33
‘GILLETTE’ BRAND AUDIT REPORT Submitted to: Ms. JAYASHREE SUNDAR Prof. FREDA J. SWAMINATHAN FORE School of Management, New Delhi Submitted by: ASHUTOSH KUMAR JHA [91011] NISHANT SINGH [91039] STUTI GUPTA [91056] SUDHIR MAKKAR [91057]

Gillette report 2

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Gillette report 2

‘GILLETTE’

BRAND AUDIT REPORT

Submitted to:

Ms. JAYASHREE SUNDAR

Prof. FREDA J. SWAMINATHAN

FORE School of Management, New Delhi

Submitted by:

ASHUTOSH KUMAR JHA [91011]

NISHANT SINGH [91039]

STUTI GUPTA [91056]

SUDHIR MAKKAR [91057]

Page 2: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 2

Table of Contents

Acknowledgement ................................................................................. 3

Executive Summary............................................................................... 4

Introduction ........................................................................................... 5

History - Gillette India .......................................................................... 5

Gillette Products in India ...................................................................... 6

Gillette’s Strategy ................................................................................... 7

Competitor analysis ............................................................................... 9

Brand portfolio .....................................................................................11

Segmentation, Targeting and Positioning ..........................................11

Marketing Mix ..................................................................................... 12

SWOT Analysis .................................................................................... 14

POP & POD ........................................................................................ 15

Brand Elements ................................................................................... 16

Brand Equity ....................................................................................... 20

Philanthropy ........................................................................................ 26

Role of celebrities ................................................................................ 26

Threats to equity ................................................................................. 27

Annexure .............................................................................................. 29

References ........................................................................................... 33

Page 3: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 3

Acknowledgement

We would like to express our heartfelt gratitude towards Ms. Jayshree Sundar and Prof. Freda

J. Swaminathan, our faculty at FORE School of Management for teaching us the various

aspects of brand management in theory as well as application, all of which have helped us

compile this report.

This is a comprehensive brand audit report with focus on all the elements of brand

management and the learning and knowledge imbibed from Ms. Sundar and Prof.

Swaminathan have gone a long way into helping us in preparing this report.

We appreciate your help and thank you for this guidance and support.

Date: 20th December, 2010

Place: FORE School of Management, New Delhi

Page 4: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 4

Executive Summary

Gillette has been the leading brand in men‘s grooming industry across the globe. With its

wide range of products caters to the premium segment of the men‘s grooming market. It faces

intense competition in the toiletries market whereas the competition in the razor market is not

that intense.

This report aims to study the brand equity of Gillette and factors contributing to it. Gillette is

a universally present brand which has emerged as most admired brand by customers in almost

every country. In an era of globalization, almost 70% market share globally is unheard of.

Studying the factors that have given Gillette ‗the best a brand can get‘ advantage would help

us understand what is needed for a brand to rise above the clutter and make itself

synonymous with industry itself.

For studying these we looked at factors that actually contribute to the brand equity like Brand

Image, Brand Personality, Brand Recognition, etc. This involved understanding what are the

things/ personalitiesWe also studied how and how much product features and innovation

contributes to the brand equity. Gillette has universally used celebrities as the face of their

brand. We have also looked at how having a celebrity face promoting your brand helps in

increasing the brand equity. We also looked at what are the risks involved with relying on

celebrities.

Page 5: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 5

Introduction

The Gillette Company is the world leader in the men's grooming product category as well as

in certain women's grooming products. Although more than half of company profits are still

derived from shaving equipment—the area in which the company started—Gillette has also

attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman

brands) and correction products (Liquid Paper), toothbrushes and other oral care products

(Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of

company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its

products are sold in more than 200 countries and territories, with more than 60 percent of

sales occurring outside the United States.

History - Gillette India

Gillette India was incorporated on 9th February 1984 at Rajasthan. House of Poddar

Enterprise (HOPE) and Gillette Company, U.S.A. (Gillette), promoted it. Gillette India

manufactures and markets Gillette Grooming Products and distributes Oral– B and Duracell

products. More than 60 % of the products sold in India are locally manufactured by Gillette

India. Parent company Gillette (Refer Time Line, section 10.1) owns a majority stake in

Gillette India.

Company entered into a foreign collaboration agreement with HOPE for setting up of a

company for the manufacture of stainless steel razor blades in which Gillette agreed to

subscribe 24% of the equity capital. This agreement provided technical collaboration by

Gillette over the full range of technical know-how and technical assistance for the

manufacture of razor blades, razors and shaving systems. In 1985, the company came out

with an IPO for raising Rs 26 million to fund the setting up of its plant at Bhiwadi in

Rajasthan. Company placed a plant for the manufacture in the first phase, 200 million

stainless steel razor blades per annum in the starting. Blades manufactured by the Company

were of two types, the premium 7 O'Clock, Ejtek Super Platinum and the stainless brand 7

O'Clock Ejtek Super Stainless. Company took over Sharpedge Ltd.,by acquiring the entire

share capital of that company.

In 1998, company decided that it would use Gillette as its pre-eminent brand placing it ahead

of the 7O'Clock brand.

