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Diversification Of Gillette
 

Diversification Of Gillette

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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