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    Gillette and The Men's Wet Shaving Market: Group 8 Section B

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    Amit Hemant Jain
    Gillette has long dominated the men's wet shaving market since inventing the safety razor system in 1895. However, in recent decades the market has shifted towards lower priced disposable razors. Gillette's sales of its system razors have declined as it helped foster the trend of disposables. While disposables represent high volume, they result in price wars and erosion of Gillette's brand and profits. The document outlines Gillette's strategy to refocus on innovation in system razors to leverage its brand and competency in R&D. It will increase image-based advertising of the Gillette brand and launch a new razor system called Stimulus to provide the closest shave.

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    Gillette and The Men's Wet Shaving Market: Group 8 Section B

    Uploaded by

    Amit Hemant Jain
    28 views12 pages
    Gillette has long dominated the men's wet shaving market since inventing the safety razor system in 1895. However, in recent decades the market has shifted towards lower priced disposable razors. Gillette's sales of its system razors have declined as it helped foster the trend of disposables. While disposables represent high volume, they result in price wars and erosion of Gillette's brand and profits. The document outlines Gillette's strategy to refocus on innovation in system razors to leverage its brand and competency in R&D. It will increase image-based advertising of the Gillette brand and launch a new razor system called Stimulus to provide the closest shave.

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    Gillette has long dominated the men's wet shaving market since inventing the safety razor system in 1895. However, in recent decades the market has shifted towards lower priced disposable razors. Gillette's sales of its system razors have declined as it helped foster the trend of disposables. While disposables represent high volume, they result in price wars and erosion of Gillette's brand and profits. The document outlines Gillette's strategy to refocus on innovation in system razors to leverage its brand and competency in R&D. It will increase image-based advertising of the Gillette brand and launch a new razor system called Stimulus to provide the closest shave.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views12 pages

    Gillette and The Men's Wet Shaving Market: Group 8 Section B

    Uploaded by

    Amit Hemant Jain
    Gillette has long dominated the men's wet shaving market since inventing the safety razor system in 1895. However, in recent decades the market has shifted towards lower priced disposable razors. Gillette's sales of its system razors have declined as it helped foster the trend of disposables. While disposables represent high volume, they result in price wars and erosion of Gillette's brand and profits. The document outlines Gillette's strategy to refocus on innovation in system razors to leverage its brand and competency in R&D. It will increase image-based advertising of the Gillette brand and launch a new razor system called Stimulus to provide the closest shave.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    Gillette and the Mens

    Wet Shaving Market


    Group 8
    Section B
    Subash P.B. ||| Swaroop Vijayakumar |

    Gillette S(h)aving Men Since 1903


    King C.Gillette invented the safety razor
    systems in 1895
    Permanent razor handle replaceable blade
    systems
    Huge invention Changed the way men
    perceived shaving
    Dominated the market

    1932 Blue
    Product Lines by Company Divisio
    Concentrated onblade
    Advertising and Distribution
    6

    nnovation at 1959-Super
    the
    Blue blade
    Heart of Growth

    1938-Thin blade

    32

    23

    1962 Sterliton

    1971 Trac2

    28
    1977- Atra

    11

    Safety Razor-61
    Stationary-9
    Cosmetics-14
    Braun Products-13
    Oral B-3

    US Mens Shaving Market


    US Mens
    Shaving
    Industry(100%)

    Wet Shaving
    Market (75%)

    Permanent(56%
    )

    Dry Shaving
    Market(25%)

    Gillette(62%)

    BIC(12.7%)

    Wilkinson
    Sword (4%)

    Schick(16.2%)

    Disposables(24
    %)

    Injectors(10%)

    Permanent(54%
    )

    Disposable(25.
    2%)

    Injectors(21%)

    Competitor Analysis

    Leader in the Injection


    shaving market controls
    over 80% of the market
    Late entrant in the
    disposable shaving market
    Entered with narrow headed
    disposable razor Slim Twin
    in 1988
    67% of its revenues are
    overseas mainly Europe
    and Japan

    Mainly concentrated in the


    disposable market segment
    Main Product BIC shaver
    for sensitive skin
    Core philosophy
    maximum service,
    minimum price
    Planned to market only
    single blade disposable
    razors

