Final Project Ps (Gillette Mach 3)

1Gillette Mach 3 the best a man can get ™

History of Gillette Razors

On November 15, 1904, patent #775,134 was granted to King C. Gillette for a safety 'razor'. King Camp Gillette was born in Fond du Lac, Wisconsin in 1855. To support himself when the family’s home was destroyed in the Chicago Fire of 1871, Gillette became a traveling salesman. This work led him to William Painter, the inventor of the disposable Crown Cork bottle cap, who assured Gillette that a successful invention was one that was purchased over and over again by satisfied customer.

In 1895, after several years of considering and rejecting possible inventions, Gillette suddenly had a brilliant idea while shaving one morning. It was an entirely new razor and blade that flashed in his mind—a razor with a safe, inexpensive, and disposable blade.

It took six years for Gillette’s idea to evolve. During that time, technical experts told Gillette that it would be impossible to produce steel that was hard, thin, and inexpensive enough for commercial development of the disposable razor blade. Then in 1901, MIT graduate William Nickerson agreed to try.

By 1903, he had succeeded. Production of the Gillette ® safety razor and blade began as the Gillette Safety Razor Company started operations in South Boston. Sales grew steadily. During World War I, the U.S. Government issued Gillette safety razors to the entire armed forces. By the end of the war, some 3.5 million razors and 32 million blades were put into military hands, thereby converting an entire nation to the Gillette safety razor.

The next true innovation was the Techmatic razor, launched in 1967. This was the first system razor with a 'continuous band' meaning consumers would no longer have to touch the blade. The pace of innovation increased from 1971 onwards and Gillette saw a series of world firsts, including the release of GII, the first twin bladed razor in 1971. This was followed soon after in 1976 by the first twin bladed disposable razor and in 1977 the revolutionary pivot headed razor, Contour, was released.

While developments in the 1960s and 1970s focused mainly on blades, the 1980s and 1990s saw improved features for a smoother, more comfortable shave. Contour Plus, in 1985, heralded the first lubrastrip and 1990 saw the

2 Gillette Mach 3 the best a man can get ™

company's first ever Pan-Atlantic launch, with the introduction of Sensor in sixteen countries. Sensor featured the first spring mounted blades and shell-bearing pivot.

Three years later Sensor Excel was launched with soft, flexible micro fins designed to sweep hair up, allowing the blade to cut closer. However, the true landmark year was 1998, with the launch of Mach3. Today over 90 million men worldwide use a Mach3 family razor.

This revolutionary triple bladed shaving system was followed in January 2003 by Mach3Turbo, which presented a whole host of advancements to the Mach3 design, primarily, improved blade technology. Today, the company continues to be at the forefront of new innovation with 2004 set to see the male shaving category expand into a whole new segment - power wet shaving - with the launch of the M3Power razor.

Gillette also has a strong history of innovation in the female market, introducing the first ever razor for women 'Milady Décolleté' in 1915 and the first disposable for women, Gillette Daisy, 60 years later in 1975. The 1990s heralded a period of huge change in female shaving with Gillette releasing Sensor for women in 1992, which was then surpassed by the new and very much improved Sensor Excel for women.

In 2000 Gillette unveiled Venus - a triple bladed razor, designed specifically for women. In 2002 Passion Venus was introduced, broadening the appeal of the product even further by offering Venus in a vibrant pink color. The brand will be given a boost in performance with the launch of Venus Divine in 2004.

Introduction to Gillette Mach 3

Gillette's portfolio has expanded significantly since the release of the original safety razor. Today the company's diverse grooming range has a product to meet the needs of all consumers, at all price points.

Gillette provides a fully integrated grooming solution for men with the shaving range extending from entry level disposables such as BlueII the


basic twin blade razor, right through to Gillette's most advanced technology - Mach3Turbo. Gillette Series also provides shave gel and foam to enhance razor performance, along with after-shave cooling gel, after-shave balm and splash, anti-perspirants, deodorants and shower gels.

Despite this broad offering, the foundation of the male portfolio is the Mach3 shaving system, which proved to be not only the company's biggest technological breakthrough in recent years, but also its most successful product.

Mach3 is the world's first triple bladed razor - a concept made possible by the DLC coating, allowing blades to be thinner and stronger than ever before. The premise is that the three progressively aligned blades allow you to shave close, closer, closest, with the Advanced Indicator Lubricating strip, fading away to indicate less than optimal performance. Five rubber Microfins assist the blades by stretching the skin and lifting the hairs, while single point docking ensures blades are loaded without error. This ground-breaking technology has set the standard for shaving as we know it today, with three bladed razors now setting the precedent.

