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Gillette Case Study

Samantha Maurer
Kylen Huntwork
Crystal Bickoff
Terri Menser
Harris Weinstein
Background of Gillette

Leader in market

Controlling market share

Mature company

Unrelated acquisitions

Competition - Razor Wars Gillette vs. Schick

Current marketing activities


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&clie
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 What’s next?

Complimentary Products
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
Strengths
Reputation
Lots of money for R&D
Brand Recognition

Multinational distribution Marketing


channels
Events/Athletes/Slogan

Market Share (about 70%)


1-800 number
Competitors
respond to complaints/innovate
Efficient Manufacturing System products
Weaknesses

Future of Gillette = Fusion

Consumer skepticism (5
versus 3 blades)
5 Blade vs 3
Lost focus via poor Blade??

acquisitions in the past

Inability to continue growth at


high rates recently
Remained stagnant recently - “Sleeping
Giant”
Opportunities

Expand dominating market •Expand/innovate creams and lotion


share •15% men don’t shave due to
Globally discomfort, and 3% don’t care to
shave!
Acquisition of companies
•places
Products for hair removal in other
Promote Western-style culture
Campaigns to glamorize clean-
shaven

Make teenage men/women


lifelong users
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 Aspects
to 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 strategy


Advertisement 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

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