Академический Документы
Профессиональный Документы
Культура Документы
ON
GILLETTE SHAVING
FOAM/GEL
“THE BEST A MAN CAN GET”
1
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Gillette
Gillette is a brand of men’s grooming products which includes men’s safety
razors, shaving foam/gel, after shave lotion, deodorants and other personal care
products. Gillette has also entered into women’s grooming product sector with
their products such as Venus (women’s safety razor) and satin care (female hair
removal gel). Gillette has also secured top spot in stationary sector with their
brands such as Paper mate, Parker and Waterman. Apart from the above
mentioned stationary brands Gillette has also shown its presence in oral care
segment (Oral-B) and alkaline batteries (Duracell products generating one
fourth of the company profits). Gillette keeps up 64 manufacturing facilities in
27 nations, and its products are being sold in more than 200 countries, with
more than 60% of sales happening outside the United States. Gillette has been
in the market for over 100 years and has 600 million loyal customers across the
globe.
Gillette India
The Company was started in 1984 in Rajasthan. The launch was jointly
promoted by House of Poddar Enterprises (HOPE) and Gillette Company
(U.S.A). Gillette India manufactures stainless steel razor and blades. Gillette
India concentrates on the manufacturing and marketing of Gillette grooming
products and also carries out distribution of Oral-B and Duracell products.
Almost 60% of the products that are sold in India are manufactured locally by
Gillette India.
2
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
3
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Sales
Gillette India’s sales had a drastic increase of around 106 percent to Rs. 516.80
crores after the company merged with other companies. But the operating profit
margins of the company’s merged entities has been on a declining trend though,
which resulted an increase in Gillette India’s operating profits. The operating
profits of the company showcased an increase of 38 percent to 67.16 crore. This
shows that the companies who merged with Gillette have far low levels of
profitability than Gillette India.
Structure
The organizational structure of P&G is broadly divided into three units, they are
Global business unit (GBU)
Market Development Organization (MDO)
Global Business Services (GBS)
Gillette shifted its operations from business units based on the geographic
regions to GBUs based on the product lines.
4
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Sales
29%
Vi-John
41% Dettol
Axe
Gillette
Godrej
Old Spice
Others
9%
7%
5%
5% 4%
The market share pie chart shown above clearly indicates that the market is
dominated by Vi-John shaving cream with a solid market share of 29% of the
total shaving cream market. The brands Dettol and Axe have 9% and 7% of
market share respectively. Gillette shaving creams have the least market share
of 4%. It is mainly because of Gillette’s focus on the premium segment shaving
foam and gel rather than the normal shaving creams offered to the mass
segment by the other competitor brands. Godrej and Old Spice (P&G) have a
5% market share each in the total shaving cream market. The rest 41% of
market is captured by other shaving cream brands which include local brands
also.
5
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Segment two:
This segment consists of people who are very much influenced by the
attributes and features of the products and are not price sensitive in
nature. This segment caters to more than one fourth of the market sample.
Gillette with its wide range of shaving gel and foam series targets this
segment which will help the company in fetching more loyal customers in
the premium segment category.
Segment three:
This segment includes customers who are concerned about the attributes
which the product offers and also the additional features of the products.
Considering these factors, the customers in this segment are also highly
price sensitive as well. This segment comprises of more than 40% of the
market. Gillette targets this segment by offering shaving creams and basic
shaving foam, which are not priced high like the premium foam/gel
offered by the company.
6
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Gillette’s consumer audience analysis and understanding their needs is the key
to their product uptake. The company could very well discover brand and
product interest from various new segments. This is one big step often
overlooked in Marketing due to time restraints, cost and other factors.
Considering the decline in the segment of 18-24 year old men (they are losing
interest to shave on a regular basis), then the company should find out the age
groups who aren’t losing interest in shaving and focus more marketing and
advertising strategies in that segment.
o User Status: Gillette has been targeting the regular users mainly in
the urban areas where the company was capturing a noticeable
amount of brand recall amongst the customers. Regular users are
mostly the working class and elder citizens, who have been shaving
regularly and are loyal users of the Gillette shaving foam/gel.
Gillette also targets the youth in this segment by introducing them
7
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Target Segment: Gillette has always been targeting the teenagers who
are new to shaving by launching sensitive shave gels. Gillette’s focus was
mainly on teenagers and youth segment, which is why in the promotion
of its products, it is always shown to have a cool image. The company
also targets the age group of 20-45, who are the frequent users of the
shaving products on offer. The probable segments which Gillette targets
are the young adults, teenagers and working segment for quick shaving.
8
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
POSITIONING
The Gillette products have positioned themselves in such a way that they are
above old spice, Colgate and Palmolive and this would attract more customers
for them. According to a survey conducted, it has been found that the brand
value recall for Gillette is above 57%. This is a big proof that people recall it in
their mind therefore giving Gillette a strong positioning in the men’s grooming
department and Gillette needs to maintain this position for as long as possible.
This can be done in the best possible manner by the company by changing the
attributes of their target segment by enriching the attributes such as the brand
name, foam formation, aroma. As far as possible, the company should also try
to reduce the importance which is given to the pricing of the products. This will
help the company in maintaining the strong position in the market.
As of now, Gillette has got only a small share in the shaving cream segment
market but if it adopts these strategies and apply it well, it can gradually but
surely increase its market share.
9
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
PRODUCT
Gillette has been remaining the market leader in the razor division of the men’s
grooming segment. Considering the facts like the company being the leader for
providing high performance razors, the high brand awareness of the company
and the very high brand equity of the company, it very much helped in
developing the entire value chain of the men’s grooming industry.
