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What strategies a new company entering Pakistan should adopt to compete effectively Against Gillette?
Comsats Institute of Information Technology Marketing Theory & Practice Tutor: Kaleem ullah Muhammad
Authors Masood Anwer-sp09-mba-205 Jawad ahmed-sp09-mba-063 Khawar malik-sp09-mba-067 M Ifrad-sp09-mba-089 Irfan sharif-sp09-mba-058 Irfan arshad-sp09-mba-057 M.Asad-sp09-mba-085
Date Course name Program Group May 25, 2009 Marketing Theory & Practice MBA Masood Anwer Jawad Ahmed Khawar Malik M Ifrad Irfan Sharif Irfan Arshad M.Asad Kaleem ullah Muhammad
Tutor Title What strategies a new company entering Pakistan should adopt to compete effectively against Gillette? Problem Statement What strategies a new company entering Pakistan should adopt to compete effectively against Gillette? Purpose Statement The purpose of this research is to develop market strategy, price strategy to compete effectively against Gillette. Limitations We have the time of two weeks which is not sufficient and the country is in the situation of recession. We use the area of COMSATS University for questionnaire filling. Target Audience Management of Gillette, all stakeholder of Gillette and the people who want to start the business of shaving range manufacturing. Conceptual Framework The conceptual frame work includes two models: 5 P’S and swot analysis. Marketing 5 P’S looks at the price, product, promotion, placement, and packaging trends of the competitor company (Gillette). Swot analysis looks at the strengths, weakness, opportunities and threats of the competitor. Methodology For this research, authors have collected primary and secondary data to collect the information needed. The primary data was collected by a survey according to the models used for the assessment. The survey was conducted by a questionnaire. The secondary data was collected by internet and books. Conclusions. From primary data it is obvious that people are not satisfied with the pricing of the Gillette and promotion is also lacking the same finding was revealed that price and promotion is the weak points of the Gillette.
During our research, many people have helped us to make our work possible. We would like to take this opportunity to show our appreciation to all. People who have been encouraging and advising us throughout this project. First we would like to show our gratitude to our tutor Kaleem-Ullah-Muhammad for his great support and continuous help from day one of taking on this project. Second, we would like to thanks Mr. Abdul shakoor who helped us in making this report possible and also Ayaz reshi who helped us in this project. Thirdly, special thanks goes to our class mates and university fellows who helped and support us a lot in this project and cooperate with us in filling of questioner and providing suggestions. Last but not the least we would like to thanks our parents and families for their continuous support from the start till the completion of this work.
Authors Masood Anwer Jawad Ahmed Khawar malik M Ifrad Irfan sharif Irfan arshad M.Asad
This marketing plan provides a complete assessment of market for the launch of a new product range which can compete effectively against Gillette in Pakistan. 1.1 Market Research Process Marketing research process is a set of six steps which defines the tasks to be accomplished in conducting a marketing research study. These include problem definition, developing an approach to problem, research design formulation, field work, data preparation and analysis, and report generation and presentation.
1.1.1 Stages of marketing research process Stages of marketing research process involves six steps 126.96.36.199 Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. 188.8.131.52 Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic 184.108.40.206 Research Design Formulation Research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing
appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis
220.127.116.11 Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with persecuted households). Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors. 18.104.22.168 Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. University techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. 22.214.171.124 Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and present the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used
in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.
