Gillete final report

1 Institute of Banking and Finance
REPORTON GILLETTE COMPANY
Submitted to; Ma’m Misbah Bukhari
Submitted by;Muhammad Waqas
Shujaat Hussain
Murtaza Arif Hussain
Syed Ali Haider
BAHAUDDIN ZAKARIYA UNIVERSITY
MULTAN

INTRODUCTION
Gillette is a brand of men's safety razors, among other personal care products such as shave
gels, aftershave, body wash, deodorant, and other razor products owned by Procter &
Gamble Based in Boston, Massachusetts, it was one of several brands originally owned by
the Gillette Company, a supplier of products under various brands, which was merged into
P&G in 2005. The Gillette Company was founded by King C. Gillette in 1901 as a safety
razor manufacturer. On October 1, 2005, Procter & Gamble finalized its acquisition of the
Gillette Company. As a result of this acquisition, the Gillette Company no longer exists. Its
last day of market trading— symbol G on the New York Stock had ceased to trade after the
buyout was completed. Previous to this merger, Gillette had avoided 3 merger attempts from
1975-1991 under the incumbent CEO Coleman Mockler, the corporation was a focus by other
corporations to merger with due to Gillette’s’ market share and their amount of products. The
Gillette Company's assets were incorporated into a P&G unit known internally as "Global
Gillette". In July 2007, Global Gillette was dissolved and unified into Procter & Gamble's
other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household Care.
Gillette's brands and products were divided between the two accordingly.
Proctor and Gamble bought out Gillette for a $57 billion dollar price tag, which made P&G
an even more dominant presence in consumer products. During one large acquisition, P&G
acquired Duracell batteries, Right Guard 10 deodorant, and the Gillette shaving brand, which
added to its more than 300 consumer brands, including Ivory Soap, Head and Shoulders
shampoo, Pringles, Crest toothpaste and Bounty paper towels. Razors are one of the most
profitable businesses for P&G with operating margins of 31%. Procter & Gamble controls
70% of the global blades and razors market led by Gillette. Gillette’s annual revenue in
personal care products is nearly $8 billion dollars, and the brand value is estimated to be
nearly $20 billion dollars as of November 2013. The company employees exactly 28,700
employees all over the globe.
Gillette’s mission statement:
“The Gillette Company is a globally focused consumer products marketer that seeks
competitive advantage in quality, value-added personal care and personal use products. We
are committed to building shareholder value through sustained profitable growth”.
Gillette’s main focus is to create a product that will produce value, quality and reputation.
With this, Gillette’s managed to create a predominant stance in market share control with the
variety of products they create, produce and distribute internationally.
PRODUCT HISTORY:
Double-Edged Safety Razors:
Gillette Razor and Packaging, Circa 1930's

The first safety razor using the new disposable blade went on sale in 1903. Gillette
maintained a limited range of models of this new type razor until 1921 when the original
Gillette patent expired. In anticipation of the event, Gillette introduced a redesigned razor and
offered it at a variety of prices in different cases and finishes, including the long running
“Aristocrat". Gillette continued to sell the original razor but instead of pricing it at $5, it was
priced at $1, making a Gillette razor truly affordable to every man regardless of economic
class. The 1930s saw the introduction of the Gillette Blue Blade (1932), name as it was
dipped in blue lacquer, and which became one of the most recognizable blades in the world.
1934 saw the innovation of the "Twist to Open", or TTO design, which featured butterfly-
like doors that made blade changing much easier than it had been previously, wherein the
razor head had to be detached from the handle.
Razor handles continued to advance to allow consumer to achieve a closer shave. 1947 saw
the introduction of the new "Super Speed" model, also a TTO design. This was updated in
1955, with different versions being produced to shave more closely—the degree of closeness
being marked by the color of the handle tip.
In 1956, the first "Adjustable" razor was produced. This allowed for an adjustment of the
blade to increase the closeness of the shave. The model, in various versions, remained in
production until 1986.
"Old type" Gillette safety razor set, made between 1921 and 1928
The Super Speed razor was again redesigned in 1966 and given a black resin coated metal
handle. It remained in production until 1988. A companion model, "The Knack", with a
longer plastic handle, was produced from 1966 to 1976. In Europe, the Knack was sold as
"Slim Twist" and "G2000" from 1978 to 1988, a later version known as "G1000" was
made in England and available until 1998. A modern version of the Tech, with a plastic thin
handle, is still produced and sold in several countries under the names 7 O'clock, Gillette,
Nacet, Minora, Rubie and Economica.
Discontinued Products:
Techmatic was a single blade razor introduced in the mid-1960s. It featured a disposable
cartridge with a razor band which was advanced by means of a lever. This exposed an
unused portion the band and was the equivalent of five blades.

