Professional Documents
Culture Documents
Introduction
Furthermore, the Gillette razor offers distinctive qualities that set it apart from competitors, allowing
it to maintain its position as a top men's grooming brand in Vietnam.
other competitors lack, which make Gillette earn its place as a leading men’s grooming brand in
Vietnam
1. Company Description
1.1. Company
King Camp Gillette founded the Gillette Company in 1901 as a safety razor
manufacturer (FundingUniverse n.d.). As of October 1, 2005, The Gillette Company is a
subsidiary of The Procter & Gamble (P&G) Company headquartered in Boston,
Massachusetts (Forbes 2020). The Gillette Company manufactures and distributes men's
care products: power and manual razors and razor blades; shave gels, foams, creams;
skincare and aftershave products; antiperspirants and deodorants; and thermal scrubs,
sensitive face wash products, intensive cooling lotions, UV moisturizers the one’s body
wash product (Gillette Crunchbase n.d.).
In 1995, they entered the Vietnam market (Brunsman 2015). After 20 years in
Vietnam, Gillette launched its company in Binh Duong Province (VnExpress 2015). Thanks
to thon, Vietnamese customers can use this brand product in their own country (Gillette
Crunchbase n.d.).
1.2. History
1895: King Gillette came up with the idea, developing the concept into a working
model and drawings protected (Gillette n.d.).
1901: Gillette and other project members founded The American Safety Razor
Company after getting stuck with manufacturing the blade within six years (Gillette
n.d.).
1995: Gillette entered the Vietnam market after the government opened to
commerce among Western countries (Gillette n.d.).
2015: P&G Parent Company invested 100 Billion Dollars in operating Gillette
Factory in Vietnam (The Saigon Times 2015).
2020: P&G donated 15 billion VND and personal hygiene kits (Gillette, Ariel,etc) to
support Vietnam during Covid-19 (Vietnam Investment Review 2021).
2021: P&G continues to invest money for the reconstruction of Gillette manufactory
(Vietnam Construction 2021).
1.3 CEO
According to The Marketing Society (n.d.), Gary Coombe oversees P&G's global
grooming business, including the world's largest shaving brands, including Gillette,
Venus, Braun, joy, and The Art of Shaving. The grooming business accounts for 10% of
total company revenue, serving nearly 800 million customers worldwide (The Marketing
Society n.d.).
2. Product description
Gillette Fusion5 Proglide Power Razor uses Flexball Handle Technology which
allows the blades to respond to the contours of the face to get virtually every hair (Amazon
n.d.). According to Gillette (n.d.), Fusion ProGlide's electrical shave function provides a
precision trimmer that gentle shaves to reduce damage and increase razor glide for a
smooth and comfortable shave. The thinner, sharper low blades (4 heads compared to
Fusion) with premium impedance coating effectively shave through thick beards with less
pull and push than Fusion and hard-to-reach areas edging & styling facial hair. The
Gillette Fusion ProGlide Power's enhanced lubrastrip is loaded with polymers, allowing
it to glide easily over skin, even on repeat strokes (Gillette n.d.).
There are no specific data of Gillette company account for in the Vietnamese market.
The Gillette brand has an incredibly high recognition rate thanks to marketing
campaigns and promotion programs that contribute significantly to men’s grooming’s
spectacular growth. Gillette does provide different types and prices of products to serve
targeted customers. The company realized that customers also valued safety and ease of
use, dedicated to driving innovative technology apart from affordability. One of Gillette’s
strategies is a prestigious position in the marketplace and experience while using products
that enhance customer values by offering superior product qualities (Campaign 2004).
According to Euromonitor International (2021), 50% of respondents (compared to
38% globally) would buy fewer but higher quality instead. On the other hand, 70% of
respondents (compared to 44% globally) say they prefer branded goods to non-branded
alternatives.
Therefore, it is undeniable that Gillette is now the leading brand in the
marketplace.
II. MARKETING ENVIRONMENT
1. Microenvironment
1.1 Suppliers
Gillette Vietnam's suppliers are from the Gillette Factory Vietnam. In 2015, Procter
& Gamble broke ground on a $100 million factory in Vietnam, which will make razors for its
Gillette brand in Binh Duong Province (The Saigon Times 2015).
According to Vietnam Briefing (2015), the new plant in the Vietnam Singapore
Industrial Park II will bring P&G's total investment in Vietnam to $360 million.
Plastic boxes of Gillette are imported from Poland with more than 13.600 USD, and
Malaysia has imported Women’s blister shaving products to Vietnam (Vietnam Trade
2019).