Gillette's female products range from BlueII disposables for women, Sensor and Sensor Excel system razors, and Satin Care shave gels, right through to the most premium female system - Venus. This product combined pioneering innovation and proven technology to offer a far superior shave, significantly out-performing even Sensor Excel for Women by a 3-to-1 margin. Furthermore, Venus has revolutionized the female shaving experience, ensuring skin stays smoother for longer.

History of Gillette Pakistan Company

Gillette Pakistan Limited is a subsidiary of The Gillette Company, USA, a $ 10 billion global marketer of premium quality products for personal care and personal use. Gillette has always been positioned at the top of the global shaving products market, and also holds leadership positions in the global writing instruments and several personal care and oral care markets. Recently the Company acquired Duracell, the world's leading seller of alkaline batteries. With this acquisition, Gillette has entered the consumer battery industry, widely believed to offer superior growth potential.


Gillette products have been marketed in the South Asia region since 1913. However, Interpak Shaving Products Limited, a subsidiary of The Gillette Company, started to manufacture in Pakistan in 1989. With the increase of Gillette's shareholding to 75%, the Company was renamed "Gillette Pakistan Limited" in- 1994. Over the years, the Gillette range of products in the country has diversified and grown, and today Gillette Pakistan is successfully marketing a complete line of shaving systems, disposable razors, double edge blades, personal and oral care products and, most recently, high-performance batteries.

In the period under review, Gillette Pakistan Limited successfully launched the top-of-the-line Gillette Sensor Excel - a revolutionary new shaving system. The success of this product is evident from the increase in sales figures since its launch in the country. In the disposable razor segment, the Company continues to lead the market with Gillette Blue II Long Handle and 7 O'clock II razors. Since its launch in 1996, the Gillette Blue II razor has played a pivotal role in expanding the market and has established itself as a powerful brand. The 7 O'clock Platinum and 7 O'clock Stainless blades in the double edge blades segment continued to enjoy their position at the top end of the premium double edge blade market.

Product line introduced in Pakistan

Gillette products have been present in Pakistan for a very long time. The brand was earlier represented in Pakistan through a distributor. However, assessing the potential that Pakistan offered for the growth of Gillette brands, the company set up a country office in 1989 staffed with multi-functional teams.

Gillette Razor has won the ‘Brands of the Year Award 2006’ in the Razor Category nationally. The decision was made in the light of votes received from consumers in a nationwide poll as well as a focus group survey. its Global parent global company has awarded Gillette Pakistan for its outstanding work done on consumer research front. Pakistan is one of three countries selected for this award. This goes to show that Gillette Pakistan is living the philosophy of understanding consumer needs.

Gillette brands have improved billions of lives by giving them a better way to shave. Brands like Mach 3 Turbo, Sensor Excel, Blue II, Blue II Plus and 7 O’clock have enabled male consumers of Pakistan to look, feel and be their best. The spirit of commitment has enabled us to maintain a market leadership position in systems and disposables categories.


Products Specifications

The razor and blades business has seen very rapid growth over the past 15 years and the competition is fierce. This can be seen in the table below detailing new line released by Gillette since 1990.

• Razor with spring-loaded blades (Sensor, 1990)

• Razor with micro fins (Sensor Excel, 1995)

• Razor with three blades (Mach3, 1998), later with variants

• Razor with battery power (M3Power, 2004)

• Razor with five blades (Fusion, 2006)

• Razor with rear trim blade and batter power (Fusion Power, 2006)

Gillette has strengthened its leadership position in the shaving systems by launching Gillette Mach3, the first triple blade shaving system. Gillette Mach3 launch was very successful. It was supported by advertising and in- store display throughout the year. The launch of Mach3 also reinforced Gillette's technological superiority in blades and razors. Gillette has continued to enjoy leadership position in disposable razors category.

IBL (International Brands Limited)


The distributor of Gillette Products in Pakistan

The UDL/IBL Group is a diversified business house engaged in a wide range of business activities in Pakistan including international trading, local manufacturing, marketing, sales and distribution of various products and financial services. IBL is the main distributor if Gillette products in Pakistan. IBL describes Gillette as;

The Gillette Company today is the global market leader in nearly a dozen major consumer products categories, principally in the grooming, alkaline battery and oral care businesses. In the more than 100 years since the Company was founded, Gillette has gained, held and strengthened leadership positions through the Company's strategy of managing its business with a long-term, global perspective.

IBL is distributing the following products of Gillette.

