GILLETTE’S Razor Sharp Edge Over Its Competition

Presented by:-

Ketan thakur

Tushar Patodia

Nishab jauhri

Rahul raut

Bhanu pratap khushwaha

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

Vision Statement “To build 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

                                                                  

                                                                              

                                                                  

                                                                              

BLADES & RAZORS SEGMENT

DisposableRazors

ShavingSystems

ReplacementBlades

Blades &Razors

ElectricShavers

Shaving Products

Pre-Shave Post-Shave Deodorants

Toiletries

GroomingMale & Female

Introduction of project

The objective of the study is to understand the consumer attitude and buying behaviour for Gillette Razor And Foam. To understand the former part, we created a focused group questionnaire and conducted a focused Group Discussion (FGD) on Shaving Cream, gel and foam.

Research Question and Hypotheses

Are consumers more price conscious or brand loyal? What are the factors that play the most important role

in a consumer's choice of buying shaving cream/Razor?

What is the effect of non-attribute factors on the purchasing decision of Gillette shaving gel/foam?

What are the factors that play the most important role in a consumer's choice of buying shaving cream/gel/foam?

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

                                                                                                              

                                                                    

                                                                            

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.

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.

Observations:

1)The surveyed sample considered Gillette to have the best packaging among all the brands. This feature highlights the fact that point of purchase is an important selling point for the shaving cream/shaving Razor market and Gillette has been outperforming the competitors.

2)For price sensitive customers products like V-John, Godrej and Dettol were more satisfying than Gillette.

3) The consumers are most satisfied with Gillette in all the cases except when the purchasing decision is based on price along with additional features.

Factor Analysis

A factor analysis was carried out to obtain the group of attributes which can be grouped together. Hence 4 factors were obtained as follows – Factor 1 Product attributes (Fragrance, Brand Name, Foam Formation, Ease of Use) Factor 2 Price Sensitivity (Price, And Offers/Discounts) Factor 3 Point of Purchase (Availability in Stores and Stylish Package Design) Factor 4 Additional Features (Colour of Shaving cream/gel/foam and Ingredients)

Competitor analysis

Product Weight (gms) Price (Rs.)

Palmolive Lime 70 37 Palmolive Moisturizer 70 39 Palmolive Delux 70 39

Colgate-Palmolive

Product Weight (gms) Price (Rs.) Axe Shaving Cream 70 45 Denim Exclusive 70 43

Hindustan Lever Limited,

Godrej

Product Quantity Price (Rs.) Godrej Shaving Cream 100 gms 25 Godrej Premium Shaving Cream 70 gms 25

Gillette Marketing Spending

Jan. 30, 2003 24% increase in ad spending

(fourth quarter) 2002: Global ad spending rose

12%--$650 million

New Challenges Jan. 30, 2003 Battery rival Energizer to acquire

Schick brand of razors Energizer to invest $930 million Result: Aggressive marketing

wars?

Questions and Answers

The End