MARKETING

Presented by :-

Viren Patel

Vimal Sharma

Mehul Panchal

Mayank Patel

GILLETTE

Industry - Consumer goods

Manufacturing Units - Rajasthan ,Haryana & Karnataka

Headquarters - Boston, Massachusetts, United States,

Website - www.gillette.com

WHAT IS A MARKETING MIX? The term was coined by Neil H. Borden in his article 'The Concept of the

Marketing Mix' in 1965. The 'marketing mix' is probably the most famous phrase in marketing.

The elements are the marketing 'tactics'. Also known as the 'Four Ps', the marketing mix elements are price, place, product, and promotion.

Some commentators will increase the mix to the 'five Ps', to include people.

ESSENTIALS OF MARKETING MIX:Product: Defines the characteristics of your product or service that meets the

needs of your customers.

Price: Decide on a pricing strategy - do not let it just happen! Even if youdecide not to charge for a service (a loss leader), you must realise thatthis is a conscious decision and forms part of the pricing strategy.

Promotion: This includes all the weapons in the marketing armoury - advertising,selling, sales promotions, Public Relations, etc.

Place (or route ofdistribution):

Some of the revolutions in marketing have come about by changingthis P. Think of telephone insurance and the internet! A bit of lateralthinking here might reap rewards for your business.

Now these can be viewed in a graphical representation:

PRODUCT

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

Kotler revised the earlier three level classifications to a five product level classifications model.

At the heart of it lies the core product, next the basic product followed by the expected product

and augmented product. The potential product would lie in the outermost circle.

 

THE GILLETTE CASE  Core Product: Quality of Shave

Basic Product: Razor with comfortable grip, well packed

Expected Product: Blades that do not give cuts or rashes on skin

Augmented Product: Razor with lubrastrip indicating when the blade needs to be replaced, the

anti-clogging push-clean technology, etc.

Potential Product: product customization could be one new development.

PRODUCT

Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.

Extension strategiesSpecialised versionsNew editionsImprovements – real or otherwise!Changed packagingTechnology, etc.

GILLETTE Gillette India Limited Operates in three Segments

Grooming – Manufactures blades ,razors and toiletries

Oral Care – Manufactures tooth brushes and oral care products

Portable Power – Manufactures batteries, torches and lamp some of the renowned popular razors from Gillette used in India Include

Gillette Presto Ready shaver - Priced lowly thus targeting the low- income group of consumer

Gillette Sensor Excel –Targeted for the middle – income group

Gillette Mach 3 – Targeted for the high Income Group

Gillette's Shaving Product Portfolio

Shaving Preperations

10%

Twin Type Shaving System cartridge -

Manufactured33%Twin Type Shaving

System cartridge - Imported

19%

Safety Razor Blades37%

Shaving Brush1%

Shaving Preperations

Twin Type Shaving Systemcartridge - Manufactured

Twin Type Shaving Systemcartridge - Imported

Safety Razor Blades

Shaving Brush

GILLETTE: THE PRODUCT BASKET

SHAVING CREAM PERSONAL CARE DURACEL BATTERY ORAL – B BRAUN APPLIANCES

WET SHAVING MENSHAVING GEL AND

FOAM GENERAL USE

BATTERIESMANNUAL

TOOTHBRUSHBRAUN KITCHEN

APPLIANCES

MACH 3,MACH3 TURBO,SENSOR,SENSOR EXCEL,SENSOR 3ATRA, GOODNEWS.

GILLETTE SERIES, SATIN CARE

COPPER TOP, ULTRA, PRISMATICS

ADVANTAGE,INDICATOR , CROSSACTION, STAGES

BRAUN HAIR CARE & APILATIONSTEAM IRON,PERSONAL DIAGNOSTIC

WOMEN’SANTIPERSPIRANT &

DEODORENTS SPECIALITY BATTERIES

POWER TOOTHBRUSHES

VENUS, SENSOR,SENSOR EXCEL,SENSOR 3,AGILITY.

GILLETTE SERIES,RIGHT GUARD,SOFT & DRY, DRY IDEA.

PHOTO ,HEARING AIDS,COMCORDER, WATCH,ELECTRONICSHOME MEDICAL.

3D EXCEL,3D PULSATING,CROSS ACTION,KIDS.

DRY SHAVING MEN –

BROUN SYNCRO SYS.

