Comprehensive marketing plan created in my Intro to Marketing course covering a SWOT Analysis, Competitive Review, 5 Ps of marketing, an Integrated Marketing Communications Strategy, Budget, Controls and a Channels/Logistics Review

1. 2018
MARKETING PLAN
Colin Johnson
Business 103, Section 23
Dr. Sean Jasso

2. Table of Contents
Company Profile .....................................................................................Error! Bookmarknot defined.
P&G Financial Overview..........................................................................Error! Bookmarknot defined.
Current Marketing Situation....................................................................Error! Bookmarknot defined.
Product Review.......................................................................................Error! Bookmarknot defined.
Competitive Review...........................................................................................................................7
Channel & Logistics Review.....................................................................Error! Bookmarknot defined.
SWOT Analysis........................................................................................Error! Bookmarknot defined.
Objectives & Issues.................................................................................Error! Bookmarknot defined.
Objectives...........................................................................................Error! Bookmarknot defined.
Issues..................................................................................................Error! Bookmarknot defined.
Marketing Strategy.................................................................................Error! Bookmarknot defined.
Positioning..........................................................................................Error! Bookmarknot defined.
Product Strategy .................................................................................Error! Bookmarknot defined.
Pricing.................................................................................................Error! Bookmarknot defined.
Distribution.........................................................................................Error! Bookmarknot defined.
Marketing Communications.................................................................Error! Bookmarknot defined.
Advertising......................................................................................Error! Bookmarknot defined.
Sales Promotion..............................................................................Error! Bookmarknot defined.
Personal Sales..................................................................................Error! Bookmarknot defined.
Public Relations...............................................................................Error! Bookmarknot defined.
Digital and Direct Marketing............................................................Error! Bookmarknot defined.
Marketing Research ............................................................................Error! Bookmarknot defined.
Action Programs .....................................................................................Error! Bookmarknot defined.
Budgets..................................................................................................Error! Bookmarknot defined.
Controls..................................................................................................Error! Bookmarknot defined.
References..............................................................................................Error! Bookmarknot defined.

3. 1
Company Profile
Gillette, a subsidiary of Proctor & Gamble Co. (hereby called P&G), produces shaving products formen and women.
P&G bought The Gillette Company in 2005 for $57 billion making P&G the world’s largest consumer products brand.
Gillette razors have been made in Boston,MA for 116 years. Founded in 1901, its founder King C. Gillette was on a
mission, “there is a better way to shave and we will find it.”. In 1903 they sold 51 razors. In 1904 they sold 90,884
razors. Gillette has two major R&D facilities, one in Boston and one in Reading, UK. There are 14 P&G facilities
where Gillette products are manufactured. Currently they employ 28,700 hard-working individuals. The brand sits at
#29 on Forbes most valuable Brands list.
Over the last 7 years, market share has dropped from a dominant 70% to a powerful but troubling 54% with the
entrance of Harry’s and Dollar Shave Club into the market. Gillette will need to establish dominance in the online
market to compete with Dollar Shave Club and Harry’s. Gillette boldly cut prices across the board to compete in a
market where people aren’t looking for the most technologically advanced razor, rather they are looking for cheap,
practical and efficient shaving tools. With these new internet distribution companies, Dollar Shave Club and Harry’s
can offer practicality, convenience and quality to a market that is increasingly looking towards the internet for daily
products such as razors. Gillette offers some of the highest operating margins for P&G, giving them wiggle-room to
make the price cut to stay competitive.
P&G has been working to decentralize certain aspects of leadership to better serve customers regionally. Gillette has
a Chairman & CEO Patrice Jean Louis Louvet, who oversees VPs in marketing, finance, human resources,a CIO as
well as VPs of management for various industries (grooming, oral, personal care) and Chief Operating Officers for
different regions. For more than 100 years, Gillette has dominated Western markets and have had significant position
in Asian & middle eastern markets. Highly respected, some languages such as Croatian even use the word Gillette
(žilett) to mean razor blade. Despite the challenges facing Gillette, if their past performance is any indicator the future,
Gillette will continue to stay well through a comprehensive marketing strategy to successfully penetrate the internet
market.

4. 2
P&G 5 Year Financial Overview
Proctor & Gamble Co.
Year 2017 2016 2015 2014 2013
Total Revenue
(Billions)
65.1 65.3 70.7 74.4 73.9
Net Earnings
(Billions)
15.3 10.5 7.0 11.6 11.3
Stock Price (7/1) 87.15 84.78 79.72 79.28 78.02
Profit Margin 23.50% 16.08% 9.9% 15.59% 15.29%
Growth Rate .3063% -7.6379% -4.9731% .6766% 1.0944%
Current Ratio .88 1.1 1 .94 .8
Total Asset
Turnover
.53 .51 .56 .59 .62
ROA % (Net) 12.38% 8.17% 5.14% 8.21% 8.33%
Gillette Company, a P&G Brand, does not release annual reports because it is proprietary. Gillette’s revenue in 2017
was $6.8 Billion. Gillette represents P&G’s grooming segment; Braun electronic razors are not included. The
Grooming segment makes up 10.0% of P&G’s annual revenue, and 16.0% of their net earnings. Sales in Quarter 1 of
2017 for Gillette dropped 6% after releasing details of price cuts across the board to compete with Harry’s and Dollar
Shave Club. While the numbers are not public information, it is known that Gillette’s operating margins and gross
profits are in a slight decline. This is due to several developments within the industry as well as some difficulties
presenting themselves abroad.
The shaving away of Gillette’s dominant market share is thanks to Dollar Shave Club and Harry’s: E-commerce razor
businesses. Harry’s and Dollar Shave Club caught wind of Gillette’s high operating margins and devised business