Market research process
Stages of market research process
Development of an approach
Research design formulation
Field work data collection
Data preparation & analysis
Data preparation & analysis
Figure 1: Market Research Process 1.2 Gillette Background 1.2.1 Company overview Gillette is a brand of Procter & Gamble currently used for safety razors among other personal hygiene products. Based in Boston, Massachusetts, it is one of several brands originally owned by The Gillette Company, a leading global supplier of products under various brands, which was acquired by P&G in 2005.Their slogan is “The Best a Man Can Get” The Gillette Company was founded by King C. Gillette in 1901 as a safety razor manufacturer. It was based in Boston, Massachusetts, United States. On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading - symbol G on the New York Stock Exchange - was September 30, 2005. The merger created the world's largest personal care and household products company. In addition to Gillette, the company marketed under Braun, Duracell and Oral-B, among others, which have also been maintained by P&G. The Gillette Company's assets were initially incorporated into a P&G unit known internally as "Global Gillette". In July 2007, Global Gillette was dissolved and incorporated into Procter & Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household Care. Gillette's brands and products were divided between the two accordingly. 1.2.2 History In 1895 King C. Gillette, an ambitious traveling salesman, had two problems. One was his dulled razor and the other was his lack of a "right" product to market. Gillette envisioned an inexpensive, double-edged blade that could be clamped over a handle, used until it was dull, and then discarded. Gillette spent about six years trying to perfect his safety razor, despite pessimistic views of scientists and tool-makers. In 1901 Gillette joined forces with William Nicker-son, a Massachusetts Institute of Technology-educated machinist, who helped Gillette form the American Safety Razor Company. While Gillette raised the $5,000 they needed, Nickerson developed production processes to make Gillette's idea a reality. In 1903, with Gillette as the president of a three-person directorate, the company began production of razors. In October 1903 the company was renamed the Gillette Safety Razor Company. Product advertising began that year. In 1904 Gillette received a patent on the safety razor and bought a six-story building in Boston. The company paid its first cash dividend in 1906. While earnings increased steadily due to print advertising, Gillette also concentrated on international expansion. In 1905 a London sales branch was established; followed in 1909 by a small manufacturing plant in Paris; and offices in Germany, Austria, Scandinavia, and Russia. Foreign business accounted for 30 percent of Gillette's profits by 1923. King Gillette fought off challenges for control of the company from John Joyce, a major investor in the company. Gillette bowed out in 1910 after selling a substantial portion of his controlling share to Joyce. Even though Gillette retained the title of president, Joyce
took charge of the active management of the company until he died in 1916. Edward Aldred, Joyce's long-time friend and an investment banker, bought Joyce's interest in the company, retained Joyce's management team, and took control. Gillette supplied 3.5 million razors and 36 million blades to troops during World War I, earning a large number of new loyal customers. Five hundred new employees were hired. In 1921 when Gillette's patent expired, a new and improved safety razor, which sold at the price of the old one, was introduced. Growth and expansion, both domestic and foreign, continued. The company received favorable publicity when it became royal purveyor to the Prince of Wales in 1922 and to King Gustav V of Sweden in 1924, and when the Paris office gave Charles Lindbergh a Gillette Gold Traveler set the day after he completed the first transatlantic flight. At the end of the 1920s Gillette faced two major problems that led to a loss of confidence in the company and lower stock prices. In 1929 Stock prices fell from a high of $125 to $18. This crisis led to management reorganization. Gillette made a bold advertising move when it admitted that the blade it had introduced in 1930 was of poor quality. The company then introduced what became its most recognizable product, the Blue Blade. Even though the Blue Blade kept Gillette a leader in the field, profits remained disappointing through the Depression. In 1939 Gillette restored the company's advertising budget, relying successfully on heavy broadcast sports advertising. During World War II almost all of Gillette's production went to the military. Even though foreign production and sales declined domestic production more than made up for it. The backlog of civilian demand led to record sales until 1957. During this time Gillette started broadening its product line by introducing brushless shaving cream; ball-point pens and home permanents were added to the product line through acquisitions. Gillette reorganized in 1964 as a diversified consumer products company. It pursued the strategy of internal development of new product lines and acquisition of other companies to add to its product lines. This strategy brought