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CASE ANALYSIS

 Founded in 1901 by King C .Gillette


 Market Leader in the Razor and Blades
category
 Strongly believes in continuous product
innovation.
 Among the world’s first multinational
organization.
 Focus on providing high quality shaving
products at a fair price.
“There is no other article for individual use so
universally known or widely distributed.
In my travels I have found out it
in the most northern town in
Norway and in the
heart of Sahara Desert”

King C. Gillete on his safety Razor


 Blades and Razors
 Personal Care (Shaving Gels, Foams, Deo’s
etc)
 Oral Care ( Toothbrushes and toothpaste)

 Duracell Batteries

 Braun (Kitchen appliances, hair care,


steam irons, etc)
 Thetarget market is between the age
group of 18 years to about 70 years.

 Majorly
Gillette targets males but also have
got some products for females(Venus)
 The main decision problem was
the recovery of company
earnings to the previously
established levels.
 Declining market share ( BIC in
disposable pen)
 Unprofitable acquisitions leading to
heavy loss.
 How to cut down the per unit cost of
product
 Whom to acquire

 Where to diversify.
 Industry Status:-
 Personal Grooming Industry
 Increased four times from 2 billion in 2002
to 9.5 billion in 2008
 Shift from double edged to twin and triple
blade razors.
 Still market driven by price and not quality
in rural areas.
 Economic Condition:
 Increasing purchasing power of consumers
 Developing economies becoming new markets
 Increased Employment oppurtunities

 Technological Conditions:
 Advanced technology available for R&D
 Increased awareness of lifestyle through cable
and TV aspiring many customers
 Legal Framework:
 Liberalization in many countries
 Trade friendly policies
 First twin blade shaving system - Trac II
 First twin blade disposable razor -Good news

 First twin blade shaving system with a


pivoting head - Atra
 The first twin blade shaving cartridge having a
moisturizing lubrastrip - Atra Plus
 First shaving cartridge with
independent spring-mounted twin
blades - Sensor
 First shaving cartridge with flexible
microfins - Sensor Excel
 First three-bladed shaving system -
Mach3
 Colgate-Palmolive - International Palmolive
Shave Gel and Palmolive Shave Foam
 P & G- Old Spice shaving cream

 HUL- Axe and Denim shaving cream

 Godrej- Godrej Shaving Cream and Godrej


Premium Shaving Cream
 7 o’clock Razors

 Others - Dettol, Park Avenue


 Opportunities:-
 Consumer Brand Preference
 Demand for High Quality

 New Innovative technology

 Increased Grooming

 Sophistication
 Threats :-
 New Competitors (BIC etc)
 Imitating the brands

 Growth in Substitutes
 Strengths:-
 Market Leader
 Strong Brand Image

 Global Presence

 Aggressive Advertising

 Quality & Innovation

 Portfolio Range (Mach 3 etc)


 Weakness :-
 Relatively
Static Market Growth
 Heavy Dependence on High Street Retail
Outlets
Product
Strategies..
 Accounts for more than 40% of the sales and
about 70% of companies profits.
 Focus on technologically superior products.
 Legendary Brands like Sensor, Sensor Excel ,
Mach 3
 Heavy Investment in R&D
 Variety of colors in Sensor Excel launched to
attract teenagers to develop life long
customers.
 Efforts to convert consumers from single and
twin blade razors to more profitable sensor
,sensor excel etc.
 Strategy is to focus on the core
grooming products such as deodorants,
shaving preparations.
 Intense competition forced Gillette to
sell out cosmetics and hair products
segment.
 Lead to increased focus.
 Holds 40% worlds market share in batteries.
 Strategy was to add a new “leg” in portfolio.

 Vast potential of alkaline batteries

 Launched version like Duracell Ultra, line of AA and


AAA batteries. Charged premium.
 Strategy was to emphasize R&D for introductions.

 Pursued geographical expansion opportunities

 Vast demand in markets like China, India, Russia


 Focus on technological developments and
product innovation. Eg Oral B Cross Action
Toothbrush.
 Combination of new products and geographic
expansion.
 20% market share in manual and 70%
market share in power assisted brushes.
 Strong Advertising and promotions.
 Struggled for profits and thus got out of
focus.
 Only shaving products, oral care products,
hair removal devices got emphasis.
 Other segments like kitchen appliances,
health care etc were sold off.
 Gillette is strategically positioned as leader, and
regularly reorganises its products to respond quickly to
changes in business and competitive trends.
 It has developed and maintained a high profile for
itself through aggressive marketing.
 It has focussed on diversifying into various categories.

 Focus is also on the maximising efficiency in


distribution.
 Continue with the strategy of continuous
product innovation.
 Launch the products which are in declining
stage in developed countries in the
developing countries like Atra and Trac II.
 Extend the PLC of products which are in
maturity stage like regular Gillette 7’o clock
razor in the developed countries in the
developing countries.
 Upgrade the consumers in the shaving
gel/foam segment just like they have
done in the razor segment.

 Make the presence strong in the


Shaving cream segment apart from the
foam and gel segment.
THANK YOU

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