Gillette Brand Analysis 1 This project is directed at analyzing the marketing mix of Gillette brand. In doing so, I will be going over each element in their marketing mix, discussing their target audience, packaging, pricing and distribution. I will also be making suggestions for possible changes. Gillette merged with Proctor & Gamble to become one company in 2005. Proctor & Gamble sells their products in over 140 countries, with local operations in over 80 countries. Gillette is a family brand, whose product line consists of oral care products, shaving products, deodorants and antiperspirants, skin care products, batteries and home appliances. They have a wide variety of styles and brand names under each product line. These brands are: Braun, Duracell and Oral B. Gillette operations are divided in five segments: Blades and Razors, Duracell, Oral Care, Braun and Personal Care. In the Blades and Razors segment they have a group of razors and cartridges. These razors are: Mach3, Sensor Excel, Sensor, Mach3Turbo, M3Power, M3Power Nitro, Gillette Fusion, Gillette Fusion Power, and Gillette Phantom Power, for men. Also for women they have: Gillette Venus, Gillette Venus Divine, Gillette Venus Vibrance, and Gillette Venus Breeze. They also have a line of disposable razors: Sensor3, Custom Plus, Good News, and Gillette Venus Disposables. In the Personal Care segment, Gillette offers a variety of shaving creams and gels, after shaves, deodorants and antiperspirants and other skin care products. Gillette Brand Analysis 2 As a result of the merger with Proctor & gamble, by the end of the second fiscal year, Gillette had posted an 11 percent increase in net sales or $1.28 billion, this in part due to the success of Mach3 and Fusion brand razors. Gillette’s main competitor is Wilkinson Sword. To compete with Gillette’s razors, Wilkinson Sword launched: the four-blade Quattro razor, Quattro Titanium, Quattro Titanium Energy, Protector 3D Diamond, and Xtreme3 for men. To compete with Gillette’s razors for women they have: Intuition Plus, Lady Protector, Quattro and Quattro Travel. Also to compete with Gillette disposable razors, they launched Xtreme3 Beauty, Extra 2 Beauty, and Pronto Sensitive for women, and Xtreme3, Extra 2, Protector Express, Duplo and Pronto, for men. By looking at the two brands side by side and comparing, I noticed how Gillette out does its rival in the quality of the razors, packaging and style. The price range for the Fusion Power razor is between $9.99 and $11.99, depending on where you buy it. The cartridges are priced between $13.99 and $15.99 for four replacement cartridges and $21.99 to $25.99 for packages of eight. Their competition is priced between $1.00 and $2.00 less, to try to compete with Gillette's pricing. In one case I found the Schick Quattro Power razor priced $1.00 more than Phantom Power, but the cartridges where $1.00 less. Gillette uses prestige pricing to show the quality of their product, being that they emphasize that to get the best shaving experience you have to use Gillette razors. They use odd- even pricing, with their prices always ending in “9”. Their slogan, “The Best a Man Can Get”, helps position their shaving products in the mind of men as having no equal. Gillette has always stood out for higher quality products and innovation. Taking all this into consideration, I consider Gillette’s pricing to be consistent with their product. Gillette is a premium brand whose Gillette Brand Analysis 3 high equity standards on the market result in a great number of loyal customers, who like me, insist on Gillette brand shaving products. I believe that a products image can affect their sales very much. If the products image is of good quality and consistent, it will have a positive effect on their sales. On the other hand, if the image is negative, or if the customer satisfaction is low, and it is advertised in a way that is not pleasant to the consumer, it will lower sales drastically. Packaging is very important to Gillette, because they like to emphasize on using the latest technology and offering the best products in each category. Part of making a product successful on the market is to make it attractive to the consumer. Gillette uses innovative packaging to make their shaving products stand out among the competition. Their razors are sold separately with one cartridge included. The cartridges are sold in packages of four or eight. They also have promotional packages which include 1 razor and cartridge, 1 shaving cream or gel and a travel case. Gillette uses intensive distribution to get their products to all the different outlets that sell their products. By using various marketing channels, Gillette products can be purchased anywhere from small open markets to big store chains. This makes it easy for consumers to have access to the products to fulfill their needs. By Proctor & Gamble having local operations in over 80, they are to get their products