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GILLETTE
“GILLETTE IS THE GLOBAL LEADER IN MALE TOILETRIES
PRODUCTS”Data Monitor Research, Oct. 2007
JANAK DEORA
ANIRBAN DAS
RAHUL GARG
VIKASH VERMA
MOHIT KR. SHARMA
SHARAD BHARADWAJ
THE GILLETTE COMPANY
108 YEARS 1901-2008•1901 Founded by King C Gillette with William Nickerson in Boston.
•1902 1st Product – Double edged, T shape disposable razors.
•1914 Gillette brokers deal with US Army (3.5 Mn razors, 36 Mn blades)
•1950 Spends $6 Million for TV rights to Baseball World series for 6 years.
•1973 Net Sales exceed $1Billion & in 1980 it exceeds $2 Billion.
•2001 Gillette has 61 Facilities in 25 Countries, and employs 40,000 people
•In 2005 Gillette merged with Procter & Gamble, forming one of theworld’s largest consumer goods companies.
•Gillette is now on 16th position as a brand in the world with a $19,579 million turnover.
•Today, Gillette operates 32 manufacturing facilities in
15 countries and employs more than 30,000 people.
NORTHAMERICA
SOUTHAMERICA
UK
EUROPE
AFRICA
ASIA
AUSTRALIA
GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES
GILLETTE PRODUCT RANGE
GLOBAL STRATEGY
Corporate Objective global focus on consumer products global competitive advantage in quality, value added
personal care/use products
Global Market competing in the triad markets (Europe, Japan, North
and South America) industry concentration (SWOT Analysis) global market leadership in male and female
grooming products
THE GILLETTE STRATEGY
Global resources organised and deployed to achieve market leadership in all their products
to maintain and increase existing market share in male and female grooming products
Corporate Strategy aggressive research and advertising new product developments (invest in technology
and product innovation) focus on core competencies maximise e-commerce opportunities build strong product portfolio
GILLETTE MARKET STRATEGY
Strategic Market Objectives Achieve a well integrated programme of marketing mix
elements. To enter the direct sell market via the Internet.
Target Market Analysis early entry into the UK market by the FDI mode presence in the UK as a strategy for European
Common Market high industry concentration ratio (SWOT Analysis) market leadership in men’s shaving products
GILLETTE'S PROFIT BY PRODUCT
Blade and Razor
profits up 11% in 2007, due mainly to sales of Mach 3.
Gillette Profits by Product
0
500
1000
1500
2000
2500
y2007 y2006 y2005
Year
Pro
fit
$Mil
lio
ns
Braun Products
Oral-B Products
Duracell Products
Toiletries
Blades & Razors
COMPANY SWOT ANALYSIS
Strengths
Threats
Weaknesses
Opportunities
Market LeaderStrong Brand ImageGlobal PresenceAggressive AdvertisingQuality & InnovationPortfolio Range (Mach 5 etc)
Long Development CyclesRelatively Static Market GrowthHeavy Dependence on High Street Retail OutletsExpensive Brand Maintenance
Demographic ChangesChanging Societal AttitudesConsumer Brand PreferenceDemand for High Qualityproducts
New CompetitorsCloning of Successful brandsIncreasing Buyer Power(Inventory De-stocking)Growth in SubstitutesOwn Label FitsEconomic Downturn
BLADES & RAZORS SEGMENT
DisposableRazors
ShavingSystems
ReplacementBlades
Blades &Razors
ElectricShavers
Shaving Products
Pre-Shave Post-Shave Deodorants
Toiletries
GroomingMale & Female
WET SHAVING PRODUCTS
•Mach3 Turbo
•Mach 3
•Sensor & Sensor Excel
•Atra
•Trac II
•Custom Plus
•Good News
•SensorExcel for Women
•Sensor for Women
•Agility
•Gillette for Women Venus
MARKET POSITIONING
Price
Quality
WilkinsonGillette
BiC
Own Labels
BLADES & RAZORS STRATEGY
• Innovation through Research & Development
• Premium Brand - Premium Price
• Build Global Product Branding
• Build Strong Brand Loyalty
• Greater Efficiency at Lower Cost.
• Maintain Superior Growth in Market Share
• Build Shaving Systems Sub-Segment
• Invest in technology and product innovation
FUTURE GILLETTE STRATEGIES
• High Branding/Quality - Premium Price
• Develop New Market Segments & Niches through R&D
• Maintain/Promote Strong Brand Loyalty
• Tailoring Demographic Targeting (E.g. US vs Europe)
• Reduction in Product Unit Costs
• Grow Razor Systems Segment
• Strategic Alliances (Suppliers and Distributors)
• Shedding Non-Core Businesses (E.g. Papermate)
•Diversifying capital, investment, products & other resources to maintain & expand position as market leader.
•Strategically positioned as leader, & regularly reorganising its structures to respond quickly to changes in business & competitive trends.
•Developing & maintaining a high profile for its brand names through marketing.
•Continuing to maximise efficiency in production & distribution.
•To remain as the market leader of Grooming sector products for the foreseeable future.
Conclusion
GILLETTE STILL THE GLOBAL LEADER IN MALE
TOILETRIES PRODUCTS
So in deed
“The best a Man can get”