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Diversification Of Gillette
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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.

Published in: Economy & Finance, Business
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  • 1. Diversification of Gillette Presented To: Presented By: Mr. N.H. Mullick Tarun Arya
  • 2. 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.
  • 3. About the Case
    • Foundation by King Gillette.
    • Reasons
      • Thoughts
      • Time saving
      • Less expensive
      • Good for daily shavers
  • 4. 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.
  • 5. Growth of Business
    • New Markets with in 20 years (Head Offices)
      • Paris
      • Belgium
      • Denmark
      • Italy
  • 6. Growth of Business (Branch Offices)
    • Branch Offices
      • Madrid
      • Kolkata
      • Geneva
      • Sidney
      • Singapore
      • Tokyo
  • 7. 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.
  • 8. 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.
  • 9. Competition
    • During WW1 Auto Strop Inc. started manufacturing products for competition.
    • US government gave tremendous pressure on profitability of company.
  • 10. 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.
  • 11. What is diversification?
  • 12. 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
  • 13. 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.
  • 14. Reasons for making diversification
    • To increase the profitability of business.
    • To avail the competitive edge.
    • To get the economies of scale and also scope.
  • 15. Diversification
    • Mid 1930 company decided expansion beyond its core area.
      • Brushless shaving cream
      • Electric razor
      • Lather shaving cream
  • 16. 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.
  • 17. 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.
  • 18. 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.
  • 19. Downs
    • COO Michael Hawley sold the following:
      • Hare care business (Toni)
      • Paper mate
      • Parker
      • Waterman
      • Liquid Paper
  • 20. 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
  • 21. Chart for net sales by each business segment
  • 22. Sales Information

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