Page 6: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 6

Gillette Products in India

Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in its

portfolio GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands

and has carved a reputation for delivering high quality, value-added products to meet the

needs of consumers. It was incorporated in the year 1985 as Indian Shaving Products

Limited, now Gillette India Limited.

In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII

Shaving System and second was shaving cream with three variants. In the year 1993-94, with

the launch of Gillette Presto Ready shaver in February 1993, the company commenced the

launch of Gillette Shaving Products in India.

In the year 1995-96, launch of 7 0'Clock Ready II ready shave and tooth brushes under a well

known international brand name Oral-B as per distribution arrangement, further strengthened

the Brand name.

In the year 1996-97, the company launched the latest Gillette Sensor Excel shaving systems

which met excellent consumer response. In the year 1997, the company launched World

renounced Gillette Sensor Excel for Women shaving system. It also launched Gillette Shave

foam.

In the year 1998, the company successfully launched the Gillette Series range comprising

Shave gel, Shave Foam, After Shave Splashes, Conditioners and Deodorants, thereby making

pronounced its perception as the premier male grooming company.

In the First month of 2000, the company launched Gillette Mach 3. In the year 2000 Gillette

launched Geep Laserlite, a Sport flashlight. Company also successfully consolidated Duracell

and Wilkinson business to leverage distribution strengths with mega displays and sales

promotion.

In the year 2001, Gillette undertook a series of very successful consumer promotions across

product lines. It also launched the Gillette Series Satin Care for Women Wild Berry Line. In

the year 2002, this was the year of turnaround for the company. In the year 2003, Company

successfully relaunched Gillette Foam. Towards the End of 2003, Company launched Gillette

Vector Plus.

Page 7: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 7

The Gillette Company, USA was acquired worldwide through merger in October, 2005 by

Procter& Gamble Company, USA creating the largest Consumer products Company in the

World.

In the year 2007-2008, Company launched The Gillette Winners program that had sports

legends Roger Federer, Thierry Henry and Tiger Woods and Rahul Dravid. An innovative

program "Free Dental Check up" was organized to enable consumers to benefit from

expertise of professional dentists at no cost. Oral-B brand launched a new variant "Shiny

Clean" targeted at the value segment.

Besides the above mentioned product launches, company kept introducing new variants of

their existing products from time to time in market. These not only made product portfolio of

Gillette large but also proved its commitment to Indian market.

Gillette’s Strategy

The company has always been known for the strength of its brands, and continues to

penetrate deeper into the hearts of Indian Consumers.

When Gillette entered Indian shaving products market, it was characterized by a 97% share

of double-edged blades - a business dominated by the Malhotras, with brands like Topaz and

Panama. Instead of going head-on against them in this highly price-sensitive market, ISPL

had chosen to focus on premium products. The strategy has been to bring more people into

the twin-edged segment, and then gradually move them towards even more premium

products. Also, by segmenting the market with offerings at different price points - 7O'Clock,

Sensor and Mach III, ISPL offers a continuing upgrade path for users.

Gillette has always created heroes out of their products and individual products have created

a name for themselves in market and are differentiated from each other easily. Mach 3,

Sensor Excel, Presto, etc are recognised names by themselves in market. And this has been

achieved by astute promotion campaigns and astute product launch campaigns of each single

product.

Years of product innovation and heavy investment in marketing and advertising has allowed

Gillette to occupy most dominant position of any of the major global consumer goods brands

with an estimated 70% share of the global razor blade category. Gillette instead of relaxing

Page 8: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 8

and being satisfied with its large market share, Gillette has made efforts to improve much

beyond that level of market share

Gillette has always priced its newly launched products at a high premium and relied on its

loyal follower base to keep coming back. Gillette launched its five-bladed Fusion line in 2006

with a 40% price premium over Mach3, its previous three-bladed offering.

To reduce threat from competitors, Gillette even when launching new products keeps old

product lines alive. This strategy has made Gillette‘s second best selling product its best

selling products best competitors and increased market share in process. Despite the fact that

Fusion and Mach 3 lines generating significant profits, with such a huge share of the shaving

market it makes more sense for Gillette to focus its marketing resources on switching its own

customers from Mach 3 to the more profitable Fusion line than trying to win any more share

from competitors.

Also Gillette‘s products are known to have a huge margin. Accusations have been made that

despite a retail price of £9.72 for a pack of four Fusion razor blades in UK, the actual

manufacturing and packaging costs for this product is less than 30p. (Source:

http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-brand-can-

get.html)

Gillette has supported its products with huge promotional blitzes. High and sustained

advertising has created a huge recognition factor for the brand. They have been universally

associated with some of the best known sportsperson at their peak. Besides they have also

sponsored sports events like golf, racing, etc as well as video gaming championships.

