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Diversification Of Gillette

Diversification Of Gillette



This Slide show is related with Gillette. It shows the diversification of the company.

This Slide show is related with Gillette. It shows the diversification of the company.



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    Diversification Of Gillette Diversification Of Gillette Presentation Transcript

    • Diversification of Gillette Presented To: Presented By: Mr. N.H. Mullick Tarun Arya
    • About the Case
      • This case is all about Gillette Inc. and its strategy, which it adopted for product innovations and diversification.
      • Established in 1895.
      • In the start it was manufacturing disposable razors.
    • About the Case
      • Foundation by King Gillette.
      • Reasons
        • Thoughts
        • Time saving
        • Less expensive
        • Good for daily shavers
    • About the Case
      • 1901, William Nickerson joined and launched a company for safety razor in Boston.
      • Awarded by US patent and captured 80% of market share.
    • Growth of Business
      • New Markets with in 20 years (Head Offices)
        • Paris
        • Belgium
        • Denmark
        • Italy
    • Growth of Business (Branch Offices)
      • Branch Offices
        • Madrid
        • Kolkata
        • Geneva
        • Sidney
        • Singapore
        • Tokyo
    • Opportunity in World Wars
      • In 1 st World War
        • 3.5 million razors and 36 million blades by US government.
        • Soldiers started shaving by their own and it remained after world war also.
        • Established a good brand name and brand image.
    • Opportunity in World Wars
      • In 2 nd World War
        • 12.5 million razors and 1.5 billion blades by US government.
        • Advertising for all the segment of the market.
    • Competition
      • During WW1 Auto Strop Inc. started manufacturing products for competition.
      • US government gave tremendous pressure on profitability of company.
    • Solution
      • Auto Strop had merged by Gillette in 1930.
      • Price cutting
      • Sponsoring various sporting events like football and baseball.
      • By this act sales started boosting.
    • What is diversification?
    • Diversification by Gillette
      • In the initial stage Gillette was only there in the shaving product. It made following diversification in the later stage:
        • Batteries
        • Stationary
        • Toiletries
        • Dental care
        • Personal care
    • Reasons for making diversification
      • To cater the new market.
      • To develop Gillette as brand.
      • To make Gillette popular in the international market.
      • To spread the risk.
    • Reasons for making diversification
      • To increase the profitability of business.
      • To avail the competitive edge.
      • To get the economies of scale and also scope.
    • Diversification
      • Mid 1930 company decided expansion beyond its core area.
        • Brushless shaving cream
        • Electric razor
        • Lather shaving cream
    • Diversification
      • Beyond shaving product
        • Bendix Aviation in 1943, carburetor unit.
        • Toni company in 1948, home permanent kits for women.
        • Paper mate company in 1955, ballpoint pens.
        • Sterilon corporation in 1962, disposable supplies for hospitals.
    • Diversification
        • Braun in 1967, electric razors, hair dryers, speakers and cameras.
        • La Giulla in 1970, chewing gum, candy.
        • Buxton in 1977, personal leather goods.
        • Jafra in 1973, cosmetics.
        • Liquid Paper in 1979, fluid for typing correction.
    • Diversification
        • Oral-B Laboratories in 1984, dental care products.
        • Waterman Pen company in 1987, premium writing instruments.
        • Parker pen holding limited in 1993, writing products.
        • Duracell batteries in 1996, manufacturer of batteries.
    • Downs
      • COO Michael Hawley sold the following:
        • Hare care business (Toni)
        • Paper mate
        • Parker
        • Waterman
        • Liquid Paper
    • Gillette world wide R&D facilities Bethel, Watebury, Andover, South Boston, Needham. United States Reading United Kingdom Barcelona Spain Kronberg Germany Gillette world wide R&D facilities
    • Chart for net sales by each business segment
    • Sales Information