mixed results. New products, which included Toni hair-color products, Earth Born shampoos, luxury perfumes, and small electronic items (smoke alarms, watches, and calculators) all failed. The acquisition of the West German Braun Company gained the company entry into the European electricshaver market, but a Justice Department antitrust suit prevented Gillette from introducing the Braun shaver in the U.S. market until 1984. Other companies acquired in this period, including Eve of Roma perfume, Buxton leather goods, Welcome Wagon, and Hydroponics Chemical Company never found the right fit with the company and was later sold. Colman M. Mockler Jr., who came to Gillette in 1957, took charge of the company in 1975. Mockler sorted through all the new acquisitions, sold off the least successful ones, and retained those that either were successful or had a good line of products that needed to be marketed more efficiently. Mockler also increased Gillette's advertising budget and undertook company-wide cost cutting measures. In 1984 Gillette acquired Oral-B, enabling it to branch into dental-care products. The growing fear of fluorocarbons was one of the biggest problems faced by Mockler. He eventually replaced the propellant in Gillette's aerosol cans. This move was followed by new product launches, which recovered a quarter of the deodorant market for Gillette. Bic was a French competitor that threatened Gillette's pen and Cricket lighter products. Once again Gillette countered by competing with Bic on price while emphasizing the
higher quality of its pens and lighters. By 1980 Gillette had improved profitably despite Bic's challenge. 1.2.3 Product Range 126.96.36.199 Razors Safety razor (Gillette Safety Razor invented in 1895 and patented in 1904) Razor marketed specifically to women (Milady Décolleté, 1916) Razor dispenser (1946) Stainless Steel blades (Super Stainless, 1963) Double-blade razor (Trac II, 1971) Disposable double-blade razor (Good News!, 1976) Razor with a pivot point (Atra/Contour, 1977) Razor with a lubricating strip (Atra/Contour Plus, 1985) Razor with spring-loaded blades (Sensor, 1990) Razor with microfins (Sensor Excel, 1995) Razor with three blades (Mach3, 1998) Manual Razor with battery power (M3Power, 2004) Razor with five blades (Fusion, 2007) Razor with rear trim blade (Fusion, 2007) Fig: 2 Source: www.Googleimages.com
188.8.131.52 Foams Gillette foam regular Gillette foam moisturizing Gillette foam sensitive skin Gillette fusion tough beard hydra shaving foam Gillette fusion sensitive skin shaving foam Gillett lemon and lime shaving foam Gillette comforts glide lemon and lime shaving foam Gillette comforts glide lemon and lime shaving foam Gillette Mach 3 shaving foam Gillette shaving foam pacific Fig: 3 Source: www.Googleimages.com
184.108.40.206 After shave lotions Gillette series after shave lotion sensitive skin. Gillette fusion aftershave hydra cool balm. Gillette fusion aftershave hydra sooth balm. Gillette fusion aftershave splash cool wave. Gillette Series aftershave gel sensitive skin. Gillette series aftershave lotion. Gillette series aftershave hydra cool gel. Fig: 4 Source: www.Googleimages.com 1.3 Financial standings
Annual Revenue: $83.5 billion USD (▲10% FY 2008) · Employees: 138,000 · Stock Symbol: NYSE: PG · Source: www.pg.com 1.4 Brand worth Some of Gillette’s profit and sales may not have been due to the direct worth of the product, but due to it being presented to the public from a well-known company. In 1999 Gillette, as a company, was worth US$43 billion and it was estimated that the brand value of Gillette was worth US$16 billion. This equated to 37% of the company’s value, which was the same as DaimlerChrysler, one of the world's largest car manufacturers at the time.
1.5 Gillette in Pakistan Gillette is operating in Pakistan for several years. Gillette Pakistan Limited is engaged in marketing and selling of blades and razors, personal care products, alkaline batteries, household appliances and oral care products, and contract manufacturing of toothbrushes. On October 1, 2005, Procter and Gamble Company, USA (P&G) acquired The Gillette Company, USA, previously and the parent company. B.V. Netherlands is the wholly owned subsidiary of P&G, USA. 1.5.1 Key persons in Pakistan
Chairman of the Board Chief Executive Officer, Director Secretary, Director Saad Khan Hans Dewaele Saeed Akram
1.5.2 Financial standing in Pakistan Gillette Pakistan Ltd has posted a profit after tax of Rs 78.075 million for nine months of 2008-09, but did not declare dividend. According to financial results dispatched to Karachi Stock Exchange here on Monday, pre-tax profit surged to Rs 96.329 million as earning per share improved to Rs 4.07 during the period ending March 31, 2009. 1.6 Problem Statement What strategies a new company entering Pakistan should adopt to compete effectively against Gillette? 1.7 Purpose Statement The purpose of this research is to develop market strategy, price strategy to compete effectively against Gillette. 1.8 Target Audience Management of Gillette, all stakeholder of Gillette and the people who want to start the business of shaving range manufacturing. 1.9 Limitations We have the time of two weeks which is not sufficient and the country is in the situation of recession. We use the area of COMSATS University for questionnaire filling.