Structure

Post Gillette P&G merger, Gillette has adopted the organisation structure of P&G

2006onwards and effective July 1‘ 2006 relocated its headquarters from Gurgaon to P&G

Plaza in Mumbai, which will house all P&G subsidiaries in India. P&Gs organizational

structure is broadly divided into three heads: GBU(Global Business Unit), MDO(Market

Development Organization)and GBS(Global Business Services).Gillette moved from

business units based on geographic regions to GBUs based on product lines. MDOs develop

market strategies to build business based on local knowledge and GBS bring

Page 9: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 9

Competitor analysis

Colgate- Palmolive

Colgate-Palmolive is one of the largest companies in the FMCG sector. The Company had

launched its International Palmolive Shave Gel and Palmolive Shave Foam in the year 2000,

in response to growing consumer interest in skin conditioning benefits. The Chairman of

Indian Operations mentioned that the company‘s strategy for Personal Care is to remain in

top niches. Every year, they intended to take 3-4 initiatives.

Colgate-Palmolive has shaving products under the brand name Palmolive shaving cream. It

has three variants in the shaving cream/gel/foam category.

Proctor & Gamble

Before buyout of Gillette, in the shaving cream/gel/foam category it had a very strong brand

in the market, Old Spice. Old Spice has products in each of the cream, gel and foam category.

Since the acquisition, P & G has gone easy on Old Spice brand and promoted Gillette more

Wilkinson Sword

Wilkinson Sword is one of the only two brands which competes with Gillette across all the

product ranges from razors (both twin blades as well as ready shavers), shaving creams/ gel/

foams and aftershave range. Wilkinson Sword has been in Indian market for almost as long as

Gillette but, as in global market, has not been able to break Gillette‘s stranglehold on ready

shaver or shaving accessory market.

SuperMax

SuperMax is only other company with presence across all whole product range of shaving.

Recently SuperMax‘s head of India operation claimed to have 60% of twin-blade Indian

market by volume. Both these firms have almost negligible promotional campaigns. But,

SuperMax has gained advantage from the fact that Gillette, with its focus on ready shavers,

has cut on the promotion campaigns for the twin-blades sold under name 7o‘Clock.

HLL

With this massive distribution network in place, HLL enjoys commanding position in many

FMCG products in Indian market.

Page 10: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 10

In the Shaving Cream/Gel/Foam category also HLL has two brands. Both of them are very

strong brands in the Indian market. With the help of its distribution system these brands have

a deeper reach to the Indian consumers.

The pricing of shaving products by HLL for both Axe and Denim is almost same. It is also

very similar to that of Old Spice shaving cream. But HLL does not have any product in the

gel or foam category to compete brands like Old Spice and Gillette.

Godrej

Godrej is a domestic brand of shaving cream and now it is looking to expand in the global

market for hair color and shaving creams. It has two variants in the shaving cream category.

They are Godrej Shaving Cream and Godrej Premium Shaving Cream. One observation is

that even the premium shaving cream from Godrej is priced quite below the competitors

products of same quantity.

Fa

Fa has two shaving cream products in the market.

Park Avenue

Park Avenue has long been player in shaving cream and Aftershave market. It has also been

backed by promotional campaigns. Also eponymously named clothing line‘s reputation has

worked well for the shaving accessories range too.

Local players

There were many organised and unorganised local player. Since the early 1990‘s the industry

has seen large shift in the consumer perceptions and consumption patterns. Many local

players like Topaz and Panama gave way to the larger players in market after failing to

compete on the reputation and innovative products fronts.

Other Brands

Other competitive brands like Dettol, Vicco are also there in the market scene. These are not

premium segment brands and were priced accordingly.

Page 11: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 11

Brand portfolio

Product Details

Company Manufacture stainless steel razor blades. Gillette India has a wider portfolio of core

business of shaving products sold under Gillette, 7‟0 Clock and Wilkinson brands, Battery

and flashlights business and oral care products (Oral B). Company has strong presence in

shaving razor blades market. It has the premium quality 7 O'Clock Ejtek shaving brush, 7

O'Clock Ejtek P II shaving system with a metal spine and a shave cream in three variants,

Gillette Presto Readyshaver, Readyshaver under the Brand 7O'Clock Ready II, tooth brushes

under the well known international brand name Oral-B, Gillette Sensor & Sensor Excel

shaving systems which met with an excellent consumer and trade response, Gillette Shave

Foam, Gillette Aerosol" shaving cream, new generation triple blade shaving system

Mach3Turbo etc. Company also entered into ladies personal care segment with the launch of

the Gillette Sensor Excel for women. Company has strong diversified portfolio to increase its

male personal products coverage. Company has tied up with Rediff-on-the-Net e-commerce

to market its product and increase its customer base.(Section 10.4 for product line)

Segmentation, Targeting and Positioning

Segmentation

The segmentation that Gillette adopts can be classified as a multi segmentation approach.

There are different levels to this segmentation starting with a demographic segmentation.

Gillette had in 1990‘ s particularly targeted higher income consumers. Thus, we see that

income segmentation has been the main factor when Gillette decided to segment the market.

Even now the basic segmentation has been on basis of income but with wider portfolio now

they target well to do middle class primarily. Gillette understands with lower rate of shaving

in India, its products would be successful among segment of population which considers

shaving to be a desirable activity. Gillette after seeing the success of the Mach 3 Turbo,

decided to offer a similar product for women-Venus Power. So, Gillette has also used gender

segmentation.

