack.IIM Indore Group 6 Section B Product Axe Shaving Cream Denim Xclusive (Section 10. They are Godrej Shaving Cream and Godrej Premium Shaving Cream.4. Godrej Godrej is a domestic brand of shaving cream and now it is looking to expand in the global market for hair color and shaving creams.) 40 40 .4) Quantity 100 gms 70 gms Price (Rs. Both of its products are priced exactly the same. Product Fa Oceanic Fa Dynamic (Section 10.6.

Whereas Park Avenues shaving cream is sold in 70gms pack for the price of Rs 36. (Section 10. Dettol cream which comes in 70 gms pack is currently offering 40% extra in its regular product for Rs. Other Brands Other competitive brands like Dettol and Park Avenue are also there in the market scene. The price for their shaving cream product is mentioned below.6.6. These are not premium segment brands and were priced accordingly.5) .IIM Indore Group 6 Section B 5. 37.

market acceptance as a technological leader for hi-performance razors and high brand equity were compelling reasons to penetrate and develop the entire value chain of the men‟s grooming industry (razors. Gel. 6. Gillette worldwide and Gillette India have cited the following reasons for not launching a shaving cream and restricting itself to only shaving gel and foam:  Technically speaking. after shave and shaving gel/foam). Our analysis has shown us that . 6. Its‟ high brand awareness. gels offer more lubrication than that of creams. The demand for foams was on the rise due to minimal effort required on the part of the consumer.IIM Indore Group 6 Section B 6. This means that gels have more anti-friction properties than creams. being a solid in a liquid.1. vitamin E etc. can include any additional ingredients like moisturizer. Gillette’s range of shaving gels and foams All of Gillette‟s shaving gel/foam products come under the brand name “Gillette Series”. Gillette has virtually no presence in the basic and core product categories. Gillette has consciously not chosen to have shaving cream in its product line.1.2. aloe vera.1. Gillette products in the shaving cream/gel/foam department Gillette has a range of shaving products for different types of skins and user requirements.    Weight-to-weight. All the 10 variants are in the premium segment. Foams have been pre-perfected with the optimum lather required for shaving and Gillette was already a market leader in the foam segment. gels are cheaper than creams. 6.1. Gillette Shaving Cream Division Product Introduction Gillette has always remained the technological. This enhances the effectiveness of the razor‟s glide on the skin. However. market leader in the razor division of the men‟s grooming segment.

Gillette in the customer value hierarchy: Green – Gillette Gel. POTENTIAL Moisturizing gel PRODUCT Conditioning Yellow – Gillette Foam Moisturizer Sensitive EXPECTED PRODUCT Deep Cleansing Deep Cleeansing Gel BASIC PRODUCT CORE PRODUCT Ultra comfort Lemon Godrej V John Old Spice Denim Dettol Pure & Sensitive .IIM Indore Group 6 Section B shaving gel/foam is more commoditized in India and that 81% of the Indian consumers use cream and not gels or foam.

an insight The Gillette shaving gel/foam series has been developed as a technologically superior product. Gillette Series has many firsts to its credit in the Indian market:    First to introduce Shaving gel in the Indian market First to include ingredients like Aloe vera and Vitamin E in its gels and foams.IIM Indore Group 6 Section B The customer value hierarchy shows us clearly that Gillette has no product in the basic or core category which is dominated by the creams.2. Gillette Shaving Gel . So. . Following are the variants in the product width: GILLETTE SERIES S. 1 2 3 4 5 6 FOAM Foam Conditioning Foam Deep cleansing Foam Pure and Sensitive Foam Moisturizer Foam Senitive skin Foam Lemon GEL Gel Moisturizing Gel Sensitive Skin Gel Ultra Comfort 6. This segment accounts for more than half the entire market. The brand Gillette is more of a life style product than just a grooming product. No other competitor has even more than 5 variants. Gillette is the only company to have 10 product variants in this category. First to introduce foams with no fragrance in “Pure and Sensitive” Brand Development Index and Category Development Index Gillette has the highest brand equity in the men‟s grooming industry. Gillette has the deepest product line and the widest product width. NO.

the packaging. The Gillette Series has been designed and packaged with a futuristic theme to communicate to the consumer the subtle message that only Gillette offers you the most advanced in shaving products. The FOAM series comes in metallic cylinders.IIM Indore Group 6 Section B High Category Developme nt Index Low Gillette Shaving gel/foam Low Brand Development Index Packaging With shaving cream/gel perceived as a commodity by the majority in India. Point of purchase plat an important role in the consumer‟s mind while deciding which product to buy. Gillette was the first in India to introduce gels in tubes. It is glossy and can rest on its cap unlike the competitor‟s tubes. The shaving tube for GEL is very different in design. High .

The pricing strategy suggests that Gillette is leveraging its customer loyalty ( i. Gillette foam priced at Rs.IIM Indore Group 6 Section B 6.3. The following table shows the Gillette Series price for all the 10 product variants. Gillette has priced its shaving gel and foams well above the industry average. 210 costs 60% more than OLD SPICE foam though Old Spice has the one of the best brand perceptions (and was the best in our survey). FOAM VARIANTS    Conditioning Deep cleansing Pure Sensitive    Moisturizer Senitive skin Lemon 200 200 200 120 120 120 QUANTITY (ml) 250 250 PRICE (Rs) 210 210 210 and 250 GEL VARIANTS    Moisturizing Sensitive Skin Ultra Comfort QUANTITY (gms) 60 + 20 60 + 20 60 + 20 PRICE (Rs) 53 53 53 .e. We shall see the competitor‟s prices in detail in the competitor analysis. All the 10 products are in the premium category ranging from Rs 53 to Rs 210 for the minimum and maximum SKUs. Price Gillette has 10 product variants of shaving gel/foam for the Indian market. For instance. the consumers who are brand loyal to Gillette razors).

These cities are managed by the exclusive distributors in those cities.4. They have P&G‟s distribution network in addition to Gillette India‟s existing one. These tier 2 and 3 cities (spokes)thus serve as a feeder market to the hubs. Place The distribution network of Gillette is very robust. We went to the exclusive (franchisee)distributor in Indore. The distribution network follows a hub and spoke model. The hubs are the 20 cities. Indore‟s distributor is called Life Science Corporation near ADLABS Mall. The distributor also manages his own fleet costs to supply to the retailers. Each franchisee distributor has his own set of employees working for him. The distribution network is a combination of own network and that of a franchisee. Gillette India has the same distributors in the 20 cities that P&G operates with. As of now. The spokes are the various Tier 2 and Tier 3 cities and towns around the major hub. this is the hub and spoke model for the Mumbai hub: Indore Dadra and Nagar Haveli Aurangabad MUMBAI (HUB) Pune Panaji The distribution network in Indore: Indore is a feeder market getting its feed from Mumbai. There are no wholesalers. As told to us by the distributor in Indore. Every city has only one franchisee distributor.IIM Indore Group 6 Section B 6. This is their distribution network for Indore: .

5. Bundling Bundling has always been the norm for Shaving cream/gel products. But for India Gillette does not have any brand ambassador as of yet though Irfan Pathan has done a couple of ads for Sensor Excel. Roger Federer. So. Promotion Gillette has made extensive promotion campaign for its razors in the Indian market and the world market. But. 6. for every week the order is taken and supplied. In fact. Tiger Woods. The credit period offered is one week.IIM Indore Distributor (1) Group 6 Section B Area Sales Manager (2) Sales Representatives (4) Fleet Drivers(4) The sales representatives go with the drivers to the various Retailers under their geographic span and take orders every week. This is mostly due to the fact that shaving creams/gels are generally purchased together with . super markets etc. there is only one ad for Gillette Series Shaving Gel shown not too prominently. They are in charge of the big retailers. The two sales managers have split the city into two parts for their span of control. Gillette has co-advertised with its razors. For the shaving gel/products. for the shaving gel/foam there has not been much of advertisements. the amounts due for the previous week would be collected. David Beckham and Thierry Henry are a few of Gillette‟s global ambassadors called Gillette Champions.

