This action might not be possible to undo. Are you sure you want to continue?
Aditya Mohan (024) Gargi Banerjee(034) Kritika Jaiswal(045) Kavita Rai(044) Nishtha Sharma(059)
1901,founded in Boston, USA by King Camp Gillette. 1903- developed revolutionary safety razor. Slowly built brand image through clear association between shaving and Gillette. Gillette India started in 1984.
P&G acquired Gillette in 2005 in a $57 billion deal.
Own plant at Bhiwadi, Haryana, Rajasthan and Karnataka.20% lower than plants at China. 2007-454 crores and 20% production exported. Gillette’s profit declined 15% to INR 265.20 million last quarter. 55% market share in women razor market and 80% market share in men’s personal grooming market.
P&G M&A 2005 -$ 57 billion
Strategic fit, scale. More trade muscle. Hi-growth market entry. No Unilever presence. $21 bn brands, $200 bn mkt cap.
Part of a FMCG giant. Consummate marketer. Adds innovation skills. Gillette global reach. Men’s grooming synergy.
Shaving Range – The Product Mix
Entry level disposables(Gillette presto). Basic twin blade razors. Sensor Excel and its variants. Mach3 and its variants( like mach3 Turbo) Gillette series – Shave gel, foam, after shave, cooling gel, after-shave balm & splash, anti-perspirants, deodorants and shower-gels. Gillette Venus range for women.
Customer Level Hierarchy
Basic Product. Expected Product. Augmented Product.
Brands en route – Gillette leads by example. Brand Image built on Common needs. Brand Globalization strategies used by Gillette:1. Brand Leverage. 2. Brand Coverage.
Significant expansion since the safety razor. Cater to diverse segments. Grooming range meets all consumer needs. Covers sensitive price points. Fully integrated grooming solution for men. Acknowledged master in persuading men to trade up to more expensive shaving systems.
Gillette and the Market
Gillette presents the classic example of innovation as product extension. Constant innovation – very good product Management. Catalyst – fundamental change in men’s attitude to grooming process. Influential sportsman make men care consciously about their appearance. Maturing of male grooming and female grooming market.
Strong and sustained investment in advertising. Gillette brand-incredibly high recognition rate. 1980’s – “The best a man can get” campaign, highly successful. Massive influence, recalling and salience. New wave of advertising for each product launch separately and focus on product bundling. Focus- brand values, innovation & cutting edge technology. Aim - educate customer on product advancement and improved shaving performance.
Strategic restructuring. Launching innovative and superior products. 2004- back to ‘ the best a man can get’ ads. Original, emotive campaign but with a new & enhanced look. Strong black & white imagery, updated song. Far more emotional connect between Gillette and consumer. Product specific advertising to run alongside the campaign, communicating technological product superiority. Sports Marketing.
Innovation. Emotional Connect. Not easily replicable technology.(Mach III, fusion, M3power etc.) Strong Brand Image. Advertising. Events Sponsorship (cricket, soccer, tennis). Provides superior total grooming solution.
• • •
Gillette is the market leader globally. Competitors are very far and few. In India competition is mainly in the shaving foam, creams, gels, and after-shave market. Competition from :1. Colgate-Palmolive (Palmolive umbrella) 2. Proctor & Gamble . (Old Spice) 3. HLL . (Axe & Denim) 4. Godrej. 5. Fa. 6. Dettol. 7. Park avenue
Four basic strategies of Gillette
Innovate. Move Fast or Lose out. Heavy promotions and advertising.