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    Gillette

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    Ashok Bantwa
    Gillette has historically dominated the razor market but faced challenges in the 1980s when consumers chose cheaper disposable razors over Gillette's products. Marketing research revealed that Gillette needed to emphasize quality over price and develop new products. As a result, Gillette increased R&D spending and launched new razor innovations like the Mach 3 that helped reverse the trend. Now Gillette faces renewed competition from other brands launching new products and spending heavily on marketing campaigns in the "Razor Wars." Gillette also deals with issues like a rogue website offering free razors and an executive accused of fraud.

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    Gillette

    Uploaded by

    Ashok Bantwa
    139 views28 pages
    Gillette has historically dominated the razor market but faced challenges in the 1980s when consumers chose cheaper disposable razors over Gillette's products. Marketing research revealed that Gillette needed to emphasize quality over price and develop new products. As a result, Gillette increased R&D spending and launched new razor innovations like the Mach 3 that helped reverse the trend. Now Gillette faces renewed competition from other brands launching new products and spending heavily on marketing campaigns in the "Razor Wars." Gillette also deals with issues like a rogue website offering free razors and an executive accused of fraud.

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    Gillette has historically dominated the razor market but faced challenges in the 1980s when consumers chose cheaper disposable razors over Gillette's products. Marketing research revealed that Gillette needed to emphasize quality over price and develop new products. As a result, Gillette increased R&D spending and launched new razor innovations like the Mach 3 that helped reverse the trend. Now Gillette faces renewed competition from other brands launching new products and spending heavily on marketing campaigns in the "Razor Wars." Gillette also deals with issues like a rogue website offering free razors and an executive accused of fraud.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    139 views28 pages

    Gillette

    Uploaded by

    Ashok Bantwa
    Gillette has historically dominated the razor market but faced challenges in the 1980s when consumers chose cheaper disposable razors over Gillette's products. Marketing research revealed that Gillette needed to emphasize quality over price and develop new products. As a result, Gillette increased R&D spending and launched new razor innovations like the Mach 3 that helped reverse the trend. Now Gillette faces renewed competition from other brands launching new products and spending heavily on marketing campaigns in the "Razor Wars." Gillette also deals with issues like a rogue website offering free razors and an executive accused of fraud.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 28

    GILLETTES Razor Sharp Edge Over Its Competition

    Overview

    Background info on Gillette Problems/Solutions company faced Current info/issues

    Background Information

    Founded in 1901 Flagship productsafety razor Companys strengths:


    Focus on scientific knowledge/studies Innovative products Large-scale manufacturing capability Useful products sold at fair price

    Sales in 2000: $9.3 billion

    Global Company

    Strategy: To manage its business with a long-term, global perspective Over 1 billion people interact with a Gillette product every day Manufacturing operations located in 23 countries Distribution in 200+ countries 40,000+ employees

    Manufacturing Locations
    United States:
    -Andover, MA -Chicago, IL -Cleveland, TN -Iowa City, IA -La Grange, GA -Lancaster, SC -Lexington, NC -South Boston, MA

    European Locations
    Manufacturing Sites:
    -Belgium -Czech Republic -France -Germany -Ireland -Poland -Russia -Spain -England

    R & D Facilities:
    Germany, Spain, England

    Vision Statement

    To build TOTAL BRAND VALUE by innovating to deliver consumer value and customer leadership faster, better, and more completely than our competition. Fundamental Principles:

    Organizational Excellence

    Superior performance at every level Achievement, Integrity, Collaboration

    Core Values

    Products Overview:

    Worldwide leader in 12 major consumer product categories Focus on continual development of new products Currently introduces 20+ new products per year

    Three Core Businesses


    Gillette is the undisputed global leader in: Grooming

    Portable Power
    Oral Care

    Grooming Products

    World leader in male and female grooming products


    Blades, razors Wet, dry 700 million consumers use Gillette razor blades

    Shaving preparations and after-shaves

    Portable Power

    Duracell-most popular brand of alkaline batteries in the world Offers strategic powerconsulting services to leading electronic device manufacturers

    Oral Care

    Companys fastest growing business Oral-B brand holds #1 position globally in manual and power toothbrushes

    Facts

    3 core businesses provide:

    80% sales 90% profits


    Gillette Mach3 Gillette for Women Venus Right Guard Duracell CopperTop Oral-B Braun Oral-B Braun

    These core brands are the strength of Gillette Co.

    Problem Background

    1980s: Consumers chose inexpensive disposable razors Gillette helped to foster trend:

    Focus on price, not quality Disposable razor market inc. by 60% Loss of quality image, loss of profits *Gillette taught consumers the best razor was the cheapest one!

    Results:

    Use of Marketing Research

    Focus groups and surveys revealed:

    Gillette must reform its approach by:


    Emphasizing quality and brand equity Discontinuing use of disposable razor ads Developing new products

    Results of MR

    Inc. investments in research and development

    Sensor, Sensor Excel, Mach III, Venus

    Direct mail campaignsfree razors Catchphrase: The best a man can get. Able to reverse the trendSUCCESS!

    Role of Marketing Research

    Told Gillette that it could change its former price approach to the market by emphasizing quality and brand equity as well as introducing new products.

    Management Decision Problem

    What should Gillette do to change the trend of our decreasing equity in the market? What should Gillette do to increase consumers opinions of our brand image?

    Marketing Research Problem

    To determine the consumers opinions regarding the quality of products over their prices. To determine the impact of Gillettes competition on its sales. To determine the wants and needs of consumers using Gillettes various shaving products.

    Research Question and Hypotheses


    Are consumers more price conscious or brand loyal? H1: Price is most important to consumers. H2: Price is not most important to consumers. H3: Brand loyalty is most important to consumers. H4: Brand loyalty is not most important to consumers.

    Current Issues facing Gillette

    Razor Wars

    Feb. 24, 2003 Gillette, Bic, Schick Launch new razors in men and womens disposable lines

    Ex. Schick razor-dispenses shave gel for women Ex. Gillette-Pink Passion Venus

    Marketing efforts total $120 million combined Ad campaigns launched this month

    Note

    Increased attention for disposable razors againRISK

    Caution: resulted in loss of market share in the 1980s for Gillette

    Gillette Marketing Spending


    Jan. 30, 2003 24% increase in ad spending (fourth quarter) 2002: Global ad spending rose 12%-$650 million

    New Challenges

    Jan. 30, 2003 Battery rival Energizer to acquire Schick brand of razors Energizer to invest $930 million Result: Aggressive marketing wars?

    Renegade Web Site


    Freerazor.com via mass e-mails offers free Gillette Mach3 Turbo and Venus razors Also automatically enrolls customers to receive 8 replacement blades every two months (Misleading) Uses photos of Gillette products and copy similar to Gillettes ads Gillette uncertain of legal implications (all terms spelled out) Feb. 11, 2003

    Duracell

    Jan. 13, 2003 Cut price of AA and AAA batteries by 13% Prompted to reduce price gap with competitors

    Energizer, Rayovac

    Concerned with competitors heavy promotional activity

    Ethics

    April 14, 2003

    Gillette exec (Gino Deluca) arrested on 15 counts of mail and wire fraud and 1 count of money laundering

    pleaded not guilty

    Scheme: demanded kickbacks from 5 promotional and marketing vendors Allegedly received $600,000 in kickbacks

    $260,000 Arizona condo, $32,000 home addition, vacations and cruises, $225,000 wired to a Swiss bank account

    Ordered his staff to select certain vendors despite their quality problems

    Questions and Answers


    The End

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