2. Conceptual Framework
The authors are presenting three models in the consecpual framework. The first model is marketing mix. Second model used is swot analysis amd third one is tha rule of three. 2.1 Five P’s 5 P’s include product, price, placement, promotion and packaging. 2.1.1 Product A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. 2.1.2 Price
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. 2.1.3 Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. 2.1.4 Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. 2.1.5 Packaging The activities of designing and producing the container or wrapper for a product are called packaging. Package may include primary container e.g. the tube holding the Colgate toothpaste, a secondary package is thrown away when a product is about to be uses e.g. the card board box containing the tube of Colgate, shipping package s necessary to store identify and ship the product e.g. a corrugate box containing six dozen tubes of Colgate toothpaste.
Variety Quality Design Features
List price Discount Allowances Credit terms
Channels Coverage Locations Logistics
Advertising Personal selling Sales promotion Public relation
Primary packaging Secondary packaging Shipping packaging
Figure: 5 model of 5 P’s
2.2 Swot Analysis Swot analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
Figure: 6 Swot analysis model Source: www.googleimages.com 2.2.1 Strength Attributes of the person or company those are helpful to achieving the objective. 2.2.2 Weakness Attributes of the person or company those are harmful to achieving the objective 2.2.3 Opportunities External conditions those are helpful to achieving the objective. 2.2.4 Threats External conditions which could do damage to the business's performance
2.3 Rule of three Porters rule of three gives three types of strategies to compete in the market. After assessing the market with the help of swot analysis now an appropriate competitive strategy has to be selected that is one which fits the competitive strengths.
Rule of 3
Figure: 7 rule of three Source: Authors
2.3.1 Cost leaders A business or competitive strategy in which the organization competes on the basis of having the lowest cost in its industry. Cost leadership strategy a low cost leader aggressively searches out efficiencies in production marketing and other areas of operations overhead is kept to a minimum and the firm does not everything it can to cut cost. 2.3.2 Differentiation A business or a competitive strategy in which a company offers unique products that are widely value by customers. Sources of differentiation might be exceptionally high quality extra ordinary service innovative design technological capability or an unusually positive brand image. The key to this competitive strategy is that what ever product service attributes is chosen for differentiating must set the firm apart from its competitors and b significant enough to justify a price premium that exceeds the cost of differentiation.
2.3.3 Focus marketing A business or competitive strategy in which a company peruses a cost or differentiation advantage in a narrow industry segment. “That is managers select a market segment in an industry and attempt to exploit it rather than serve the broad market segment based on product variety type of end wire distribution channel or geographical location of buyer.
Topic of interest
Problem & Purpose Statement
Swot analysis Rule of 3
Finding & analysis conclusions
The methodology section is presenting the basic research processes the authors have used, the approach used to find an answer to the research questions, choices of topic selection, the literature reviewed, the methods used to collect primary and secondary data. It will also present the analytical perspective, Conclusions and recommendations as well as the limitations of the research. 3.1 Research Process In this research the authors have decided to follow the research process Described below: The research process stars from topic of interest where authors select the topic. Overall the topic selection included identification of problem and purpose of the chosen topic. After identification of problem and purpose statement the author did the conceptual framework in which three models are used. The first model is 5 p’s and the second method is SWOT analysis and the third method is Rule of three. The primary and secondary data was collected. The primary data was collected through questioner and the secondary data was collected through literature books and from the internet. after the collection of data the data was analyzed and concluded in order to come up with recommendations for target audience. 3.2 Topic selection This part explains in details why the authors have chosen this specific topic for the research. 3..2.1 Interest and Relevance The author wants to select the topic in the field of their interest and relevant. The author selects the topic which is to derive a strategy for launching a new product competing against Gillette effectively. The strategy includes price strategy, marketing strategy. Gillette is the multi national company which have great quality in their product but their prices are also high. The new company entering to a market competing against Gillette give first priority to the price of their product as well as other necessary things. As the Gillette is also a market leader so the new company will also give priority to the marketing strategy. For competing against Gillette it is also a difficult task but also a very interesting one. To device a strategy that will be suitable for a new company that have a ability to capture the market share of Gillette. There were several reasons for selecting the topic and competing against Gillette. 1. Gillette is the market leader and most of the market share is captured by Gillette. 2. The price of the Gillette product is also high. 3. The Gillette product is also not accessible to lower class.
