Brand Inventory: Part 1

Rocio Diaz
October 20, 2016
MKT 3320.001
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Company Overview
Founded in 1901 by King C. Gillette, an American businessman, Gillette is an American brand
mostly known for their men's safety razors. For over 100 years, Gillette has been continuously
working to provide the best shave for its customers. Headquartered in Boston Massachusetts and
now under Procter & Gamble since their merging in 2005, Gillette remains a strong brand who
brings their customers not only top quality safety razors but also a variety of other products as well.
Gillette’s subsidiaries, also retained by P&G, include Oral-B and Braun brands. According to
Forbes magazine, Gillette currently ranks #28 among the world’s most valuable brands with a brand
value of $20.2 billion as of May 2016.
Annual Report and Financials Summary
For the 2015 fiscal year, Procter & Gamble experienced a 5% decrease in sales caused by a
weakening developing market economics and an unforeseen negative impact of foreign exchange.
Gillette has been a world competitor for many years and through that has gained much experience
and market share. Contributing to 10% of net sales for Procter & Gamble, the Gillette brand held a
total of $15.2 billion in net sales in the 2015 fiscal year. These results are mainly due to the fact that
P&G still controls 65% of blades and razors market. As a company who continually works to
provide their customers with the best quality possible, P&G has decided to further invest in the
research and development of products within the Gillette brand.

Figure 1: P&G Health and Grooming Net Sales

Source: P&G 2015 Annual Report

(http://www.pginvestor.com/CustomPage/file.aspx?iid=4004124&fid=1001201800 )
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Figure 2: P&G 2015 Financial Highlights

Source: P&G 2015 Annual Report

(http://www.pginvestor.com/CustomPage/file.aspx?iid=4004124&fid=1001201800 )
Organization Culture
Procter and Gamble has been in the market for 178 years. Throughout this time period P&G has
expanded to be a global company, who through trial and error has learned to adapt to the various
cultures and different preferences of their customers in regards to products such as toothpaste,
diapers, soap, and hygiene products. With products that are essentials to everyday life, P&G found
many similarities with Gillette in regards to their mission and values. Both organizations were ready
to merge and in full agreement that the merger would bring benefits to the interests of both
companies. Since the merger, Gillette has experienced several changes to their organizational
culture. Merging with a large corporation like P&G has set in place a more systematic and
bureaucratic organization culture. For Gillette, who was an innovating company this has placed a
heavy toll on employees since they have to learn how to adjust to the rigid corporate culture of P&G
and the slower processes and multiple layers of decision-making and communication. Employees
are constantly challenged and offered good benefits such as fitness and medical centers on site.
Major Activities
For the 2016 Olympics, Gillette launched their “Perfect Isn’t Pretty Campaign’, honoring the
difficult path athletes face in order to achieve their Olympic dreams, with the participation of global
athletes such as Neymar Jr., Ashton Eaton, and Ning Zetao and many more. In addition to the
Olympics, Gillette also celebrates Father’s day with their customers by partnering with the National
Center for Fathering. Through an integrated campaign that encourages guys everywhere to “Go Ask
Dad” rather than the internet and helps support father and son connections, Gillette’s $50,000
contribution to the nonprofit organization will help impact 55,000 teens nationwide.
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Key Personnel
Figure 3: Key Executive for Gillette Company Inc.

Source: Bloomberg.com
(http://www.bloomberg.com/research/stocks/private/people.asp?privcapId=29004 )
Category Definition, Size, and History
To provide their customers with the smoothest shave possible has been a major driving factor in the
decisions taken within Gillette. For this reason and in order to maintain a competitive advantage,
Gillette has added to its current product category items that complement with wet razors such as
post and pre shave and body washes. Gillette’s product mix includes razors, trimmers, blades, post
and pre shave, as well as deodorant and body washes. For customers who are brand loyal, having
these additional items make their shopping experience easier. Having these items also available in a
female version expands Gillette's and P&G's current audience.

Method of Distribution
The South Boston Manufacturing Center has been the main center for developing and
manufacturing for Gillette. However, since Gillette's merging with Procter and Gamble, Gillette has
been able to better distribute their products to customers worldwide. As a result of this, Gillette has
closed down all of their existing outlets and has resorted to using P&G's network. Through its
lifetime, P&G acquired operations in more than 180 countries bringing about 4.2 million people a
variety of products. P&G manufactures their own goods, which are then sold in large retail stores
and distributed through series distributions centers that are also owned by P&G. This is true for
many of P&G's intensive products such as those under the Gillette brand, but the method of
distribution can vary for more unique products.
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Major Players
Although known to be the world's leading brand in shaving, Gillette does face increasing
competition. The Shaving Razor's Manufacturing industry has struggled over the past five years due
to the changing trends in customers and competitions from imports and start up companies. On the
manufacturing side, Gillette faces direct competition from Edgewell Personal Care Co., but
businesses such as the Dollar Shave Club and Harry's also present potential threat.

Due to the many different views that society can have, Gillette faces constant challenges as it tries
to adapt to current trends. At the moment there is a growing popularity for men with facial hair
meaning as well as for disposable and private label razors thus meaning a decrease in the number of
men needing to buy shaving supplies. With strong competitors and a constrant struggle to see who
will be the first to innovate, Gillette has been sued and has sued against other companies in several
instances. Currently, Gillette has filed a lawsuit against Edgewell Personal Care for their 3 bladed
private label razor that Gillette claims to have patent infringement, false advertising and deceptive
acts and practices.
Product Description
Gillette's newest product is the Gillette Fusion ProShield. This razor provides the user with
lubrication before and after the blades to shield the skin from irritation. Through this product,
Gillette demonstrates that they care for the overall shaving experience of their users. They take into
consideration the process that the user undergoes and try to minimize any adverse effects. Aside
from the razor, complementary products are also offered for better results. Not only is Gillette
known for their quality razor but they also won the Dupont Award for Packaging Innovation and the
Edison Best New Product Award for their Gillette Fusion ProGlide.