Gillette has also been using lifestyle segmentation. It has always targeted professionals with

active professional life which requires them to be well-groomed and smart. Its usage of

sportsperson heavily in its campaigns has been to highlight this main point. All the celebrities

Page 12: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 12

endorsing Gillette have image of well-grromed and cultured within their profession as well as

outside the playing field.

With growth of India, the target segment of Gillette has also greatly increased. The aspiring

middle-class has proven to be the sitting market waiting for Gillette to come and tap it.

Targeting

Gillette has targeted the affluent and growing middle class and upper class segment through

marketing promotion to create a associative and aspirational connect. It has used TV

commercials in sports telecasts like Formula1 racing, FIFA World Cups, Cricket matches,

etc. Bigger the event, like football world cup, more intensive is Gillette‘s promotional efforts.

Besides TVC, Gillette has relied on adverts in print media. Gillette has traditionally published

its adverts in lifestyle magazines and publications. They also has in-shop branding in larger

shops to reach their target audience.

Positioning

Based on the lifestyle segmentation, Gillette has selected ambitious and well-groomed

professionals as its target segment. Traditionally it has positioned itself as a premier product

in shaving and grooming range with premium pricing. Ever since 1920s, even in face of

competition, Gillette has maintained its premium pricing and relied sustained customer

loyalty to maintain its leadership position. It also positions itself cut above its competitors

through launch of new and innovative products every few years with perceived benefits and

advantages over its already available products.

Marketing Mix

Product: Gillette‘s global product portfolio includes products in shaving razors (twin-blades,

ready shavers, use-n-throw ready shavers), Razors for females, shaving lather (creams, gels

and foams), After shave lotions (alcohol based and non-alcohol based), deodorants and anti-

perspirants, hair-care (shampoos and conditioners), hair creams and gels. These products are

directly under Gillette brand. In India, Gillette has actively promoted only razors, shaving

lathers, aftershaves and deodorants.

There are multiple variants within these product lines to suit individual skins and

requirements.

Page 13: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 13

Gillette has introduced innovative products like Sensor Excel, Mach3, Duracell alkaline

batteries, disposable razors, twin/triple edge cartridges to the Indian consumers. It has

captured a market share of more than 88 per cent in the premium shaving systems segment.

Price: As already mentioned Gillette has traditionally priced its products at a premium to an

extent where some market analysts believe it to be fleecing customers relying on customer

loyalty. Some products are said to carry as high as 3000% mark-up price over the

manufacturing cost.

Place: Gillette is one of the most widely distributed brand across globe. Gillette‘s sales and

distribution network is wide, enabling consumers all over the country to buy its products.

Gillette has localised its distribution system and made it specific to the Indian market. Gillette

has targeted the Indian market on a shop-by-shop basis as against the European and US

market where there are only few major retailers.

The distribution chain is known to be smooth and without any problems regarding handling

and acquiring stocks. On an average, a retail unit stocks the maximum number of Prestos, in

relation to Vector Plus and Mach 3. Also as compared to Presto being available almost at

every grocery store, Mach 3 and sensor Excels are stocked at shops of certain size only which

are also able to provide prominent display space.

Promotion: Gillette relies heavily on promotional campaign with celebrity endorsement,

targeted specially towards young men.

Gillette India benefits from its parent‘s spending, strategy on advertisement and brand

promotion. Gillette has a long history of promotions for its products, especially towards

young men. Current promotions include sponsorship of sports events such as the Rugby

League Tri-nations and shipping their then-flagship product (currently the Fusion) to males in

the United States around the time of their 18th birthday. Athletes such as Roger Federer,

Tiger Woods, Shoaib Malik, Derek Jeter, Thierry Henry, Kenan Sofuoglu, Park Ji-Sung,

Rahul Dravid, and Michael Clarke are sponsored by the company. Marketing experts have

highlighted "the curse of Gillette", given the mishaps that happen to sports stars associated

with the brand.

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

Page 14: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 14

countries , only making changes in the language, colours etc. For the lower segment razors

like vector plus & presto it retains the global theme but adapts it to local market needs.

Print– This medium is mainly used by Gillette to spread awareness of their percents-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. However

the company does not have a India specific website which the company can develop as an

additional promotional tool.

SWOT Analysis

STRENGTH WEAKNESS

Strong brand equity

Market Leadership

Well Diversified portfolio

Technological Innovation

Wide distribution network

Loyal customer base

Profitability highly dependent on core

Over-reliance on high-street retail outlets

for premium products

OPPORTUNITY THREATS

New product launches

Price increases in premium shaving

segments

Changing Demographics and Societal

Attitudes

Low Shaving frequency

Imitations / disposables are a threat to

the Gillette’s offering

Pressure on pricing power

Competitive environment

Page 15: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 15

POP & POD

Points of Parity

1) Gillette has traditionally differentiated its razors from those of its competitors by

claiming to provide a closer, more comfortable shave.

2) The quality of products is very good in terms of durability, accuracy, design and ease

of use. Also much diversified product portfolio.