• Mach

• Mach - Turbo

• Mach 3 - Razor

• Sensor Excel

• Sensor Excel - Razor

• G-II

• Contour

• 7’O clock

• Blue-II

• Ready-II

• Gillette 2

• Contour Sport

• Shaving Foam / Gel

• As Gel / As Splash

• As Balm


• Dura Cell

• Oral-B

• Sensitive Past

• Interdental Kit

• Orthodontic Brush

• Mouth Wash

• D-Floss

Sales Department

The hierarchy of sales team of IBL is given below;


Distribution Strategy of IBL

IBL’s people strategy is simple. It deems that every individual possesses an exceptional viewpoint and brings with him or her, potential to make important contributions to IBL. Its aim is to produce an environment in which the most competent persons can practice personal growth and help build IBL as the best distribution operation.

Coupled with our philosophy of continuous improvement, our code of ethics that calls for ‘Caring and Sharing’ helps it in building this atmosphere. IBL understands the benefits of implementing an effective diversity strategy and are committed to making inclusiveness its mainstream. It does so by strengthening our understanding of and relationships with diverse communities, and by investing in people within and beyond our organization.

Rebirth of Gillette Line in Pakistan

On October 1, 2005, The Gillette Company finalized its purchase by Procter & Gamble, a deal worth 57 billion US dollars. As a result of this merger, the Gillette Company no longer exists. This merger created the world's largest personal care and household products company.

Before the merger, Gillette had grown to become a leading global supplier of products under a variety of brands. In addition to Gillette, the company


marketed under Braun, Duracell and Oral-B, among others. (www.Gillette.com)

Some of Gillette’s profit and sales may not have been due to the direct worth of the product but due to it being presented to the public from a well known company. In 1999 Gillette as a company was worth $43 US billion and it was estimated that the brand value of Gillette was worth $16 US billion. This equates to 37% of the company’s value which is the same as Mercedes-Benz, one of the world's largest car manufacturers. Its net sales for the year 2005 were $56,741 million and today it has a presence in over 200 countries. (Pavitt, 2006)

Gillette Pakistan Limited is engaged in marketing and selling of blades and razors, personal care products, alkaline batteries, household appliances and oral care products, and contract manufacturing of toothbrushes. On October 1, 2005, Procter and Gamble Company, USA (P&G) acquired The Gillette Company, USA, previously the parent company. B.V. Netherlands is the wholly owned subsidiary of P&G, USA.

Gillette's Latest Shaving Technology: The Mach3 Razor

Mach3 is the world's first triple bladed razor - a concept made possible by the DLC coating, allowing blades to be thinner and stronger than ever before. The premise is that the three progressively aligned blades allow you to shave close, closer, closest, with the Advanced Indicator Lubricating strip, fading away to indicate less than optimal performance. Five rubber Micro fins assist the blades by stretching the skin and lifting the hairs, while single point docking ensures blades are loaded without error. This ground-breaking technology has set the standard for shaving as we know it today, with three bladed razors now setting the precedent.

The Gillette Co.'s biggest new product triumph is the modern-looking, streamlined Mach3 men's razor. Since the introduction of Mach3 at retail in July 1998, the product has not only created a stir in the entire men's grooming category and been labeled as the "largest consumer product launch ever," it also exemplifies the effective use of POP advertising as part of Gillette's renowned systematic planning efforts.

Gillette's use of in-depth, long-term planning and "go-to-market" strategy offers a valuable lesson to both domestic and international firms on how to


achieve consistent, worldwide product imagery and simultaneously achieve unprecedented levels of consumer exposure. The intensive use of POP advertising to drive Mach3 consumer awareness objectives was an integral part of the overall Mach3 marketing plan and ultimately one of the most significant factors contributing to Mach3's global success.

The Mach3 also featured a lubrication strip with the “Indicator™”. The strip was embedded with blue dye, and as the razor was used the lubrication would wear away and the color would fade. When the Indicator had faded to white (along with most of the lubrication strip), the user was (according to Gillette) “no longer experiencing the optimal Mach3 shave” and should replace the blade cartridge.

Whether the Indicator™ was a helpful tool or a clever marketing ploy, the Mach3 was a success. Gillette claims Mach3 cartridges are the world's best selling razor blades, and they can be found for sale in convenience stores, supermarkets, pharmacies, and mass retailers throughout the western world.

Gillette’s Concept of Sales force role in promoting Mach 3

Proper advertising through merchandising displays is effective only if the displays are properly utilized and maintained at retail, enabling the display to perform its "silent salesperson" function throughout a lengthy period of time. The best approach for a brand marketer to ensure consistent placement and use of their display vehicles at the retail level is to deploy competent monitoring personnel.

