GILLETTE Industry - Consumer goods Manufacturing Units - Rajasthan ,Haryana & Karnataka Headquarters - Boston, Massachusetts, United States, Website - www.gillette.com
WHAT IS A MARKETING MIX? The term was coined by Neil H. Borden in his article The Concept of the Marketing Mix in 1965. The marketing mix is probably the most famous phrase in marketing. The elements are the marketing tactics. Also known as the Four Ps, the marketing mix elements are price, place, product, and promotion. Some commentators will increase the mix to the five Ps, to include people.
ESSENTIALS OF MARKETING MIX:Product: Defines the characteristics of your product or service that meets the needs of your customers.Price: Decide on a pricing strategy - do not let it just happen! Even if you decide not to charge for a service (a loss leader), you must realise that this is a conscious decision and forms part of the pricing strategy.Promotion: This includes all the weapons in the marketing armoury - advertising, selling, sales promotions, Public Relations, etc.Place (or route of Some of the revolutions in marketing have come about by changingdistribution): this P. Think of telephone insurance and the internet! A bit of lateral thinking here might reap rewards for your business. Now these can be viewed in a graphical representation:
PRODUCT A product is anything that can be offered to a market for attention, acquisition, use or consumption. The primary purpose of a product is to satisfy a want or a need. Kotler revised the earlier three level classifications to a five product level classifications model. At the heart of it lies the core product, next the basic product followed by the expected product and augmented product. The potential product would lie in the outermost circle. THE GILLETTE CASE Core Product: Quality of Shave Basic Product: Razor with comfortable grip, well packed Expected Product: Blades that do not give cuts or rashes on skin Augmented Product: Razor with lubrastrip indicating when the blade needs to be replaced, the anti-clogging push-clean technology, etc. Potential Product: product customization could be one new development.
PRODUCTMethods used toimprove/differentiatethe product and increasesales or target sales moreeffectively to gaina competitive advantage e.g. Extension strategies Specialised versions New editions Improvements – real or otherwise! Changed packaging Technology, etc.
GILLETTE Gillette India Limited Operates in three Segments Grooming – Manufactures blades ,razors and toiletries Oral Care – Manufactures tooth brushes and oral care products Portable Power – Manufactures batteries, torches and lamp some of the renowned popular razors from Gillette used in India Include Gillette Presto Ready shaver - Priced lowly thus targeting the low- income group of consumer Gillette Sensor Excel –Targeted for the middle – income group Gillette Mach 3 – Targeted for the high Income Group
GILLETTE: THE PRODUCT BASKET Gillettes Shaving Product Portfolio Shaving Brush Shaving Preperations 1% Shaving Preperations Safety Razor 10% Twin Type Shaving System Blades cartridge - Manufactured 37% Twin Type Shaving Twin Type Shaving System System cartridge - cartridge - Imported Manufactured Safety Razor Blades Twin Type Shaving 33% System cartridge - Shaving Brush Imported 19%
GILLETTE - BRAND & PRODUCT MIX BRAND EXT & P.MIX SHAVING CREAM PERSONAL CARE DURACEL BATTERY ORAL – B BRAUN APPLIANCES SHAVING GEL AND GENERAL USE MANNUAL BRAUN KITCHEN WET SHAVING MEN FOAM BATTERIES TOOTHBRUSH APPLIANCESMACH 3,MACH3 TURBO, GILLETTE SERIES, COPPER TOP, ADVANTAGE, BRAUN HAIR CARE &SENSOR, SATIN CARE ULTRA, INDICATOR , APILATIONSENSOR EXCEL, PRISMATICS CROSSACTION, STEAM IRON,SENSOR 3 STAGES PERSONALATRA, GOODNEWS. DIAGNOSTIC ANTIPERSPIRANT & SPECIALITY POWER WOMEN’S DEODORENTS BATTERIES TOOTHBRUSHESVENUS, GILLETTE SERIES, PHOTO ,HEARING 3D EXCEL,SENSOR, RIGHT GUARD, AIDS,COMCORDER, 3D PULSATING,SENSOR EXCEL, SOFT & DRY, WATCH,ELECTRONICS CROSS ACTION,SENSOR 3, DRY IDEA. HOME MEDICAL. KIDS.AGILITY.DRY SHAVING MEN – FLOSS &BROUN SYNCRO SYS. INTERDENTALWOMEN – TOOTHPEST & MOUTH RINSE –• BROUN SILK -APILE ORAL-B STAGES
INDIA MARKET SHARE FOR BLADES & RAZOR 11% 9% Gillette GEL 55% 7 O CLOCK25% Glide
TOTAL INDIAN BLADES & RAZORSMARKET Disposables Systems Replacement Blades Rs.000 % •Systems 102 64 •Disposable 39 25 •Replacement Blades 17 11
PRICE THE GILLETTE CASE Gillette India ltd. prices its products by taking into account the nine price-quality objectives and also the pricing objectives. After a detailed analysis of the above guidelines, it has been consciously using premium pricing for some products and average pricing for some. It strives for profits, market share and eventually ends up the market leader. The price cut offer on vector plus was to take on the smuggled versions that had entered the Indian market. The hike in the price of presto from Rs 12 to Rs 15 was to induce the customer to move on to vector plus. It doesn’t need to follow all the 6 steps of pricing as it is a market leader with no potential threats. Some steps are redundant. It follows the following steps:1. Set Pricing Objectives2. Analyze demand3. Estimating costs4. Determine specific prices Its strategies are very much evident from the pricing of all the Gillette razors and blades.