When we went to Big Bazaar for price survey. we found that 4 of the 10 variants had the 33% free trade promotion. There is always at least one trade promotion across the 10 product variants of Gillette throughout the year. Shaving gels/foams have been bundled with Mach 3 Razors for a slightly higher price. The foams(the ones priced at Rs 210) bundle a Gillette Sensor Excel with them occasionally. In addition to this. .IIM Indore Group 6 Section B razors/aftershaves. The trade promotions include 33% extra on many variants.

2.1. Map the shaving cream/gel/foam market and competitive positioning within it.2. 7.1. Research Boundaries The research was conducted in Indore and the respondents were chosen on the basis of their usage of shaving cream/gel/foam.1.2. Research Question What is the inter-brand recall of shaving cream/gel/foam brands and their existing image in the consumer‟s mind? What is the effect of non-attribute factors on the purchasing decision of Gillette shaving gel/foam? How strong is the brand loyalty of customers towards shaving cream/gel/foam? What are the factors that play the most important role in a consumer‟s choice of buying shaving cream/gel/foam? 7. Problem or opportunity Gauge brand recall for various shaving cream/gel/foam brands. specifically Gillette. Market Research Research Purpose 7.2. 7. Research Objective 7.IIM Indore Group 6 Section B 7.1. To understand the buying intention of Gillette shaving gel and foam users and analyze the effect of non-attribute factors To understand the brand loyalty of customers towards shaving cream/foam/gel Identify the parameters that play the most important role in a consumer‟s choice of buying shaving cream/gel/foam using Factor and Cluster analysis. .

. Research Design 7.3. Research Approach Exploratory Problem Research Causes of the problem Descriptive research Causes of the problem Phase One -> Secondary Data The group in the initial phase of the project focused on secondary data collection.1. The data collection primarily focused on       history of Gillette the financial results of Gillette.3. products of Gillette organizational structure the competitors in the market the strategy adopted by Gillette and its competitors in the market.IIM Indore Group 6 Section B 7.

FGDs also helped the group in understanding the buying behavior.IIM Indore  Group 6 Section B The secondary data collected in the first phase of the project helped the group in getting better understanding of the shaving cream/gel/foam market and the various brands competing in this market. After the pilot test. An analysis of the pilot questionnaire was done. the consumption pattern. the final questionnaire was formed. The questionnaire was designed to capture both quantitative and qualitative information. two focused group discussions were done. hard to analyze variables etc were removed so that people could easily fill in the questionnaire. Phase Two -> FGD After the secondary data collection was complete. Through these FGDs. The overall design of questionnaire has tried to capture data in the following areas: To answer the question of what are the predominant constituents of shaving cream/gel/foam consumers in terms of:      Profile and age Buying Behavior and Decision-making process and to answer how Gillette compares with competition and what should it be targeting to be able to grow Relative importance of different attributes Brand awareness and preference Brand switching behavior/ Brand Loyalty . The purpose here was to get an accurate snapshot of particular aspect of the market environment hence the pilot study was a descriptive research that identified all possible problems and factors influencing buyer behavior. Phase Three -> Questionnaire From the results of FGDs. a pilot questionnaire was formed. the influencers etc which further helped in preparation of the questionnaire. the redundant variables. From the analysis. A group of 3 people and a group of 6 people were used for the two FGDs. the various attributes that a person looks for in the shaving cream/gel/foam were listed down.

8 A preliminary definition of main two segments is: Experimenters and Adopters (EA): This category of consumer comprises of males from the age group 16-30 years.3. Sampling Frame: Residential areas.4. Implementation 7. Restaurants are places where the respondents where drew our respondents were interviewed.000/.4. MHI: Rs 10.IIM Indore Group 6 Section B 7. These are the people who are willing to try new brands. These people are generally found to be taking more care than others in terms of grooming.Phase 1: FGDs The FGDs were aimed at helping us to   Define the target segments better Identify the important attributes that add in the target customers shaving experience The FGD questionnaire is given in section 10. Research Tactics   Questionnaire (Refer section 10.7. Relevant Sample Size: 84 7.to Rs 20.000/-.) Sampling Plan The theoretical population: All people aged 16-80 in Indore who have purchased shaving cream/gel/foam. malls. parlors. These people want to make a style statement through the products they are using and hence are generally found using highly advertized products. They tend to prefer shopping centers with a wide variety.1.2. . Data Collection .

IIM Indore Group 6 Section B Suspicious Traditionalists (ST): These are men who are more traditional and not very much willing to try new brands.9. which is representative of the Indore population.4. MHI criteria: Rs 5. Commitment and Conviction) with respect to own and competitive brands and consumer satisfaction. 7. Data Analysis Brand Recall: A sample of customers. Benefits that are most important for each segment of customers.4. (Refer section 10. 10.000/-. was surveyed and the first unaided recall of the Shaving Cream/Gel/Foam brands by these customers was recorded.3. Liking. Data Processing Age profile. 7.11 respectively.10 and 10. Knowledge.12) . Preference. Phase 2: Final Survey The Final Survey helped us to collect data on       Main influencers towards the purchase of Shaving Cream/Gel/Foam. They also show a preference for herbal products or brands that have been present in the market place for many years and which they have already tried and tested. Trade-offs between price and quality. Preferred point of purchase.000/.2. Consumer‟s position within the Needs Hierarchy Model (Awareness. Comparative brand and benefit perceptions.to Rs 20. They are a slightly older age group (33-50 years) whose main concern is the safety and health of their skin. product preference and place of purchase of the surveyed sample are mentioned in section 10.

10. Denim. (Section 10. an average attribute score was computed across the 84 samples for each attribute for each of the shampoo brands. brand image.IIM Indore Group 6 Section B It was observed that Gillette Shaving Gel/ Foam had the highest brand recall amongst all the competing brand of shaving cream/gel/foam. usage pattern.18.19. Buying Intention The survey administered had questions which measured the importance of various attributes like price. Fishbein Analysis The survey also measured the attribute scores for other competing brands like Old Spice. 10. Fishbein analysis was performed by converting the Likert scale from 1 to 5 to -2 to 2. Along with the data for Gillette. fragrance. V-John and Dettol. Consumer‟s attitude about each brand was calculated and plotted as shown below.20) Chart: Consumer attitude about each brand . Godrej. some of which would be analyzed in the subsequent sections. offers & discounts of various shaving cream/gel/foam and specifically for Gillette shaving gel/foam. This can be attributed to various reasons like brand perception. advertisement expenditure etc.17. 10.

  For price sensitive customers products like V-John. Then graphs were plotted (Refer section 10. Godrej and Dettol were more satisfying than Gillette. But taking a look at individual consumer attitude score.21) for the perceptual map along the dimensions as shown. It keeps my Skin Soft And Offers/Discounts) Factor 3  Point of Purchase (Availability in Stores and Stylish Package Design) Factor 4  Additional Features (Color of Shaving cream/gel/foam and Ingredients) Perceptual Maps Attribute scores were averaged under each factor for each of the Shaving cream/gel/foam. This feature highlights the fact that point of purchase is an . Foam Formation. we found that Gillette was prefferred by almost 40% of the people surveyed and Old Spice by 30%. the surveyed samples perceive that Gillette primarily targets consumers which are more focused on the product attributes like brand. ease of use etc whereas the perception of price sensitive consumer towards Gillette was found to be of an over priced brand. Antiseptic Attributes and Ease of Use) Factor 2  Price Sensitivity (Price. Hence 4 factors were obtained as follows –     Factor 1  Product attributes (Fragrance. The surveyed sample considered Gillette to have the best packaging among all the brands. Brand Name. foam formation. Observations:  In Indore.IIM Indore Group 6 Section B Clearly Old Spice had the highest consumer perception score followed by Gillette and Denim. Factor Analysis A factor analysis was carried out to obtain the group of attributes which can be grouped together.

still Gillette is found to be seen as a brand which brings out products with new features like lemon.  Although not much differentiation can be introduced in the product per se (low satisfaction scores for all brands). (Refer section 10. provided it‟s a reasonable price hike whereas 43% would move to some other brand. Price sensitivity measured along the lines of a hypothetical price increase in their preferred shaving cream/gel/foam brand was around 43%. three and four clusters separately.IIM Indore Group 6 Section B important selling point for the shaving cream/gel/foam market and Gillette has been outperforming the competitors. From the graphs shown. Brand Loyalty The questionnaire had specific questions to measure the brand loyalty for the brand that the consumer was using at that point of time.) Cluster Analysis On the basis of the four factors identified through factor analysis. This figure indicates that 57% of the customers do not shift from their preferred brand to some other brand because of a price hike in their preferred brand.  Distance matrix analysis shows that the consumers are most satisfied with Gillette in all the cases except when the purchasing decision is based on price along with additional features. conditioner etc. This figure says that 57% of the customers would rather go to some other retailer in search for their preferred shaving cream/gel/foam brand than to buy some other brand from the same shop. the group performed Cluster analysis for two.15.  High satisfaction in the availability in stores further shows the robust distribution system that Gillette has put into place to cater to diversified markets. This was done to identify a . it can be concluded that the Brand loyalty in the Shaving cream/gel/foam segment is only 57% where customers would stick to it irrespective of the availability in the place where they are accustomed to shop.