FLOSS & INTERDENTAL

WOMEN –

• BROUN SILK -APILE

TOOTHPEST & MOUTH RINSE –

ORAL-B STAGES

GILLETTE - BRAND &

PRODUCT MIXBRAND EXT & P.MIX

INDIA MARKET SHARE FOR BLADES & RAZOR

55%25%

9%11%

GilletteGEL7 O CLOCKGlide

TOTAL INDIAN BLADES & RAZORS MARKET

Replacement Blades

Disposables

Systems

Rs.000 %

•Systems 102 64

•Disposable 39 25

•Replacement Blades 17 11

PRICE

PRICE THE GILLETTE CASE 

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

The price cut offer on vector plus was to take on the smuggled versions that had entered the Indian market.

The hike in the price of presto from Rs 12 to Rs 15 was to induce the customer to move on to vector plus.

It doesn’t need to follow all the 6 steps of pricing as it is a market leader with no potential threats. Some steps are redundant. It follows the following steps:

1. Set Pricing Objectives

2. Analyze demand

3. Estimating costs

4. Determine specific prices 

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

PROMOTION

•Strategies to make the consumer aware of the existence of a product

•NOT just advertising

PROMOTION Promotion keeps the product in the minds of the customer and helps stimulate demand for

the product. A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of:

Advertising

Public relations

Sales promotion

Personal selling

Direct Mail

THE GILLETTE CASE

 

TV/Radio – Gillette has an extensive advertisement campaign being run on television.

The company uses a mix strategy for its ad campaigns for different products. It has adopted the first approach for mach3 & mach3 turbo ads wherein it uses a standardized ad across all countries, only making changes in the language, colors etc. For the lower segment razors like vector plus & presto it retains the global theme but adapts it to local market needs. Whereas Gillette Mach 3, a high end product, has a campaign portraying foreign models to cash in on the tendency of the Indians that anything associated with foreigners is of good quality and meant for the higher class.

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

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

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

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

PLACE

PLACE PLACE 

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

THE GILLETTE CASE 

The appointment of distributors is handled by Gillette India directly. In NCR region, a separate well-defined area is allocated to each distributor.

The distributor appoints the Field force. This comprises a team who work directly under the distributor payroll (and not Gillette). The ASM and TSM are on company payroll.

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

POSITIONING

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

THE GILLETTE CASE 

Gillette as a market leader has been careful not to boast about its position. Also it has always introduced new brands to target different market segments (presto for lower end, mach3 for upper end etc.) instead of bringing about changes in any one particular razor to maintain the distinct image of each of its razor in the mind of the customer.

Positioning, as Philip Kotler defines, is the act of designing the company’s offering and image to occupy a distinctive place in the target market, a sound reason why the target market should buy the product.

For Gillette, their strength lies in the superior quality of their razors, all of which are imported from the US (untouched by hand), except for presto and they have used this strength wisely to position their product over the years. Unquestionable quality of Gillette products has been the most important factor in making it a market leader.

Immitiation

Cloning of Successful brands

Increasing Buyer Power

(Inventory De-stocking)

Growth in Substitutes

Economic Downturn

Immitiation

Cloning of Successful brands

Increasing Buyer Power

(Inventory De-stocking)

Growth in Substitutes

Economic Downturn

New product launches

Price increases in premium segment

Consumer Brand Preference

Demand for High Quality

Use of JIT and ICT (e-com)

New Production Technology

Increased Grooming Sophistication

New product launches

Price increases in premium segment

Consumer Brand Preference

Demand for High Quality

Use of JIT and ICT (e-com)

New Production Technology

Increased Grooming Sophistication

Market Leader

Strong Brand Image

Global Presence

Aggressive Advertising

Quality & Innovation

Portfolio Range (Mach 3 etc)

Market Leader

Strong Brand Image

Global Presence

Aggressive Advertising

Quality & Innovation

Portfolio Range (Mach 3 etc)

Profitability depend on core business

Relatively Static Market Growth

Heavy Dependence on High

Street Retail Outlets

Expensive Brand Maintenance

Profitability depend on core business

Relatively Static Market Growth

Heavy Dependence on High

Street Retail Outlets

Expensive Brand Maintenance

STRENGTHS WEAKNESS

OPPORTUNITIE S THREATS

FUTURE 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)

THANK YOU