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GILLETTEā€™S Razor Sharp
Edge Over Its Competition

        Presented by:-
         Ketan thakur
        Tushar Patodia
         Nishab jauhri
          Rahul raut
    Bhanu pratap khushwaha
Overview

ļ®   Background info on Gillette
ļ®   Problems/Solutions company faced
ļ®   Current info/issues
Background Information
ļ®   Founded in 1901
ļ®   Flagship productā€”safety razor
ļ®   Companyā€™s strengths:
    ļ®   Focus on scientific knowledge/studies
    ļ®   Innovative products
    ļ®   Large-scale manufacturing capability
    ļ®   Useful products sold at fair price
ļ®   Sales in 2000: $9.3 billion
Global Company
ļ®   Strategy: ā€œTo manage its business with
    a long-term, global perspectiveā€
ļ®   Over 1 billion people interact with a
    Gillette product every day
ļ®   Manufacturing operations located in 23
    countries
ļ®   Distribution in 200+ countries
ļ®   40,000+ employees
Vision Statement
ļ®   ā€œTo build TOTAL BRAND VALUE by
    innovating to deliver consumer value and
    customer leadership faster, better, and more
    completely than our competition.ā€

ļ®   Fundamental Principles:
    ļ®   Organizational Excellence
         ļ®
             Superior performance at every level
    ļ®   Core Values
         ļ®
             Achievement, Integrity, Collaboration
Products Overview:
ļ®   Worldwide leader in 12 major consumer
    product categories
ļ®   Focus on continual development of new
    products
ļ®   Currently introduces 20+ new products
    per year
Three Core Businesses
Gillette is the undisputed global leader in:
ļ® Grooming



ļ®   Portable Power

ļ®   Oral Care
Grooming Products
ļ®   World leader in male
    and female grooming
    products
    ļ®   Blades, razors
    ļ®   Wet, dry
    ļ®   700 million consumers
        use Gillette razor blades
ļ®   Shaving preparations
    and after-shaves
BLADES & RAZORS SEGMENT


                                Grooming
                               Male & Female


                Shaving Products                   Toiletries


             Blades &     Electric     Pre-Shave   Post-Shave   Deodorants
              Razors      Shavers


Disposable   Shaving     Replacement
 Razors      Systems       Blades
Introduction of project

The objective of the study is to understand the consumer
attitude and buying behaviour for Gillette Razor And
Foam.
 To understand the former part, we created a focused
group
 questionnaire and conducted a focused Group
Discussion
 (FGD) on Shaving Cream, gel and foam.
Research Question and
            Hypotheses
ļ®   Are consumers more price conscious or brand loyal?
ļ®   What are the factors that play the most important role
    in a consumer's choice of buying shaving
    cream/Razor?
ļ®   What is the effect of non-attribute factors on the
    purchasing decision of Gillette shaving gel/foam?
ļ®   What are the factors that play the most important role
    in a consumer's choice of buying shaving
    cream/gel/foam?
Use of Marketing Research
ļ®   Focus groups and surveys revealed:
    ļ®   Gillette must reform its approach by:
         ļ®   Emphasizing quality and brand equity
         ļ®   Discontinuing use of disposable razor ads
         ļ®
             Developing new products
Role of Marketing Research
ļ®   Told Gillette that it could change its former
    price approach to the market by emphasizing
    quality and brand equity as well as
    introducing new products.
Marketing Research Problem
ļ®   To determine the consumerā€™s opinions
    regarding the quality of products over
    their prices.
ļ®   To determine the impact of Gilletteā€™s
    competition on its sales.
ļ®   To determine the wants and needs of
    consumers using Gilletteā€™s various
    shaving products.
Observations:


1)The surveyed sample considered Gillette to have the best packaging
among all the brands. This feature highlights the fact that point of
purchase is an important selling point for the shaving cream/shaving
Razor market and Gillette has been outperforming the competitors.

2)For price sensitive customers products like V-John, Godrej and Dettol
were more satisfying than Gillette.

3) The consumers are most satisfied with Gillette in all the cases except
when the purchasing decision is based on price along with additional
features.
Factor Analysis

 A factor analysis was carried out to obtain the group of
attributes which can be grouped together. Hence 4 factors
were obtained as follows ā€“
ļƒ˜ļ€ Factor 1 ļƒ ļ€ Product attributes (Fragrance, Brand Name,
Foam Formation, Ease of Use)
ļƒ˜ļ€ Factor 2 ļƒ ļ€ Price Sensitivity (Price, And Offers/Discounts)
ļƒ˜ļ€ Factor 3 ļƒ ļ€ Point of Purchase (Availability in Stores and
Stylish Package Design)
ļƒ˜ļ€ Factor 4 ļƒ ļ€ Additional Features (Colour of Shaving
cream/gel/foam and Ingredients)
Competitor analysis

    Colgate-Palmolive


Product             Weight (gms)   Price (Rs.)