Advertising displays that are not consistently restocked and checked for cleanliness or structural damage will not be tolerated by most retailers. An empty display does not create an impulse-purchase profit center for a retailer, but rather creates an ineffective occupier of valuable retail space. A damaged display not only contributes to adverse aesthetic properties of the retail environment, but it also has the potential to collapse and become a safety hazard. The Mach3 introduction, as a part of the strategic marketing plan, involved the participation of The Gillette Retail Organization to assist with maintenance of Mach3 advertising displays. They also were used to confirm proper setup and placement of the units according to the sales plans previously established with the retailer.

Gillette retail representatives around the world were assembled to provide feedback regarding the placement and general upkeep of the POP advertising displays and other POP advertising media. A direct sales force


team initially planned and sold the Mach3 product into each retail account across all classes of trade. After each program was physically executed, the retail sales force team formed and checked each account for proper placement of product and advertising medium.

Domestically, retail sales force personnel were utilized for these purposes. Data were collected to confirm advertising placement on the national, demographic, class of trade, and specific account levels. Each team of retail representatives followed the home office confirmation objectives. Specific accounts' advertising kits were confirmed as to placement and physical integrity. For example, the mass merchandise kit may have required three pieces of advertising medium as part of their Mach3 introduction program, and these three pieces were confirmed for placement and maintenance. The retail sales force teams followed a list of specific account locations and knew exactly which medium had been sold in previously by the direct sales force

Personal Selling of Gillette Mach 3

By 2005, the Gillette Mach3 and M3Power series had reached a steady state for both market penetration and consumption volume. This called for a newer and better product to be launched. The Fusion was ready to be born. (Gillette News Re-lease 2005)

Though, advertisement has a larger share in the marketing of Gillette. But personal selling is an obvious part of marketing. In the product line of Gillette en care products, personal selling has a major and important role.

As related to our major product of this project, Gillette Mach 3, it is a highly advertised and promoted product of Gillette over the globe. As described in our report, it has a major share in the Gillette over all market shares. The type of buying which in involved in the buying process of mach 3 razor is Complex Exchange. The company manufactures the product and then IBL is its distribution franchise in Pakistan, from IBL, the sales persons take orders from the retailer. And in the last the consumer purchases it from the retailer.

Selling and Marketing of Mach 3

Gillette is dedicated to driving innovative technology that will develop and produce hair removal products that deliver a superior shave performance, both in closeness and comfort. Its male image is masculine, confident and well groomed; while the female image is fun, youthful and energetic. Gillette


is positioned at the premium end of the market, offering superior quality products that set the grooming industry standard.

In essence, the Gillette Company celebrates world class products, world class brands and world class people. It is committed to growth through innovation to maintain the company's position as a world leader in the consumer products marketplace.

Marketing Mix Variables

The success of the Mach 3 series also diminished the fears that consumers might not be comfortable with more than two blades. Gillette also learned from its competitors that customers were whole heartedly accepting four blade systems. Therefore, introducing a 5-blade razor was possible and perhaps a good idea. However, due to the international nature of the business, not everyone would be able to get their hands on this new product nor would everyone be able to pay a hefty amount.

Promotion

The Gillette brand has an incredibly high recognition rate, in no small part due to a strong investment in advertising. The hugely successful 'Best A Man Can Get' campaign of the 1980s had a massive influence on this, with today's consumers still recalling the catchy song. Despite this popularity, the launch of Mach3 founded a new wave of advertising for Gillette, focusing heavily on the brand values of innovation and cutting edge technology. The aim is to educate the consumer on product advancements and improved shaving performance.

However, 2004 is set to see a strategic shift back towards the original, emotive 'The Best A Man Can Get' advertising, with the campaign set to return with a new and enhanced look. Strong black and white imagery and an updated song, combine to create a far more emotional connection between the consumer and the Gillette brand. Product specific advertising will continue to run alongside this campaign, communicating the technological superiority of the products themselves.

Historically, Gillette has used sport as a major promotional vehicle and embarked on its first sponsorship deal with a radio broadcast of the US World Series back in 1939. Today this association remains strong, with sponsorship continuing to play a large part in Gillette's integrated communications strategy. In 2004 sponsorship of premiership football on Sky Sports' 'Gillette


Soccer Saturday' will continue, as will that of the World Cup, making Gillette the longest running sponsor of the event.

Role of Personal Seller in Gillette Mach 3 Promotion

Personal sellers act like an order takers in the Gillette Mach 3 category. The personal sellers take orders from various retailer and wholesalers. The orders are delivered by the delivery persons of IBL. The roles which are associated with the personal sellers of Gillette mach 3 include

• Personal seller is responsible to check out the proper display of his product on the consumer’s shops and wholesale stores.