3) Strong promotion strategies and advertisements including famous personalities from

very fields like media, sports etc..

4) A brand having multiple offering under its umbrella should be having same value

experienced by the buyer. Organizations need to be offering same values under a

Brand. A change in values across the product line turns the consumer into a confused

buyer. Gillette is successfully executing vice-versa effect for decades.

Points of Difference

1) Strongest distribution network thought the world in its product category

2) Gillette also enjoys leader position in shave preparation market. Gillette's share of the

shave preparations category stands at 60% of market, distinctly ahead of other major

players including Palmolive So follows premium pricing strategies.

3) Gillette is ripe to reposition itself from the tag "innovation" and let Fusion drive the

innovation wheel. Fusion looks to be a serious effort as Gillette has launched

HydraGel shave gel and HydraCool after shave products under Fusion sub-brand.

4) Gillette ensures that the Investors and Community sections have all of the detail

necessary to underpin the brand‘s credibility. Anyone wishing to invest in Gillette can

find everything from live stock quotes and charts to annual reports and webcasts, as

well as the ability to buy the company‘s shares online.

5) Gillette has put up a lot of effort on building their homepage which is very popular. It

looks cool and has a nice pale-blue shade which reflects the real power under it. On

the cause-related front, Gillette uses the site to promote a number of initiatives on a

national and international level that help enhance brand value by bringing some much

Page 16: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 16

needed support to not just disadvantaged communities, but also to key causes such as

women‘s cancer programs.

Brand Elements

Brand elements are those trademarked devices that serve to identify and differentiate the

brand. These are also sometimes known as brand identities. Items like brand name, logo,

mnemonics, characters, spokespersons, slogans and jingles are some items that can be

characterized as brand elements. All or most of them are trademarked and registered by the

parent company of the brand and these are what appear in front of the consumer in the

brand‘s communication and help increase recall of the brand as these are things that the

consumers remember a brand by.

According to theory, there are some specific criteria which need to be kept in mind while

deciding on the brand elements. These are points which when satisfied help in serving the full

purpose of having brand elements. Some of these criteria are:

1. Memorable – These elements should be easily recognized and can be easily recalled.

2. Meaningful – If not all then most of the brand elements should have a meaning and

should associated in some or the other way with the culture and values of the brand.

3. Likeable – In simple terms brand elements should be fun, interesting or may be

aesthetically pleasing so that the consumers like it and attach positive connotations with

these elements.

4. Transferable – Brand elements need to be the same for different markets and

geographies, for different product or service categories. So transferability across these

boundaries is critical.

5. Adaptable – They must be flexible and the company should be able to update them as

and when required.

6. Protectable – They should be legally protected from counterfeiting and copyrights

violation.

Now keeping these criteria in mind, let us have a look at the brand elements associated with

Gillette and according to the consumers, how well do these elements stand up to the criteria

defined above.

Page 17: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 17

1. Brand Name – Gillette

Gillette is one of the best known names across globe in FMCG sector. Gillette has over

800 products in almost 180 countries across globe. Gillette company was named after the

founder of company, King C. Gillette. Gillette name sounds modern and has no negative

connotation in any of the languages in any of the markets it has operated in. It being a

foreign brand attracts consumers who feel proud to be associated with a big international

brand. It is easy in terms of memorability and having a long history attached to it along

with the geographies it is now operating in; it has proved its adaptability and

transferability.

Internationally Gillette changed its founding name, Gillette Safety Razor Company, to

Gillette Company in 1950s when it started diversifying into other varied products. In

India, Company was established with name ‗Indian Shaving Pvt. Ltd.‘ but later changed

to Gillette India Ltd.

There are different strategies which can be adopted when choosing brand names. Gillette

adopts a ‗dualithic‘ brand name strategy for many of its products. Ina survey when asked

to name Gillette products, 7 out of 10 respondents considered ‗Mach 3‘ and ‗Fusion‘ to

be individual brand names and didn‘t precede these names with ‗Gillette‘. This strategy

can be used in order to ensure differentiation between the products; as if all products just

fell under the ‗Gillette‘ brand name, it would be difficult to achieve a perceived

difference.

The suggestiveness of the brand names can be a contributing part of a brands identity

and can help build positive associations with the brand and create positive brand

attitudes. The brand name ‗Mach3‘ for instance, is a term linked to the speed in which

certain jets can travel and may be associated with:

• Very fast speed

• Precision

• The ‗3‘ blade system

2. Brand Logo

Gillette logo has evolved over last century. It

is uniform across globe upholding the

impression of globally reliable brand locally

Page 18: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 18

available. Logo exudes the characters brand stands for-stylish, clean and modern.

Logo has always been written either in blue or black or in white with blue/black

prominently in the background. Blue colour represents the clean and smooth side of the

brand while black lends the smart and sophisticated look to the brand logo. Words are

written in clean and legible font which is easily readable. A shining point in the images

(like one over ‗G‘ in the represented image) reminds of the sharp edged blades Gillette

has so much come to be associated with.

