An International business

Case study on

Group 1 (Section B)

20061 Yash Sharma Mukund

20073 Beena N
20082 Rahul Raj
20092 Raksha S Bhat
20103 Rapolu Shivesh Rao
20113 Sofi Kushalappa M
Submitted to Dr. R Sugant
 CASE FACTS
• Dropped the traditional approach of single product for the globe
and grew its market share dramatically.

• Initially the new triple-blade system Mach3 had flat sales for a
long time.

• The blade costed 10 times more than it's two blade competitors.

• Shaving not so premium activity for Indian men

• Gillette went ahead to bring Marketing campaigns to change the

consumer's attitude

• In 2010, company realized that customers valued affordability,

safety and ease of use, hence they introduced Gillette guard
(Single blade) which had much simpler design hence reducing
manufacturing cost

• However, low-cost segments with simple products give

invitation to competition. Hence Gillette must maintain it's edge.
  Cultural differences: Shaving is not considered by Indian men as an important activity;
hence it was not preferable to pay a premium quality razor.
Product attributes
 Economic development: India is less developing nation. Even professional men with even
higher disposable income were not ready to pay premium price for shaving blades preferring
basic and reliable over one with various quality attributes.

 Gillette Mach3- focused on changing customer's attitude through various creative marketing
campaigns.
Communication  Gillette guard- Usage of Digital marketing strategies was avoided. Bollywood actors were
strategy: used for the advertisements. They have adopted more of a traditional method in promotion
of the product. They have used reverse innovation - to develop a product that would satisfy
the needs of the lower income people.

 Fragmented Retail System (long distribution channel) – Gillette guard was distributed not
Distribution
only through a handful of major retailers, but through millions of local businesses known as
strategy:
Kirana stores, which gave Gillette a greater market impact.
  For Mach3- they launched the 'Shave India Movement 2009', 'India votes... to Shave or not'
asking questions and collaborated with media channels which created a lot of buzz.

Advertising:  For Gillette Guard- Gillette went the traditional way featuring Bollywood actors in media
ads.

 Gillette studied the Indian market and after hours of interviewing customers it came across
the fact that Indian men give value for money more preference.
 Their needs culture and attitude towards shaving was completely different from the West.
Barriers to International They penetrated into Indian men's shaving box through Kirana stores which was a game
communication: changer move.
 Noise levels (Low)- Currently Gillette enjoys low noise as not much competition available
in India. However, as market emerges generic offerings of Gillette can be it's weakness. An
innovative low-cost competitor can enter to challenge Gillette's market share.

 By an extensive R&D coming up with minimalistic yet effective design, making

Strategic pricing: manufacturing process simple, and hiring local manufacturing Gillette was able to launch
Guard at a price as low as Rs 15/razor (Rs 24/razor now) and the refill cartridge came at Rs
5/unit.
 This helped Gillette to reach the points of Indian demography with low disposal income and
set a strong image in consumer minds.
  Continuous innovation
 Razor manufacturers earn most from refills hence it becomes important for
Gillette to Upsell and Cross sell
 Expand product line
 Be early in targeting teens and young adults who will be new customers to
Sustaining the
the shaving industry
growth:  Keep the already successful marketing game on and better