5. 3
strategies to penetrate the market, providing quality products at a fraction ofthe price. This has forced Gillette to lower
their prices. Abroad, Gillette is running into slower growth than expected specifically in emerging markets. Gillette’s
price premium strategy is not as effective in emerging market countries. These two developments have caused a stunt
in Gillette’s operating margins, market share, and gross profit.
Current Market Situation
Market Description
Gillette operates in the grooming industry, specifically the shaving razors industry, producing razors, replacement
cartridges and disposable razors. More broadly,Gillette is in the personalcare industry. Gillette sells technology-laden
products at a price premium thanks to exorbitant amounts of money spent on advertising, promotion and strategic
brand management. “The Shaving Razor Manufacturing industry is highly concentrated among only a few major
companies, setting the stage for a very competitive environment.” (IBISWorld). Little distinguishes razor brand’s
products:All have various products utilizing 2, 3, or 5 blades, all utilize a grip technology in their razor handle, and
all utilize the razor-and-blade marketing approach, matching Captive-Product Pricing, (famously used in many
industries but invented by Gillette) by way of selling the razor handle with minimum profit margins while selling the
cartridges at steep profit and operating margins. Where companies do distinguish themselves is in brand identity, and
Gillette has reigned king in this area with otherbrands taking acknowledged back seats to Gillette’s dominance. There
are a number of barriers to entry to the razor market. To be relevant in the industry, a large amount of fixed costs
investments in plant, equipment and materials are necessary, yielding the tightly competitive market among a
relatively small number of participants. “The advantage for major companies in this industry is their economies of
scale, allowing them to purchase materials in bulk at a lower per-unit cost and mass produce their products at a rate
that meets demand.” (IBISWorld). It is these economies of scale that yield the large operating margins that the industry
enjoys. The barriers to entry into the industry are explained by the previous quote describing the sheer size of the
relatively small number of competitors in the Shaving Razors industry. Following is a Gillette S-T-P analysis to
ascertain their methodology behind deciding what customer base will be the recipient of their marketing mix: In other
words, who they speak to and why.
Segmentation

6. 4
Gillette utilizes a geoclustering segmentation method where by Gillette takes various attribute and partitioning classes
and combines themto create highly specific segments to use theirtailored marketing mix on. They define demographic
and psychographic qualities to profile their largest and most important customer base. First it segments the razor
market by age. It splits it into 3 distinct age markets.
1. 18 – 29-year-old young men: those may potentially be college students,young professionals many of which
are just being introduced to the workforce.
2. 30 – 50-year-old young to middle aged men: These would be working professionals, executives, married
adults.
3. 51 + year old late-middle to older aged men: These would be professionals, and retirees.
a. Specifically, there is a distinction within this demographic between men ages 51-64 and 65+ for
targeting purposes
Next, it segments markets psychographically, specifically with qualities pertaining to lifestyle. It segments based on
the following psychographic characteristics:
1. Hedonistic: This is a quality of people that engage in self-indulgent lifestyles. People who pursue pleasurable
activities (things such as enjoying high-class fine dining, operas to things such as expensive hobbies and
maintaining collections). Anything that may be in the pursuit of pleasure, over pain.
2. High Disposable Income: Specifically, those who like to use their disposable income, this goes hand in hand
with hedonism. However, this can also include people who do not like to spend their money, rather, it refers
to those who simply can.
3. Conscious of their looks: People who are into fashion, people who would be able to be classified into
colloquial style delineations (hipster, preppy, grunge, street etc.)
4. Socialite: Defined by Merriam-Webster as “a person who is well known in fashionable society and is fond
of social activities and entertainment.” People who enjoy socializing amongst peers, typically those in their
30s.
Targeting
Gillette assumes they won’t be able to change the minds the 65 and older demographic. Rather, it would not be the
best utilization of resources.They may still buy, but their marketing mix should be focused where it can leverage the

7. 5
most sales by capturing the most market share,or as Levitt would say “buy [the most] customers”.Gillette strategically
targets customers in their early to late 30s. Reasons for this are as follows:
 Consumers in their early to late 20s will still be receptive of marketing mixes aimed at the 30 – 40-year-old
age demographic for psychological reasons. 20 – 30-year old’s perception of 30 – 40-year olds is
characterized by anticipation, where men are often not only seen to be in their ‘prime’, but are where
significant strides in one’s career must be made. What speaks to 30 – 40-year olds will speak 20 – 30-year
olds.
 Consumers in their 40s to 50 will be receptive to marketing mixes aimed at the 30 – 40-year-old range for
similar, psychological and behavioral reasons.It is seen as the prime of one’s life and despite people moving
forward, nostalgia and pride of one’s accomplishments during their 30s often create a longing for those in
their 40s to relive their 30s. Some studies also suggest that the average age for a midlife crisis (where one
yearns for youth) is 42 (Spotify study).
As such, it applies the psychographic qualities in the preceding segmentation analysis to people in their mid -30s,
utilizing this segment as their target market for their marketing. Men in their mid-30s, who engage in hedonistic
activities, and are often socialites who have high disposable income and are conscious of their looks. They tend to
enjoy their careers, and are people who value professionalism and separate their work life from the home life. A
roughly equal portion are married while others are single, however the aggregate of this quality do not have kids,
supporting the hedonistic, socialized lifestyle they lead. This is Gillette’s target market, and their marketing mix is
aimed at this group because both the preceding age demographic and proceeding age demographic will relate to the
communication the marketing mix facilitates with the targeted group (as mentioned for psychological reasons).
Positioning
Having revealed Gillette’s sophisticated segmenting and targeting strategies we nowbring into context Gillette’s brand
promise. “Positioning themes, sometimes called headlines, taglines or slogans, are an important foundation of
advertising communications and they primarily fall into two general categories: those emphasizing an organization
and those emphasizing a product” (Grapentine & Teas,2004). Gillette utilizes a positioning emphasizing the company,
in attempts to directly shape brand identity itself. Gillette’s defining promise and positioning slogan is, “The best a
man can get”. Simply stated,if you use “The best a man can get” with razors, you will become “The best a man can

