Gillette Case Study

Samantha MaurerKylen HuntworkCrystal BickoffTerri Menser

Harris Weinstein

Background of Gillette

Leader in market

Controlling market share

Mature company

Unrelated acquisitions

Competition - Razor Wars

Current marketing activities

Gillette vs. Schick

The Razor Industry

Saturation

Cultural changes

Is more innovation possible?

http://video.google.com/videoplay?docid=5775667601517821634&ei=EDlJSuqVCqjkrALI1qSiDQ&q=saturday+night+live+razor+commercial&hl=en&client=firefox-a

What is the Problem?

Continued Success of Fusion

Innovation

R&D

Product Design

Product Expansion

Marketing

Customer Attraction

Advertising

Product Innovation

Superior Product

Wide array

R&D

$750 Million on Mach3

Women

Complimentary Products

What’s next?

Marketing Innovation

Female Market

Millions of women shave

Global Market

60% sales global

Diversify Image

Website- “The Best a Man Can Get”

Customer Attraction

Increase Market Share

Don’t stop at 70%

Embrace Cultural Differences

Western culture

Maintain Growth

Ever-changing products

StrengthsReputation

Brand Recognition

Multinational distribution channels

Market Share (about 70%)

Competitors

Efficient Manufacturing System

Lots of money for R&D

Marketing

Events/Athletes/Slogan

1-800 number

respond to complaints/innovate products

Weaknesses

Future of Gillette = Fusion

Consumer skepticism (5 versus 3 blades)

Lost focus via poor acquisitions in the past

Inability to continue growth at high rates recently

Remained stagnant recently - “Sleeping Giant”

5 Blade vs 3 Blade??

Opportunities

Expand dominating market share

Globally

Acquisition of companies

Promote Western-style culture

Campaigns to glamorize clean-shaven

Make teenage men/women lifelong users

•Expand/innovate creams and lotions

•15% men don’t shave due to discomfort, and 3% don’t care to shave!

•Products for hair removal in other places

Threats

Saturated/mature market

Fierce competition

Ongoing legal battles

Consumer skepticism

Increased use of other hair removal techniques

Cultural Impediments

CASPIAN boycotts

Alternative Solutions for a Mature Company

Squeeze Margins

Positive Cannibalism

Encourage Higher Usage

Diversify and Expand Brand

Stay Creative

Other Marketing Aspectsto Consider...

• International Campaigns

• Cultural Sensitivity

• Celebrity Endorsements for Fusion

• Advantages of Fusion over Mach3

• Future of Women’s Line

Recommended Long-term Solution

Maintaining Current Status

• Foreign Market Expansion

• Sensitivity (cultures and traditions)

• Glamorization

• Market to the Market

• In-store advertising system

• Loss leader marketing strategy

Recommended Long-term Solution

Maintaining Current Status

• Foreign Market Expansion

• Sensitivity (cultures and traditions)

• Glamorization/Americanization

• Market to the Market

• In-store advertising system

• Loss leader marketing strategy

New Perspective on Marketing

• “Not only are we going to understand what is the same everywhere, but we’re going to look to see what is different everywhere.”

• -Chief Executive of BBDO Worldwide, the Omnicom agency for Gillette

• Procter and Gamble’s $57 billion purchase

• The reciprocal influence of Venus and Mars

Japanese Consumers

Product Features

Recommended Long-term Solution

Maintaining Current Status

• Foreign Market Expansion

• Sensitivity (cultures and traditions)

• Glamorization

• Market to the Market

• In-store advertising system

• Loss leader marketing strategyAdvertisement in Walmart

Recommended Solution

Issue at hand

Celebrity Endorsements

Encourage Cannibalization

Sponsorships/Promotions

Benefits

•MARKET THE FUSION INDIRECTLY TO THE PURCHASING CONSUMER 80%

MORE THAN