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					          Study on
           Gillette
          The Best a Man Can Get




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                                                                    Contents

 INTRODUCTION .................................................................................................................................... 3
 Gillette in India ......................................................................................................................................... 3
 GILLETTE: THE PRODUCT BASKET .................................................................................................. 3
 The Environment in India ......................................................................................................................... 4
 The Indian Blade Market .......................................................................................................................... 4
 POSITIONING ......................................................................................................................................... 5
 PRODUCT ................................................................................................................................................ 5
 PRICE ....................................................................................................................................................... 6
 PLACE ...................................................................................................................................................... 7
 PROMOTION ........................................................................................................................................... 7
 RECOMMENDATION ............................................................................................................................ 8




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INTRODUCTION

Gillette is a brand of Procter & Gamble currently used for safety razors, among other personal
hygiene products. Based in Boston, Massachusetts, it is one of several brands originally owned
by The Gillette Company, a leading global supplier of products under various brands, which
was acquired by P&G in 2005. Their slogan is "The Best a Man Can Get". The original Gillette
Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer.

On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a
result of this merger, the Gillette Company no longer exists. The merger created the world's
largest personal care and household products company.

The Gillette Company's assets were initially incorporated into a P&G unit known internally as
"Global Gillette". In July 2007, Global Gillette was dissolved and incorporated into Procter &
Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household
Care. Gillette's brands and products were divided between the two accordingly.

Gillette in India

Gillette entered India in 1984, with a 24% stake in Indian Shaving Products Ltd (ISPL), a
company it promoted jointly with the local Poddar Group. Later, it increased its stake to 51%.
The company has two arms in India, ISPL and Wilkinson Sword, which it acquired in 1995.
Gillette has set up a manufacturing facility at Bhiwadi in Rajasthan.

The company's decisions over the past one year — to divest its electric gadget and home
appliances business under the Braun brand name, and its low-end battery business under Geep,
are aimed at focusing better on its core business — shaving products. Female shaving products,
in slow growth mode all these years, too have been put on the backburner.

GILLETTE: THE PRODUCT BASKET


                             Gillette's Shaving Product Portfolio

                     Shaving Brush                                      Shaving Preperations
                          1%                Shaving
                                          Preperations
            Safety Razor                      10%                       Twin Type Shaving System
               Blades                                                   cartridge - Manufactured
                37%                                Twin Type Shaving    Twin Type Shaving System
                                                   System cartridge -   cartridge - Imported
                                                     Manufactured       Safety Razor Blades
                     Twin Type Shaving                    33%
                     System cartridge -
                                                                        Shaving Brush
                          Imported
                            19%




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The Environment in India

Gillette's experience in India indicates the type of challenges that the company faces in emerging
markets. India is the largest blade market in the world in volume, though not in value terms. The
Indian company, Harbans Lal Malhotra & Sons (Malhotras), is the second largest blade maker in
the world after Gillette. For long, this company has enjoyed a monopoly and indeed been
accused of many restrictive trade practices.

The Indian Blade Market

The Indian blade market consists of four broad segments

   1.   Flat blades
   2.   Disposables
   3.   Twin blades
   4.   Triple blades

With this understanding of the basic classification of the Indian blade market, let us now see how
Gillette did the positioning in the given environment.

In the flat blade segment, which is also the cheapest, Malhotra dominates the market. In the mid
and high-end segments, Gillette has been the clear leader in terms of new product introduction
and branding. The Gillette brand has a high recall and is associated with quality, precision and
technology.



                    Overall Blade Market – In Terms Of Value (Rs 600 crore)




                                                               GILLETTE
                                                                  33%




                           OTHERS
                             67%




                                                                   Source: AC Nielson-ORG MARG Survey




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Another issue which Gillette has to immediately address is penetrating the huge barbers' market,
which consists predominantly of flat blades. Gillette's new launches in the flat blades segment,
like Gillette Diamond and Gillette Platinum have been priced four to five times higher than the
offerings of competitors

In the twin and triple blade segment, Gillette has undoubtedly been a market leader with
effectively no competition at all, both in volume as well as value terms. However, as seen from
the news archives, there could be a clash of two titans in the near future with the entry of another
American giant (American Safety Razor Company (ASRC)) into the much desired Indian
market.

POSITIONING

In today‟s world of strategy convergence (undifferentiated strategies), pursuing a meaningful and
relevant positioning & differentiation has become imperative for every company in order to give
the customer a reason to demand their products.

THE GILLETTE CASE

Gillette as a market leader has been careful not to boast about its position. Also it has always
introduced new brands to target different market segments (presto for lower end, mach3 for
upper end etc.) instead of bringing about changes in any one particular razor to maintain the
distinct image of each of its razor in the mind of the customer.
Positioning, as Philip Kotler defines, is the act of designing the company‟s offering and image to
occupy a distinctive place in the target market, a sound reason why the target market should buy
the product.
For Gillette, their strength lies in the superior quality of their razors, all of which are imported
from the US (untouched by hand), except for presto and they have used this strength wisely to
position their product over the years. Unquestionable quality of Gillette products has been the
most important factor in making it a market leader.

PRODUCT

A product is anything that can be offered to a market for attention, acquisition, use or
consumption. The primary purpose of a product is to satisfy a want or a need.

Kotler revised the earlier three level classifications to a five product level classifications model.
At the heart of it lies the core product, next the basic product followed by the expected product
and augmented product. The potential product would lie in the outermost circle.




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THE GILLETTE CASE

       Core Product: Quality of Shave
       Basic Product: Razor with comfortable grip, well packed
       Expected Product: Blades that do not give cuts or rashes on skin
       Augmented Product: Razor with lubrastrip indicating when the blade needs to be
        replaced, the anti-clogging push-clean technology, etc.
       Potential Product: product customization could be one new development.