IIM Indore Group 6 Section B market segment which Gillette should focus on in the near future especially if it decides to launch a product in shaving cream category.  Cluster 3 is concerned about the attributes.1.5.  Cluster 2 is more influenced by attributes of the products and is not a price sensitive segment. . 55% of the sample used shaving cream. So targeting this cluster will not be a strategically appropriate decision.5. Recommendation And Conclusion 7. This is a double edged sword because of the variety Gillette can offer and the cannibalization that can occur. This segment comprised of more than forty percent of the survey sample. This cluster comprised of one third of our sample size. This segment comprised of more than one fourth of the survey sample. The output of cluster analysis is shown in section 10. Gillette can target this segment with the introduction of shaving cream which will be dealt with in the marketing plan of the report. As Gillette is a premium brand which focuses on differentiating its products from the competitors and upgrading the customers in the value chain. Gillette through its shaving gel and foam series is currently catering to this segment. 7. Out of the three analysis performed the one with three clusters was giving the best representation of the segments in which the market can be divided. additional features as well as price.22.  Cluster 1 is most price sensitive and values additional features the least. PLAYING WITH THE PLC: Gillette has the widest product range and the deepest product line in the men‟s grooming market. the decision to enter the shaving cream market seems to be a lucrative option to explore. (Refer section 10.22) The population can be segmented into three segments on the basis of factors. Considering this to be a reasonable estimation of the real usage.

7. perception mapping . Srilanka and states like Orissa. By launching Gillette shaving Cream. the regular foam and Gillette 7‟o clock regular razor are on the maturity/decline stagein the metropolitan cities. This is because we should entice only the existing cream consumers and not the gel/foam users. But the category development is pretty low. LAUNCH GILLETTE SHAVING CREAM This has been the main finding of our project.with its 9 existing product variants and the new shaving cream. The shaving cream would have slightly stripped down attributes of the gel and foam variants. Gillette would have a brand leader or a fighter brand in every stage of the customer value hierarchy. Pakistan. Without much effort.2. Bihar and the North East and can have a revitalization and an extended maturity phase.5. . The potential is huge and the shaving cream can also be launched in other similar market demographies like Bangladesh.5.cluster and factor analyses support the idea.IIM Indore Group 6 Section B Gillette . has to see that it can extend the product life cycle and the individual stages of each of the 10 products. Our Fishbein analysis. Nepal and Srilanka. PROMOTION One important finding of our FGDs and Consumer Survey was that not a single consumer was aware of the fact that Gillette has 9 variants in the shaving gel/foam category alone. these products can be promoted aggressively in neighbouring countries like Bangladesh. This can be attributed to one or more of the following reasons:  The brand equity of Gillette is very high (57% TOMR in our study).3. Having so many product variants would be an unbeatable advantage in upgrading the consumer throughout his lifetime and also making him brand loyal in the process 7. For example.

promotions have to be done on a bigger scale than what is currently been done. 7. this approach is missing in the shaving gel/foam segment. Some initiatives by Gillette:   ADVANTAGE GILLETTE: Three Gillette winners from India were sent to the finals of the 2006 Wimbledon GILLETTE GULLY CRICKET: Gillette cleverly combined cricket and youth in this version of street cricket in which the winners were awarded Rs 1 lakh. Bangladesh and Nepal. SALES AND MARKETING Currently. This implies that shaving cream/gel/foam is more of a commodity. attributes which the consumer can relate to. CONTINUE WITH UPGRADATION Gillette has been very successful in its strategy of upgrading the consumer in the razor segment.5. Though there are 9 variants. In short. there has been no effort made to communicate to the consumer of the superior quality and attributes. Gillette has made sure that it makes its consumers move up the product chain by introducing new. technologically superior products and phasing their PLC very well. to increase customer loyalty and repeat purchase. especially in Srilanka. . 7. But sadly. The promotions should have more of a pull effect in the advertisements that communicate not just the price and offers/discounts but also the values. Gillette has spent on advertisements only for the razors and not on shaving gel/foam or aftershaves.4. P&G‟s sales and marketing knowledge can be utilized by Gillette to great extent in the future. Hence the information available to public is limited.5. trade promotions etc. Gillette India uses only the distribution network of P&G.5.IIM Indore   Group 6 Section B The consumers have low involvement and do not search for information. To decommoditize the category. more information has to be communicated to the consumer through ads.

IIM Indore Group 6 Section B Hence. This upgradation has 2 main advantages:   We can fully leverage the Product life cycle and the individual phases of the products in different markets We can make the consumer loyal to the brand over his lifetime. . we suggest that Gillette adopt its “upgrading the consumer” strategy for the shaving preparation segment also.

Competitors like Denim. Gillette‟s market share might not grow as good as their competitor HLL and Old Spice. So. It‟s only cream product “7‟o Clock Shaving cream” has been a big flop. Hence. Gillette will find it tough to charge the premium it has till now charged.IIM Indore Group 6 Section B 8. Launching of innovative products in regular and short intervals First and foremost. . Future challenges     Introduce a product which would be designed specifically for Indian consumer and satisfy aspiration of youths. To match the increased demand patterns in the country.  Gillette‟s‟ products are descending the customer value hierarchy from that of a potential product towards an expected product.  Gillette‟s major challenge lies in entering the mass market through a shaving cream the way it successfully did with razors. Axe are moving up the hierarchy. shaving cream accounts for roughly 80% of the market and Gillette has a very weak presence in the cream segment.  It is also highly likely that Gillette may not fully absorb the consumers who upgrade from shaving cream to gel or foam.

to become a market leader in the entire shaving preparations market. . the group came to the conclusion that Gillette should enter the shaving cream market more aggressively with a new brand immediately.2. Gillette’s current position (Where we are and where we are heading??) In 2003. the current market size is Rs 163 crores.e. Marketing Plan for Shaving Cream After conducting industry and competitor analysis of personal grooming industry and understanding the product portfolio of Gillette. Thus. the situation has not changed much. Gillette can not continue to ignore the shaving creams market. Marketing Audit 9. Since. Even in 2003. 9. Most of these sales were driven by gel and foam products.IIM Indore Group 6 Section B 9. Although Gillette has been able to increase its share in gel and foam products. Rs 101 crores.1. Considering a YOY growth of around 7%. Gillette had 17% market share in the shaving preparations market which gives a turnover of approximately Rs 21 crores.1.1. Suggested below is the marketing plan for the introduction of the new product. 9. 7‟ O clock. In 2003. we can say that the share of shaving cream in the entire market has fallen down to approximately 70%.1. Industry Outlook Shaving preparations and after-shaves market stood at Rs 125 crores in 2003. Thus. shaving cream market worth Rs 114 crores remain more or less untapped. shaving creams constituted 81% of the market i. the current market size of shaving cream in 2007 is around Rs 114 crores. Gillette‟s only brand in the shaving cream market was not very successful and therefore. the market share of gel and foam products is increasing at a very rapid pace (from 10% in 2000 to 19% in 2003). we can say that Rs 101 crores market remained tapped by the company.