8. 6
get”.To young-adult to middle-aged professionals who value that eclectic night out as much as a cozy night in, Gillette
provides technology-laden razors that deliver a satisfying,bump-free, smooth shaving experience offering life the best
version ofyou and you the best version oflife. Having already positioned its razors as a self-actualizing tool,ritualizing
the shaving experience into a regular grooming ceremony, Gillette has established its brand as a monolith in the
industry.Gillette is the standard,as previously mentioned often synonymous with the word razor in various languages,
and having matched the passion imbued in their product with an effective, tailored marketing mix intended for its
target market, it has maintained this position for many years, staying not just relevant but prevalent through various
cultural revolutions in social America.
Product Review
“An organization with several product lines has a product mix. A Product Mix (or product portfolio) consists of all
the product lines and items that a particular seller offers for sale” (Kotler & Armstrong, 2017, 214). Gillette
manufactures and distributes three distinct products, collectively creating its Product Mix representing P&G’s
grooming segment. These products are Disposable Razors, Razor Handles and Replacement Cartridges. The majority
of sales, R&D, and Marketing are put towards their Razor Handles and the Replacement Cartridges. This business,
whose marketing foundation was later coined Razor-and-Blade marketing, is the core of Gillette’s business model.
Following are details of each product Gillette sells:
1. Disposable Razors (Picked mid-range price razor for example)
a. 3 Blade Technology
b. Lubrastrip for smoothness
c. Pivoting head
d. “Microfin” layer protects against
cuts
e. Non-slip Rubber handle
2. Razor Handles (Picked newest technology product available)
a. Flex-Ball Technology b. Fits Fusion-5 Razor
3. Replacement Cartridges (blades attach to razor handle) (Newest technology) Fusion 5
a. 5 Blade Technology
b. Two “Prosheild Lubrication Strips”
c. Precision Trimmer
4. Gillette On-Demand
a. Blades sent to house

9. 7
i. Step one – Select which blade fits your needs
ii. Step two – Select one of the following:
 Subscribe and get every 4th order free
 Send texts when razors are needed
iii. Step three – Get them at your door
Competitive Review
Gillette has dominated the industry for many years. However, with business consistently transferring to the online
marketplace, Gillette is seeing new competition that is threatening their dominance. The online market place has
proven to be a strong investment for companies looking to penetrate the market; capitalizing on the massive operating
margins Gillette enjoyed, these companies simply sold similarly quality products at significantly cheaper prices.
Gillette’s major challenge, therefore, will be transitioning to a leader in the online subscription services that razor
sales tend to take form as in the online razor industry. “The advent of the Internet as a prominent communication and
advertising platform has enabled firms to implement targeted advertising campaigns and direct their efforts to certain
subsets ofthe population” (Bimpikis, Ozdalgar & Yildiz, 2016). Dollar Shave Club and Harry’s have leveraged this
new medium of where their integrated marketing communications can be received by consumers, giving these two
new competitors a means to obtain market share from a segment not fully tapped into by Gillette. Failure to penetrate
the online market and the segments that participate in it the most has facilitated Dollar Shave Club and Harry’s in
achieving significant market share; market share that Gillette will have to bulldog its way back into achieving through
innovative marketing strategies. On the following page is an overview of Gillette’s three main competitors and their
products.Immediately after that we have a review ofGillette’s competitors via the remaining 4Ps and Cs of Marketing
(sans Product):

10. 8
Dollar Shave Club
1. Price: Each subscription price point comes with different quantities of razors. Subscription services cost $1,
$5, $9 per month. In the beginning they utilized a price penetration methodology, aiming to obtain market
share. Due to Gillette’s premium pricing strategy, Dollar Shave Club saw an opportunity to make quality
razors and shave away some of the operating margins, producing a handsome profit, albeit not as much as
Gillette (note: this caused Gillette to slash their prices across the board). Dollar Shave Club’s competitive
advantage is its price and the convenience of razors to your door.
2. Promotion: Regarding the promotion mix, Dollar Shave club had an advertisement that effectively turned
into PR: their very first advertisement mocked Gillette and went viral due to the language ofthe advertisement
and its bluntness. One could argue based on the premiumprice of Gillette, their ‘price’ was a sales promotion
(Gillette had to slash prices as previously mentioned). There are no direct marketing or personal sales in the
promotion mix with Dollar Shave Club.
3. Distribution: Subscription services utilize mail as their only mode of distribution from manufacturing to the
consumer. The product comes straight to customer’s doors fromthe manufacturing plant.
4. Positioning: Their integrated marketing communication tactics by way of their PR/Advertising campaign,
specifically their first video that went viral, ultimately declared their positioning in relation to Gillette. To
people looking for an honest clean shave,Dollar Shave Club offers a no frills, straightforward, quality shave
that doesn’t have all the fancy, unnecessary ‘technology’ the name brands do, making your wallet lighter,
and your face smoother. Look, feel, and shave like a million bucks, without paying it.
Harry’s
Competitor Brand of Product Features
Edgewell Personal
Care
Schick
Various razors with various amounts of blades, replacement
cartridges
Dollar Shave Club Dollar Shave Club
Mail-order razors with 2-6 blades, cartridges, replacement
razors, shaving creams
Harry’s Harry’s
Mail-order razors with 5 blades, cartridges, replacement
razors, shaving creams

