Diversification Of Gillette


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

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Diversification Of Gillette

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