PROMOTION•Strategiesto make theconsumeraware of theexistence of aproduct•NOT justadvertising
PROMOTION Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of: Advertising Public relations Sales promotion Personal selling Direct Mail THE GILLETTE CASE TV/Radio – Gillette has an extensive advertisement campaign being run on television. The company uses a mix strategy for its ad campaigns for different products. It has adopted the first approach for mach3 & mach3 turbo ads wherein it uses a standardized ad across all countries, only making changes in the language, colors etc. For the lower segment razors like vector plus & presto it retains the global theme but adapts it to local market needs. Whereas Gillette Mach 3, a high end product, has a campaign portraying foreign models to cash in on the tendency of the Indians that anything associated with foreigners is of good quality and meant for the higher class.
Print – This medium is mainly used by Gillette to spread awareness of their cents-off deals i.e. their reduced price packs and banded packs. Several ads are flashedin daily newspapers and magazines to advertise these schemes.Internet- The Gillette website is excellent and there are dedicated websites fortheir new products which present the product and related information in a verynice manner.Gillette has country specific website. This helps a customer to identify the productthat they are looking for. In addition, Gillette has a lot of promotions listed in theirwebsite. The website helps in guiding the users learning the right way of shaving.This helps in stickiness.Movie/Soaps- This is another avenue Gillette can explore and reap great benefitsfrom. As we know movies have great influence on not only youth but among allages .So Gillette can have tie-ups with movie/producers and can show use ofGillette products in the same. This can also be a very handy tool to reach the lesseducated and lower income groups. Gillette has already associated itself with theHollywood movie iRobot, we suggest them to try something similar here.
PLACE PLACE A place strategy refers to how an organization will distribute the product or service they are offering to the end user. The organization must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. If the organization underestimates demand and customers cannot purchase products, because of it profitability will be affected. THE GILLETTE CASE The appointment of distributors is handled by Gillette India directly. In NCR region, a separate well-defined area is allocated to each distributor. The distributor appoints the Field force. This comprises a team who work directly under the distributor payroll (and not Gillette). The ASM and TSM are on company payroll. The Territory Sales Manager prepares the TMR (Total Market Report) detailing important variables like market share, growth trends, etc for the area under him. Also, it is the TSM who communicates schemes and benefits rolled out by the company to the distributor who, in turn, informs his Field Force. The TSM meets distributors on a monthly basis for periodic review. The TSM is responsible for the targets/performance of the area under him and he is expected to communicate actual results back to the company on a regular basis.
POSITIONING In today’s world of strategy convergence (undifferentiated strategies), pursuing a meaningful and relevant positioning & differentiation has become imperative for every company in order to give the customer a reason to demand their products. THE GILLETTE CASE Gillette as a market leader has been careful not to boast about its position. Also it has always introduced new brands to target different market segments (presto for lower end, mach3 for upper end etc.) instead of bringing about changes in any one particular razor to maintain the distinct image of each of its razor in the mind of the customer. Positioning, as Philip Kotler defines, is the act of designing the company’s offering and image to occupy a distinctive place in the target market, a sound reason why the target market should buy the product. For Gillette, their strength lies in the superior quality of their razors, all of which are imported from the US (untouched by hand), except for presto and they have used this strength wisely to position their product over the years. Unquestionable quality of Gillette products has been the most important factor in making it a market leader.
STRENGTHS WEAKNESSMarket Leader Profitability depend on core businessStrong Brand Image Relatively Static Market GrowthGlobal Presence Heavy Dependence on HighAggressive Advertising Street Retail OutletsQuality & Innovation Expensive Brand MaintenancePortfolio Range (Mach 3 etc)New product launches ImmitiationPrice increases in premium segment Cloning of Successful brandsConsumer Brand Preference Increasing Buyer PowerDemand for High Quality (Inventory De-stocking)Use of JIT and ICT (e-com) Growth in SubstitutesNew Production Technology Economic DownturnIncreased Grooming Sophistication OPPORTUNITIE S THREATS
FUTURE STRATEGIES• High Branding/Quality - Premium Price• Develop New Market Segments & Niches through R&D• Maintain/Promote Strong Brand Loyalty• Tailoring Demographic Targeting (E.g. US vs Europe)• Reduction in Product Unit Costs• Grow Razor Systems Segment• Strategic Alliances (Suppliers and Distributors)• Shedding Non-Core Businesses (E.g. Papermate)
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