Adjustable Techmatic was a version of the Techmatic dating from 1970. The
adjustable version featured user-selection of shave closeness on the cartridge. The
adjustable version was interchangeable with the non-adjustable version. Both versions of
the Techmatic and their cartridges have been discontinued.
Trac II was the world's first two-blade razor, debuting in 1971. Gillette claimed that the
second blade cut the number of strokes required and reduced facial irritation.
Trac II Plus was an identical model but adds a lubricating strip at the top of the blade.
The blades and handles were interchangeable.
The European versions of the Trac II and Trac II Plus are known as the GII and GII
Plus respectively.
Custom Plus was a series of disposable razors. The Custom plus came in many
varieties: the "Fixed Disposable razor", the "Pivot Disposable razor", the "Custom Plus 3
Sensitive Disposable", and the "Custom Plus 3 Soothing Disposable".
Good News! Was the first disposable, double-blade razor, released in 1976. The Good
News! Came in three forms: the "Original", the "Good News! Plus", which included a
lubricating strip, and the "Good News! Pivot Plus", which featured a lubricating, strip as
well as a pivoting head.
Atra (known as the Contour, Slalom, Vector in some markets) was introduced in 1977
and was the first razor to feature a pivoting head, which Gillette claimed made it easier
for men to shave their necks.
Atra Plus featured a lubricating strip, dubbed Lubra-Soft.
Gillette Sensor debuted in 1990, and was the first razor to have spring-loaded blades.
Gillette claimed that the blades receded into the cartridge head,
when they make contact with skin, helping to prevent cuts and
allowing for a closer shave.
Gillette Blue II Razor, Circa 2007
The Sensor for Women was released around the same time
and is nearly identical, but has a wider cartridge head.
Sensor Excel was released in 1993. This featured
"Microfins," a piece of rubber with slits at the bottom of the
cartridge and Gillette claimed this helped to raise facial hairs,
making for a closer shave.
Sensor 3 has three blades instead of two. All Sensor handles
can use all Sensor cartridges.
Blue II was a line of disposable razors. In Latin America, it is marketed as
the Prestobarba.

Blue 3 was a line of three-blade razor, cheaper version of Sensor 3 (Sensor compatible).
Available also in disposable variant.
Current Products:
Mach 3:The first three-blade razor introduced in 1998, which Gillette claims reduces
irritation and requires fewer strokes. The Mach 3 featured five improved microfins and spring
blades, a pivoting head with greater flexibility and a blue lubrication strip that faded with
usage to encourage users to change their blades more frequently.
 Mach 3 disposable. The above with a different plastic handle.
 Mach 3 Turbo This razor was released in late 2001. It had ten microfins as
opposed to the five on the original, a new grip and claims improved lubrication
and "anti-friction" blades. All Mach 3 blades are interchangeable between the
three products in the range, so it is possible to use the Mach3 Turbo blades on a
Mach3 razor.
 Mach 3 Turbo Champion has a slightly different handle design.
Gillette Mach 3 Razor, Circa 2015
 Mach 3 Power is a battery-powered version of the Mach3 Turbo razor
which can also be used with the power switched off. The blades differ from
Mach 3 Turbo with a new coating which Gillette describes as "PowerGlide".
 Mach 3 Sensitive was awarded a 2012 Best New Product Award after being
voted 'Best in Show' in the program's awards in Mexico.
 The Mach 3 Power Nitro has a slightly different handle design.
 Venus is a female version of the Mach3. Mach3 blades can attach to a Venus
handle and vice versa.
 Venus Divine is a female version of the Mach3 Turbo.
 Venus Vibrance is a female version of the M3Power. Venus blades are
interchangeable across the line.
 Venus Embrace is a five-bladed razor with a ribbon of moisture surrounding
the blades.
 Venus Breeze is a three-blade razor with shave gel bars built into the head of the
razor. Another version of the Breeze, the Venus Spa Breeze, is essentially the
same as the Breeze, but with a white tea scent to the shave gel bars.