PRICE
THE GILLETTE CASE

Gillette India ltd. prices its products by taking into account the nine price-quality objectives and
also the pricing objectives. After a detailed analysis of the above guidelines, it has been
consciously using premium pricing for some products and average pricing for some. It strives for
profits, market share and eventually ends up the market leader.

       The price cut offer on vector plus was to take on the smuggled versions that had entered
        the Indian market.
       The hike in the price of presto from Rs 12 to Rs 15 was to induce the customer to move
        on to vector plus.

It doesn‟t need to follow all the 6 steps of pricing as it is a market leader with no potential
threats. Some steps are redundant. It follows the following steps:

   1.   Set Pricing Objectives
   2.   Analyze demand
   3.   Estimating costs
   4.   Determine specific prices



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Its strategies are very much evident from the pricing of all the Gillette razors and blades.

PLACE

A place strategy refers to how an organization will distribute the product or service they are
offering to the end user. The organization must distribute the product to the user at the right place
at the right time. Efficient and effective distribution is important if the organization is to meet its
overall marketing objectives. If the organization underestimates demand and customers cannot
purchase products, because of it profitability will be affected.
THE GILLETTE CASE

The appointment of distributors is handled by Gillette India directly. In NCR region, a separate
well-defined area is allocated to each distributor.
The distributor appoints the Field force. This comprises a team who work directly under the
distributor payroll (and not Gillette). The ASM and TSM are on company payroll.

The Territory Sales Manager prepares the TMR (Total Market Report) detailing important
variables like market share, growth trends, etc for the area under him. Also, it is the TSM who
communicates schemes and benefits rolled out by the company to the distributor who, in turn,
informs his Field Force. The TSM meets distributors on a monthly basis for periodic review. The
TSM is responsible for the targets/performance of the area under him and he is expected to
communicate actual results back to the company on a regular basis.

PROMOTION

Promotion keeps the product in the minds of the customer and helps stimulate demand for the
product. A successful product or service means nothing unless the benefit of such a service can
be communicated clearly to the target market. An organizations promotional strategy can consist
of:

      Advertising
      Public relations
      Sales promotion
      Personal selling
      Direct Mail

THE GILLETTE CASE

TV/Radio – Gillette has an extensive advertisement campaign being run on television. The
company uses a mix strategy for its ad campaigns for different products. It has adopted the first
approach for mach3 & mach3 turbo ads wherein it uses a standardized ad across all countries,
only making changes in the language, colors etc. For the lower segment razors like vector plus &


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presto it retains the global theme but adapts it to local market needs. Whereas Gillette Mach 3, a
high end product, has a campaign portraying foreign models to cash in on the tendency of the
Indians that anything associated with foreigners is of good quality and meant for the higher class.

Print – This medium is mainly used by Gillette to spread awareness of their cents-off deals i.e.
their reduced price packs and banded packs. Several ads are flashed in daily newspapers and
magazines to advertise these schemes.

Internet- The Gillette website is excellent and there are dedicated websites for their new products
which present the product and related information in a very nice manner.

Gillette has country specific website. This helps a customer to identify the product that they are
looking for. In addition, Gillette has a lot of promotions listed in their website. The website helps
in guiding the users learning the right way of shaving. This helps in stickiness.

Movie/Soaps- This is another avenue Gillette can explore and reap great benefits from. As we
know movies have great influence on not only youth but among all ages .So Gillette can have tie-
ups with movie/producers and can show use of Gillette products in the same. This can also be a
very handy tool to reach the less educated and lower income groups. Gillette has already
associated itself with the Hollywood movie iRobot, we suggest them to try something similar
here.

RECOMMENDATION

A set of recommendations have been developed for Gillette India keeping the following factors
have been in mind.
      Consistency: The focus of the outlined objectives should bot be lost.
      Viability: The recommendations should be cost effective, practical and can be
       implemented by Gillette India.
      Market Realities: The Indian shaving market has a lower shaving frequency and
       relatively poor shaving conditions.

Keeping in mind the above mentioned factors, Gillette India could adopt the following strategies:

   1. Attractive Gift packs

       Gillete can think of introducing gift packs to suit different occasions/festivals like:
          i.   Wedding
         ii.   Rakhi
        iii. Corporate
        iv.    Birthday
         v.    Valentine‟s Day


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  2. Product Warranty and return of defective pieces

     Even though Gillette has a very good quality control, yet there are some defective pieces
     that reach the end user. Gillette can introduce a warranty on their premium products like
     the Mach3 & Mach3 Turbo razors and the associated blade packs. The Mach3 & Mach3
     Turbo razors come in 3 packs of 2 / 4 / 8 cartridges. The warranty for these packs can
     vary in the timelines

     The other problem is to handle counterfeit products. To counter this, the company could
     start putting holograms on its products. This, in turn, will:

           i.    Help consumers differentiate between counterfeit and genuine Gillette products.
          ii.    Establishes “trust” in the company products in the minds of the consumer

  3. Accessories for Premium Products

     Gillette should position its premium Mach 3 product as a superior shaving experience
     rather than „just a shaving product‟. Since a few consumers perceive Mach3 to be an
     expensive product; the company should position it as a product bundle. The following
     add-ons can be included:

            i.   Razor Stand in the washroom
           ii.   Travel pouch
          iii.   Small information guide on the right way of shaving

  4. Strong advertising campaigns

     Currently Gillette uses international personalities from the field of sports. For local
     audience, it can look at involving personalities from Bollywood / cricket etc. For
     example: It is known that John Abraham has stubble always. He can be used as Gillette
     India brand ambassador

  5. Awareness

     Not many are aware that Gillette products are untouched by human hands (except for
     Presto). This should be highlighted to gain the mindshare from hygiene point of view.




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