1.2 Competitors
a. Indirect competitors
Electric shavers could be considered indirect competitive rivals with Gillette since it
also provides more effective hair removal without going over the face than a razor
(Hurwood 2016). Moreover, using an electric shaver is also much quicker than using a
razor, as no wetting or lathering is required, such as Panasonic Electric shavers, Philip
Norelco, etc. There is nothing specific about customers’ behavior toward electric shavers in
the Vietnamese market.
b. Direct competitors
Even though Gillette makes up a high proportion of man grooming products, Super Max,
DORCO, and Schick are competitors of Gillette. They are also providing customers with the
most effective and various segments. There is not any specific data about the market share that
these competitors make up. On the other hand, for instance, Super Max, a trusted brand in over
150 countries, provides the customer with strong and thick sharp blades suitable for people with
thick beard (SuperMax n.d.); Schick, a Canadian razor brand also takes customers safe
satisfaction after using razor into consideration by adding aloe vera, Jojoba, 4 titanium-coated
blades to reduce irritation, and edging blade and pivoting head for extra precision (Schick n.d.).
1.3. Customers
a. Consumers
Overall, Gillette is highly regarded as the most affordable brand by considering
customers’ behaviour and habits. According to Gillette (n.d.), male customers between the
ages of 13 and 16 who discover facial hair for the first time tend to start using razors for
self-care. Capturing this psychology, Gillette manufactures high-quality products with
different prices to serve specific segmentations (Yang 2018). Moreover, Gillette intensely
takes care of its customers by enhancing the value of customers’ beauty. Therefore, buying
their product is not simply a demand. It is also to improve and affirm consumers’ value
(Brands Vietnam 2015).
According to Euromonitor International (2018), smartphone users have increased
dramatically in Vietnam, stimulating potential E-commerce growth. Vietnamese people,
including Gillette’s customers, will spend more time online shopping. Due to the Covid 19
Pandemic, beauty, and personal care items purchased accounted for 51% (Euromonitor
International 2020).
To leverage consumer internet usage, more marketing activities and promotional
campaigns have been launched on these sites. P&G substantially examines online
customer experiences to provide relatable goods (Cameron, 2020).
b. Retailer
Gillette goods can be found in every major supermarket chain in Vietnam, including
Co.op Mart, Vinmart, and Lotte Mart, as well as several convenience shop brands such as
Circle K, Family Mart, and 7eleven. Furthermore, the product is available on e-commerce
sites such as Shopee, Lazada, Tiki, Watson, etc. It is also available at grocery shops.
According to Euromonitor International (2020), Gillette accounted for 9,1% in market share
for men's grooming retail value RSP.
According to Statista (2020), in 2020, e-commerce revenue amounted to
approximately 11.8 billion U.S. dollars, accounting for approximately 5.5 percent of the
total retail sales of goods and services in Vietnam that year. Besides, in 2020, the monthly
spending on fast-moving consumer goods (FMCG) in Vietnam was around 1.43 million
Vietnamese dongs in urban areas and approximately 0.85 million Vietnamese dongs in
rural areas (Statista 2020).
Over the forecast period, men's grooming is expected to benefit from the ongoing
e-commerce boom, as consumers go on to shop for their goods online because of the
convenience and discount savings available, such as regular promotional events from
online platforms like Shopee, Lazada, and Tiki. For instance, Shopee has “Super Brand
Day 22.11’’, Tiki has “ Flash Sales 11.11”, etc.
1.5 Intermediaries
a. Reseller
Major retail companies such as Lotte Mart, Coop Mart, and BigC work with P&G
to distribute products to customers. The number of supermarkets in Vietnam rose from 246
to 308 between 2017 and 2018, owing in part to the suburbanization of the country (Q&Me
2018). As a result, their vast reach into our daily lives has been more practical, resulting in
consistently expanding Gillette sales. Nonetheless, despite all of the current retail progress
brought about by urbanization and a booming economy, Vietnam has a dominating
traditional retail strategy (Christou 2018). Besides, Gillette has yet to focus on mini-market
and convenience store formats though these channels are gaining popularity in Vietnam
(Kantar Worldpanel Insight Handbook 2019, pp. 59).
1.6 Public
According to Euromonitor (2020), men's grooming is predicted to bounce back and
demonstrate robust growth rates in the Vietnamese financial public throughout the
projection period, owing mainly to Vietnam’s expected healthy economic performance and
increased living standards. According to the General Statistics Office report in December
2020, the Vietnam economy was anticipated to rise by 2% by the end of 2020 and by 6%
in 2021, mainly owing to different niche laws established by the government to aid the
economy's recovery (Euromonitor 2020).