• Conveying the promotional schemes to the retailers and wholesalers. Like sometimes mach 3 offers a discounted price or some value added services are provided on the product like free blades etc.

• Personal seller is responsible for the availability of mach 3 razors on the assigned territory retailers and wholesalers.

• Personal seller also provides the promotional materials like shelf talkers posters display racks etc.

• Personal seller evaluates and analysis the potential of sales in his territory.

• Personal seller takes the feed back of Gillette Mach 3 consumption and provides it to the IBL. Hence the company evaluates the potential of the territory, and it helps the company to ensure supply.

PS related to Marketing

Gillette managers were forced to examine their position in the market or risk losing control of their company. Gillette compiled and analyzed past sales information that uncovered the flaws in its marketing strategy.

Marketing research

Marketing research in the form of focus groups and surveys revealed that Gillette could reform its approach to the market by reemphasizing quality and brand equity in the hopes of reversing the trend. To accomplish this, Gillette discontinued all advertising for its disposable razors and began to heavily market its shaving systems. This effort led to the well-known Gillette catchphrase, “the Best a Man can get”.


Marketing research also revealed the critical importance of developing and introducing new products. Therefore, Gillette began making significant investments in research and development, developing new shaving systems over the coming years (Sensor, Sensor Excel, Mach III, Venus etc.). In addition to changing its advertising focus, Gillette has undertaken numerous direct mail campaigns giving away free razors in order to further develop its brands. Gillette believes that once men and women try its products and experience the superior quality they will be willing to pay the premium.

Marketing strategy

Through its refocused marketing strategy, Gillette was very successful at reversing the trend. Since the launch of its Sensor razor system, 10% of men switched from using disposable razors to refillable razors. This shift gave refillable razors over 50% of the entire razor market. Gillette has continued this aggressive approach to marketing the premium shaving systems and has become the clear market leader.

In addition to men’s and women’s razor markets, Gillette has refocused its marketing efforts in other personal care segments. In each one, the focus is on creating a distinctive brand and differentiating its products. Currently 1.2 billion people around the world use one or more of Gillette’s products. About 700 million consumers use Gillette razor blades. Across the consumer products industry, Gillette is considered to be one of the most effective companies at translating brand muscle into revenues and profits, with the likes of Coca-Cola and Proctor and Gamble.

Market Analysis

The first action to take for the marketing team was to commission additional market research to supplement the data that Gillette collects regularly. The aim would be to understand all aspects of the market, including customer’s current buying patterns to see how the market was moving and how well all its segments were served. A series of tests were used to explore customers’ perception and preferences.

The market analysis results were very revealing. They confirmed that blade systems with 3 or more razors had a good market and was particularly popular among young males. It showed that customers primarily selected their ideal razor on convenience and most had clear preferences for style and image. They would be willing to pay more for these if the product met


their requirements. There were four distinct customer types in the razor market.

Customers seeking convince, style and image, health and hygiene and customer who went for brand name alone. The largest segment seeking convenience represented 32 percent of the population’s preference (compared to 30 per cent who had fashion on their minds) and this sector was dominated by both young and adult customers. Gillette dominated this segment with its M3Power razor but with competitors launching new products, Gillette was loosing ground in this sector,

The qualitative research indicated that the customer’s perception of the ultimate razor was ‘a really continent to use, stylish, branded, multi blade razor with additional features’.

The main problem was Gillette had relied too much on their 3 blade systems that since 1998 it had not moved up from the 3 blade stage. These also lacked the hygienic functions that competitors had made use of, like the use of Vitamins and Aloe Vera strips. Hence, a paradigm shift was needed across the company.

At the same time, there was a noticeable trend in when razors were actually purchased by customers. 70 percent of people made their actual purchasing decision based on how long their razors will last. Research indicated that on the average, customers change their razors systems only every 2 years. But, another important factor in the razor sector is the sale of replacement blades, which customers change more often.

From these results, the Gillette marketing team decided that there was a major opportunity to exploit the functionality and long lasting blades sectors within the Gillette portfolio.

This created a major marketing opportunity and provided a basis for the product concept ‘a stylish razor with 5 blades, with added hygienic and convenience functionality which will last more than 2 years’.