. company leads in the market for gel and foam products. Similarly.2. Future Outlook with shaving cream (Where we will head?) The introduction of a shaving cream with improved attributes will directly compete with current products like Axe. Gillette is an undisputed leader in this sub segment. Within this particular division.1. These customers are concerned about the attribute and additional features besides price. This will enable the company to establish its hold over the Rs 114 crores shaving preparations market. Thus.2. majority of the sales come from its razors division. Denim etc. Today’s business is driven by this two sub segments. 9.2. The brands like Axe and Denim can be said to be catering to the needs of this cluster. 9. There will not be any product cannibalization (with 7‟O clock) as both cater to different segments within the shaving preparations market. Marketing Mission 9.IIM Indore Group 6 Section B 9. This cluster accounts for almost 40% of the entire market.1.2. 9. Company derives almost 80% of its revenues and 90% of its profits from Personal Grooming division. Target Customers and their needs The primary customers of the company will be those belonging to cluster 3 (Refer Cluster Analysis for details). Strategic Priorities This step involves portfolio analysis of company‟s products in the market.3. Marketing Objectives Gillette should target to capture around 6-8% of the entire shavings cream market which means revenue of approximately Rs 7-9 crores in the first year.3.

 Segment One-> is most price sensitive and values additional features the least. has led to irregular cash flows. Marketing Strategy 9. The company can consider divesting this segment to direct its investments to Oral Care and the new shavings cream product. Gillette‟s portable power business has been facing stiff competition from the alkaline batteries in the market. Gillette still needs to concentrate on its two major sub segments for regular cash flows.4. targeting this segment will not be a strategically appropriate decision. As Gillette is a premium brand which focuses on differentiating its products from the competitors and upgrading the customers in the value chain. This segment has one third of our sample size. And in fact. point of purchase decision makers and customers influenced by additional features are the factors on which we will segment the shaving cream market.1. Oral Care business has shown volatile performance over the years and thereby. Gillette through its shaving gel and foam series is . importance of attributes. Price sensitivity.4. the new product in the shavings cream market can also become tomorrow‟s breadwinner for the company.  Segment Two-> is more influenced by attributes of the products and is not a price sensitive segment. Segmentation In the shaving cream/foam/gel market there exist different categories of customers who have different needs and are willing to pay different amount for the product that meets their demand. This division grew by only 4% in terms of revenues in the year 2005-06. 9. there was decline in the profit figures from this division by approximately 60%.IIM Indore Group 6 Section B In the future. Introduction of shaving cream would help Gillette identify the needs of the customers and take advantage of the segment which has not yet been targeted by the company. However.

 Competitor Brands:.  Segment three-> is concerned about the attributes.2. It keeps my Skin Soft And Offers/Discounts)  Factor 3  Point of Purchase (Availability in Stores and Stylish Package Design)  Factor 4  Additional Features (Color of Shaving cream/gel/foam and Ingredients)  Customer Evaluation:. Gillette through its shaving cream can enter this segment.The competitor brands have been discussed in section 5. This segment has more than one fourth of the survey sample. Foam Formation. Positioning Market research  Market research results have been analyzed in section 7 of the report. The following conclusions from the survey helps us in identifying the positioning of the Gillette shaving cream:  Target market:. The Gillette Shaving Cream will be competing with brands like Old Spice and Denim. Antiseptic Attributes and Ease of Use)  Factor 2  Price Sensitivity (Price.IIM Indore Group 6 Section B currently catering to this segment. . Brand Name.As per our findings (Section 7.4. This segment comprised of more than forty percent of the survey sample.  Choice Criteria:. additional features as well as price. 9.3) the 4 factors on grouping attributes post factor analysis that contribute to the shaving cream/foam/gel purchase decision are:  Factor 1  Product attributes (Fragrance.4.The target market has been identified as the customers who are concerned about the attributes of the shaving cream but are not willing to shift from the current price band to a higher price band.21 shows how the customers evaluate Gillette with respect to competitive brands.Perceptual maps in the section 10.

all companies have below satisfaction level performance which implies that the variants introduced in the market for shaving cream/gel/foam are not able to satisfy the demand of the consumers.IIM Indore  Group 6 Section B The customers surveyed in Indore found Gillette to be significant along both factor 1 and factor 3 giving it an image of high quality brand with attractive packaging and best availability. additional features. .    Old Spice and Denim are its closest competitors in factor one and two respectively. Gillette shaving cream needs to position itself above Old Spice and Denim in order to attract the target segment. Gillette lags behind all its competitors in factor 2 which includes price and offers. In factor 3. Positioning Strategy The present perception of the brands between factors one and two is shown below.

This shows that Gillette has an excellent real positioning in the men‟s grooming market and Gillette shaving cream can leverage this positioning in the target market. Real Positioning In the survey conducted. Further. This will be consistent with its strategy of moving the customers up the value chain.1. Product and Service Customer value hierarchy chart in the 4 P‟s analysis shows that Gillette products (7‟ O clock) is currently fulfilling only the core and basic needs to some extent. 9. Marketing Mix 9. Gillette had the top of the mind recall of 57%. Psychological Positioning Gillette shaving cream will primarily alter the attributes importance in the target segment by increasing the importance of attributes like brand name. it also .5.4.IIM Indore Group 6 Section B 9. foam formation etc and decreasing the importance of price.

Our new product will have superior fragrance and higher antiseptic attributes. The espoused value would be the charming yet masculine Gillette man who is attractive to all the people including women. Thus. it has to be very strong on attributes. not so loyal segment of the market. We would price our Cream at Rs 40 which is below that of Old Spice and Denim (Rs 43). lather etc. the customer values promised and delivered would also be different from that of the premium segment. Gillette has only followed a dumping strategy in India with very little customization.) . since. The customer values to be promised and delivered by the new GILLETTE Shaving Cream are: Functional value: The utilitarian/functional promise would be “ The best possible shave from the best Shaving cream”. Further. this strategy would not work well. The focus would be to indianise the product. So. additional features need to be there to satisfy the basic and expected needs of the people. our new product will target the third cluster.IIM Indore Group 6 Section B shows that Gillette does not have any product fulfilling the basic needs and expected needs of the consumers. initially. Again. Further. the product shall be launched with variants like lemon and musk. Epistemic value: . Social Value: The espoused social value would be from the angle that everyone in the family and society have an instant respect and admiration for the clean shaven Gillette man. Emotional value: The emotional value promised is of great importance for a commoditized product like a shaving cream. For our new product. price sensitive. So far. our new product will cater to these needs. This is important because we have to reach a larger. We would also promise the basic attributes ( soft on skin. The new Gillette Cream would target the basic and core product consumers where Gillette has no presence so far. The existing price range in the market for a 70 g shaving cream is Rs 25 (Godrej) to Rs 45 (Old Spice).

Hence. satisfied. we recommend an aggressive promotional campaign for the new product.2. Gillette should charge a price of Rs 42 for 70ml pack. Our promotion would adopt a push cum pull strategy. since Gillette is perceived as an expensive brand as compared to its competitors. 9. 9. The focus would be on the shaving cream though we will also co-advertise Gillette Razors. not our gel/foam users. Pricing The customers in the target cluster are not very price sensitive. Our ads would involve a sturdy.5. smart Indian and project him as the Gillette man (much like the Marlboro man). Promotion Since we see a great opportunity for Gillette in the Shaving cream category. COMMUNICATION OF VALUE: We would adopt a push cum pull strategy to communicate the above values.3. As per our analysis. we must tell about how good a cream it is and the active ingredients involved in the product. Conditional Value: The best possible start for the day would be the conditional value. we plan to price our new product slightly cheaper than these brands. The value communicated should be of a confident. charged up young Indian for the day‟s grind. The customers in the cluster prefer brands like Axe and Denim which lie in the price range of Rs 43-45 for a 70ml pack.5. However.IIM Indore Group 6 Section B The novelty value should be such that it must entice only the cream users. . tough.