The topic of this research is also a durable as the new company can use the author recommendations in the long run as they can apply the improved suggestion in the long term perspective. There is the chance that the policy of the Gillette might be changed with time but the research can be useful for the new company for competing against Gillette and also capturing the market share of Gillette. 3.2.3 Topic adequacy According to the topic requirements for this research the topic has to in the field of marketing. The research topic fulfills the requirements and marketing strategy is the core focus. Marketing strategy is the wide topic which covers many things but the author narrowed it down to 5 P’s. The topic involves not just strengths and weakness of Gillette and also the opportunities and threats of new company. The author found this topic to be adequate for the research purpose because of its practical importance to the company as well as its long term usefulness of the company. 3.2.4 Access Access to information is very important throughout the whole research process. The fact that a lot of information is given Gillette in the internet and also about marketing strategy information is given in internet and books. 3.2.5 Resources There is a lot of work done in books and internet on marketing and price strategy. The resources for collecting primary data are questioner and for the secondary data the author use internet and books. Questioners are filled by university student therefore the primary data is collected from university students. There are many different theories also which representing different perspectives. These works allowed the authors to go Through as many of them as they could during the limited time for the research to Come up with an accurate understanding of the concept of price and marketing strategy for a new company. The other models allow the author to implement the strategies in a better way. This research work involves using differed software and tools especially Ms Office. However the authors took the data from the questioners and used Microsoft Excel to present the interpretation of the information collected. The soft wares haven’t been too complicated for the authors to use and they found them to be of great use to them to effectively present and analyze the findings. 3.3 Literature Review This chapter discusses the literature used by different authors and sources, which have been used for building up the knowledge of research to find the core theories for the theoretical framework. In general we used five P’s, swot analysis and rule of there.
Product means the goods and services combination the offers to the company offers to the market. Thus a food Escape consist of nits and bolts ,spark plugs, piston, headlights, and thousand of other parts. Food offers several escape models and dozens of optional features. The car comes fully serviced and with a comprehensive warranty that is as much a part if the product as the tailpipe, 3.3.2 Price Price is the amount of money customers have to pay to obtain the product. Ford calculates suggested retail price that its deals might’s charge for each Escape. But ford dealers rarely charge the full sticker price. Instead they negotiate the price with each customer, offering discount, trade allowances, and credit terms. Theses actions adjust price for the current competitive situation and bring into line with the buyers perception of the cars value. 3.3.3 Place Place includes company activities that make the product available to target consumers. Ford partners with a large body of independently owned dealerships that sell the company’s many different models. Ford selects its dealers carefully and supports them strongly. The dealers keep an inventory of Ford automobiles, demonstrate them to potential buyers, negotiate price, close sales and service the cars after the sale. 3.3.4 Promotion Promotion means activities that communicate the merits of the products and persuade target customers buy it. Ford Motor Company spends almost 2.4 billion each year on advertising more than 600 per vehicle, to tell customers about the company and its many products. 3.3.5 Packaging Strong, imaginative packaging should embody all your brand values, representing all your business stands. 3.4 SWOT Overall evaluations of company’s strength, weakness, opportunities and threats. Strength: Internal capabilities that may help a company reach its objectives Weakness: Internal limitations that may interfere with a company’s ability to achieve its objectives. Opportunities: External factors that the company may be able to exploit to its advantage. Threats:
Current and emerging external factors that may challenge the company’s performance.