Key Marketing Factors of Success

Gillette’s success can be attributed to its willingness to rethink its overall strategy based on marketing research findings. By simply examining internal historical sales information, Gillette realized that the current trends would lead it further away from profit growth and closer to the inevitable hostile takeover. The changes made based on marketing research results


throughout the past decade have made Gillette what it is today, much to the delight of its stockholders. The market value of Gillette’s outstanding stock increased from $6 billion to $53 billion from year-end 1990 to year-end 1998.

• What were the events that led Gillette to decide to act?

• What was happening in the industry at the time?

• What was the management decision problem facing Gillette when it realized that its brand equity had eroded?

• What was Gillette’s marketing research problem?

• What other courses of action were open to Gillette?

• What criteria will be used to evaluate these alternatives?

• What information did Gillette need to make the decision?

• Develop a research question and a corresponding hypothesis about the role of brand loyalty and price in consumer’s selection of personal care products.

Global Marketing and Sales promotion Strategy of Gillette

With Mach 3, Gillette had a distinct advantage; the company had essentially been there before. The company's experience with both the Sensor and the Sensor Excel had created a template for the manufacturing and global marketing and promotion of a shaving system. Sensor had been so successful that it had turned the company's earnings around and set off a string of 32 straight profitable quarters at Gillette. The lessons were clear:

• Because the product would probably take off immediately, manufacturing had to insure that it had enough capacity to avoid shortages at the outset.

• To facilitate a smooth global introduction, all packaging, point of sale and other promotional and support material had to be the same, simply translated into 30 languages for other geographies.

• In the same vein, all marketing and advertising was based on a single campaign that was released in every market, again with minor local adjustments and translations.


• Pricing needed a built-in elasticity, but by carefully testing the concept with consumers, Gillette fixed a profitable price point based on the expected number of blades per user per year.

Sales person’s Knowledge

Related to marketing, the sales person must have knowledge of his own market. Related to Gillette it is necessary for a Salesperson to have Knowledge of:

• Market: the sales person is required to have the knowledge of the market. It means that he should be well aware of his customers and the territory. Where he has to go and take orders. And to analyze the market potential.

• Industry: the sales person should have the knowledge of the FMCG industry. Gillette Mach 3 falls in the category of FMCG products. IBL mostly hires the sales persons who already have the experience of working in FMCG sales promotion.

• Buyer’s Company: Giselle is a brand and a well known organization. IBL is using its brand name and is promoting its products. The sales persons working in the Mach 3 and other Gillette product category are trained to give them knowledge of Gillette as well as the IBL.

• Own Product: sales trainings are conducting to give the complete knowledge of mach 3 to sales persons. This is important for sales promotional activities. The sales person should have a complete knowledge in order to generate active sales. Though Mach 3 is itself a very popular product and at consumer’s end it is not that much important but still it has a good impact on customers.

• Competitor: Gillette Mach 3 apparently has no competitors, but there are some other razors in this category. On interviewing with the sales person we came to know that Treet is also promoting a razor with three blades. But it is not that much popular as mach 3. The sales persons should have the knowledge of the competitors.

Salesperson’s Broader Experience

Outsiders perspective observation of others experience is very much required in any kind of sale. IBL hires the sales persons who already have the broader experience in FMCG products. As generally IBL is dealing with


multinational company products, so the sales persons are required to have a broader observational and analytical approach in order to promote the sales.

Salesperson’s Resources

The sales person should have Educational and training background expertise in problem recognition solving. IBL also conducts training sessions for its sales persons. Along with that Gillette itself promotes its product in a way, that the sales persons find fewer difficulties in explaining the product. The research and development department of Gillette is very much developed. The feed back of sales force has an importance and the research and development department considers the good suggestions of its sales force.

SP input to Buyer’s decision

Gillette Mach 3 is already a product in high demand. The Marketing Mix of Gillette is quite effective in its selling strategies. Gillette Mach 3 already has a strong brand Image in customer’s mind. There is a huge media advertisement stuff involved in its sales promotion. But still, sales persons play an important role in making sure the supplies and order taking the most important role, to make sure that the brand positioning strategies are working at retails and wholesalers end. As sales persons act like an order taker in sale of Gillette mach 3, they are responsible for the display of their products. They have the duties of attracting the wholesalers and the retails to give them a business share by displaying their product on the main shelves. When the consumer enters a retail shop, it acts as a main motive in order to purchase the product.

Personal Qualities for successful Selling

• Persistence: persistence is the ability to step up a problem or situation. A successful sales person should have a problem solving mind. In the profession of sales a lot of situations can happen.

• Empathy: empathy is the desire and ability to understand what an other person feels and why he feels, as he does. Fir a successful sales person it is necessary to have a mind sent of the customer. He should understand that what the customer is feeling, and it helps in understanding the customer’s conditions and needs.