Our advertisement has to entice the target consumer . Pull Approach: So far.the aspiring consumer who comes from the middle and lower middle class and gives importance to attributes but is also price sensitive. . This is the biggest challenge for Gillette which has so far treated the Indian market as a dumping ground for its outdated products in the US. we would incur around Rs 8 for the 20g tube and Rs 12 for the 30g tube. We would offer a 20g tube of the Gillette Shaving Cream free with every Gillette Presto( Priced at Rs 17) and 30g with Gillette Vector ( Priced slightly at above Rs 50). The selling price of the tube being Rs 40 and the margin at 25%.rural. Our target consumer is widespread throughout the country.IIM Indore Push Approach: Group 6 Section B The product would be pilot tested in Indore itself where we have performed our market research. But the advertisements for the shaving cream have to be Indianised. The increase in sales of the razors would be a good indication of the interest shown by the consumers in the new shaving cream. urban(including Tier 2 and Tier 3 cities) and rurban. Gillette has always shown ads which are futuristic in nature ( Shaving with Mach 3 on a space shuttle is an example). The level of success of the pilot project would help us in modifying the product for the national launch. This promotional strategy might also give Gillette consumers who want to upgrade themselves to the premium shaving cream category from the regular category. The ads have to appeal to the customer values mentioned above.

IIM Indore

Group 6 Section B



10.1. Gillette- Timeline

1895-In the United States, KING CAMP GILLETTE, a salesman for the Baltimore Seal Company, originates the idea for a new disposable razor blade. For the next six years, he will promote and sell this idea to backers and toolmakers in order to make his dream shaver a reality.

1901 -GILLETTE teams up with MIT engineer and machinist WILLIAM NICKERSON in Boston, Massachusetts. Together, they modify the safety razor by manufacturing a double-edged blade that is disposable and replaceable; it receives a U.S. patent this same year. This is a T-shaped razor which opens at the top so the user can insert a new blade after tossing out its dull, used predecessor. These blades are cut from a template, rather than forged

1903 - GILLETTE begins his legendary climb to the top as king of the U.S. shaving market, thanks to his shaver‟s high quality, low price affordability, and his keen approach to marketing. In 1903, his total sales were 51 razors and 168 blades.

1904 - GILLETTE'S total sales for the new state-of-the-art safety razor reach 90,000 razors and 123,000 blades.

1905 - GILLETTE opens his first overseas office, headquartered in London, England to market products in Europe 1910 - WILLIS G. SHOCKEY receives a U.S. patent for his WIND-UP SAFETY RAZOR, the forerunner of electric shavers. It has a wind-up-by-hand flywheel that operates for a limited amount of time.

IIM Indore

Group 6 Section B

1914 - 1918: WORLD WAR I - GILLETTE works out a mega deal with the U.S. Armed Forces, which provides his safety razor and blades to every enlisted man or officer on their way to Europe as a regular part of their standard issue gear. This creates tremendous worldwide promotion and publicity opportunities for Gillette‟s company and products. 1960 - GILLETTE safety razors with long lasting stainless steel blades hit the U.S. market. Later, other inexpensive injector-type cartridges and disposable razors become available. 1960s -70s - DISPOSABLE RAZORS, which can neither be sharpened or replaced, hit the market for both men and women. They are to be used 2-3 times, then thrown away. Numerous manufacturers economically design them in simple shapes, which make them inexpensive to produce and sell. 1971 - GILLETTE begins to aggressively market a new twin-blade razor on a wide scale, even though there have been similar razors available since the 1930s. 1984- Gillette entered Indian market through a joint venture as a minority shareholder. 1986- Launched the 7‟o clock brand 1993- Launched the Presto readyshaver brand 2000- Launched the Mach-3 and women 2002- It gained more shares so that it had three fourth of the shares. During these two decades Gillette followed inorganic growth by acquiring domestic companies in oral care, battery, blades and razors and stationery business. 2004- The company launched the next generation triple blade shaving system, Gillette Mach Turbo, Gillette VectorPlus. Further in personal care segment the company has launched Storm Force after shave splash and New Ultra Comfort Shaving Gel & Gillette shaving gel, shaving foam and linen series for

IIM Indore

Group 6 Section B

Series Tube Shave Gel Variants, namely Sensitive Skin and Moisturising to suit different skin types. 2005- The company‟s parent company Gillette, USA was acquired by the Procter & Gamble Company, USA worldwide through merger in October 2005. In India, the company while continuing as a separate legal entity, will also, be part of the Procter & Gamble company, USA. The company has started the process of transition from its current distributor structure to the P&G Distributors

Strengths Strong brand equity Gillette‟s portfolio contains well established brands such as Gillette and Braun, Oral-B line and Duracell. It eases the introduction of new products, as consumers are already well acquainted with the names and more receptive to promises of improved user experiences. The strength and quality image of these brands allows the company to charge higher prices and achieve high margins.

Market Leadership The company‟s product are well known with a reputation of quality are also market leader in their respective segment.

Well Diversified portfolio Gillette has a well-diversified portfolio in terms of product diversification and market diversification. Diversification of this nature helps the company avoid the risk of overdependence on any one source for its revenue stream.

Weakness Profitability highly dependent on core business

Gillette has acquired a majority interest in the Fujian Nanping Nanfu Battery Company.IIM Indore Group 6 Section B Gillette‟s profitability is highly reliant on the performance of its razors and blades business. With a large part of its revenues originating from a single costumer. This new product launches will help the company to gain competitive advantage over its competitors. Opportunities New product launches Gillette is known for constantly introducing new products in the market with better technology and performance. Growth potential for battery business in China The Chinese battery market is a large and fast-growing market. Over-reliance on a single customer Wal-Mart Stores is Gillette‟s major customer. operating results and financial condition if its strategic relationship with WalMart Stores is terminated for any reason. Any downturn in the sector or in Gillette‟s competitive position within it could have a serious negative effect on the company. Price increases in premium shaving segments Gillette has been increasing the price of its razors and blades at an average rate of around 4% per year over the last ten years. Threats . This price increase will help the company to accumulate more profits from the present level of sales. This has resulted to significantly improve the performance of the company‟s overall battery business and will have its impact on the future performance of the company. the company is at risk of adversely affecting its business. A substantial portion of its revenues come from this sector.

IIM Indore Imitations / disposables are a threat to the Mach3 offering

Group 6 Section B

Gillette‟s ability to sustain a price premium and earn an attractive return on its extensive investment three-blade platform is threatened by the numerous imitators of the Mach3/Mach3 Turbo franchise, including disposables and private label systems, and even including Gillette‟s own three-blade disposable. This numerous imitations are threat to the company in the long term as they going to reduce the sales of the original products.

Pressure on pricing power Gillette‟s pricing power is being further eroded by channel migration and increasing consumer resistance to paying significantly higher prices for innovation. Pricing power is key to revenue growth in a mature category especially when Gillette‟s strategy has historically been to drive revenue growth per consumer and not volume growth.

Competitive environment Gillette faces intense competition in most markets. Its products compete with widely advertised, well-known, branded products, as well as private label products, which typically are sold at lower prices. The company‟s survival depends upon its ability to adopt itself in this kind of competitive environment.