Palmolive Lime          70         37
Palmolive Moisturizer   70         39
Palmolive Delux         70         39
Hindustan Lever Limited,


 Product                 Weight (gms)      Price (Rs.)
 Axe Shaving Cream           70            45
 Denim Exclusive             70            43

          Godrej

Product                         Quantity    Price (Rs.)
Godrej Shaving Cream            100 gms     25
Godrej Premium Shaving Cream     70 gms     25
Gillette Marketing Spending
ļ®   Jan. 30, 2003
ļ®   24% increase in ad spending (fourth
    quarter)
ļ®   2002: Global ad spending rose 12%--
    $650 million
New Challenges
ļ®   Jan. 30, 2003
ļ®   Battery rival Energizer to acquire Schick
    brand of razors
ļ®   Energizer to invest $930 million
ļ®   Result: Aggressive marketing wars?
Questions and Answers

      The End

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Gillette kt

  • 1. GILLETTEā€™S Razor Sharp Edge Over Its Competition Presented by:- Ketan thakur Tushar Patodia Nishab jauhri Rahul raut Bhanu pratap khushwaha
  • 2. Overview ļ® Background info on Gillette ļ® Problems/Solutions company faced ļ® Current info/issues
  • 3. Background Information ļ® Founded in 1901 ļ® Flagship productā€”safety razor ļ® Companyā€™s strengths: ļ® Focus on scientific knowledge/studies ļ® Innovative products ļ® Large-scale manufacturing capability ļ® Useful products sold at fair price ļ® Sales in 2000: $9.3 billion
  • 4. Global Company ļ® Strategy: ā€œTo manage its business with a long-term, global perspectiveā€ ļ® Over 1 billion people interact with a Gillette product every day ļ® Manufacturing operations located in 23 countries ļ® Distribution in 200+ countries ļ® 40,000+ employees
  • 5. Vision Statement ļ® ā€œTo build TOTAL BRAND VALUE by innovating to deliver consumer value and customer leadership faster, better, and more completely than our competition.ā€ ļ® Fundamental Principles: ļ® Organizational Excellence ļ® Superior performance at every level ļ® Core Values ļ® Achievement, Integrity, Collaboration
  • 6. Products Overview: ļ® Worldwide leader in 12 major consumer product categories ļ® Focus on continual development of new products ļ® Currently introduces 20+ new products per year
  • 7. Three Core Businesses Gillette is the undisputed global leader in: ļ® Grooming ļ® Portable Power ļ® Oral Care
  • 8. Grooming Products ļ® World leader in male and female grooming products ļ® Blades, razors ļ® Wet, dry ļ® 700 million consumers use Gillette razor blades ļ® Shaving preparations and after-shaves
  • 9. BLADES & RAZORS SEGMENT Grooming Male & Female Shaving Products Toiletries Blades & Electric Pre-Shave Post-Shave Deodorants Razors Shavers Disposable Shaving Replacement Razors Systems Blades
  • 10. Introduction of project The objective of the study is to understand the consumer attitude and buying behaviour for Gillette Razor And Foam. To understand the former part, we created a focused group questionnaire and conducted a focused Group Discussion (FGD) on Shaving Cream, gel and foam.
  • 11. Research Question and Hypotheses ļ® Are consumers more price conscious or brand loyal? ļ® What are the factors that play the most important role in a consumer's choice of buying shaving cream/Razor? ļ® What is the effect of non-attribute factors on the purchasing decision of Gillette shaving gel/foam? ļ® What are the factors that play the most important role in a consumer's choice of buying shaving cream/gel/foam?
  • 12. Use of Marketing Research ļ® Focus groups and surveys revealed: ļ® Gillette must reform its approach by: ļ® Emphasizing quality and brand equity ļ® Discontinuing use of disposable razor ads ļ® Developing new products
  • 13. Role of Marketing Research ļ® Told Gillette that it could change its former price approach to the market by emphasizing quality and brand equity as well as introducing new products.
  • 14. Marketing Research Problem ļ® To determine the consumerā€™s opinions regarding the quality of products over their prices. ļ® To determine the impact of Gilletteā€™s competition on its sales. ļ® To determine the wants and needs of consumers using Gilletteā€™s various shaving products.
  • 15. Observations: 1)The surveyed sample considered Gillette to have the best packaging among all the brands. This feature highlights the fact that point of purchase is an important selling point for the shaving cream/shaving Razor market and Gillette has been outperforming the competitors. 2)For price sensitive customers products like V-John, Godrej and Dettol were more satisfying than Gillette. 3) The consumers are most satisfied with Gillette in all the cases except when the purchasing decision is based on price along with additional features.
  • 16. Factor Analysis A factor analysis was carried out to obtain the group of attributes which can be grouped together. Hence 4 factors were obtained as follows ā€“ ļƒ˜ļ€ Factor 1 ļƒ ļ€ Product attributes (Fragrance, Brand Name, Foam Formation, Ease of Use) ļƒ˜ļ€ Factor 2 ļƒ ļ€ Price Sensitivity (Price, And Offers/Discounts) ļƒ˜ļ€ Factor 3 ļƒ ļ€ Point of Purchase (Availability in Stores and Stylish Package Design) ļƒ˜ļ€ Factor 4 ļƒ ļ€ Additional Features (Colour of Shaving cream/gel/foam and Ingredients)
  • 17. Competitor analysis Colgate-Palmolive Product Weight (gms) Price (Rs.) Palmolive Lime 70 37 Palmolive Moisturizer 70 39 Palmolive Delux 70 39
  • 18. Hindustan Lever Limited, Product Weight (gms) Price (Rs.) Axe Shaving Cream 70 45 Denim Exclusive 70 43 Godrej Product Quantity Price (Rs.) Godrej Shaving Cream 100 gms 25 Godrej Premium Shaving Cream 70 gms 25
  • 19. Gillette Marketing Spending ļ® Jan. 30, 2003 ļ® 24% increase in ad spending (fourth quarter) ļ® 2002: Global ad spending rose 12%-- $650 million
  • 20. New Challenges ļ® Jan. 30, 2003 ļ® Battery rival Energizer to acquire Schick brand of razors ļ® Energizer to invest $930 million ļ® Result: Aggressive marketing wars?