Gillette and the Men’s Wet Shaving MarketGroup 8Section BSubash P.B. ||| Swaroop Vijayakumar |
Gillette – S(h)aving Men Since 1903 King C.Gillette invented the safety razor systems in 1895 Permanent razor handle – replaceable blade systems Huge invention – Changed the way men perceived shaving Dominated the market Concentrated on Advertising and Distribution Product Lines by Company Division 6Innovation at the 32 Safety Razor-61 23 Stationary-9 Heart of Growth Cosmetics-14 Braun Products-13 11 Oral B-3 28
Competitor Analysis Leader in the Injection shaving Mainly concentrated in the Entered with Super Sword edge – market – controls over 80% of the disposable market segment blade with a steel coating market Main Product – BIC shaver for Introduced Ultra Glide to compete Late entrant in the disposable sensitive skin with Gillette’s Atra Plus – priced at 5- shaving market Core philosophy – maximum 8% lower Entered with narrow headed service, minimum price Competed head on with Gillette in disposable razor – Slim Twin in 1988 Planned to market only single blade advertising – used comparative 67% of its revenues are overseas – advertisements disposable razors mainly Europe and Japan
Current State – Move Towards Disposables The Shift 1980s: Consumers chose inexpensive disposable razors Gillette helped to foster trend : Focus on price, not quality Mainly preferred by the younger customers who do not perceive the differences between the system and disposable blades The Consequence Disposable razor market increases by 60% Loss of quality image, loss of profit *Gillette taught consumers the best razor was the cheapest one!
Situation Analysis Sales of Atra blades have leveled off & Trac II is declining Less focus on advertising – only what was left over was spent on advertising One half of advertising spent on Atra and rest spent on Good News Same themes for both system razors and disposables – ‘Essence of Shaving’ 90% product based and 10% image based advertising Men over forty have strong connection with Gillette Strong connection between Gillette and male image of shaving Options Younger men prefer disposables – feel all razors are the same No change . Watch yourself bleed Gillette logo does not give a masculine feel Buck the Trend- Go for the Kill Woman identify Gillette name with men and shaving
Is Disposables the Way Forward? Therefore focusing Disposables represent a high on disposables will volume business lead to a constant The disposable shaver price war, and may segment is growing at a fast also lead to erosion rate of Gillette’s brand equity The disposables was a short term solution Every 1% change to disposables = $10m hit Further focus on One third of system razors’ margin creating low cost low Costlier to manufacture margin products will erode profitability Commoditization Price war Hence Gillette Goes against the company philosophy of innovation should not pursue this strategy Core competency is their R&D prowess to get newer blades and razor systems
Going the System Razor Way Higher Margins for the products In line with Gillette’s core philosophy of product innovation Can leverage upon the brand In line with Gillette’s broader strategy Can focus all energies on the launch of new system razor product May lose out on the increasing disposable shaving category – a sizable chunk of the market
The Strategy RoadmapPre LaunchStrategy RationaleMove towards a global strategy Pan European success of Contour Plus; Universal high quality product; “a shave is a shave everywhere”.Move from product based to image based advertising; Initial marketing Revitalizing the brand name; focusing on a pull strategy –efforts should focus on the brand rather than product - Focus on an the brand should sell‘ultimate shaving experience’ for Gillette razorsGo for High Exposure advertising across Europe & US focusing on Gillette’s Bringing the brand into focus and setting the stage forcore competency launch of new razor system.Pull the plug on advertising for Disposables “Good News”; instead create a Goes with the overall strategy of weaning away thenew disposable brand for women customers from disposables to high end razorsPositioningPosition Gillette as a revolution in shaving & one the provides an much superior shaving experience onthe whole compared to disposable razors; one which gives supreme confidence and happinessStatement : Gillette – Differentiates Men from the Boys
Pre Launch Television Commercial EssenceThe main aim of the TVC would be to bring the brand intofocus and associate it with all facets of a man’s lifeStoryboard With a catchy jingle & booming background music, show clean shaven men exceling in various spheres of life – sports, business and also in various roles – as a father, friend, husband and bridegroom etc. At last, there is a showing a system razor with a voice over mentioning its benefit & mentioning the positioning statement
The Strategy Roadmap – Launch Stage : Gillette Stimulus Marketing Mix Product: Spring mounted twin blades, Price : $3.75 per system; slighter lesser Atra Stimulus Promotion – blitzkrieg advertising campaign; Place – Existing outlets & distribution associations with major sporting events like network Superbowl in US & soccer leagues in Europe Positioning Position Gillette Stimulus as one that has a state of the art shaving system & provides a clean shave due to its product features Statement : Gillette Stimulus – The closest shave a man can get
Gillette – The Best a man can get Thank You for listening
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