Gillette Case StudySamantha MaurerKylen HuntworkCrystal BickoffTerri MenserHarris Weinstein
Background of GilletteLeader in marketControlling market shareMature companyUnrelated acquisitionsCompetition - Razor WarsCurrent marketing activitiesGillette vs. Schick
The Razor IndustrySaturationCultural changesIs more innovationpossible?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 FusionInnovationR&DProduct DesignProduct ExpansionMarketingCustomer AttractionAdvertising
Product InnovationSuperior ProductWide arrayR&D$750 Million on Mach3WomenComplimentary ProductsWhat’s next?
Marketing InnovationFemale MarketMillions of women shaveGlobal Market60% sales globalDiversify ImageWebsite- “The Best a Man Can Get”
Customer AttractionIncrease Market ShareDon’t stop at 70%Embrace Cultural DifferencesWestern cultureMaintain GrowthEver-changing products
StrengthsReputationBrand RecognitionMultinational distributionchannelsMarket Share (about 70%)CompetitorsEfficient Manufacturing SystemLots of money for R&DMarketingEvents/Athletes/Slogan1-800 numberrespond to complaints/innovateproducts
WeaknessesFuture of Gillette = FusionConsumer skepticism (5versus 3 blades)Lost focus via pooracquisitions in the pastInability to continue growth athigh rates recentlyRemained stagnant recently - “SleepingGiant”5 Blade vs 3Blade??
OpportunitiesExpand dominating marketshareGloballyAcquisition of companiesPromote Western-style cultureCampaigns to glamorize clean-shavenMake teenage men/womenlifelong users•Expand/innovate creams and lotion•15% men don’t shave due todiscomfort, and 3% don’t care toshave!•Products for hair removal in otherplaces
ThreatsSaturated/mature marketFierce competitionOngoing legal battlesConsumer skepticismIncreased use of other hair removal techniquesCultural ImpedimentsCASPIAN boycotts
Alternative Solutions for aMature CompanySqueeze MarginsPositive CannibalismEncourage Higher UsageDiversify and Expand BrandStay 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-termSolutionMaintaining Current Status• Foreign Market Expansion• Sensitivity (cultures and traditions)• Glamorization• Market to the Market• In-store advertising system• Loss leader marketing strategy
Recommended Long-termSolutionMaintaining 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 sameeverywhere, but we’re going to look to see what is differenteverywhere.”• -Chief Executive of BBDO Worldwide, theOmnicom agency for Gillette• Procter and Gamble’s $57 billion purchase• The reciprocal influence of Venus and Mars
Recommended Long-termSolutionMaintaining 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 SolutionIssue at handCelebrity EndorsementsEncourage CannibalizationSponsorships/PromotionsBenefits•MARKET THE FUSION INDIRECTLY TO THEPURCHASING CONSUMER 80% MORE THAN
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