3. URL (Uniform Resource Locator)

The website link or URL for the global website is http://www.gillette.com. Within this

website there are company specific links. Country specific sites majorly display the

range of products available and give out very little other details. Main global link has

major details about the company. Besides this link Gillette also has other assorted

websites linked to its sponsored events and organised events, like

http://www.gillettechampions.com/. It is easy to remember and use, hence making it an

effective brand element.

With Changing times Gillette has also made its presence felt on new age trends like

social networking websites. http://www.facebook.com/#!/gillette

Campaigns such as ‗Women against Lazy Stubble‘ have their own link such as

http://www.shaveindia.com/pressrelease.php.

4. Slogan

Gillette‘s slogan ‗THE BEST A MAN CAN GET‘ has been used for past few years and

is universally accepted as a very apt slogan for the brand. Going by the meaning of the

tagline, it can be interpreted in two ways

i. Best shaving product a man can get

ii. Best condition a man can get into is only after using Gillette product

Although two meanings can render a slogan ambiguous and confusing, in this case both

the meanings are complimentary and add value to the brand in consumer‘s mind. Slogan

is easy to remember and catchy. It also makes the target segment of the products very

clear.

Page 19: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 19

Statement also comes out as a strong and confident statement which would assure

customers of putting their faith in hands of a brand which has confidence of saying it is

best in the market. This slogan has also greatly assisted Gillette in becoming one of the

most trusted brand in market.

5. Packaging

The packaging of a product has been described as the ‗silent

salesman. In Packaging important aspects are:

Who your customers are

Should be both aethetical as well as functional

Suitable for your distribution selling style

Physically Safe and environmentally neutral

Economical

Gillette's packaging fulfils the entire above criterion. Packages are in company's colours

and hence very easily recognisable. These have been designed keeping in mind the razors

they are supposed to contain. Packages are mostly of treated plastic which is physically

safe and easy to handle as well as economical.

Transparent coverings on the front make for a good display on the shop

windows and one of the visual appeals. Colour of packs has been kept

blue/ black keeping in general product coloration tone. But for female

centric products colours have been kept soft and feminine.

Cartridges come in various sizes of 4,6 and 8 for different price range.

Inner hard plastic case keeps blades safe from damage as well as

causing damage to other goods during transit and stocking.

Page 20: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 20

Brand Equity

Customer Based Brand Equity occurs when the consumer has a high level of awareness and

familiarity with the brand and holds some strong, favourable and unique brand associations in

memory. The two primary sources of building brand equity are as follows.

1. Brand awareness

Awareness about the brand consists of two dimensions, brand recognition and brand

recall. Let us see the steps taken by Gillette to build awareness among consumers about

the brand and also how Gillette performs on these parameters.

(i) Brand Recognition – If a brand cue is given, how accurately a consumer can confirm

the band prior to actual exposure is termed as brand recognition. The brand

recognition comes out to be very strong for Gillette. Any exposure to ready shavers or

aerosol based shaving lathers instantly leads to association with Gillette. This high

level of association has been formed because of Gillette‘s presence in these markets

devoid of any strong competition. Gillette‘s name has been so deeply associated with

razors and shaving that even mention of shaving brings out name of Gillette out of

consumer.

(ii) Brand Recall – Brand recall is the consumer‘s ability to retrieve the brand from his

memory when he asked about the product or service category, the needs fulfilled by

the category or other such details. Gillette scores strongly on this front also and has,

according to the consumers, the maximum brand recall. In the survey conducted to

study company‘s brand equity it was found that when asked about men‘s grooming

Page 21: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 21

products, first company 85% people thought of was Gillette. Brand recall in case of

razors and Shaving lathers is even higher.

Having strong brand awareness certainly helps as it helps the brand become a part of

the consideration set and increase consumer‘s purchase motivation. The awareness

also increases knowledge about the offerings and helps the consumer make intelligent

choices about what he wants, hence increasing his purchase ability.

2. Brand Image

Creating strong and positive brand image requires communication and marketing

programs which can link certain favorable terms and connotations with the brands in the

minds of the consumer. These brand associations can be built not only through

advertising but also through direct exposure and information from other sources. Public

relations and good service levels are critical to building a good brand image for the

brand. Brand image is boosted if product matches or exceeds consumer expectation and

suffers otherwise.

In case of Gillette, Brand image has been formed through company‘s products and

communication. Gillette has made its name as best that a man can get in his attempt to

become smart and well-groomed. Gillette‘s long association with successful athletes has

given it an image of competition and success, as well as its international appeal. Gillette

is also seen as an innovative company always coming up with something new and

markedly better than anything presently available in market.

3. Mental Map

A mental map is generally a visual depiction of the core brand associations and can be

useful in defining the brand mantra. Many of these core brand associations come from

the brand‘s positioning and communication strategies. These are points which in essence

define the brand‘s identity and representation.

Based on the consumer survey some of the brand associations that can be mapped onto a

mental map for Vodafone are depicted below. Then from this mental map, we will be

able to define the brand mantra for Vodafone.

Page 22: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 22

Gillette’s Mental Map

These associations have been created over the period due to the promotions and celebrities

associated with the brand.

