CaitlinKing C. Gillette first founded the Gillette Company in 1901 as a safety razor manufacturer based in Boston, Massachusetts. Over the years Gillette had grown to become a leading global supplier of products under a variety of brands. On October 1, 2005, the Gillette Company was bought out by Procter and Gamble. Procter & Gamble is a uniquely diversified consumer products company with a strong global presence. Established in 1837, they began as a small, family operated soap and candle company. Today, P&G markets more than 300 products to more than five billion consumers in 140 countries. The company has one of the strongest portfolios of trusted, quality, leadership brands.
MalorieProctor and Gamble has many strengths, Weaknesses, opportunities and threats that their company faces everyday. A strength for Proctor and Gamble is that they are a global company, therefore they are very well known and trusted, as are Gillette products. This is a strength because they have built up customer loyalty therefore consumers tend to choose their products over competitors products. P&G is a large company with many shareholders. Having people invest in shares in the company, P&G now have obligations to these shareholders. This can be identified as a weakness for P&G. For example P&G has to take it slow in the production of developing new products in the market because of such factors like having investment funds being there, protecting their reputation and loyalty to their shareholders and producing products that are not below standards.In current times P&G has dedicated its social responsibility to helping children all over the world ages 0-13. Because they are only involved with helping children right now, in the future P&G has an opportunity to expand their responsibilities towards other causes to improve their social reputation.There are many different divisions within the large company of P & G. because of this there is a potential threat of competition within those divisions. They may compete for resources and or funding. This may cause complications and conflicts within the company.
JessicaSome of the key things that Gillette needs to focus on while looking at an Environmental Scan are: Due to all the shipments overseas Gillette Canada has to conform to the trend of the ever changing foreign laws, regulations and tariffs placed on importing/exporting their goods.At this time North America is heading towards a recession. The trend of economies slowing down will not affect the industry of personal care. The products that Gillette produces are essential for everyday personal hygiene. Therefore, consumers will continue to purchase these products. Due to the trend of consumers becoming more aware of the environment there is a growing concern about the chemicals, waste and packaging for personal care products. P&G needs to reduce its out puts of desecrate to therefore intern protect the environment. Technology is constantly evolving within the personal care industry. With this trend it gives P&G the technological advancements they can use, such as robots doing all the jobs of humans, so they are able to distribute more rapidly and more efficiently. Gillette produces many different product lines. Being in the industry of personal care, it appeals to many different demographic markets. The biggest trend they target is the health care of men and women because as adults they are more concerned for their personal hygiene and care in their lifestyles. This trend of personal care for women and men effects Gillette everyday, by expanding upon ways to make these products adaptable to their wants and readily available to their needs.
CaitlinThe primary target market for Lazor Razor consists of men and women between the ages of 20-60 who are looking for a higher quality razor and a razor that considerably decreases the frequency of shaving. Most importantly this target market is willing to pay for the products superiority.
MalorieThe secondary target market for Lazor Razor are men and women between the ages of 19-45 who are looking for a new product that eliminates all the extra time consuming elements that traditional shaving requires i.e. the application of shaving cream and the messy clean up. Also they are people that would like to eradicate the negative effects of shaving on their skin like razor burn and cuts.
JessicaThe image that Lazor Razor wants to produce for its target market is that it is a high quality product that is even more effective than a razor blade and an electric razor and is 100% safe to use. Lazor Razor beats competitors because it does not cause any effect to the sensitive skin on the face or any other surface of the body. It is a new and innovative technology that is one of a kind and it comes with a three year warranty to further reassure the consumers of its quality and effectiveness.Lazor Razor is the most efficient because of its pioneering technology and is one of the more moderately priced shaver`s with a price of $80.00. The main competitors for the Lazor Razor are electric razors and because of the unique qualities that the Lazor Razor offers such as never having to replace the lazor, this places our product higher in quality and effectiveness than its opponents ( who have to replace the blade).
CaitlinNext we are going to talk about the four p’s of the marketing mix which are Product, Price, Place and Promotion
CaitlinOur product isa highly advanced razor that uses a laser to get rid of hair instead of blades, called the Lazor Razor. The Lazor Razor will give you a precise shave with no cuts, no razor rash, no mess inside the laser, slower hair regrowth and no need to use shaving cream. In addition to all of this you never have to replace the laser and it is more environmentally friendly then other razors because there are no blades to constantly throw away. The razor will be 4” in length and 1” in width and will have a soft grip handle for portability and comfort. It will also have an on button on the bottom of it to turn the power on and off as needed. This razor will be powered by your choice of batteries or electricity; they are designed to be powered by both. It will also be waterproof, so you can take it in the shower with you. We will release this product in only black and white for now, but may add more colors in the future. This product is designed for use by both men and women.