10.3. Organizational Structure
Gillette India now has the organizational structure of P&G worldwide. The key elements are: 1. Global Business Units (GBU‟s)- build major global brands with robust business strategies. P&G moved from four business units based on geographical regions to seven business units based on global product lines. The various GBUs are: • Baby Care/Family Care • Beauty Care/Feminine Care • Fabric & Home Care

IIM Indore • Snacks & Beverage • Health Care

Group 6 Section B

2. Market Development Organizations (MDO) - build local understanding as a foundation for marketing campaigns. P&G has eight MDO. • North America • Asia/ India/ Australia • Northeast Asia • Greater China • Central-Eastern Europe/ Middle East/ Africa • Western Europe • Latin America 3. Global Business Service(GBS)- provide business technology and services that drive business success. Different GBS Centers are: • GBS Americas located in Costa Rica • GBS Asia located in Manila • GBS Europe, Middle East & Africa located in Newcastle

IIM Indore

Group 6 Section B

10.4. Product Portfolio
       Gillette India has the following product lines: Double edge- 7‟o clock and Wilkinson sword Disposables-Wilkinson sword twin 2, Gillette presto Systems- PII, Sensor, Vector, Mach3 Shave prep- Gel and foams Batteries- Duracell Oral care- Oral B toothbrush

almost 88% of the company was owned by the promoters (foreign and Indian). Share holding pattern 10% 2% Indian Promoters 47% Foreign Promoters Non.1. Although due to . Out of the remaining 12%. Revenue figures further reduced by around 18% in 2002 to approximately Rs 385 crores.2. In 2001.IIM Indore Group 6 Section B 10. Gillette entered India through a joint venture as a minority shareholder.Institutional Investors Institutional Investors 41% Chart 2: Break up of ownership in 2006 There has been a great shift in the shareholding pattern of the company since its entry into Indian market in 1984. Financial Analysis 10.5. This was primarily due to significant increase in employee cost and other miscellaneous expenses. revenues declined to Rs 453 crores from Rs 477 crores a year earlier. Gillette India ended the year with a net loss of around Rs 28 crores. only 2% lies in the hands of institutional investors. In 2006. After that there was a downfall in the company and for the first time. Profit & Loss Analysis Net sales of the company grew at a CAGR of 45% during the period 1997-2000.5. Its share increased to around 75% in 2002.5. 10. 10% is owned by non-institutional investors and thus.

00% -20.00% 15. Similarly. Since it‟s restructuring in 2003. operating margin of the company declined from 20% in 1997 to 14% in 2000.00% -10. company has recorded double digit growth rate in revenues.00% -5. However.00% 5.00% 0. yet there was a further fall of 3% in the revenue figures. Revenues 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 Revenues Chart showing revenue figures over last 6 years Revenue Growth 20. . the damage was controlled to some extent in 2003.00% -15. and company reported a net loss of 6%.00% 2001 2002 2003 2004 2005 Revenue Growth Chart showing Revenue growth over last 5 years Despite higher revenue growth in late1990s.IIM Indore Group 6 Section B restructuring. net profit margin almost remained constant at around 5% over the time period. the growth rate was moderate in 2005 as compared to the figures in 2004. The situation worsened further in 2001.00% 10.

miscellaneous expenses reduced to just Rs 15.99 6.IIM Indore Group 6 Section B In 2002. In 2003. 30. As a result of which. 2005 % Change (YOY) 25. Gillette undertook restructuring initiatives and it took the company two years to revive its operations.00% -5.57 crores in 2003 from Rs 82.87% . It entered into contracts with new suppliers for better raw material prices and also brought about a significant reduction in wastages.71 by Business 2006 Q2. Further.97 90.00% 2000 2001 2002 2003 2004 2005 Operating Margin Net Profit Margin Chart showing profitability margins over last 6 years Segmental Revenue Q2. The net profit margin increased to 12.45% in 2003 and the operating margins stood at 25.00% -10. Revenue Segment Grooming Portable Power 113.63 6. raw material cost as percentage of net sales declined from 46% in 2001 to 31% in 2003.00% 20.00% 25.00% 0.90%. company recorded a net profit of Rs 44.82 crores.00% 10.00% 5. Improved financial performance led to an increase of almost 120% increase in share prices over the year 2003.68 crores in 2001.00% 15.78% 3.

although oral care division witnessed a growth of 26% in terms of revenues.65 28.5 14.39 0.10% 27.39% EBIT Margins Grooming Portable Power Oral Care Table showing segmental performance 35.IIM Indore Oral Care Total 18.09 Group 6 Section B 25.75 112.82 53.37 1.24% The above table clearly shows that major chunk of company‟s revenues and profits come from Personal Grooming segment.17% 65.90% 4. almost 80% of company‟s revenues and profits came from grooming division.91 4.62 26. In Q2 2005.45% EBIT Segment by Business Grooming Portable Power 40.12% 30.92 32. This was primarily due to increased .54 139.93% Oral Care 0.91% 29.60% Total 41. Oral care contributed around 12% of the revenues and remaining came from portable power division (Duracell). In Q2 2006.69% 24.46 79.43% 8. but the profit figures declined by almost 80%.

45 0. Year Balance Sheet Analysis Debt Equity Ratio Fixed Ratio Assets Turnover 2000 2001 2002 2003 2004 2005 0.00 0. company has adopted a zero debt policy.68% 12.29 1.13% 1. This way company reduced its financial risk to zero. Thus.00 0. Ratios Net Profit Margin Assets Turnover ratio Leverage 2000 5. grooming division contributed more than 90% of operating profits.42 in 2005.76 3.00 1. All the debt was paid off with the funds obtained from the parent company as capital grant.13 1.53% 1.00 1.IIM Indore Group 6 Section B competition leading to higher selling expenses.3. Thus.74 1.79 2001 -6. debt equity ratio of the company reduced to 0 from 2002 onwards from 0. 10.00 .31 1.42 Table showing key ratios After restructuring its operations in 2002-03. It has become an all equity firm with no reliance on debt.5.99 1.45 2002 2003 2004 2005 1.99% 15.34 1. Fixed Assets turnover ratio has also increased from 1.00 3. This shows that there has been improved and better utilization of company‟s fixed assets.45% 14. in this quarter.09% 1.40 1.99 in 2001 to 3.26 1.00 1.94 2.00 0.79 0.12 1.45 in 2001.

11 in 2001 to 3. Thus.Distributor. Further. Gillette could not build on the benefits of restructuring in terms of better utilization of working capital.23 56 52 49 53 .63% 19. assets turnover ratio has remained almost constant over the years.Retailer) to reduce its investment in providing credit to retailers.35% 15. Thus.07% Table showing DuPont Analysis Group 6 Section B 2.15% 10.74% From the table we can observe that.74% in 2005.07 % in 2001 to 19.89 2. in the subsequent years the ratio again declined due to higher cash balance maintained by the company. Return on Equity (ROE) of the company has increased from 10. During restructuring. we can see that the fall in leverage has been very well compensated by an increase in profitability.33% 19.IIM Indore ROE 11. If we look at the three individual components of ROE. Further. This shows that the company is following a policy of increasing margins to maximize shareholder‟s wealth. Year Working Capital Turnover Ratio Current Ratio Debtors Collection Period Creditors Payment Period Inventory Holding Period Cash Conversion Cycle 2000 4. However. Working capital turnover ratio increased from 3. the cash conversion cycle of the company reduced from 36 days in 2001 to almost 0 days in 2003. reduced investment in debtors was compensated by an increase in loans & advances to suppliers. Gillette went for direct distribution model (Gillette. company concentrated on reducing its working capital requirements through efficient better inventory management and following a stringent credit policy.93 in 2003 reflecting better working capital management by the company.

15 24 70 41 2. During 2001.02 24 71 47 1. In fact.44 crores in 2001.66 2005 2.5. Cash from Financing Activities Company has not issued any new equity over the last five years.75 2003 3.33 2.11 2002 3. Majority of the cash flows in this segment comprise of dividends paid by the company.99 66 95 65 Group 6 Section B 36 (13) 0 (5) (12) Table showing Working Capital Management and Liquidity of Gillette 10.58 crores in 2005 from a high of 124.4.02 24 68 32 2.IIM Indore 2001 3. company paid off most its debt which has resulted in negative cash flows from this segment.71 41 111 57 1. cash flows have declined to Rs 76.93 2004 2. Cash Flow Analysis Cash flows in a company can be broadly divided into three areas: Cash Flow from Operating Activities Cash flows from this segment have not seen any improved over the past four years despite a rise in revenues. Cash from Investing Activities .