4. Brand Mantra

Brand Mantra reflects the essential heart and soul of the brand and is a synthesis of many

core brand associations. According to most of the communication and corporate social

responsibility activities Gillette does all over the world and also in India, a few terms come

out quite clearly, making up Gillette‘s brand mantra. Adding to that the mental map that we

have managed to create brings out certain core brand associations which can be fine tuned to

Image

Sports

NegativesPeople

Performance

Value for money

Convenient

Innovative

Customer Oriented

Masculine

Active

Affluent

Well -Groomed

Premium Priced products

No female brand

Over relying on sports stars

Golf

American football

Car racing

Cricket

Football

Masculine

Reliable

Upper-Class

Confident

Page 23: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 23

derive major aspects to form brand mantra. Gillette‘s brand associations point towards a

reliable, smooth and successful. Based on these we can project mantra as being a

sophisticated brand offering premium products which are reliable and trustworthy.

Gillette’s Brand Mantra

5. Customer Based Brand Equity Analysis

According to the formal definition, customer based brand equity is the differentiated effect

that brand knowledge has on customer‘s response to the marketing of that brand. A brand is

said to have positive customer based brand equity when the customer responds more

favourably to a product or service and the way it is marketed when the brand is identified

than when it is not. If customer holds a positive view about the brand and is ready to purchase

existing product and new launches of brand readily, a positive customer based brand equity is

said to exist. Brand equity is reinforced within customer through promotions, sponsorships of

events, customer service and CSR activities. But the biggest component still happens to be

the satisfaction with the product.

There are three dimensions which need to be analyzed to find out the customer based brand

equity of a brand which are:

Differential Effect

Brand Knowledge

Consumer response to marketing

Sophisticated Premium

Reliable Trustworthy

Gillette's

Brand Mantra

Page 24: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 24

CBBE pyramid shown below evaluates how Gillette performs on each of the mentioned

parameters. This would in turn help us evaluate how strong or weak is the company‘s brand

equity and which are spots where Gillette needs to improve.

Gillette’s CBBE Model Analysis

1. Brand Salience

Brand salience defines and measures the awareness of the brand in the minds of the

consumers. It is the identity step of the pyramid and lets us know what the consumer

knows about the brand. This relates to customer‘s knowledge about the company and

products offered by it. Consumer survey shows that consumers are very much familiar

with the company and its range of products on offer. All the products on offer by Gillette

are recognised by large percentage of the consumer. This provides Gillette with very

strong brand salience.

2. Brand Performance

Page 25: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 25

Performance consists of factors like features of products, reliability, product

effectiveness, durability and price. Here too Gillette scores high on all parameters.

Gillette‘s products have very high functional value for customers, and product

performance has been as per consumer‘s expectations. Reliability and durability has also

been satisfactory. Even pricing, which industry analyst are slightly higher was deemed to

be satisfactory by most consumers. On this parameter also Gillette scores highly.

3. Brand Imagery

Imagery relates to the satisfaction of the customer‘s psychological needs, unlike his

functional needs which can be related to performance. User experience determines how

the imagery is formed in customer‘s mind, what he thinks of the brand, how he perceives

it to be. Responses showed that almost all the respondents consider Gillette to be

strongly masculine brand with predominantly male oriented products. Gillette has been

only associated with male sports stars. Also, Gillette is best known for its shaving range

and shaving is predominantly a male thing. Tagline of company says ‗Best a Man can

get‘, getting imagery of a masculine brand even more clearer.

4. Consumer Judgments

Judgments consist of factors like quality, credibility, superiority and consideration.

Gillette is known as company with modern and very reliable products. 95% of the

consumers responded with satisfied rating, out of which 65% were highly satisfied

rating. 87% of the consumers believed Gillette‘s product were highly reliable and

durable.

This shows that even on consumer judgement parameter, Gillette scores highly. Its

customers are satisfied with the quality and accept its durability and reliability

5. Consumer Feelings

This is the response of the consumer in terms of his emotional reactions and responses

towards the brand. Responses were positive towards the brand, see the brand as

trustworthy and mostly feel loyal to the brand. There were no positive or negative

extreme emotion attached with the brand.

6. Consumer - Brand Resonance

Page 26: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 26

This is the peak of the pyramid and defines and measures the relationship and level of

identification of the consumer with the brand. Factors like loyalty, attachment and

engagement are associated with this step. Consumers today are willing to spend more for

something they perceive to be better and advanced. Adoption of an international brand

with internationally successful products seems to them a step of moving ahead or getting

best available globally. Gillette has an international pedigree and their promotional ads

highlight this through internationally successful sportspersons and western models.

Gillette creates a very high connect on this parameter too.

Philanthropy

Shiksha

Our signature CSR program has in its 6th year helped improve the lives of over 150,000

children across 602 communities with a donation of over Rs.5 crores by all the P&G group

companies in India. Shiksha moved onto a new vision of creating tangible, visibly long-

lasting impact through the building of Shiksha schools across the country that offers quality

education to children in need. Over the last 6 years, your Company has already been

associated with helping bring to life over 100 schools via either building them (near our

plants), supporting them through non-governmental organizations (NGOs), working with

Army Wives Welfare Association schools, or reactivating Government schools through our

work with NGO partner CRY.

