The company established by King Camp Gillette on 28 September 1901 in Boston. Initially it was American Safety Razor Company. The invention of Razor was patented in 1904. 1905 Develops new markets by opening London Offices. 1914 Gillette brokers deal with US Army (3.5 Million razors, 36 Million blades) In 1952, its name changed to The Gillette Company. In India, co. established on 9th February 1984, in Rajasthan as Indian Shaving Products Limited and was jointly promoted by House of Poddar Enterprises and Gillette co. Now it is called as Gillette India Ltd. Merged with Duracell (India) Pvt. Ltd. and Wilkinson Sword India Ltd.
1973 Net Sales exceed $1Billion. 1980 Net Sales exceed $2 Billion. Sold off to P&G in 2005 for $57 billion Launched various innovative products to capture the Indian Audience Market leader in premium shaving care segment Good reputation for delivering high quality, value added products Still in the infant stage with great opportunities ahead. Saw a 16% growth in 2008 Awarded as the 13th most global brand by Bloomberg BusinessweakReferences:http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm
BRAND HIGHLIGHTS Gillette India Limited (GIL) is one of Indias well-known FMCG Companies. The worlds largest personal care and household products company. First in INDIA to introduce gel in tubes. Running since 111 years (1901-2012). Global Leader in premium shaving care segment Over 1 Billion men start their day with Gillette. Manufacturing operations located in 23 countries. Distribution in 200+ countries.
Core BusinessesGillette India Limited (GIL) has 3 corebusinesses: Grooming Portable Power Oral Care
GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES UK EUROPE ASIA NORTH AMERICA SOUTH AMERICA AFRICA AUSTRALIA
STRENGTHS WEAKNESS Highly dependent on core businessCreativity and R&D investment Expensive brand maintenanceProduct availability worldwide Heavy Dependence on Street Retail OutletsPeople Reliance on Quality of Product Gillette has multiple blade and razorStrong marketing and advertising systems but their cartridges are notStrong brand loyalty interchangeable with their other modelsMarket Leader SWOTOPPORTUNITIES ANALYSIS THREATSUse of e-commerceIncreased Grooming, changes in societal New Competitorsattitudes and consumer brand preference Growth in number of substitutesNew product launches Electric shaving technologyIncreasing buying Power Economic downturnDemand for high quality products Cloning of successful brandsStill an infant industry in India with hugescope for growth in future
GLOBAL STRATEGY Corporate Objective global focus on consumer products global competitive advantage in quality, value added personal care/use products Global Market competing in the triad markets (Europe, Japan, North and South America) industry concentration global market leadership in male and female grooming products
THE GILLETTE STRATEGY Global resources organised and deployed to achieve market leadership in all their products to maintain and increase existing market share in male and female grooming products Corporate Strategy aggressive research and advertising strategic diversification e g mergers & acquisitions new product developments (invest in technology and product innovation) focus on core competencies maximise e-commerce opportunities build strong product portfolio
GILLETTE’S STRATEGY IN INDIALaunching innovative andcustomised products Gillette has created a new market for the power battery toothbrush through Oral-B (the oral care subsidiary of Gillette India). It also introduced Mach3Turbo, a triple- blade shaving system in India. Gillette India has launched customised products specially designed for Indian consumers. It introduced ‚Vector Plus‛, which is a twin blade system with push clean anti-clogging function in the mid- price segment.
Localisation of distribution system and wide distribution network Gillette’s sales and distribution network is wide, enabling consumers all over the country to buy its products. Gillette has localised its distribution system and made it specific to the Indian market. Gillette has targeted the Indian market on a shop-by-shop basis as against the European and US market where there are only few major retailers.
Restructuring business to drive Gillette restructured its business in India in 2003. Strategic restructuring: Focused on grooming and oral care business while exiting battery and household appliances business. Financial restructuring: Focused on improving the margins, cost reduction and improving asset utilisation. The restructuring undertaken by Gillette paid off with increasing profits.
Leveraging India’s large market Gillette is tapping the large Indian consumer base to establish a strong presence in the country. The market for shaving blades in India is the largest in the world. The market for oral care (toothbrushes) is the second largest in the world, while that of batteries is the third largest in the world (all in volume terms). Apart from this the increasing consumer-spending capacity and the increase in retail activity are also some factors which attract Gillette to expand its business in India. http://www.ibef.org/download/GilletteIndia.pdf
Price Strategy Gillette Presto, a product designed to upgrade consumers who still use double-edge blades, with a product priced atRs18, and with refills priced at Rs5 which lasts up to 5 shaves. With the company pursuing a volume-led growth strategy, its advertising and promotion expenditure can be expected to continue growing at high levels. And, even as sales growth may continue to surprise on the upside, profit can be expected to lag for some time to come.
In a bid to increase share and growth, Gilletteintroduced the Mach3 in November 2011, priced atRs125 or 60% lower than the Mach3 Turbo. Thisproduct is targeted at greater conversions from thedoubled-edged segment, which accounts for 62%and 86% of the razors and blades market, in valueand volume terms, respectively. And nearly half ofthis market comprises users who get their shavesdone in a salon. Gillette is attempting to convertthis segment by giving them a salon-quality shaveat an affordable price.http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html
MARKETING Strong distribution strategies played a prominent role in the robust growth, as a result of which Gillette brand has managed to tap both the ‚premium‛ and the ‚value-for- money‛ consumers – Sharat Verma, Marketing manager of Gillette India The lower-value products, followed the company’s realisation that while ‚new and improved‛ is still good, ‚lower price‛ works better in these tough times
GILLETTE ‘SHAVE SUTRA’Arjun Rampal and Neha Dhupia lead Gillette Mach3 TurboSensitive’s conduct Gillette Shave Sutra – The World’s LargestShaving Lesson• 150 couples come together to break the world-record for theLargest Shaving Lesson EVER!!• Gillette Shave Sutra demonstrates how with the comfort ofMach 3 Turbo Sensitive shaving becomes so effortless that evenyour partner can shave you.
Tied up with Rediff-on-the-Net e-commerce to market its product Tied up with ZAPAK for The India Gaming Championship 2009 Uses sports as a major promotional vehicle Uses social networking sites like Facebook to promote it’s productsand carry out different surveys
PRICE AND QUALITY OF THE PRODUCTSAlmost all the sellers surveyed feel that the Gilletteproducts are premium in quality.The company offers products for middle as well as higherincome groups.Gillette constantly strives to provide convenience andbetter quality to its consumersThe products are priced as per its quality. Though a littleexpensive, the price is worth the qualityAttractive advertisements and sponsoring events one ofthe key reasons for higher sales.
STOCK OF THE PRODUCTS IN THE SHOPSThe products are easily available.Efficient follow-up by the distributorsin the retail shops.Very rarely there occurs a shortage.Gillette recently adopted D.C systemfor its modern trade. This has lead tobetter availability in the super markets.
COMPLAINTS AND SUGGESSTIONSHardly any complaints from the end-users.Minimal instances of the products procured from thedistributors being defective. However, defects occurringduring transportation can be neglected.The company must allow credit duration of a week.Better margins expected from the company. Shouldn’t merelybe a ‘A SOCIAL SERVICE’ act by the retailers. Competitorsoffer 10-15% extra margin than Gillette.Blades more expensive than razors. Reduction in blade priceswill help considerably in increasing the market share.