MalorieOur product will be packaged in a recyclable rectangular cardboard box with the vacuum sealed product inside, so it is resistant to breakage, spillage, hot and cold and many other conditions. This will help protect our product from getting damaged as it is shipped from place to place and will also prevent our product from being tampered with. Because of the rectangular shape of the box our product will be easy to store on any retail shelf and it will also be very convenient and easy to handle for the consumers. The packaging will have a black background with a picture of our product on it and bold red writing stating our products name across the center of the packaging and NEW in the top right corner to catch the eye of consumers. In the bottom right corner there will be a picture of two lasers forming an X with the slogan “not just a razor it’s a lazor” over top. We will use persuasive labeling for our products packaging to try to persuade consumers to by our product. Our product will also come with a three year express warranty.
MalorieThis is an example of our product’s packaging
JessicaWe have chosen price skimming because our product offers unique benefits that are new to the market. Gillette holds a reputation for dependable products and because competition prices do not affect the price of the Lazor Razor as of yet, it will be priced higher. Price skimming is also used for the purpose that it is an introductory product and will be paired with heavy promotion. The retail price for our product will be $80. The Lazor Razor is also a technological breakthrough by using lasers as the “blade” in the razor. Price Skimming will work for our product because if the price is set to high and the market does not welcome the product, we will be able to lower the price if the sales are too low. If the sales are high, we then are able to recover and break even fairly quickly.
CaitlinWe will offer rebates of $25 for every two Lazor Razor’s that consumers buy during the first two months of being launched into the market. In doing this we hope to motivate consumers to buy more of our product so they can save money. We will also use functional discounts to offer our retailers a discounted price for doing a certain function for us. We will offer a 15% discount for any retailer that buys our product and stores it in their own warehouse right after purchasing. The geographic pricing that we have decided to use is uniform delivered pricing. We will charge all of our retailers the same flat freight charge. We believe that this is the best geographic pricing tactic because we have many consumers all around Canada. The special pricing tactic that the Lazor Razor would be able to benefit from is Odd-Even Pricing. Its retail price is set for $80, with this even numbered price it is perceived to imply quality which is what the Lazor Razor from Gillette has to offer. With Odd-Even pricing, the even-numbered prices usually receive elastic demand. For the Lazor Razor because it offers such unique benefits such as never having to replace its laser, consumers will most likely continue to want the product, therefore if the price happened to increase or decrease, the demand would still be there.
MalorieGillette will use multiple channels or “dual distribution” to distribute the Lazor Razor. The channels we will be using are retail, direct and wholesaler. The Lazor Razor will use retailer channels because of market factors. The target market for the Lazor Razor influences this choice. The Lazor Razor is targeted to both industrial customers and consumers. The retailer channel will be used to get the product efficiently to the consumers. Proctor and Gamble will distribute the Lazor Razor to retail stores they currently deal with such as Wal-mart and Zellers. These channel intermediaries like Wal-Mart will directly get the product to the consumer. Because these intermediary retailers like Wal-Mart and Zellers are larger they are able to buy more of our product in larger quantities directly from the manufacturer to have on their shelves. Which will also be a benefit for Gillette to use wholesaler channels. We will use wholesaler channels because industrial consumers like Costco, will buy larger quantities than consumers. Making the Lazor Razor be widely available to larger markets from the wholesaler channel we will be able to reach more of the target market. Another factor that will affect Gillette is the delicacy of the Lazor Razor. Since it is a tangible object it will have a longer life span and since it will be packaged well, it does not need to have minimum handling, which would allow having longer marketing channels.For a direct channel, it sells directly from the producer to the consumer to get Gillette’s Lazor Razor to the consumers. Because the Lazor Razor is in fact a more expensive item that offers unique features and benefits, it would be useful for Proctor and Gamble to offer purchasing the Lazor Razor online or mail orders and even television networks like the shopping channel. This would be effective especially as a new product in which they can associate sales promotions with on their website or television infomercials. With the direct channel there are no intermediaries. So Proctor and Gamble and Gillette would be selling the Lazor Razor directly to their consumers. A direct selling through a sales force is used when the target market is concentrated in one or more specific geographic areas; opposed to extensively dispersed target markets use less expensive intermediaries. The distribution intensity that will be used for Lazor Razor will be selective. This is because only a certain amount of dealers will be used to sell this product. The Selective distribution intensity was chosen because although the product is expected to be successful it will not need to be in every possible store like many generic razors using Intensive distribution. However it will need to be more accessible then other Exclusive products of its kind.
JessicaPromotional Efforts Goal: The goal of the promotional effort when concerning Lazor Razor will be informative. Due to the fact that the Lazor Razor is a new product the promotional effort will be focused on increasing product awareness among consumers as well as explaining how the product works and what the benefits of using the product will be when compared to competitors. Advertising: For our advertising we have decided to use pioneering for the Lazor Razor’s introductory stage of the product life cycle. We have decided to use pioneering because the Lazor Razor is a new to the world product and we want to provide consumers with in depth information about our products benefits. We also want to generate interest in our consumers for our product and try to get them to start buying it. The channels we have chosen to use to convey our message to our target audience is TV commercials and Magazine ads. We have decided to use TV as one of our mediums because we have the ability to reach a wide, diverse audience with a low cost per person ratio. This is beneficial to us because the Lazor Razor is targeted towards men and women ages 19 – 60. We have chosen to use a flighted media schedule because it will allow us to achieve a greater impact with our target market due to the increased frequency.Another medium we have chosen is magazine ads. We have chosen to use magazine ads as well because they have a longer life span, we can choose the exact market being targeted, and reproduction is excellent. We have chosen to use the flighted media schedule to achieve a greater impact with an increased frequency. We will put ads in men’s health magazines, Cosmopolitan, People and Chatelaine every two monthsthis way we reach a larger portion of our target market.