04 1.5. However. P & G Hygiene 0.91 71. Gillette also has the reputation of high margin company in the industry. company has been consistently earning interests on its loans & advances which has resulted in positive cash flows in few of the years.31 56.21 4. Gillette reported a margin of around 21% in this segment.1 1.5. . Lever Gillette India Johnson & Johns.69 52.82 as against the industry average of 4. it has fixed assets turnover ratio of 1. Similarly.97 Industry Average 0.31.62 32. But P&G Hygiene enjoys highest net profit margin of approximately 24% on a turnover of around Rs 520 crores. It has a current ratio of 1. Further. company has not been able to make the best utilization of its fixed assets.01 74. It is followed by Colgate Palmolive (15%) and HLL (12%) and Reckitt Benckisire (11%).82 1.24 3. Gillette has lower returns on its capital employed in the business.6 5.97 Table showing key ratios of Gillette and its competitors The above table clearly shows that Gillette has a better short term solvency as compared to its competitors. In the latest quarterly results.97. Companies Current Ratio Fixed Assets ROCE (%) Turnover Ratio Hind.93 164. HLL is by far the largest player in the industry. Comparative Analysis In the personal care segment.91 1. 10. Therefore.82 6.91 as against the industry average of 0.86 Colgate Palmolive 0.IIM Indore Group 6 Section B Gillette has consistently incurred capital expenditure to purchase its fixed assets.32 4.

06 Table showing share prices and market capitalization .20 2.6.11 2.022. share prices have increased by around 20%.392.22 1.19 2. However.90 1-Jan-05 699.00 1-Jan-07 869.205. This was the result of increased profitability due to restructuring efforts done by the company.90 in Jan 2004.5.695.51 845.74 2.95 1-Jan-02 269.292.00 1-Jan-04 713. The market capitalization of the company has increased from Rs 845 crores in 2001 to Rs 2695 crores in 2007. Year Share Price Market Capitalization (Rs crores) 1-Jan-01 699.802. in 2003. the share price more than doubled to Rs 713. Group 6 Section B Valuation The share of the company declined from Rs 700 in 2001 to Rs 317 in 2003 because of poor financial performance in terms of reduced revenue figures and margins.95 2.00 1-Jan-03 317.IIM Indore 10.95 1-Jan-06 735. In the recent year.

7 27. company declared 100% dividends.7 8.IIM Indore Note: All prices are adjusted for bonus and rights issue Group 6 Section B In the recent years. Dividend Announcements Year End 2005 2004 2003 2002 2001 2000 1999 1998 32.5 15 30 22 Table showing Dividend announcement . company has adopted a liberal dividend policy.86 2.59 27.83 Dividend Dividend (%) 100 85 85 27.5 22.96 7. In 2005.33 4.88 3.

gel and foam). It is has products in all the three categories (cream. One variant is a creamy formula featuring palm extract to hydrate and moisturize skin. This cream in a long thin tube is very easy to use. This also makes the brand much stronger than its competitor. this rich formula refreshes and against irritation. In the shaving cream market it has a good hold over the perception of the consumers. Competitor’s Analysis 10. Proctor & Gamble Old Spice is one of the top brands across world in the shaving products category.1. It is recognized by its fragrance and is seen as a macho brand. Colgate Palmolive Colgate-Palmolive has three products in the shaving cream/gel/foam segment. . As you just put onto your face and use your shaver and it will get all your stubbles of your face leaving it nice and smooth.6. this rich foam is mild on skin and helps guard against irritation. skin protects razor 10.6. Old Spice is also present in after shave market and its after shave product is very dominant in the market. Palmolive shaving creams are enriched with revitalizing sea minerals. It has a lot of products in the shaving products market.6.2. They are formulated with soothing Aloe-Vera.IIM Indore Group 6 Section B 10.

Axe and Denim. variants are few in terms of size. Group 6 Section B HLL Hindustan Lever Limited is the biggest player in the Indian FMCG market. They have bought a shaving cream manufacturing and marketing company in South Africa and are looking forward to some other alliances for the presence in global market. colors and its packaging also has many variants.4. Godrej invested heavily for the expansion in this market.6. It is targeting the price sensitive customer in the Indian market. . It has two brands in the shaving cream segment. it is still in the shopping list of many consumers. This is almost in the same segment as that of Axe in terms of price and product attributes. fragrance and packaging. Although.3.IIM Indore 10. Denim is another shaving cream from the house of HLL. HLL has extended its brand „Axe‟ which is a success in the deodorant market to the shaving creams.6. The shaving cream from Godrej is among the lowest priced shaving cream in the market. But the quality of the product is satisfactory in spite of its near about Godrej is the domestic brand of shaving cream for Indian market. The Axe shaving cream has very good awareness scores among the consumers. 10. It comes in various fragrances. Recently Godrej has half the price than its competitors.

5. Dettol is associated with antiseptic attributes and is quite popular with health conscious consumer. . Other brands like Fa and Park Avenue focus on the regular consumer by portraying themselves as a sporty cool brand by associating with adventurous lifestyles. Dettol and Park Avenue are also present in the market. Group 6 Section B Other Competitors Brands like Fa.6. Although they do not account for a very significant market share but then also the awareness of these brands is fair enough to consider them as competitors.IIM Indore 10.

7. Customer Survey Questionnaire Customer Survey: Questionnaire Name: Date: Name of interviewer: 1. What is your age? Less Than 18 18-23 years 23-28 years 28-45 years Greater Than 45 2. How often do you shave? Daily Alternate Days Twice a week Once a week At irregular intervals .IIM Indore Group 6 Section B 10. What is your occupation? Government Service Private Service Business Self-Employed Student Homemaker Others (please specify) __________ 3.

Where do you generally buy the shaving cream/gel/foam? Grocery shop Super market/ Departmental stores Specialty Stores Chemist shop Any shop near by .IIM Indore 4. What type of shaving product do you prefer to buy? Shaving Cream Shaving Gel Shaving Foam Group 6 Section B 5.

5 – Most Important) . Which brands of shaving cream/foam/gel are you aware of? (TOM – tick only one) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 8. Which of the following brands have you bought since the last six months? a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 11. Please rate the following sources of information according to the level of importance of each source (1 – Least Important. Which brands of shaving cream/foam/gel are you aware of? (Unaided recall) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 7. Which of the following brands do you use personally? (Tick only one) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 10. Which brands of shaving cream/foam/gel are you aware of? (Aided recall) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 9.Group 6 Section B 6.

How satisfied are you with Gillette shaving foam/gel? (if used) Highly Satisfied Moderately Satisfied Neither satisfied nor dissatisfied Moderately Dissatisfied Highly dissatisfied 13. If the price of your most preferred brand increases what would you do? Shift to another brand Still buy the same brand 15. 14. If you choose to shift then which Brand will you prefer? Page | 73 . If your FIRST preference is not available then what do you do? Purchase some other brand from the same shop/ store. Purchase the same brand from some other store.IIM Indore Friends Family Retailer Advertisements Packaging ___ ___ ___ ___ ___ ___ Group 6 Section B Magazines or newspapers Saloons Any Other ___ ___ 12.

(1 least important to 5 most important) No Attributes / Benefits a b c d e f g h i j k l Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts Ratin g 17. Please rate the factors given below on scale of 1 – 5 based on the importance they hold for you in purchase decision of a shaving cream/foam/gel.e.IIM Indore a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol Group 6 Section B e) Axe j) Blue Stratos n) Others (Please specify) 16. Please rate the following brands on the scale of 1-5 for the attributes mentioned below i. write 5 if you feel the attribute is good enough to fully satisfy you and mark 1 if you feel the attribute could not satisfy you. (1 fully dissatisfied to 5 fully satisfied – Show cards with the ratings on them) Page | 74 .

IIM Indore Group 6 Section B Attributes / Benefits 1 No Old Spice 2 Brands 3 4 5 6 Brand Dettol Godrej Gillette Denim chosen in Q 9 a b c d e f g i j k l M Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts 10.8. Focus Group Discussion Format    Introduction Presentation of the Purpose Discussion of the procedure FGD: Focus Group Discussion Page | 75 .