 Venus Pro-Skin Moisture Rich launched in January 2011 in the United
States, is an updated version of the Breeze, featuring Moisture Rich shave-gel
bars that are enhanced with a triple blend of body butters.
Gillette Fusion is a five-bladed razor released in 2006. The Fusion has five blades on the
front, and a single sixth blade on the rear for precision trimming. Its marketing campaign was
fronted by the sports stars Roger Federer, Thierry Henry and Tiger Woods.
 Gillette Fusion Power is a motorized version of the Fusion. The Fusion
Power is battery-powered and emits "micropulses" that are claimed to increase
razor glide.
 Fusion Power Phantom The Fusion Power Phantom (Stealth in UK) was
released in February 2007 and features a redesigned handle with a darker color
scheme than the original.
 Fusion Power Phenom was released in February 2008. It has a new blue and
silver color scheme.
 Fusion ProGlide and Fusion ProGlide Power were launched on June 6,
2010 in North America.
The ProGlide series feature re-engineered blades with edges that are thinner than
Fusion and are finished with low-resistance coating which the company claims allow
the blades to glide more easily through hair.
 Fusion Proshield Flexball released in November 2015: The blades have
lubrication before and after the blade it shields while you're shaving.
 Fusion Power Gamer (also known as "Cool White" in select markets)
 Fusion ProGlide FlexBall released in June 2014
The ProGlide FlexBall has a handle allows the razor cartridge to pivot. Gillette claims
that it means 20% fewer missed hairs, the ability to cut hairs 23 microns shorter, and
23% increased skin contact.
Gillette Wide PRODUCT Range:

The marketing plan:
Marketing mix is a part of marketing plan that involves different techniques to influence
perception favorably towards the product (Keller & Kotler, 2006). The main parts of
marketing mix are four P's which are known as Product, Price, Place and Promotion:
Product:
Gillette Fusion is the first shaving system for men that combines revolutionary blade
technologies on the front and on the back (Gillett, 2008).
Price:
The next part of the marketing plan is the pricing strategy as this will indicate what kid of
ROI (Return on Investment) the company will have (Dewhurts & Burns, 1989). However, the
charge has to be competitive but still allow the company to make a reasonable profit (Barrow
et all 2005). In this case 'reasonable' will depend on the customer. Gillette charges 40% price
premium over Mach 3 and to persuade its customers to switch for a Fusion the company
needs better communication. This means by educating existing consumers on product
advancements and improved shaving performance, only then higher price can be justified.
Place:
Instead of selling directly to the consumer Gillette sells through an intermediary such as a
wholesaler and retailer who resell company's products - Fusion razors.
Promotion:
Marketing communication which is a different term for promotion constitutes part of the
marketing mix. It is not a single entity but rather, involves a wide range of activities that aim
to convey marketing messages to target audiences (Pickton & Broderick, 2001). Those
activities can be classified into four overlapping heading.
To promote the migration from older Gillette's products to Fusion the company can use sales
promotion. That means launch an introductory promotional discount joined with a