CaitlinPublic Relations: Public relations are an important part in a progressive communication mix for a company’s marketing efforts. Our product is in the introductory stage and is brand new so it needs more exposure than just paid advertising. To get exposure we could go to different news broadcasters like CKCO in Kitchener-Waterloo where in a health and wellness segment they could do a feature on our product. This would allow more consumers to be educated about our product and get the word of mouth out there. Gillette also uses celebrity endorsements, the most popular being the Gillette Fusion line for men, using Thierry Henry, Tiger Woods and Roger Federer. Gillette Venus, the women line has also used celebrity endorsements such as Venus and Serena Williams. They have always been popular and influential professional sport players. It would be an affective decision to use these already credible players to introduce why the Gillette men and women users would use this product, through creative TV commercials and the internet. In regards to the internet because it is a new product, some users will be wary on how to use the Lazor Razor. Gillette could post some instructional videos on YouTube or on their website. Consumer Sales Promotions: For our consumer sales promotions we have decided to target competitor’s customers and brand switchers. Because of this we will use point of purchase promotions, coupons, online sales promotions and contests to try and persuade these consumers to switch to our brand. For the point of purchase promotions we will set up colourful eye catching floor stand displays throughout various retailers that we have chosen. There will be pictures and simple to use instructions on the floor stand display to inform consumers about the product and try to convince them to buy it. We will also include $2 off coupons for our product to try and encourage product trial and repurchase with consumers. Online sales promotions will also be available for consumers. We will offer free shipping to those consumers who buy our new product online in hopes that we will sell more since the internet is becoming so popular. The last sales promotion that we will offer is a contest where consumers are welcome to fill out a ballet that will be in the box of our product and enter a draw for a free Gillett package, which will contain a number of Gillett products. We hope by doing this consumers will buy more Lazor Razors to get the ballet for the draw because everyone likes free stuff. Trade sales promotions: For our trade sales promotions we plan to offer a trade allowance for our retailers. By doing this we hope that they will buy more of our new product because we are giving them a discount. We will also do trade shows where we will show consumers or potential consumers how our product works and the advantages of our product compared to a regular electric razor. By doing trade shows we will inform more consumers about our product and this may make them want to buy it because they will see how easy it is and how much more convenient it is than other razors. Personal Selling: By doing demonstrations in different stores it will allow consumers who are looking for a Razor to view the additional benefits and advantages of owning the Lazor Razor. Consumers will also get a chance to see how the product works, as well as a representative can explain the benefits directly to them. By consumers being able to witness how easy the product is to use they will be more likely to purchase the product and refer it to friends and family.
MalorieProduct –The Lazor Razor will be the first of its kind with a new unique package design. The package will be informative to explain the benefits of the product. By doing this the consumer will be less likely to experience cognitive dissonance. Production of the product will begin on January 1, 2010; this will allow the product to be available for shipment to wholesalers and retailers by August 1, 2010. Once the product has been received by retailers they plan to have it on their shelves by September 1, 2010 for consumer purchase. Pricing – Due to the fact that the Lazor Razor is a new product and does not have any direct competition we will be pricing our product at $80.00. Because production and promotion prices will be high, we can not lower the product price anymore. The Lazor Razor is a product that is so easy and consists of many different benefits; therefore $80.00 is a relatively low price. However, once the product has become known to consumers the price is subject to change. Place - The Lazor Razor is a unique personal hygiene product that will be widely available in selected retail stores. Two retailers that will be carrying the product will be Wal-Mart and Zellers. Because Wal-Mart is known all over the world and Zellers is throughout Canada it is essential to have the Lazor Razor readily available at these retailer locations. Promotion – Promotion will be the heart of the marketing mix; because the Lazor Razor is a new product to an existing product line the promotional effort we will be focusing on is increasing product awareness among consumers as well as explaining how the product works and what the benefits of using the product will be when compared to competitors. We will promote the product by TV commercials, and magazine ads. We will talk to the editors of the magazine to have ads placed in the selected magazines for July’s issue, stating that the product will be available in store on September 1, 2010 along with a $5.00 0ff coupon. Once the Lazor Razor has been placed on retailer shelves it will also have a $2.00 coupon attached to the product. We are also going to launch a commercial on July 20, 2010, introducing the product to the consumers and making them aware that the Lazor Razor will be available for purchase on September 1, 2010.
Marketing Final Powerpoint Presentation
Introducing:Gillett's Lazor Razor<br />It’s Not Just A Laser It’s A Razor<br />