    Entered with Super Sword


    edge blade with a steel
    coating
    Introduced Ultra Glide to
    compete with Gillettes Atra
    Plus priced at 5-8% lower
    Competed head on with
    Gillette in advertising
    used comparative
    advertisements

    Current State Move Towards Disposables


    The Shift
    1980s: Consumers chose inexpensive disposable razors
    Gillette helped to foster trend : Focus on price, not quality
    Mainly preferred by the younger customers who do not perceive the
    differences between the system and disposable blades

    The Consequence

    Disposable razor market increases by 60%


    Loss of quality image, loss of profit
    *Gillette taught consumers the best razor
    was the cheapest one!

    Situation Analysis
    Sales of Atra blades have leveled off & Trac
    II is declining
    Less focus on advertising only what was
    left over was spent on advertising
    One half of advertising spent on Atra and
    rest spent on Good News
    Same themes for both system razors and
    disposables Essence of Shaving
    90% product based and 10% image based
    advertising
    Men over forty have strong connection with
    Gillette
    Strong connection between Gillette and
    male image of shaving
    Younger men prefer disposables feel all
    razors are the same
    Gillette logo does not give a masculine feel
    Woman identify Gillette name with men

    Options
    No change . Watch yourself bleed
    Buck the Trend- Go for the Kill

    Is Disposables the Way Forward?


    Disposables represent a
    high volume business
    The disposable shaver
    segment is growing at a
    fast rate

    Therefore
    focusing on
    disposables will
    lead to a
    constant price
    war, and may
    also lead to
    erosion of
    Gillettes brand
    equity

    Every 1% change to disposables = $10m hit


    One third of system razors margin
    Costlier to manufacture
    Commoditization Price war
    Goes against the company philosophy of
    innovation
    Core competency is their R&D prowess to get
    newer blades and razor systems

    The disposables
    was a short term
    solution
    Further focus on
    creating low cost
    low margin
    products will
    erode
    profitability

    Going the System Razor Way


    Higher Margins for the products
    In line with Gillettes core
    philosophy of product innovation
    Can leverage upon the brand
    In line with Gillettes broader
    strategy
    Can focus all energies on the
    launch of new system razor
    product

    May lose out on the increasing


    disposable shaving category
    a sizable chunk of the market

    The Strategy Roadmap


    Pre Launch

    Strategy

    Rationale

    Move towards a global strategy

    Pan European success of Contour Plus; Universal


    high quality product; a shave is a shave
    everywhere.

    Move from product based to image based advertising; Initial


    marketing efforts should focus on the brand rather than
    product - Focus on an ultimate shaving experience for
    Gillette razors

    Revitalizing the brand name; focusing on a pull


    strategy the brand should sell

    Go for High Exposure advertising across Europe & US


    focusing on Gillettes core competency

    Bringing the brand into focus and setting the


    stage for launch of new razor system.

    Pull the plug on advertising for Disposables Good News;


    instead create a new disposable brand for women

    Goes with the overall strategy of weaning away


    the customers from disposables to high end
    razors

    Positioning
    Position Gillette as a revolution in shaving & one the provides an much superior
    shaving experience on the whole compared to disposable razors; one which gives
    supreme confidence and happiness
    Statement : Gillette Differentiates Men from the Boys

    Pre Launch Television Commercial


    Essence
    The main aim of the TVC would be to bring the
    brand into focus and associate it with all facets
    of a mans life

    Storyboard

    With a catchy jingle & booming background music,


    show clean shaven men exceling in various spheres
    of life sports, business and also in various roles as
    a father, friend, husband and bridegroom etc. At last,
    there is a showing a system razor with a voice over
    mentioning its benefit & mentioning the positioning
    statement

    rategy Roadmap Launch Stage : Gillette Stimulus


    Marketing Mix

    Stimulu
    s

    Positioning
    Position Gillette Stimulus as one that has a state of the art shaving system &
    provides a clean shave due to its product features
    Statement : Gillette Stimulus The closest shave a man can get

    Gillette The Best a man can get


    Thank You for listening

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