competition with entry via product purchase. This could grab the attention of male consumers
and encourage existing to switch.
Another idea to convince existing consumers to use Gillette fusion is to advertise it for
different parts of the body and not only for the face. The advertisement can be supported by
online campaign (interactive videos) which will encourage the clients to use Gillette razors to
shave for example their armpits.
Finally, new form of public relations should be used to spread the word via blog. Gillette
could create a shortlist of influential bloggers that are male between 18 and 35 years of age.
Then, the company would send them a gift pack including Fusion razor, shaving gel and
aftershave with some background details of the product. Further, Gillette could influence
them to use it for a short period of time and write about their experiences on their blogs. As a
result, this could promote migration of company's existing customer base to Fusion from the
older razor products.
Gillette Advertising:
There’s no doubt about Gillette’s advertising credentials, they brand a product very well, and
have been doing so for a long time. At this current phase of their product brands, Gillette’s
best bet is not to recruit new buyers for their razors, but rather to set their marketing focus on
getting current users to buy more blades. They brand a product by actually informing their
users about why it’s a better idea to throw out their old blades faster and buy new ones, not
throwing some fancy advertising pitch at them.
Another way to expand usage of their product brands is to get men to shave other parts of
their bodies. This requires a marketing focus on teaching men how to do it. So in the end,
with all of this teaching, how does Gillette advertising brand a product effectively? They do it
by setting their marketing focus on the emotion that drives their customers, not the product
itself.
Brand a Product with a Passion:
Gillette advertising stays focused by not bothering with the actual physical properties of their
product brands, but rather what they stand for. Gillette stands for confidence. When men
shave in the morning with a Gillette razor, they’re not just grooming – they’re preparing for

success. If you’re looking to brand a product across different groups, this is the best
marketing focus to take.
Celebrity Endorsement:
For international market, famous personalities have been roped in as the brand ambassadors.
‘Roger Federer’- an iconic tennis player, ‘Tiger Woods’ – the master champion of Golf,
‘David Beckham’ – the world famous footballer and Thierry Henry have acted in Gillette ads.
Some of the other persons to act in Gillette ads are ‘Shoaib Malik’ – the Pakistani
cricketer,‘Michael Clarke’ – the Australian cricketer, Derek Jeter and Park Ji- Sung. In India
Rahul Dravid, the famous cricketer and Irfan Khan,the famous actor, have acted in ads for
Gillette products.
Quality Assurance:
In order to increase its sales Gillette has single handedly implemented revolutionary ideas
with military precision and patience. It has sponsored famous sports personalities as well as
games like football to upgrade its image. Gillette has targeted its promotional policies on the
current ambassador of the company. Gillette products are advertised in the print media like
newspaper and magazines and in the visual media like internet and television. All the detailed
information about each product is available with a single click of the mouse on the internet.
This has helped to attract buyers on a large scale.
Corporate Social Responsibility (CSR):
Gillette involves in a lot of CSR activities. A recent effort made by Gillette is to sponsor Rio
Olympics 2016 held in Brazil with the slogan of “Gillette is Perfect isn’t pretty”. Gillette
celebrates the world’s oldest barber 105th birthday to encourage his 75 years efforts to change
the faces of mankind.
Most significant of all the campaign started by Gillette with the theme “Ask your Dad”. As
the world becomes global village, children are separated from their families and spend a lot
of time on social media and on internet. They try to follow the social media people and get
any help from the web, don’t taking the advice of their parents. Keeping in view all the trends
Gillette makes an effort to reduce the gap between parents and children by launching the
trend of ask your dad. Because fathers are always a good teacher for their children.
GILLETTE IS NOW SUBSIDERY OF PG AND THE CSR ARE DONE
BY P&G NOT BY THE GILLETTE INDIVIDUALLY.
P&G recognized for Social Responsibility
P&G has once again been
recognized for its social
responsibility efforts in
Pakistan. P&G recently
received the 2014 National
Corporate Social
Responsibility Award by the
CSR Association of Pakistan
and the 4th Corporate Social
Responsibility Award by the