• Communication ability: communication can be defined as a accurate transmission of idea between two or more individuals.

• Integrity: philosophy which permits an individual to distinguish between right and wrong and to act on that distinction.

• Self management: it is necessary to bring about compliance but only to a low degree. When a sales person works alone in the filed, most of the time calling on client, self management becomes an extremely important and differentiating quality.

• Product involvement: it is quality of sales person encompasses a broad meaning and interpretation.

• Social intelligence: It is the quality of a sales person to know about the surroundings, his market and his competitors.

• Confidence: The sales person must be confident.

• Enthusiasm: personal selling is a profession based on targets. The sales person must be enthusiastic to achiever his targets and find new market places for expansion of his market.

• Drive; Drive plays as important role in any profession. Sales person must know the path way he has to adopt in order to get the higher position.

Activities in sales positions

The sales person of Gillette mach 3 has to undergo all of these activates. Face-to-face selling is required as he has to go in the market and take orders from retailers and wholesalers. Reports writing are a common activity like every sales profession. He has to attend meetings and has to submit his work plans. Traveling is also required when a sales person has to go in the closer territories of Lahore in Lahore based positions and so on. Non-sales assignments include the good relationship building with the customers in order to enhance the sales.

A sales person has to answer complains of the customers. For example commonly it comes in delayed deliveries and some breakage in case of Gillette Mach 3. Sales interviews and/or contact interviews is also done by sales person of mach3. Both on the wholesalers and retails end as well as the consumers end sometimes. Keeping informed on current activities is very


much important. FMCG products involve a lot of market variation activities all the times, a sales person must be averred of them. Records’ keeping is also essential for sales person.

Product class and Qualities sales person require related to Mach 3

The basic type of sales involved in the Gillette mach 3 in Pakistan is resale sales. IBL is kind of a franchise, which is the only firm which is providing the Gillette mach 3 in Pakistan. It is directly linked to the Gillette Pakistan Company. As described above, Gillette Company is just overlooking the promotional activates in Pakistan at the moment. The orders are directly put to the various manufacturing Gillette companies.

While visiting the IBL we came to know that they are importing Mach 3 from the Gillette manufacturers of Dubai. After getting the supply, the supplies are delivered to the customers, in each and every city Pakistan, according to the need. From IBL, to the retailers and wholesalers. Here sales persons play an important role because finally they ensure the orders and supply to the customers.

Mc Murry & Arnolds Classification

Among the Mc Murry & Arnold’s classification the personal seller of Gillette mach 3 is outside order taker. An out side order taker takes orders but don’t deliver and determine the shelf space. The IBL sales persons visit the retailers and wholesalers of their territory and look at the shelf space mainly. They have to maintain a certain level of mach 3 depending upon the type and size of the retailers of wholesalers and their capacity and inflow of consumers.

The personal sellers which have bigger stores in their territories like HKB, Rahat Beakers, Metro, Makro, Alfateh etc, they have to ensure the quantity in 100s. While the sales persons who are having smaller territories and smaller general and superstores they have to ensure the supply according to their specific demand.

Personal sellers take orders from their customers and the supply persons deliver the delivery on next working day or as per demand of the customer.

Knowledge


Knowledge always plays an important role in any kind of profession. Personal sellers of Gillette Mach 3 are required to have a good knowledge on all the stages. They should have the knowledge of their market, that what kind of retailers or wholesalers they have to target.

They should have the idea of their FMCG industry, then the needs of their customers and consumers. In fact the whole of this knowledge acts like a bridge of information between the consumers and the firm itself. Sale persons take the information from the customers end to the firm. It helps the firm to improve its product, ensure manufacturing and supply accordingly. The sales persons of Gillette mach 3 play an important role in order to generate the business. They give the feedback to the firm and hence meet their targets.

Knowledge Pyramid

Distribution System

The Distribution Strategy of IBL related to Gillette Mach 3 is that to Maximize reach in every market segment (i.e. Retail, Wholesale, Institution of Urban and Rural areas), assess channel opportunities and recommend alternatives to achieve required market coverage at target levels and identify opportunities and develop strategies like "go to market" through additional channels.


As a part of IBL strategy, it defines the requirements to effectively operate in desired channels and develop responsive supply chain programs to maximize the distribution channel's end-market impact and efficiency.

Distribution Key Concerns

IBL describes the key concerns related to it distribution related to all of the products. As Gillette Mach 3 involves an outsider order taking selling skills so the major emphasize of the company is focused on following events.

