The report was assigned to evaluate marketing practices of Gillette and their effectiveness in Pakistan's safety razors and personal care product sector.
2. HISTORY
• Gillette Pakistan Limited was incorporated on December 9, 1986 as a public
limited company under the Companies Ordinance, 1984 and is listed on Pakistan
Stock Exchange Limited.As a listed public company, Gillette Pakistan Limited
submits comprehensive financial statements to the Securities and Exchange
Commission of Pakistan (SECP) and the Pakistan Stock Exchange,The Company is
represented on several business associations and key executives of the company
are working on committees of these associations.
• The Company is a subsidiary of SeriesAcquisition B.V., Netherlands , which is a
wholly owned subsidiary of P&G, USA.The parent company holds 91.4% of the
issued share capital of the Company while rest of the share capital is held by other
individuals and corporate.
3. MISSION STATEMENT
Gillette has been at the heart of men’s grooming for over 100 years. Each day, more
than 800 million men around the world trust their faces and skin to Gillette’s
innovative razors and shaving products.This commitment to giving men the very
best is carried into our line of personal care products, including deodorant and body
wash. All designed for the unique needs of men – helping them to look, feel and be
their best every day.
Vision statement
To build total brand value by innovating to deliver consumer value and customer
leadership faster, better and more completely than our competition.
4. POSITIONG
Gillette is positioned as the best brand for men’s grooming needs. However, for
each shaving segment it is positioned uniquely to ensure maximum relevance.The
three shaving segments are, 1) Double Edge shavers (Lower income/primarily rural
areas), 2) Disposable shavers (Mid income, Urban and rural), 3) Systems shavers
(High income, Urban) Double Edge Disposable System Gillette as the Best value
brand for their grooming needs Gillette as the Best performance brand for their
grooming needs Gillette as the Best experience brand for their grooming needs
5. The Product Line
• Core Product: Quality of shave.
• Basic Product: Razor with comfortable grip, well packed.
• Expected Product: Blades the 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
7. Gillette’s Growth in Pakistan
• Incorporated In Pakistan in 1986
• Superior product portfolio is one factor that contributed the most in
growing.
• Another influencing factor was the merging with P&G.
• Innovation is the backbone of their brand, which has given them an edge
over their competitors.
9. • M1: Males, 20’s- early 30’s, salaried, maintain lifestyles that have a
bearing on their buying behavior.
• M3: Males, late 30’s and above, not very high levels of disposable
income, do not value looks or status value of the products they buy.
• M2: Customers who lie between these two categories.
• P1234: Products.
10. Pricing Strategy
• Gillette have been able to consciously use premium pricing for most products
and average pricing for others.
• It’s prices are relatively higher than those of its competitors but Gillette has
managed to maintain its customer’s loyalty by its worth as well as its
marketing.
• Gillette finds itself in a position where it adopts certain basic pricing strategies
such as:
Set pricing objectives
Analyze Demand
Estimate Costs
Determine specific prices.
11. PACKAGING AND LABELING
However, for a product like Gillette shaving razors, it does not play a very
significant role. A customer who buys a Gillette shaving product does not
consider the package an important consider enough factor which would
influence his buying behave our. Labeling does have some significance for a
product associated primarily with quality, like Gillette razors.Therefore, while
Gillette’s consumers do not base their buying decision on the basis of the
packaging, their comfort levels would be influenced by the labeling.
12. Promotion Strategies of Gillette:
Gillette spends billions of dollars on its advertising policies.
They have used an emotional marketing strategy.
The advertisements are smooth and cool giving an unstoppable feeling.
By looking at the ads, one can see the confidence and the unbeatable
feeling on the model’s face and this transforms the mindset of the buyer.
The marketing focus is on the emotion rather than the product itself.
13. Top Brand Ambassador of
Gillette.
For international market, famous
personalities have been roped in
as the brand ambassadors.
‘Roger Federer’- an iconic tennis
player, ‘TigerWoods’ – the
master champion of Golf, ‘David
Beckham’
To cater Pakistan they make
‘Shoaib Malik’ – the Pakistani
cricketer as brander ambassador.
14.
15. R&D investment of Gillette
and its importance:
Innovation is the backbone of
this brand.
being a market leader Gillette
has to innovative and creative
otherwise there are a lot of other
brands they cater the market
Gillette do most prominent
research, so they can be the
market leader and P&G invests 2
billion over all.
16. Reason behind the Market leader:
Distribution channels:
• Early bird advantage:
• Strong promotions:
• Unique way to greater the value:
• Example of Gillette Mack 3
• Warranty
17. Benefits from Merger with
P&G
• Gillette become the P&G’s
marketing expertise
accumulated over 170+ year
through 150+ brands.
• Distribution expansion, P&G’s
becoming as most famous FMCG
brand promotes sales of Gillette
all over the world
18. Distribution Channel
Gillette uses indirect method to distribute its product. Indirect
distribution involves distributing a product by the use of an
intermediary.
19. Competitors
• Competitors in Pakistan
1- BIC- Founded in 1945 by Baron Marcel Bich and has become known for
making disposable consumer products
2- Treet -Incorporated as a public limited company in 1977, its first razor blade
manufacturing unit was set up at Hyderabad in 1954
• Competitors outside Pakistan
King of shaves
Schick Hydro
Kodak
Fuji
20. Recommendations for
Segmenting and Marketing
• The brand shouldTarget Females as well and should launch beauty
products accordingly.
• Increasing their product portfolio will help them in more profit
maximization.
• Should start inventing their own shaving machines.