11. 9
1. Price: Similar to Dollar Shave Club, Harry’s capitalizes on the large operating margins of the Price Premium
giant that is Gillette. With a down payment of $15 to start the subscription, blades are $2 per month
afterwards. Similarly, Harry’s utilized a price penetration approach, however also offered razors of similar
prices.
2. Promotion: In the Promotion mix, Harry’s set up a deal with large-scale department store Target, taking up
most of the shelf space. Customers specifically notice the unique, and almost diametrically opposed
packaging to Gillette therefore making it easy to notice. Harry’s also utilizes comedy in advertising to relate
to their younger target market.
3. Distribution: Harry’s sell’s razors in store, only at Target. Besides Target, Harry’s relies on its online
subscription services that make use of USPS distributive infrastructure.
4. Positioning: Harry’s took a strong,bold approach to Gillette. Calling themout for their crazy designs Harry’s
positioning statement is this. To anyone who simply wants to shave their face with quality razors, Harry’s is
a product with well-made German razors without all the ludicrous designs, halving the price of big name
razors with the same exceptional quality.
Schick
1. Price: Much more of a direct competitor to Gillette, Edgewater’s subsidiary Shick prices razors at margins
slightly lower than Gillette while focusing on the same level of quality that Gillette aims for. Their pricing
model is premium value pricing, basing their price off perceived value.
2. Promotion: Utilizes standard commercials. No direct marketing, very little PR and no personal sales. Shick
has essentially accepted their place in the market share,and have captivated a consistent yet small portion of
the razor market. Continues this due to the high operating margins of the industry.
3. Distribution: Sells in almost all of the same places as Gillette. Also utilizes a competitive subscription service.
4. Positioning: Schick has positioned itself next to the Gillette as the alternative provider of quality razors. To
those looking for a clean smooth shave to look your best, Schick offers technology imbued products, at
cheaper prices than its big-name competitor with the same technology.

12. 10
Channels & Logistics Review
Gillette utilizes drugstores/department stores and the internet to sell their products in what is a multi-channel
distribution. Historically, they have sold their product’s in stores as it wasn’t until recently that online mail-order razor
plans became popular. Online sales are a growing part of the shaving business. This is a hurdle Gillette will have to
overcome to continue to dominate the shaving & grooming industry as most of their business was conducted in stores.
Consumers are increasingly turning online as it provides a cheaperand convenient method of getting razors . Business
continues gradually be conducted more regularly online. Gillette participated by launching The Gillette Shave Club
their own online-order service to compete. Earlier this year however, it was renamed Gillette On Demand, in attempts
to gain competitive advantage with these new companies, while simultaneously slashing prices across the board
elsewhere. After conducting market research, they learned some consumers of competitors were receiving too few or
too many razors, and Gillette has attempted to remedy this issue with a texting platform. This also is a way for them
to connect to millennials, a central part to their target market that has been overlooked. Gillette will need to continue
to innovate in the market, as opposed to historically valuing R&D, to attract customers and retain market share.
Being a subsidiary of P&G, and one of P&G’s most profitable, Gillette gets to utilize P&G’s distributive network
which is extensive. Over the last 8 years, P&G has made significant investments in multi-purpose manufacturing
plants,reorganizing the supply chain framework of the organization. One such investment was the $500 million plant
in West Virginia, which will engage such activities as raw materials acquirement to distribution. P&G serves 5 Billion
people around the world as the largest consumer products company in the world, and as Gillette is at the core of its
business, much of P&G’s extensive network of distribution is utilized by Gillette, allowing greater penetration of
emerging markets, as well as streamlining already held distributive markets.
Gillette has also spent time fostering a whole-channel view in their international business distribution strategy.
Creating cohesiveness throughout the distribution chain across borders and in between helps foster more value
channel-wide to better implement emerging market strategies.

13. 11
SWOT Analysis
Strengths Weaknesses
 Powerful, globally recognized brand
 High operating margins
 Expensive Products
 Costly brand management
Opportunities Threats
 Further global expansion
 Address competitors through positioning
 Online competition can further reduce
market dominance
 Regional competition
Strengths
1. Powerful, Globally Recognized Brand: Gillette has maintained global dominance virtually around the globe,
with exceptions only on the regional level, in the razor manufacturing and distribution business for 80 +
years. According to Brandz, Gillette is number 67 in the world in brand equity, with estimated brand equity
of $16.278 billion. Previously mentioned, Gillette is so powerful in many eastern European languages the
word translates to razor.
2. High Operating Margins: Gillette, and the greater razors industry, has enjoyed enormous operating margins
upwards of 30% (Forbes). The razor industry is notorious for high operating margins. With high operating
margins, Gillette has enjoyed high profit margins as well, facilitating large opportunities for investment in
R&D and brand management.
Weaknesses
1. Expensive Products: Gillette’s products,despite theirprice premium value pricing system,are still expensive
compared to relatively cheap costs.Consumers have become aware of this, which be a threat. However, the
main weakness behind expensive products is that Gillette can neversell razors as value products.Their entire
marketing and brand management approach has been geared towards a price premium, hence their large
operating margins.

14. 12
2. Costly Brand Management: Brand management has been one of Gillette’s biggest costs overthe years, with
expensive but value-added relationships with professionalathletes,movie stars etc. At this moment, Gillette’s
using the new Batman movie tied with a slogan,“The Best A Super Hero Can Get”. They have stayed current
endorsing athletes like Tiger Woods and celebrities like Dave Chappelle.
Opportunities
1. Further Global Expansion: Global expansion has been a theme for Gillette over the past 20 to 30 years.
Gillette has invested heavily in India, nearly reinventing their business model to adjust to the cultural
differences of Indian consumer dynamics. Global expansion can extend further into the middle east, as well
as into South America. Gillette just perfected its strategy in India, and it is likely it can translate to other
countries where practicality is valued over prestige with consumer products for the masses .
2. Address Competitors through Positioning: With Dollar Shave Club and Harry’s presenting Gillette’s largest
challenge of the 21st century, and arguably since Bic introduced disposable razors, Gillette can utilize their
previous position as leverage to foster a new repositioned status against its competitors. It is likely this will
be taking place in 2018.
Threats
1. Online Competition Can Further Reduce Market Dominance: Unless addressed, Dollar Shave Club and
Harry’s will continue to make strides in the online business realm effectively reducing market share and
brand value for Gillette.
2. Regional Competition: Gillette is a world-wide brand, and is used in many countries. There is always the
threat that a smaller company that understands the regionalmarket bettercan produce a product that competes
with, and takes away market share from, Gillette.