3.5 Rule of Three: 3.3.1Cost Leader 3.3.2 Product leader 3.3.3 Focus Market
4. Finding & analysis conclusion
4.1 Findings from Primary Data The findings from the survey conducted about the product, price, place, promotion and packaging of the targeted competitive i.e. Gillette 4.1 Background and General Questions From the general question asked in the survey it was found that almost 93 % people are from the ages of 20 to 25. 75% people use Gillette products remaining 25% are using different products available in the market. Those not users of Gillette are using because others brands mainly due to price affordability. 4.1.1 Price of Gillette 1. The price of Gillette is affordable? Strongly agree Agree Uncertain Disagree Strongly disagree This question was asked about the price of Gillette to assess that are people satisfied with the price of Gillette.
Level Of Satisfaction strongly agree agree uncertain disagree strongly disagree
Out Comes 6 19 14 43 9
Table: 1 showing level of satisfaction or dissatisfaction about price of Gillette Source: survey conducted
Graph: 1 showing level of satisfaction or dissatisfaction about price of Gillette
The survey result show that most of the people are not satisfied with the price of the Gillette.55% people are disagree about the price of Gillette. 14% are uncertain about the price and 31% are satisfied with the price of the Gillette. 4.1.2 Product of Gillette 2. The Gillette offers best quality? Strongly agree Agree Uncertain Disagree Strongly disagree This question was asked about the products of Gillette to assess that are people satisfied with the products of Gillette.
Level Of Satisfaction Strongly Agree Agree Uncertain Disagree Strongly Disagree Out Comes 24 55 7 4 1
Table: 2 showing level of satisfaction or dissatisfaction about products of Gillette Source: survey conducted
Graph: 2 showing level of satisfaction or dissatisfaction about products of Gillette The survey result shows that most of the people are satisfied with the products of Gillette. The Gillette is offering best products with distinct features .87% people are satisfied with the products of Gillette.8% people are uncertain about the products of Gillette and only 5% people seems to be dissatisfied with the products of Gillette.
4.1.3 Placement 3. The Gillette is easily available in your area? Strongly agree Agree Uncertain Disagree Strongly disagree This question was asked about placement of Gillette weather Gillette is easily available every where?
Level Of Satisfaction Strongly Agree Agree Uncertain Disagree Strongly Disagree Out Comes 18 53 14 4 2
Table: 3 showing level of satisfaction or dissatisfaction about placement of Gillette Source: survey conducted
Graph: 3 showing level of satisfaction or dissatisfaction about placement of Gillette The survey result showed that most of the people are satisfied with placement and distributions of Gillette.78% people are satisfied with the placement 15% people are uncertain. 7 % are dissatisfied with placement of Gillette.
4.1.4 Promotion 4. Gillette commercials are often seen? Strongly agree Agree Uncertain Disagree Strongly disagree This question was asked about the promotion of Gillette.
Level Of Satisfaction Strongly Agree Agree Uncertain Disagree Strongly Disagree Out Comes 14 12 18 40 7
Table: 4 showing level of satisfaction or dissatisfaction about promotion of Gillette Source: survey conducted
number of person
50 40 30 20 10 0
le ve l s atis faction
Graph: 4 showing level of satisfaction or dissatisfaction about promotion of Gillette The survey results showed that most of the people are not satisfied with promotions of the Gillette. 52% people are not satisfied and 19% people are uncertain showing that only 29% people are satisfied with the promotions.
4.1.5 Packaging 5. You are satisfied with the packing of Gillette? Strongly agree Agree Uncertain Disagree Strongly disagree
This question was asked about packaging of Gillette to assess weather people are satisfied with the packaging of the Gillette.
Level Of Satisfaction Strongly Agree Agree Uncertain Disagree Strongly Disagree Out Comes 28 47 9 5 2
Table: 5 showing level of satisfaction or dissatisfaction about promotion of Gillette Source: survey conducted
Graph: 5 showing level of satisfaction or dissatisfaction about packaging of Gillette The survey result showed that most of the people are satisfied with the packaging of the Gillette. 82% people are satisfied and 10% are uncertain. Only 8% people are dissatisfied with the packaging.