• What "go to market" strategies have greatest potential for success'

• What is the outlook for various channels of distribution'

• What are customers of the distribution house'

• What are the opportunities to penetrate new and/or alternative channels of trade'

• Does the marketplace require different brands and different brand strategies for distribution to different channels'

• What programs, policies and procedures must the distribution company have in place to service all retail and trade channel' How do these differ by trade channel and retailer'

Distribution Objectives

• Define and measure the size of markets.

• Assess current state and future characteristics of various potential channels of distribution.

• Assess each channel's "fit" with respect to branding and investment characteristics.

• Assess the strategic significance of product categories to each distribution channel.

• Recommend distribution channels to achieve required market coverage at target levels of profitability.

• Define the goals and success requirements of each distribution channel and develop responsive distribution programs to maximize market impact and efficiency.


• Monitor and track effectiveness of distribution programs within the channel and in end-user markets.

Distribution Channel

The distribution channel of Gillette Mach 3 is given in the following table. The manufacturing Firms are located in various countries and Mach 3 is not manufactured in Pakistan. IBL mostly imports the razors from the Gillette Limited Dubai. Then IBL acts as distributor and it supplies Mach3 to its customers i.e. retailers and wholesalers. From there the Mach 3 goes to the final consumers.

Communication Process


The company spends a huge budget to support the product promotion and to attract maximum attention. It makes a lot of new Television ads. Gillette took out ads in every major men's magazine, from Sports Illustrated to Esquire. Media and Sports celebrities were hired to glorify this razor system Like Salim Malik is now a days on in TV Ads of Mach 3.

Gillette blanketed the earth with ads and promotions, desperate to make Mach 3 its flagship shaving product.

Mach III is considered one of the best consumer product launches ever. A critical part of its launch for P&G was timing product availability and visibility in stores with the date of the launch. On every outlet of superstores and retail shops we can see displays sent out to stores. They vary from self-contained perforated cardboard boxes that fold into shelf-level promotions, to entire pallets that are rolled into the middle of su-permarket aisles. But just sending out the displays wasn't going to be enough. Gillette also made sure these displays were filled up at all times using RFID technology, thus maximizing ‘display compliance’ rates they expected from retailers.

Here Sales persons played an important role to make this strategy successful. Sales persons of Gillette Mach 3 ensure the proper display settings of their racks and displays on every single superstore or super market. This ensures a good communication of the product with the end consumers. Sales persons are responsible for the proper communication of product in their territories.

Gillette mach 3 sales persons concentrated their efforts on making sure the in-store promotional displays that adorn retail store floors were set up in time to coincide with mach 3 massive marketing and ad campaign. The displays are placed where they were most visible to customers.

The Buying/Selling Process

As we know that the buying/selling models explain the personal seller’s approach to develop a successful communication with his customer to help him making the decision. In case of Gillette mach 3, the model is based on Buying Decision model.

Buying Decision Model

It is viewing the buying/selling through assumptions that the buyer makes a number of separate decisions before arriving at the ultimate decision to actually purchase the product. Now the Sales person of Gillette mach 3


knows the alternatives. When a sales person approaches to the customer to take the order he knows that what alternatives are available for the customers. He Approaches the customer and tells him the reasons to buy his product. As being high in demand, he has no need to explain that much of product features because consumers already demand the product. He just closes the call by taking the orders.

The Sales Presentations

The sales presentation involved in the sale of Gillette Mach 3 razors is Key points presentation. The sales person already knows the features of the product and he can explain all de features of its product to the customer. Normally Gillette has so highly developed model of communication with the consumers that there is no chance of any customers complains. But sales persons are always well prepared for their product specifications. The sales presentation is simple in case of Gillette mach 3, because the product is highly in demand.

SWOT Analysis of Gillette Mach 3

Strengths

In a very strong global position, market leadership. The company have products in many different areas so have a huge overall market share

It is a very well know brand, some of its sales will occur purely as it is a Gillette product.

Once a user has purchased the initial set cheaply they are then stuck into buying blades that fit the device. This ensures that Gillette keep the market share.

Weaknesses

Amount of components slows manufacture and assembly time

The price of a Gillette razor system is much higher than that of a less well know brand, this price level must be carefully decided upon as a lower price would mean more sales and a higher price would be more profit per sale

Opportunities


New product launch, The Gillette Fusion, will enforce market lead.

There has been a recent price increase in shaving systems

Product can easily be improved; more blades, different color combination, add electrical components.

Threats

Competitive environment and business area

Cost of materials increasing, especially Zamak as a lot of this material is used.

Electricity prices increasing

Documents

Final Project Ps (Gillette Mach 3)