15. 13
Objectives and Issues
Objectives
Over the next two years Gillette seeks progress in two areas. Each will be measured at the
end of the year to ensure predicted performance is satisfactorily met
First Year Objectives: There are two main objectives for the calendar year of 2018:
1. The first objective is to further penetrate the online market by strengthening the reputation by incorporating
Gillette’s historical standard into their Gillette On Demand subscription service. This is the most crucial and
demanding first year objective. It is not likely to be completed by the end of 2018, however, a goal of
reclaiming 1% -2% ofmarket share by the end of 2018 that was taken from the penetration of Dollar Shave
Club and Harry’s of the market is reasonable.The marketing budget will be able to allow for this due to razor
industry’s notoriously high operating and profit margins.
2. The Second Objective for calendar year 2018 is to increase global presence in terms of brand management.
The goal is to increase global brand awareness by 5% . While Gillette has dominated the razor industry
through their superior brand image in the United States and in Western Europe, there has yet to have been
created any cohesion in a global context of a unified brand image. Through strategic brand management and
our promotion mix, Gillette will aim to fostera global brand image, as powerful as Gillette’s mainly domestic
brand image. This will require considerable spending and allocation of funds to the marketing budget, but
will ultimately allow for easier penetration in emerging markets not yet taken advantage of. While this is a
huge endeavor to take on, it will ensure the go-to razor brand in regional markets with regional competitors
is Gillette, flushing out the competition to ensnare powerful market share.
Second Year Objectives: The two goals for completion at the end of 2018 have consequent 2019 benchmark
measures of success:
1. Continuing the first objective of year one will be measured by further increase in the market share. The goal
is to continue the trend of increasing market share by reclaiming another 2-3% of market share in the
razors industry. The goal of total market share over the two years 2018 and 2019 is 3%-5%. Correctly
adjusting to the increase in online distribution of razors will facilitate Gillette staying relevant.

16. 14
2. Continuing our second objective in increasing global awareness, our second-year goals for 2019 are to
increase global awareness by another 5% . Continuing the trend of creating a global brand identity that
speaks to all nations will be a main point of emphasis of the marketing department in the coming years. In
terms of the factors that influence rate of adoption, Gillette has advantages in Compatibility,
Communicability, Complexity, and has the relative advantage in technology due to large R&D expenditures.
This creates for smooth adoption ofproducts,should the brand image be positioned properly, in a competitive
context as well as a cultural context. In increasing global awareness by 5%, Gillette hopes to increase volume
of sales in emerging markets by 6%.
Issues
There are two issues associated with the objectives and implementation of the 2018
Marketing Plan.
1. In increasing market share by roughly 2%/year, Gillette must further infiltrate the online portion of sales,
which is an entirely new segment of business for Gillette. Gillette will need to include this in their supply
chain, ensure the same quality customer service it has maintained for years while relying on an entirely
different distributive network to make sure customers are getting their blades on time. It requires an adjusted
marketing mix, as well as integrating brand management and updates to Gillette’s Integrated Marketing
Communication strategy. Going online means using new mediums of communication towards consumers,
who are likely to be an entirely new set of customers given that millennials and young adults in the early 20s
and late teens who are newcomers to shaving will commonly turn to the internet for products, including
razors, hence the sudden emergence of this market.
2. Pertaining to objective number two, creating a distinct unified brand image that crosses borders and is
recognized similarly around the world, substantial portions of the budget will need to be put towards
accomplishing this. This may mean digging into the operating and profit margins, as an investment, to
stabilize global brand image. It will also require extensive cultural research in the chosen emerging markets.
For a strongerstrategic brand management, additional resources will need to be required from human capital
to corporate planning committees and everything in between.

17. 15
Marketing Strategy
Positioning
To young-adult to middle-aged professionals who value that eclectic night out as much as a cozy night in, Gillette
provides technology-laden razors that deliver a satisfying,bump-free, smooth shaving experience offering life the best
version of you and you the best version of life. This is Gillette’s current positioning statement, and adheres to this
brand identity stateside.However, to accomplish objectives 1 & 2, it will be important to adjust its position in emerging
markets, as well as integrating its online presence into its overall positioning.
1. Emerging Markets: Similar to experiences in India, where the shaving culture was simply nonexistent, taking
Berger’s, author of Contagious, principles into practice and creating a public dialogue that utilizes his
concepts ofsocial currency to create relevance to the industry itself, will aid in birthing the social norms and
constructs ofshaving,and will foster momentum for Gillette to use to develop market share. Using this will
establish Gillette’s position in emerging markets. Accomplishing this in several countries will aid in giving
Gillette a singular brand identity ensnaring customer into brand loyalty worldwide.
2. Online Markets: Incorporating Gillette’s brand identity and positioning into the online market arena will
require extensive use of the promotion mix and strategic brand management. Integrated marketing
communications will need to be readjusted to incorporate online markets into its balance. Being careful not
to boast about being number one in the industry while effectively repositioning the threats of Dollar Shave
Club and Harry’s will ultimately guide Gillette to reclaiming its market share at 2%/year for the next two
years.
Product Strategy
In addressing product strategy in global environments without inventing a new product, there are two types of
strategies that can be employed, and a little of both are called for in penetrating world markets. Straight Product
Extension, or selling the product as is in new markets has worked in the past for Gillette, with one large exception in
India. In India, Product Adaption strategies were implemented. First, finding what the industry’s cultural connotations
are, followed by adapting the product to fit the specific needs of a culturally distinct market. Prior research and
knowledge is paramount in successfully infiltrating a new foreign market and positioning it to be the leader in its