distributed all over the world with ease. Their strategically planned use of physical distribution and outsourcing helps fulfill their distribution needs. Gillette uses multifaceted marketing initiatives when promoting new products, competitive advertising as well as integrated marketing communication and long term image building to attract consumers. They have a highly innovative website that features, “Gillette’s Lab”, with its host Cassandra. In this lab you will learn all about their products features, Gillette Brand Analysis 4 compare the different razors that they offer, there money back guarantee, as well as tips for better shaving. Gillette became one of the first to advertise using Google’s Gadget Ad, when they launched an advertising campaign in Australia (Livesley, 2007). Gillette shaving products are marketed towards teens, adult men and women and the elderly. As part of their marketing strategy Gillette has sponsored many sporting events to make people aware of their products over the years. Gillette has also joined forces with Major League Baseball to help in the battle against cancer. Since 1910 sports have played a big role in the marketing of Gillette products, when they featured Honus Wagner among other popular baseball players in advertising their first razor known as, “Gillette Safety Razor” (Gillette, 2006). They also sponsored sports on the radio, starting with boxing in 1935 and the World Series in 1939. Today they also sponsor World Cup Soccer, NCAA basketball, NCAA football, NASCAR, the PGA TOUR, Champions TOUR, LPGA TOUR and the National Hockey League (Gillette, 2006). “In 2002, Gillette became the exclusive naming sponsor of the home stadium and sports complex of the New England Patriots of the National Football League and the New England Revolution of Major League Soccer” (Gillette, 2006). The name of the stadium is “Gillette Stadium”. In their most recent campaign, launched on February 4, 2007, known as “Gillette Champions”, they used three of the most successful sports figures today, Tiger Woods, Roger Federer and Thierry Henry, to promote their shaving products. This program included sweepstakes, consumer promotions, global print and broadcast advertising, public relations and point of sale materials (P&G, 2007). Gillette Brand Analysis 5 After evaluating and analyzing Gillette brand products and their marketing mix, promotion mix, and researching how their product is being distributed to at least 130 countries, I find that there are no changes that I can recommend for this brand, that haven’t been covered by Proctor & Gamble. Their success on the market, both economically and their high equity standards show that they have everything pretty well covered and organized. They have done a great job directing their advertisements and promotions to all of their target audience. They have also chosen a good strategy for getting women to try Gillette products for their shaving needs as well. Their slogan, “Reveal the Goddess in You”, helps to position Gillette in the minds of women as something they need to help them look and feel better about themselves. The only thing that I found, at least here in Puerto Rico, that I would consider trying to improve, would be the way Gillette razors are on display in some stores. For instance, in Kmart, I found Gillette razors displayed in clear showcases at the checkout counters, without prices or any kind of advertisement near them to attract the consumer. Yet to make things even worse, the cashiers didn’t even know the prices for the different razors and cartridges. This could make for loss sales due to the inconveniences presented to the consumer. Other stores, such as Walgreens have the razors locked in clear displays, in one of the aisles. To purchase one of the razors, you would have to go to the cosmetics counter and find someone with the key, in order to receive what you wanted. They also didn’t have any advertisement anywhere in the store. Gillette Brand Analysis 6 References Choi, A. (2007, January 31). Strong Gillette Sales Boost P&G Earnings. WWD: Women's Wear Daily, 193(22), 8-8. Retrieved January 13, 2008, from Business Source Premier Database. Gillette Fusion. (n.d.). Retrieved December 10, 2007, from http://www.gillettefusion.com/us/ Gillette. (2006, February 10). P&G. Retrieved January 9, 2008, from News Releases: http://phx.corporate-ir.net/phoenix.zhtml?c=104574&p=irol-newsArticle&ID815501&highlight Gillette. (2006, June 7). P&G. Retrieved January 9, 2008, from News Releases: http://phx.corporate-ir.net/phoenix.zhtml?c=104574&p=irol- newsArticle&ID=869810&highlight= Gillette Venus Reveal the goddess in you. (n.d.). Retrieved December 10, 2007, from http://www.gillettevenus.com/us/ Livesley, J. (2007, November 23). Gillette, Webjet interact with Google Gadget Ads. B&T Weekly, 57(2638), 5-5. Retrieved January 11, 2008, from Business Source Premier Database.
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