Godrej. Gillette. limited pocket money)  FG 2: Every day 5) The reason for shaving?( official/social compulsions.Gillette Shaving gel/foam. Palmolive. Godrej. Following are the questions that helped us in moderating the entire discussion and the answers that majority in the group agreed to: 1) Type of shaving: cream/gel/foam  FG 1: The college students now use gel and were using cream before  FG 2: The office goers preferred foam for its ease of use and otherwise used cream/gel 2) What product first comes to your mind when I say Shaving cream?  FG 1: The college goers were unanimous – Gillette  FG 2: The older persons went for Godrej/ Palmolive and the three younger ones said Gillette. 3) Brands you are aware of?  FG 1: came up with many brands. Dettol. only gets the job done. (The group was loyal to the razor. Focus Group 1: 3 college students from SGSITS Indore (Age : 18-22) Focus Group 2: 6 employees (managerial level) of ICICI Branch at M. Dettol) 4) How often do you shave?  FG 1: Once or twice a week (no social compulsion. (This group too was loyal to the razor. like shaving  FG 2: mainly office and personal (read “wife”) compulsions. also do not like to be seen unshaven (amounts to being unclean) 6) Does the brand of the cream/gel really matter for shaving?  FG 1: no. V-John)  FG 2: came up with many national brands ( Old Spice. Gillette. (Old Spice. We had also conducted interviews with barbers from the biggest salon in Rau.G Road (Age : 2545). but not only the traditional ones. Palmolive.IIM Indore Group 6 Section B We conducted two FGDs for our product. Park Avenue. Denim. Axe.Gillette)  Page | 76 FG 2: not really.Gillette) . like to be clean shaven)  FG 1: a time for oneself.

10) Where do you purchase?  FG 1: the nearest place or Big Bazaar  FG 2: with regular shopping 11) Currently which brand do you use? Are you satisfied?  FG 1: Gillette. especially ads. why?  FG 1:just to try out new brands.IIM Indore Group 6 Section B 7) Self shave or salon? why?  FG 1: Self. not very recently. not really. Hygiene. for a change or unsatisfied. one used electric shaver  FG 2: Gillette. 8) Have you switched brands?  FG 1: yes. Other brands. Creams aren‟t as important as aftershave and razors. not harsh on skin 16) The attributes you look for in your shaving cream/gel/foam? Page | 77 . 13) Do you buy the product yourself or your family members buy it for you?  FG 1: brand influenced by brother or father  FG 2: self purchase 14) Have you seen an ad for shaving cream?  FG 1:no. time factor. it is a time for one self. (Just one person was into experimenting with new products every time he goes to buy shaving cream/gel/foam) 9) If so.)  FG 1: smoothness. Many times decision is made before coming to store. More loyal to brands. Offers. hygiene. Decision is made at the point of purchase  FG 2: ads don‟t influence. (Inference: They haven‟t settled to for a brand)  FG 2: only sometimes. quite frequently. 15) What do you expect from a shave? (soft skin/get the job done/fragrance etc.  FG 2: Don‟t have time to watch television. Cinthol. get the job done  FG 2: get the job done. Denim 12) Information search?  FG 1: ads don‟t influence. have lots of time for self shave  FG 2: Self.  FG 2: no.

They had 4 attributes that overlapped as shown. Offers/Discounts. 17) What do you expect from a shaving cream?  FG 1: smooth shave  FG 2: good lather.IIM Indore Group 6 Section B The two groups together came up with 12 attributes after a few minutes. Brand name. smooth and quick shave 18) Are you aware that weight to weight Gillette is costlier than all other brands? Page | 78 . Availability in stores . FG 1: Price Stylish package design Antiseptic attribute Color of the cream/foam/gel Lather formation Availability in stores Offers/Discounts Brand name FG 2: Ease of Use Keeps the skin soft Ingredients Fragrance Lather formation Availability in stores Offers/Discounts Brand name COMMON ATTRIBUTES: Lather formation.

10. Age Profile of Sample Population 10. 10.IIM Indore   FG 1:yes FG 2:yes Group 6 Section B 19) Do you know the difference in pricing of Gillette?  FG 1:The group wasn‟t surprised with the price catalogue we provided  FG 2: The group was surprised 20) Would you still keep buying Gillette even if the price was further raised?  FG 1: Depends on the pocket money we get  FG 2: Yes 21) What do you think of Gillette?  FG 1: The best brand  FG 2: Better compared to others 22) Why Gillette?  FG 1: Good quality of shave  FG 2: Better shaving experience. very satisfied.9. Shaving Product Preference Page | 79 .

Recall Pattern 77% Unaided Recall of Gillette Brand Top of Mind Recall of Gillette Brand 56% Page | 80 .IIM Indore Group 6 Section B 10.12. Place of Buying 10.11.

14.IIM Indore Aided Recall of Gillette Brand 89% Group 6 Section B 10. User Preference 10.13. Brand Loyalty in Shaving Cream/Gel/Foam Market If your FIRST preference is not available then what do you do? Option 1 Page | 81 Purchase some other brand from the same shop/ store .15. Brand Satisfaction of Gillette 10.

IIM Indore Option 2 Purchase the same brand from some other store Group 6 Section B 10.16. Price Sensitivity in Shaving Cream/Gel/Foam Market If the price of your most preferred brand increases what would you do? (Q 14) Option 1 Option 2 Shift to another brand Still buy the same brand Page | 82 .

18.IIM Indore Group 6 Section B 10. Brand Preference based on Individual Attitude score Page | 83 . Ao = Attitude toward the object (brand) bi = belief about the brand‟s possession of the attribute ei = evaluation of the attribute as being good or bad n = there are a limited number (n) of attributes which the person will consider 10. Fishbein Analysis Fishbein Attitude Model  n Ao = biei i=1 where.17.

665 12.922 Cumulative % 24.411 .111 77.078 100. Factor Analysis Total Variance Explained Initial Eigenvalues Total % of Variance 24.500 .501 1.208 39.905 1.699 Cumulative % 24.491 88.768 .426 2.19.272 92.383 62.781 4.208 39.861 98.574 .837 .029 6.905 1.20.699 8.208 15.880 1.164 % of Variance 24.383 62.082 1 2 3 4 5 6 7 8 9 10 11 12 2.IIM Indore Group 6 Section B 10.501 1.873 52.000 Extraction Sums of Squared Loadings Total 2.208 15.873 52.088 83.231 Extraction Method: Principal Component Analysis.217 1.963 .164 .435 95. Page | 84 .266 .665 12.510 9.082 70.163 3.403 4. Average attitude perception score of each brand 10.977 6.510 9.880 1.

390 .317 cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts Extraction Method: Principal Component Analysis. Page | 85 .197 -.153 .049 .048 -. a 4 components extracted.138 .628 .011 -.006 .329 .373 -.341 .347 .026 .302 -.429 .144 -.065 .549 .366 .087 -.653 .654 .086 -.018 .113 4 -.742 .654 .310 -.391 .597 .448 .455 .145 -.596 3 .203 .230 -.744 .589 -.317 -.023 .IIM Indore Group 6 Section B Component Matrix(a) Component 1 Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving -.379 2 .011 -.084 -.584 .446 -.677 .

0 Eigenvalue 1.5 1.0 1 2 3 4 5 6 7 8 9 10 11 12 Component Number Page | 86 .IIM Indore Group 6 Section B Scree Plot 3.0 0.5 0.0 2.5 2.

IIM Indore Group 6 Section B 10. Perceptual mapping Page | 87 .21.

IIM Indore Group 6 Section B Page | 88 .

IIM Indore Group 6 Section B Page | 89 .

7 2 2.8 2 3.4 2 1.8 3 2. Cluster Analysis Two Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.3 3 3.000 84.2 2.8 2 2.000 48.0 Number of Cases in each Cluster Cluster 1 2 36.000 .1 1.4 3 2.9 3.8 Number of Cases in each Cluster Page | 90 .8 2 4.7 2.000 Valid Missing Three Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 2.IIM Indore Group 6 Section B 10.0 3.22.

6 3 3.5 3 2.000 Page | 91 .0 2.6 2.8 3.000 34.5 2 2.000 30.000 22.000 84.2 4 3.6 Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing 16.000 10.2 3 3.5 3 1.000 .6 2 2.2 3.000 84.000 28.000 Group 6 Section B Four Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.000 .IIM Indore Cluster 1 2 3 Valid Missing 28.

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