Even after the disruption of the pandemic, Vietnamese consumers, particularly the
rapidly growing number of middle-class consumers, still tend to trust and appreciate
established brands (Deloitte n.d.). According to Euromonitor International (2020), 70% of
respondents (compared to 44% globally) prefer branded goods to non-branded
alternatives. Also, despite increasing price-consciousness, only 23% of respondents say
they intend to shift their brand loyalties and increase their spending on less expensive
private label/store brand goods in the future (Euromonitor International 2020).
2. Macroenvironment
2.1 Technology
2.2 Natural
More than 800 million consumers around the world trust Gillette for their
grooming needs (P&G 2018). They want to help set a new standard of environmental
excellence by using fewer resources by 2030 (Gillette n.d.). According to Gillette (n.d.),
they plan to improve our environmental footprint across many vital areas like packaging,
product waste, water conservation, manufacturing operations, and our supply chain
collaborating with Gillette Vietnam. They are also fully committed to providing consumers
with the highest quality products and using safe ingredients they can trust, so they have
set clear goals and have made significant strides in several areas, such as recyclable
packaging, long-lasting products, and extended durability (Gillette n.d.). Over the last ten
years, they have also reduced their energy use across our plants by 392,851GJs, which
is enough energy to power more than 17 million homes (Gigajoule). They are committed
to doing more, and are working to achieve 100% renewable purchased electricity, 35%
reduction in water consumption per production and reduce greenhouse gas emissions
for manufacturing by 50% by 2030 (Gillette n.d.).
Vietnamese per capita plastic waste is the third highest in Southeast Asia
(Nguyen 2019), increasing more than 10-fold in the last three decades. Vietnam annually
produces 1.8 million tons of plastic waste, but only 27% is recycled. Each Vietnamese
person consumed only 3.8 kg of plastic in 1990, but 28 years later, this had risen to 41.3
kg (Ramnath & Velasco n.d.). That is why reducing waste with methods like recycling
and long-lasting, durable products would greatly benefit Vietnam’s environment for the
long term.
2.3 Political factors
3. SWOT Analysis
Strengths Weaknesses
Long established Lack of Communication with
company: Gillette has more Vietnamese customers on social media:
than 100 years of innovation The last post on Gillette Vietnam was on
(Gillette n.d.). Gillette is credited 2020 September
with being one of the most All HyperLinks to the website and
innovative companies in the customers’ groups provided on their Facebook page
business. Their core product is a are inaccessible (viewed on 16/11/2021)
shaving razor, but they have http://gillette.com.vn/
given the product so many www.everydayme.com.vn/nhãn/gillette
augmentations through a stream
of innovations. This appetite for
innovation is a core strength of
the brand (Hitesh Bhasin, 2019).
Opportunities Threats
1. Segmentation
Segment Demographic Psychographic Behavioral Geographic
Characteristics Characteristics Characteristics Characteristics
2. Targeting
Although a company has the greatest product in the world, if it is attempting to sell them
to the wrong individual, it will never meet its sales goals (Path Digital Solution n.d.). In
recognition of this, Gillette has effectively adopted differentiated marketing strategies.
Gillette Fusion ProGlide Power prioritized adults among the three client categories
stated above. According to Chen (2019), the majority of people interested in Gillette were
between 25-34 years old. Since they are all 25 and over with an average monthly wage of
around 7.08 million VND, they could afford this premium-priced product (Statista 2021).
On the other hand, men in this sector are more concerned with self-image, particularly
maintaining a masculine appearance due to a higher degree of sociability and romantic interest
(Handler & Goldberg 2018). When men's attention to beauty increases, personal care products,
especially razors, become increasingly sought after. Men's grooming is becoming more popular,
which will assist raise sales in the area in the future (Passport 2021). According to Passport
(2021), men's grooming is predicted to grow at a 9% current value CAGR (5% constant 2020
value) throughout the projection period, reaching 7.9 trillion VND in 2025. Hence, the Gillette
Fusion ProGlide Power is well-suited to the needs of men in this group since includes specific
features assisting consumers in reducing skin irritation and allowing the razor to glide even
more easily over the skin (Gillette n.d.).
The average usage of the internet by Vietnamese people counts for 5.2 hours each day
and that of mobile internet is 2.7 hours per day (Q&Me n.d.). The Vietnamese are also avid
users of social media, especially Facebook (Q&Me n.d.). Vietnamese people use Facebook for
more than just exchanging information; they also utilize it for other creative activities like e-
commerce and seeking partners (Q&Me n.d.). In 2021, 71,7 million Vietnamese individuals will
use social media, with 65,56 million of them using Facebook (Statista 2021). As a result, Gillette
decided to promote their brand on Facebook. They use this vast social media platform to upload
images of their new items or marketing efforts in order to reach a broader audience, as
Facebook is the most significant source of information in Vietnam (Q&Me n.d.).
