GILLETTE’S SHARP EDGE

OVER ITS COMPETITION

 OVERVIEW

 Background info on Gillette

 Problems/Solutions company faced

 Current info/issues
 BACKGROUND INFORMATION
 Founded in 1901
 Flagship product—safety razor
 Company’s strengths:
 Focus on scientific knowledge/studies
 Innovative products
 Large-scale manufacturing capability
 Useful products sold at fair price
 Sales in 2000: $9.3 billion
 GLOBAL COMPANY
 Strategy: “To manage its business with a long-term,
global perspective”
 Over 1 billion people interact with a Gillette product
every day
 Manufacturing operations located in 23 countries
 Distribution in 200+ countries
 40,000+ employees
 MANUFACTURING LOCATIONS
United States:
-Andover, MA
-Chicago, IL

 
-Cleveland, TN
-Iowa City, IA
-La Grange, GA
-Lancaster, SC
                                                            
-Lexington, NC
-South Boston, MA
 EUROPEAN LOCATIONS
Manufacturing Sites:
-Belgium
-Czech Republic

 
-France
-Germany
-Ireland
-Poland
-Russia                                                             

-Spain
                     
-England
R & D Facilities:
Germany, Spain, England
 VISION STATEMENT
 “Tobuild TOTAL BRAND VALUE by
innovating to deliver consumer value and
customer leadership faster, better, and more
completely than our competition.”

 Fundamental Principles:
 Organizational Excellence
 Superior performance at every level
 Core Values
 Achievement, Integrity, Collaboration
 PRODUCTS OVERVIEW:
 Worldwide leader in 12 major consumer product
categories
 Focus on continual development of new products

 Currently introduces 20+ new products per year

 THREE CORE BUSINESSES
Gillette is the undisputed global leader in:
 Grooming

 Portable Power
                            
                                             
                              
                                 

 Oral Care
 GROOMING PRODUCTS
 World leader in male and
female grooming products

 
 Blades, razors
 Wet, dry
 700 million consumers use
                                                                 
Gillette razor blades
                                                                            

Shaving preparations and

  

after-shaves
PORTABLE POWER
 Duracell-most popular
brand of alkaline batteries
in the world
                                     
 Offers strategic power-
consulting services to
leading electronic device
manufacturers
 ORAL CARE
 Company’s fastest
growing business

 Oral-B  
brand holds #1
                                   

position globally in
manual and power
toothbrushes
 FACTS
 3 core businesses provide:
 80% sales
 90% profits
 These core brands are the strength of Gillette Co.
 Gillette Mach3
 Gillette for Women Venus
 Right Guard
 Duracell CopperTop
 Oral-B
 Braun Oral-B
 Braun
 PROBLEM BACKGROUND
 1980s: Consumers chose inexpensive disposable
razors
 Gillette helped to foster trend:
 Focus on price, not quality
 Results:
 Disposable razor market inc. by 60%
 Loss of quality image, loss of profits
 *Gillette taught consumers the best razor was the
cheapest one!
 USE OF MARKETING RESEARCH
 Focus groups and surveys revealed:
 Gillette must reform its approach by:
 Emphasizing quality and brand equity
 Discontinuing use of disposable razor ads

   
 Developing new products

                                   
                                                                   

                                                                            
 RESULTS OF MARKET RESEARCH
 Inc. investments in research and development
 Sensor, Sensor Excel, Mach III, Venus
 Direct mail campaigns—free razors
 Catchphrase: “The best a man can get.”

 Able to reverse the trend—SUCCESS!

 ROLE OF MARKETING RESEARCH
 Told Gillette that it could change its former price
approach to the market by emphasizing quality and
brand equity as well as introducing new products.
 MANAGEMENT DECISION PROBLEM
 What should Gillette do to change the trend of our
decreasing equity in the market?

 What should Gillette do to increase consumer’s opinions

of our brand image?
 MARKETING RESEARCH PROBLEM
 To determine the consumer’s opinions regarding the
quality of products over their prices.
 To determine the impact of Gillette’s competition on its
sales.
 To determine the wants and needs of consumers using
Gillette’s various shaving products.
 GILLETTE MARKETING SPENDING
 Jan. 30, 2003
 24% increase in ad spending (fourth quarter)

 2002: Global ad spending rose 12%--$650 million