Children’s safe drinking water programme

Gillette has set up a water treatment plant which will produce 1 billion litres of clean drinking

water which is being provided to young children to help them have a healthier living to their

lives.

Role of celebrities

Celebrities have always been a central part of the Gillette‘s promotion strategy. The special

focus has been on sportsmen who have had outstanding performances on the field and also

off the field. These include their charitable actions, support of social causes and for their

reputations as icons of true sporting values

Page 27: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 27

Some of the major brand endorsers include David Beckham, Thiery Henry, Tiger Woods,

Roger Federer and Rahul Dravid. The imagery created with these sportsmen have been that

of sophisticated gentlemen.

Through these celebrities the brand has tried to communicate that the products offered helps

you prepare for your best.

Promotional campaigns

The two major promotional drives taken up by the brand in India have been

‗Women against the lazy stubble ‗campaign – Female celebrities from Bollywood,

Mugdha Godse, Minisha Lamba and Neha Dhupia were taken as the face of the

campaign to urge women to take charge and take responsibility of grooming their men.

The campaign involved online surveys, mall promotional activities.

Shave india movement to increase market size – The promotional drive saw the likes of

Dino Morea

The brand‘s image has had to suffer because of the controversies related to the sportsmen that

they have used.

Gillette had to change the advertising where Thiery Henry was holding a ball in his hand

because of the controversy of him intentionally touching the ball to prevent a goal in a world

cup qualifier match against Ireland in 2009.

Roger Federer losing temper on the court of the US open in 2009 brought the brand bad

name.

The controversies related to Tiger Woods cheating on his wife with several women made the

brand stop the advertisements having him.

Threats to equity

1. Products becoming star in themselves.

In a survey internationally almost 40% of respondents used names Mach3 and Fusion

without using brand name Gillette. Although this would prove to be a differentiating

factor, this would also make products stand against each other as rivals and lessen

Gillette‘s name and equity. Also competing products would leave a window open for the

rivals to grab in a share of market

Page 28: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 28

2. Over reliance on celebrities

Gillette has been too much reliant on celebrity superstars for promotion and image

creation in minds of customers. But, as shown by recent issues with Tiger Woods,

celebrities are prone to behaving the way companies don‘t want them to behave. This

tarnishes the image of company as well as results in lost revenue as company is unable to

use adverts featuring the tarnished celebrity.

Page 29: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 29

Annexure

Questionnaire

Name *

Gender *

Male

Female

Age * (Years)

<20

20 to 30

30 to 40

> 40

When you think about Men‘s grooming products which brand immediately comes to

mind? *

Who famous personality does Gillette remind you of? *

Which among the following products do you think Gillette has in its portfolio? *

Razors

Shaving creams and foams

Deodrants

Aftershave

Other:

In the shaving razor range which is your preferred brand?

Page 30: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 30

Gillette

Wilkinson Sword

Other:

In the shaving cream range which is your preferred brand?

Gillette

Park Avenue

Dettol

Axe

Palmolive

Other:

In the after-shave range which is your preferred brand?

Old Spice

Axe

Gillette

Palmolive

Other:

In the deodorant range which is your preferred brand

Axe

Gillette

Park Avenue

Zatak

Other:

How do you rate Gillette on following parameters? * 1-lowest,5-highest

Page 31: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 31

1 2 3 4 5

Price

Comfort during

usage

Reliability

Quality and

durability

Stylishness

Do you know the Gillette tag line? *

Yes

No

Do you know the colours in Gillette‘s logo? *

Yes

No

Do you recall any recent ad of Gillette? *

Yes

No

Which among following attributes do you think can be used to describe Gillette brand? *

Can choose more than one

Rugged, Tough

Smooth

Masculine

Feminine

Page 32: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 32

Western

Reliable

Upper class

Successful

Trendy

Leader

Confident

Young

Imaginative, Unique

Technical

Other:

Do you know about Gillette‘s ―Women Against Lazy Stubble‖ campaign? *

Yes

No

Are you satisfied with Gillette products? *

Highly satisfied

Moderately satisfied

Moderately dissatisfied

Highly dissatisfied

Submit

Page 33: Gillette report 2

GILLETTE - BRAND AUDIT REPORT

FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 33

References

1. Keller, Kevin Lane; Strategic Brand Management, Third Edition; Pearson

2. Gillette‘s global website : http://www.gillette.com/

3. P & G‘s Gillette specific pages : http://www.pg-india.com/gillette2/profile.html

4. Gillette‘s Posting on Wikipedia : http://en.wikipedia.org/wiki/Gillette_(brand)

5. Competitive Edge in Cutthroat market by Slaven Marinovich :

http://www.brandchannel.com/features_effect.asp?pf_id=290

6. 5 Reasons Gillette Is The Best A Brand Can Get by Derrick Daye :

http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-

brand-can-get.html

7. A close shave for Tiger blunts Gillette‘s cutting edge claim : http://www.marketing-

comms.com/blog/?p=10