Figure 2: Sales promotion of Gillette Vietnam on Facebook (Reproduced from Facebook.com
2017)
3. DIFFERENTIATION
In most sections of Vietnam, Gillette supplies items to regional retailers, shopping malls,
and wholesalers. The items are available through online and offline channels, making them
accessible to domestic and international buyers.
Furthermore, In Vietnam, the current digital population and growing internet penetration
give exceptional circumstances for e-commerce enterprises to thrive (Statista 2021). In the
National E-Commerce Development Master Plan for the period 2021 – 2025, the Government
anticipated that 55 percent of the nation's inhabitants would undertake online shopping by the
end of 2025, and the annual expenditure for online shopping would be roughly US$600 per
person every year (VietnamNews 2020). As one of the fastest-growing internet economies in
Southeast Asia, Vietnam's e-commerce market value reached almost 12 billion US dollars in
2020, positioning it only behind Indonesia, Thailand, and Singapore (Statista 2021). Vietnam's
e-commerce business is predicted to continue to flourish in 2021, and e-commerce revenue
may approach 12 billion USD (VietnamCredit 2021). Hence, Gillette opted to acquire its goods
broadly on e-commerce platforms such as Shopee and Tiki (Shopee n.d.; Tiki n.d.). In terms of
distribution, Gillette has successfully separated itself from its rivals by doing so.
4. POSITIONING
The map includes two variables that are heavily considered when purchasing a razor:
shaving experience quality and price. These two characteristics determine Gillette's market
position since they substantially impact how consumers and the general public view the brand.
Comfort and skin irritation prevention: Gillette has successfully positioned itself as a
leading razor brand in offering customers very high-quality products. With the unique FlexBall
technology and the sharp 5-blades, this razor brings users uncompromising closeness and
comfort. According to Malin (2020), skin irritation is the culprit of improper shaving techniques.
In acknowledgement of this, Gillette Fusion ProGlide Power has the Enhanced Lubrastrip that
helps prevent skin irritation without using additional products such as shaving cream. Thanks to
the following features, Gillette provides customers with a smooth look regardless of skin and
hair type.
All the attributes mentioned brings Gillette Fusion ProGlide Power to first place in the
top 4 of the best razors for men, while its competitor Schick ranks second (TopBrands 2021).
However, the other competitors, Dorco and SuperMax, do not appear in the top 4 since they
have fewer features and shaving effects that cannot satisfy adult customers’ needs.
Consequently, Gillette Fusion ProGlide Power has made a good impression on customers with
middle to high income.
Price: Gillette Fusion ProGlide Power was introduced at a premium price when
compared to its competitors. The table below shows that the pricing of the Gillette Fusion
ProGlide Power is 275,000 VND, which is the most expensive of the four items discussed. This
product is only affordable to individuals with a middle or high income, based on its pricing.
Product Price
Super Max Swift 3 35,000 VND
Value Proposition: With the Gillette Fusion ProGlide Power, Gillette has pursued the
"More for more" positioning strategy by providing a high-quality razor with distinguishing
features and an appealing appearance at a premium price. These factors contribute to Gillette's
position as the most well-known brand in Vietnam's men's grooming market. With the slogan
"The Best A Man Can Get", Gillette is considered as a brand that motivates men to be their
greatest version. It is devoted to pushing improvements to its goods to fulfill the diverse
expectations of its consumers and promoting #TheBestMenCanBe (Gillette n.d.). Though the
price may be out of reach for specific consumers, such as young adults, the benefits they
receive may explain why the product is a must-have item.
IV. CONCLUSION
A. Overview
In conclusion, after 26 years of participating in the Vietnam market, Gillette has
dominated the men’s grooming industry thanks to its high-quality products which meet the
demand of its customers to have an attractive appearance. Furthermore, the Gillette razor offers
distinctive qualities that set it apart from its competitors, allowing it to maintain its position as a
top men's grooming brand in Vietnam. Thanks to the wide channel distribution, Gillette’s
products are sold on both e-commerce platforms and brick-and-mortar stores.
B. Prospect
Despite the dominance of Gillette in the men's grooming market in Vietnam, Gillette has
several points to improve if they want to win the hearts of Vietnamese consumers. After
analyzing Gillette's products and current strategies, it is concluded that the brand should put
more effort into improving communication with Vietnamese customers through social media by
posting more marketing campaigns on the Gillette Vietnam page on Facebook to broader
consumers. Moreover, the brand needs to improve to better serve the market regarding their
high price compared to other competitors. Furthermore, Gillette should take advantage of all
opportunities they recently have in order to meet clients' desires and develop the brand. If they
follow this way, they will be able to grow their market share and sustain their position in such a
dynamic market as Vietnam.