18. 16
market. This approach will be necessary as Gillette decides to enter new markets. In 2015 Gillette began construction
of a $100 million plant in Vietnam. Applying these techniques in Vietnam will be crucial.
Regarding Online Markets, Gillette will continually need to adapt Gillette On Demand to fit consumer needs. One
method of achieving this is though Omni-Channel Retailing, whereby Gillette would produce a seamless integration
of their online purchasing experience (subscription) and subsequent ordering of razors with the retail experience.
Picking up razors such as prescription medicines are picked up is a method, or contracting with certain retail locations
to offer discounts to people who are subscribed to Gillette On Demand could create incentive to increase online
revenue. Seamlessly combing the two could allow for a growth in online sales and an incorporation of Gillette On
Demand in Gillette’s overall positioning strategy.
Pricing
Gillette has always priced based on perceived value, in a value pricing scheme characterized by premium pricing. In
premium pricing, brand image is manufactured and used to foster customer value. Regarding objective number one to
stay competitive Gillette On Demand was priced at a point similar to Dollar Shave Club as well as Harry’s. However,
given this was a market penetration strategy, the price will go up overtime to match the instilled price perception
consumers have for Gillette, and this will adjust in accordance to increasing market share, the placement in the rate of
adoption cycle, and the product life cycle.
Regarding objective number two, the pricing strategy taken in infiltrating emerging markets will be market
penetration. Research will be administered to correctly identify price taking into consideration economic conditions,
and ascertaining whether the Captive-Product Pricing model will be effective in the new markets. Carefully
considering laws, competitive dynamics and while staying course of the original marketing objective will allow
Gillette to handle its appropriate pricing in emerging markets. In targeting the middle class that typically is growing
in emerging markets, Gillette can ascertain a dominant portion of the market share to ens ure its future in the newly
entered market.
Distribution
Gillette, utilizing an Omni-Channel Retailing protocol and potentially creating a seamless integration of online sales
with retail sales, will foster a Multichannel Distribution System. This will balance the online market with the retail
market, which may also aid in integrating brand identity into the online segment of business.In Gillette On Demand
it relies on the USPS, as part of their distribution, in an otherwise relatively direct marketing channel. Therefore,

19. 17
creating value through manufacturing and proper storage and warehousing of razors being sent out in Gillette On
Demand is paramount in effective and seamless distribution, as Gillette On Demand is simply a distribution service
for its razors. Integrated Logistics Management is a key factor here, specifically within the confines of the
manufacturing plant, warehousing and ultimate cohesiveness with USPS.
Gillette will have to create positive relationships in the new regions its opening business up with. To accomplish this,
CSR will be crucial. Integrated Logistics Management will be critical in the penetration of emerging markets. Working
well with local communities, giving jobs to locals, are all tactics that will be taken up in the penetration of emerging
markets. The manufacturing plant recently built in Thailand may be providing razors to the South Asia region while
new investment opportunities are evaluated. While this is the case, a Whole-Channel view of distribution will be
necessary, taking into consideration border crossings, import taxes and other key elements of global distribution
systems.
Marketing Communications Strategy
Gillette Promotion mix: “These new ways of communicating, however, also facilitate greater personalization of
message content, timing, and location, enabling marketers to utilize more media types to accomplish specific
communication objectives.” (Batra & Keller, 2016) Based on this principle, Gillette will engage in the following
communication strategy.
1. Advertising
a. Gillette On Demand: Gillette has consistently used advertising to develop its brand image, utilizing
printed media and video media advertisements. The content of advertisements will promote Gillette
On Demand to increase awareness, to reclaim market share taken from Dollar Shave Club and
Harry’s.
b. Emerging Markets: Beginning in new markets, it is key to ascertain the correct medium of
communication. This requires research into the cultural attitudes of business reputation and how
various countries respond to media and print advertisement.
2. Sales Promotion
a. Gillette On Demand: Part of subscribing to Gillette On Demand is picking between texting your
order for new razors to Gillette, which then promptly will send razors to the consumer or receiving

20. 18
every 4th order free. Sales Promotion is embedded in the product. Consider alternative techniques to
incorporate ‘deals’ into Gillette On Demand to speak to money saving millennials.
b. Emerging Markets: This depends widely on the specific market being penetrated. In countries with
many advertising mediums sales promotions could be utilized to bring awareness to brands as well
as setting pricing expectations. Sampling can give prospective customers a chance to see the
technology imbued in Gillette’s razors.
3. Personal Sales
a. Emerging Markets: Depending on the market, there may be some personal sales, especially with
key accounts. Utilizing a leveraged sales approach in emerging markets is key.
4. Public Relations
a. Gillette On Demand: PR has historically been used to aid in the development of Gillette’s brand
image. Following this methodology, utilizing some PR in the form of sponsorships forGillette On
Demand can aid in capturing market share.
b. Emerging Markets: PR is crucial here, specifically on the handling of the actual penetration of new
markets. Responding to good and bad press appropriately shapes the public’s perception of the
Gillette’s new presence, and is extremely important.
5. Digital & Direct Marketing
a. Gillette On Demand: This will be a substantialportion of the communication with consumers with
the new subscription service. Utilizing Google’s AdSense as well as e-mail marketing will aid in
recapturing market share.
b. Emerging Markets: Depending on the countries development and how salient internet use as well
as cultural differences digital and direct marketing strategies may or may not be implemented.
Marketing Research
Gillette will need to conduct descriptive research in its continued monitoring of Gillette On Demand. Taking into
consideration its performance and consumer needs will be vital in ensuring the continued success of Gillette On
Demand. Specifically, understanding howa market giant releasing a new product into a market created by newcomers