Professionals Network in association with the CSR Association of Pakistan.
These awards recognize P&G Children's Safe Drinking Water (CSDW) Program for efforts
made via the P&G-METRO-HOPE anniversary partnership to provide Pakistani communities
affected by natural disasters with clean drinking water. Through this initiative 24 million
liters of clean drinking water have been made available via P&G Purifier of Water sachets to
Pakistani communities affected by the drought in Tharparker and floods in Punjab. This is
enough clean drinking water for 400,000 people for a month.
"P&G's commitment toward the community is deeply rooted in the Company's Purpose to
touch and improve lives. Over the years our social responsibility programs have helped
improve the lives of over 34 million Pakistanis," said Claudia Manuel, Communications
Manager P&G Pakistan. "We are committed to improving health and hygiene for people in
need by supporting hygiene education and promoting everyday healthy behaviors that help
prevent illness and improve confidence. Providing P&G Purifier of Water sachets is one of
the important ways we are able to help people in need as access to clean drinking water is a
major problem for many families across the country," she added.
P&G collaborated with its business partner METRO Cash & Carry - on METRO's 50th
anniversary celebration, and its NGO partner HOPE, to provide much needed clean drinking
water to disaster-struck communities here in Pakistan. This was part of the P&G Children's
Safe Drinking Water Program (CSDW), through which 7 billion liters of clean water have
been provided to families around the world. This is estimated to have helped save more than
40,000 lives and prevented around 300 million days of illness. Through this program, P&G
has made available nearly 800 million liters of clean drinking water to Pakistani communities
in need, with support from its partners since 2005.
Since its inception in 2004, the CSDW Program has supplied P&G Purifier of Water packets
to people in need in more than 75 countries and has grown to include a network of over 140
partners. These packets are the result of P&G's collaboration with the U.S. Centers for
Disease Control and Prevention to develop, a low-cost powder technology in a packet,
designed to purify even heavily contaminated drinking water. The purified water meets WHO
standards for safe drinking water. In 2010, at the Clinton Global Initiative (CGI) Annual
Meeting, P&G committed to deliver enough water to save 1 life every hour by 2020. This
requires the Children's Safe Drinking Water Program to provide 2 billion liters of clean
drinking water every year.
Gillette Soldier For Women, Brand’s New CSR Initiative:
Gillette, the men's personal care brand from Procter and Gamble (P&G), has come up with an
interesting television commercial in the wake of the recent public uproar about crimes against
women. It is also spreading on social media.

Working for the greater good:
Every day and for more than 175 years, we have worked to improve lives around the world.
Whether it’s providing basic essentials for families displaced by disaster or supporting
hygiene education, we aim to improve the health and well-being of all the communities we
touch. We have two core focus areas for our social responsibility corporate and brands
programs: Health and Hygiene and Comforts of Home.
Animal Welfare & Alternatives:
At P&G, we believe that eliminating animal testing is the right thing to do. We do not test our
products or ingredients on animals anywhere in the world unless required by law. We are
working hard to make it obsolete.
Therefore, we’ve developed over 50 alternative, non-animal testing methods, and have
invested nearly $400 million in finding alternatives and getting them accepted by regulators
around the world.
We will continue working with the world’s top independent experts and partnering with
leading animal protection groups such as the Humane Society of the U.S. to promote new
alternatives research and regulatory acceptance of existing alternatives. This is the only way
to eliminate all animal testing, globally.

SWOT Analysis:
STENGTHS:
• LONG STANDING HISTORY
• MARKET LEADER
• AGGRESSIVE ADVERTISING
• BRAND IMAGE & BRAND EQUITY
• STRONG BRAND NAME
WEAKNESSES:
• VERY HIGH COST
• MANUAL PRODUCTS ONLY
• LIMITED PRODUCTS FOR WOMEN
OPPORTUNITIES:
• IMPORTANCE OF PERSONAL HYGIENE
• INCREASED GROOMING
• FASHION LOOK
• DEMAND FOR HIGH QUALITY
THREATS:
• MANUFACTURING PRICES INCREASES
• LOWER COST PRODUCTS
• NEW COMPETITORS

The Gillette Razor BCG Matrix:
With the study of the bcg matrix, we have tried to apply this concept to this project of ours.
We have analyzed the razor market and then placed the various razors and blades of Gillette
in the relevant quadrants.
The reason for placing the product portfolio in the above manner is as follows
Dogs:
Here we have considered Wilman razors and the 7 O’Clock razor P2 because Wilman
razor are losing market share very rapidly while the 7O’Clock razor are too expensive
for their segmentation. As a result they have low market share as well as low market
growth.
Question Mark:

Here we put sensor excel because it has been losing its market share due to its pricing
close to that of MACH 3. People actually are tending to buy either vector plus or
mach 3 as a result of which sensor excel is become redundant. vector plus is one
product with tremendous potential for market growth, since it combines superior
technology, great looks, attractive and competitive price and above all the Gillette tag.
There still are some customers who use only double edged razors and are also specific
about the 7O’Clock brand.
Stars:
Here we placed mach 3 and presto because they have ha high market share as well as
the market growth presto would never decline in sales because the market for a
disposable razor always exist due to its simple characteristic of ready to use and
through. So the company has in fact launched more innovations or developments of
the basic products like mach 3 power and mach 3 turbo.
Cash Cows:
Reason for putting Wilkinson and 7O’Clock blades here is that they currently enjoy
both high market share as well as market growth. But now there could be slow growth
or even decline in this segment due to decline in double edged razors. So this product
should be “milked” to provide cash for investment in future product areas.

Suggestions:
Consumers of all ages have shown that they place an emphasis on blade longevity as
well as price. In order for Gillette to exploit this insight, they should advertise the
quality of their blades in comparison to other companies. If Gillette can successfully
market their high-quality blades and show that by purchasing a higher-quality blade
that they will actually be saving in the end, then consumers will be more likely to
spend the extra money on those blades.
Because blade longevity (quality) and price were the most preferred features, Gillette
should think about implementing a simple, cost-effective razor into their lineup. A
razor that is offered at a higher quality than disposable razors, but cheaper than the
higher-quality manual razors, 32 would be more able to compete with the growing
subscription service razors. It is important that Gillette implement a razor with these
features in a way that doesn’t cannibalize the other razors in their product line.
Gillette may be able to do this by offering a subscription service of their own, but
offering different quality razors giving the consumer options at the time of purchase.
As Pakistani consumer needs, culture and attitude toward shaving were radically
different from those of western customers. Rather than lowering performance, Gillette
kept the valued customer at the core of its strategy and introduced and innovative
value preposition for the value for money customer. In addition to a customized
product all the elements of thee business model were coherent with the value
preposition and mutually reinforcing.
To remain competitive, Gillette must keep the valued customer at the core of its
strategy and adapt its business model accordingly.

Conclusion:
According to our observation Gillette razors are considered best in the world. Mach 3
and fusion are considered some of Gillette’s most basic non disposable razors.
Competing for the consumer is never an ending challenge that Gillette Corporation
continually faces. This is due principally to the uniqueness and competiveness of each
individual market for they or all different and all required approaches, because
different consumer behavior and factors which affects this behavior. Gillette is one of
the best marketers in the world yet even they cannot always predict consumer
behavior. Gillette marketers for the sake of promotion of Gillette’s product, they offer
special discounts. The advertisement channels can also be supported by online
campaign (interactive videos) encourages customers. Company also engages in public
relation as a means of promotional tool. As Gillette is now subsidiary of P&G, the
bundles of CSR follows like water purification program, health hygiene program and
animal protection program. Most importantly new CSR initiatives taken by Gillette
are GILLETTE SOILDIER FOR WOMAN. Gillette is popular among all ages of
group. Younger men preferred most the 16Gillette Fusion Proglide and the fusion.
This shows that the younger men are actively seeking more technology in their razor.
When asked which feature is most important on a razor, blade longevity was the most
suites after feature, consumer generally want a simplistic product is not gimmicky and
that offers high performance at a reasonable price. This shows that 16Gillette still
dominates the industry in terms of market share. It is crucial for the success of Gillette
to maintain this dominance and to keep their customer loyalty high.
________________________________________________

Gillette – The Best a man can get Thank You for listening

Gillete final report

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Gillete final report

Similar to Gillete final report (18)

Recently uploaded

Recently uploaded (20)

Gillete final report