The purpose of the questionnaire to device a strategy to launch a product range which can compete against Gillette
6. Name(optional) ______________________ 7. Age Group 20-25 26-30 31-35 36-40 41-45 8. Do you shave regularly? Yes No 9. Do you use Gillette shaving products? Yes No If NO fill Section “B” If YES fill Section “C” 46-50
10. Which brand you use for shave? _____________________________________________________________________ 11. Why You Use above written brand? Price Quality Nearly available After watching advertisement Attractive packing
12. The price of Gillette is affordable? Strongly agree Agree Uncertain Disagree Strongly disagree 13. The Gillette is easily available in your area? Strongly agree Agree Uncertain Disagree Strongly disagree 14. The Gillette offers best quality? Strongly agree Agree Uncertain Disagree Strongly disagree 15. Gillette commercials are often seen? Strongly agree Agree Uncertain Disagree Strongly disagree 16. You are satisfied with the packing of Gillette? Strongly agree Agree Uncertain Disagree Strongly disagree
17. Your comments about Gillette? ________________________________________________________________________
4.2 Findings from Secondary Data
From the secondary data which was collected through websites and books. The internet was used to look at the financial reports and any articles about Gillette. Magazines were also reviewed to get any appropriate information which can be help full. After reviewing the above written medium it was found that Gillette is weak as far as price is concerned and as Gillette has generated reasonable goodwill people are buying it regularly so there is no need for more promotion.
4.3 Swot analysis
In this section the authors have done a swot analysis of the situation in the context to the questionnaire. From the result of the survey it is concluded
4.4 Overall Conclusions
From primary data it is obvious that people are not satisfied with the pricing of the Gillette and promotion is also lacking the same finding was revealed that price and promotion is the weak points of the Gillette.
The recommendations are based upon the conclusion and to give the recommendation the third model is used now. From the finding it is concluded that Gillette can be competed on the basis of price and promotion. According to the rule of three to compete in the market any organization can adopt three approaches Cost Leaders Differentiation Focus Marketing
In this case if any company wants to compete against Gillette in Pakistan. The company should adopt the 1st which is cost leader. New company should do every thing reduce the cost. By doing this price of products can be reduced. Differentiation can not be adopted because the most of the people are satisfied with the products of Gillette.
New company can also effectively compete against Gillette on the basis of focus marketing. Company can target the age groups 20 to 25. The survey result shows the age group is mostly using the Gillette. By doing aggressive promotion campaign. This age group can be exploited by lowering the price with the help of cost leader and by attractive promotions.
The purpose of the questionnaire to device a strategy to launch a product range which can compete against Gillette
18. Name(optional) ______________________ 19. Age Group 20-25 26-30 31-35 36-40 41-45 20. Do you shave regularly? Yes No 21. Do you use Gillette shaving products? Yes No If NO fill Section “B” If YES fill Section “C” 46-50
22. Which brand you use for shave? _____________________________________________________________________ 23. Why You Use above written brand? Price Quality Nearly available After watching advertisement Attractive packing
24. The price of Gillette is affordable? Strongly agree Agree Uncertain Disagree Strongly disagree 25. The Gillette is easily available in your area? Strongly agree Agree Uncertain Disagree Strongly disagree 26. The Gillette offers best quality? Strongly agree Agree Uncertain Disagree Strongly disagree
27. Gillette commercials are often seen? Strongly agree Agree Uncertain Disagree Strongly disagree 28. You are satisfied with the packing of Gillette? Strongly agree Agree Uncertain Disagree Strongly disagree
29. Your comments about Gillette? ________________________________________________________________________ _______________________________________________________________________
6.1 Internet 6.1.1 www.wikipedia.com (SWOT analysis) 6.1.2 www.google.com 6.1.3 www.Gillette.com 6.1.4 www.gillette.com.pk 6.1.5 www.googleimages.com 6.1.6 www. P&G.com 6.2 Books 6.2.1 Principles of Marketing by Philip kolter (5 P’s) 6.2.2 Introduction to Management by Mary Coulter (Rule of three)
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