21. 19
to the market and its effects on its current position and the industry overall. This will provide insights into how smooth
the transition will be in acclimating to the online market.
Gillette will need to perform some exploratory research in the penetration of emerging markets, less so in the markets
its already penetrated and more in new opportunities. Observation, Free trials and surveys can be conducted when
appropriate, in ascertaining cultural phenomenon and customs. Emerging markets are tricky, and careful vigilant
infiltration is the goal. Penetrating India proved to be more difficult than previously imagined, and only with ingenuity
on all the market fronts was Gillette able to establish a legitimate position.
Action Programs
January: Gillette will begin conducting market research for both segments it intends to work on over the next two
years. Surveys will be conducted on consumers in emerging markets. It will also begin developments of promotion
plans and strategic advertising for Gillette On Demand. There will be teams designed to address potential emerging
markets.
February: Teams will be dispatched to various countries to conduct more research in developing countries for
potential targets of market penetration. Developing the plan to integrate the Omni-Channel Retail strategy will begin
its early phases. At the earliest time, beginning phases of promotion activities will begin. Gillette will work on PR
campaigns to address not only Gillette On Demand and its competitors, but endorsements and sponsorships with
various celebrities and athletes to gain competitive advantage against companies with less resources and influence,
integrating its previous position in similar markets to the online subscription service market.
March: Teams will continue to survey potential opportunities for emerging markets and begin preparing various
reports for analysis and evaluation. Campaigns aimed at recapturing market share in promotion of Gillette On Demand
will begin. Systems will be put in place to measure performance for Gillette On Demand market share revival.
April: Teams will begin to report back findings, and decisions will be made which markets would be most
advantageous to go into. Plans to infiltrate will be developed,including choosing factory sites,distribution networks,
promotion campaigns and beginning stage pricing strategies. Gillette On Demand performance review will occur,
addressing the future and current implementation strategies.
May: A 5-month comprehensive performance evaluation of the 2018 marketing plan will occur, addressing efficacy,
efficiency, and controls over anticipated outcomes and overall development of activities. Investments will begin in

22. 20
emerging markets, and factory’s construction will break ground.Gillette On Demand teams should be able to forecast
basic levels of sales, market share creation and overall consumer reaction to Gillette On Demand present and future
marketing strategies.
June: Cohesion amongst the multichannel distribution model will begin to be noticeable in the segments bottomline
with lower expenses; financial statements will show signs of positive future impact. Integrated Marketing
Communication strategy will be in full swing for Gillette On Demand, with the front lines of the effort being a PR
push.Abroad in emerging markets, relationships begin to show signs of long term potential and distribution/pricing
strategies develop. Relocations of key employees are discussed.
July: Roll out promotion strategy for Gillette On Demand
1. Create contracts with athletes
2. Strategize and implement social media campaign with digital marketing team to respond to DSC & Harry’s
PR Ads
3. Weigh costs and benefits of sales promotion’s effect on Brand Image, Pricing models and customer creation
In emerging markets, continual smoothing out of potential wrinkles while establishing strongerdistribution networks
and channels will continue.
August: An eight-month performance review of marketing efforts will begin, including projections for the remainder
of the year and beginning steps in drafting a 2019 marketing plan. In the Gillette On Demand Integrated
Communications Push,advertisements and PR based on seasons will begin. Planning for a new counterto ‘No -Shave-
November’ will begin, as well as back-to-school Ads. Emphasis on connecting with specific target markets and
markets within those targets (i.e. age groups,college students,professionals etc.).Strong and Steady on the Emerging
Market front, making sure everything is being executed appropriately and dealing with any hiccups along the way.
September: Finalization of distribution channels as well as creating relationships with local raw material sellers
will begin, as well as further market analysis. Continual market analysis will be a must in emerging markets. Gillette
On Demand should begin to see some press,and Integrated Marketing Communications Strategy will show evidence
of impact.

23. 21
October: Halloween related advertisements and PR will occur, specifically targeting ages 18-24. New marketing
research for emerging markets will be documented and reported.Board Meetings discussing emerging markets overall
direction and its fit into the mission of Gillette will be discussed.
November: Analysis of ‘No-Shave-November’ marketing communications approach will begin, and will be
monitored the entire month. Strategic analysis will be made for next November, with the goal of eliminating this trend.
Due to the budget of 2018 Marketing Plan, a significantly more comprehensive analysis will occur of overall
marketing strategy efficacy for the current calendar year, which will be taken to Executive and the Board of Directors
for discussion and direction.
December: Board meeting will occur regarding marketing plan’s efficacy based on prepared reports regarding
Emerging markets, Gillette On Demand marketing push as well as all other aspects of current calendar year of
marketing Plan. Current marketing plan creation for 2019 will be advised and adjusted according to findings and
results of this meeting. Should 2018 appear effective, continuance of Gillette On Demand integrated marketing
communications strategy will occur. Emerging Markets will continue to be watched.
Budgets
To fund the massive brand identity integration plan as well as the PR campaign to strengthen Gillette On Demand’s
position relative to competitors, large investments will need to be made. This will include debt financing mainly.
Dividends will be slightly lower, not to spookshareholders, but enough to utilize some of retained earnings on some
of the investment. With high operating and profit margins this is significant enough to be necessary in 2018’s
objectives.
(Since Gillette’s financial information isproprietary, these are educated estimates) Debt financing will be in the form
of corporate bonds and loans from banks totaling $335 million. $200 million will be used on two new factory’s in two
emerging markets deemed worthy of the risk. $50 million will be utilized on PR campaigns, setting up sponsorships
with athletes to endorse Gillette On Demand subscription, with additional financial resources going towards the
advertising and promotion mix for Gillette On Demand totaling $30 million. An additional $5 million will go to R&D
for ways to improve supply chain efficiency for Gillette On Demand. $20 million will go towards the development of
Whole-Channel distribution networks, as well as new plant equipment for factories in the new emerging markets. $30
million will be allocated to the additional R&D that will be required to understanding the new market’s needs. This

24. 22
includes all cultural and market research as well, as well as product adaptation that needs to occurto acclimate products
to their intended international market. (Since Gillette’s financial information is proprietary, these are educated
estimates). With Revenue of $6.8 billion in 2017, fixed costs are $6.56 billion (Gillette consists of10% of sales and
16% of profits, and fixed costs for P&G are 48% of revenue and roughly the same as Profits), yielding sale of
596,363,636 razors. Selling products in over 200 countries worldwide, Gillette meets this number year after year,
thanks to substantial market share.
Controls
Gillette will need to measure performance through every step of implementation of the 2018 Marketing Plan. Three
main attributes will need to be tightly and thoroughly controlled:
1. Brand Image Development in Emerging Markets and Gillette On Demand: Having a high standard of brand
image, controls will be set in place to ensure the new brand image being fostered both in emerging markets
(as far as global cohesion) as well as Gillette On Demand’s integration into current brand identity (and the
online segment all together) is occurring smoothly, effectively raising brand equity overall. Market research
in the form of surveys, focus groups and observation will reveal whether this is happening to standard.
2. Risk Assessment throughout emerging market penetration: A careful watch with a development of a control
strategy will be implemented. With any new development new assessment on the feasibility of investment in
emerging markets must be undertaken, along with further research about the efficacy of profit realization
through the development process to shipping the first razor to the first retail location. Profit goals must
continually be able to be in reach throughout the implementation of supply chain and production.
3. Supply Chain and Distribution efficiency: Standardization of the distribution chain for both Gillette On
Demand (cohesion with USPS) as well as ensuring a Whole-Channel view is maintained. Tests will be
performed to see time it takes for one razor to make its way to various destinations in the supply chain and
tweaks will be made along the way depending on test performance, in both Emerging Markets and Gillette
On Demand.

25. 23
References
1. Armstrong, G. (2016). Marketing, An Introduction 13e. United States of America: Pearson Education
Limited.
2. An Open Letter From The Thousands Of Men And Women At Gillette. (n.d.). Retrieved October 22, 2017,
from https://gillette.com/en-us/about-gillette
Gillette About-us
3. Bimpikis, K. Ozdaglar, A. Yildiz, E. (2016) Competitive Targeted Advertising Over Networks. Operations
Research 64(3):705-720. https://doi.org/10.1287/opre.2015.1430
4. Batra, R., & Keller, K. L. (2016). Integrating Marketing Communications: New Findings, New Lessons,and
New Ideas. Journal Of Marketing, 80(6), 122-145. doi:10.1509/jm.15.0419
5. Cook, J. A. (2007). Weaving 2 supply chains together. Retrieved October 22, 2017, from
http://www.supplychainquarterly.com/topics/Global
6. Coolidge, A. (2017, April 26). Slower Gillette razor sales slice into P&G's profits. Retrieved October 22,
2017, from https://www.usatoday.com/story/money/business/2017
7. Coolidge, A. (2017, May 10). Gillette online users can now text for new razor blades.Retrieved October 22,
2017, from https://www.usatoday.com/story/money/business/2017/05/10/gillette-online-users-can-now-
text-new-razor-blades
8. COMPARE GILLETTE® RAZORS AND FIND THE BEST BLADES FOR YOU. (n.d.). Retrieved October
22, 2017, from https://gillette.com/en-us/en-us/compare-shaving-razors-cartridges
9. D'Costa, V. (2016, June). Shaving Razor Manufacturing In the U.S. Retrieved October 22, 2017, from
http://clients1.ibisworld.com/reports/us/industry
10. Dollar, S. (n.d.). How It Works. Retrieved October 22, 2017, from https://www.dollarshaveclub.com/how-
it-works
11. FTSE Russell. (n.d.). Proctor & Gamble. Company Financials. Retrieved October 22, 2017, from
http://www.mergentonline.com/companyfinancials
Mergent Online Database
12. H. (n.d.). The Gillette Company. Industry Information. Retrieved October 22, 2017, from
http://subscriber.hoovers.com/H/company360/overview
Hoovers Online Database
13. Isaac, M. (2014, September 23). Where Profit Margins Are Hefty, Online Upstarts Muscle In. Retrieved
October 22, 2017, from https://www.nytimes.com/2014/09/24/technology/24shave.html
14. Nickel, B. (n.d.). The Razor War on Display Advertising (Gillette vs. Dollar Shave Club vs. Harry’s).
Retrieved October 22, 2017, from https://www.adbeat.com/blog/the-razor-war

26. 24
15. Rubin, C. (2014, November 19). Safety Razors Regain Popularity for Men. Retrieved October22, 2017, from
https://www.nytimes.com/2014/11/20/style/safety-razors-regain-popularity-for-men.html
16. Radin, R. (2013, September 8). Gillette Organization Chart. Retrieved October 22, 2017, from
https://www2.bc.edu/robert-radin
17. Procter & Gamble. (n.d.). Retrieved October 22, 2017, from http://news.gillette.com/about/history
Gillette History
18. Terlep, S. (2017, April 04). Gillette, Bleeding Market Share, Cuts Prices of Razors. Retrieved October 22,
2017, from http://www.foxbusiness.com/markets/2017/04/04/gillette-bleeding-market-share-cuts-prices -
razors.html