Gillette has a range of shaving products for offering for different types of skins
and user requirements. Describing a few points technically, gel has got few
advantages over cream like gel gives the skin more lubrication and this gives
more anti-frictional properties, so this enhances the effectiveness of the razor’s
glide on skin. Normally, gel includes additional ingredients like moisturizer,
Aloe Vera, vitamin E etc.
Foams have been given the label of having optimum lather which is required for
shaving. While using foams, the user needs to do minimum effort to have a
shave.
Gillette’s shaving gel/foam products come under the brand name of “Gillette
series”. All the 10 variants are in the premium segment. The shaving gel and
foam is very much commoditized in India and it has also been found that 81%
of the Indian consumers use cream instead of gels or foams.
10
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Price
The customers in this target segment of Gillette are not very price sensitive.
Gillette has nine product variants of shaving gel/foam for the Indian market. All
the nine products are in the premium category ranging from 53 rupees to 350
rupees for the minimum and maximum. Gillette has priced its shaving gel and
foams well above the industry average. The pricing strategy suggests that
Gillette is leveraging its customer loyalty (i.e. the consumers who are brand
loyal to Gillette razors).
Bundle Pricing
Bundle pricing has always been the technique for shaving foal/gel products.
This practice is mostly carried out for the reason that shaving foams/gels are
usually purchased together with the razors/aftershaves. This technique is often
used to sell products which are complementary to the main product. The
advantage for buyers are that they get the overall cost of purchase to show
considerable amount of savings when compared to purchasing each of these
products separately.
Place
Gillette has a very robust distribution network. The advantage for them is that
they have P&G’s distribution network in addition to Gillette India’s existing
one. Here, the distribution network consists of the own network and that
franchisee. Gillette India has the same distribution network and the distributors
in the cities that P&G operates with. This distribution network actually follows
a hub and spoke model. The hubs are 20 cities. The spokes are the various Tier
2 and Tier 3 cities and towns around the major hub.
Taking an example, if Mumbai is the hub city, the spoke cities can be
considered as Indore, Dadar and nagar haveli, pune, Aurangabad and Panaji. In
these cities, the distribution is managed by the exclusive distributors in those
cities. Also, every city would have only one franchisee distributor. These tier 2
and tier 3 cities or spokes actually act as a feeder market to the hubs. A set of
employees would be working under each franchisee distributor. The fleet costs
that are incurred to supply to the retailers are managed by the distributors. Here,
there are no wholesalers. Gillette also has operations in exclusive distribution
through various e-commerce websites. Taking an example, the new Gillette
body razor is exclusively available on amazon.
11
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Promotion
Gillette has put forward a lot of efforts in extensive promotion campaigns for its
shaving creams or gels along with razors in the Indian market which includes
promotional offers like win tickets to the Australian Open finals, the shave India
movement and it also had a tie up with ZAPAK for the India Gaming
Championship in 2009 and uses social networking sites like Facebook to
promote the various products offered by it and also to carry out different
surveys.
Usually, there is at least one trade promotion activity done across the 10 product
variants of Gillette throughout the year. These trade promotions include 33%
extra on various variants.
Gillette has had extensive promotions for its razors in the Indian market and the
global market. David Beckham, Tiger Woods, Roger Federer and Thierry Henry
are a few of Gillette’s global ambassadors called Gillette Champions. But
Gillette has not introduced any brand ambassador for its shaving foam/gel in the
Indian market. However Rahul Dravid and few other well-known celebrities
have done couple of ads for Gillette razors in India. Gillette has never
introduced an advertisement dedicatedly for its shaving foam/gel. In fact there
was only one ad for Gillette series shaving gel which is not shown prominently.
Gillette has co-advertised its shaving foam/gel along with its shaving razor
(Mach3, Fusion) ads, by which they can bring the customer to notice both the
razor and shaving gel products offered by the company.
12
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
VI-JOHN
VI-JOHN group introduced VI-JOHN shaving cream in the year 1960. VI-
JOHN is India’s biggest selling shaving product brand. The VI-JOHN brand
includes shaving cream, shaving foam, and skin & haircare products. VI-JOHN
has attained a turnover of rupees 250 crores by implementing aggressive pricing
strategy. The VI-JOHN has its distribution network all over the northern India
and eastern part of India. VI-JOHN also covers some part of the west. The
company has 2500 distributors covering 300,000 retail outlets all over the
nation.
According to the latest Nielsen MAT data sourced from the industry officials,
VI-JOHN’S volume market share in India stood at 29.2%, over 3 times that of
Dettol, almost 4 times that of Axe and over 7 times that of GILLETTE.
13
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
AXE
NIVEA
NIVEA the leading international skin care companies with more than 130 years
of experience. The brand is owned by the company based out of Hamburg
called Beiersdorf global AG. The company was founded in March 1882. In
India, Nivea has almost 15% of the brands personal care revenues emerging
from men’s products. Nivea was and still is known for its product quality and
brand equity. Besides these, one prominent feature of Nivea is its attractive
packaging and product reformulation. Continuous innovation and catering to
consumer needs has helped Nivea to achieve the growth which the company is
now utilising. Nivea also introduced shaving kit concept with most of the
required shaving accessories in one box. Actor Arjun Rampal is the brand
ambassador for Nivea products.
14
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
DETTOL is a standout amongst the most trusted health and hygiene care brand
for men, women and children. It is manufactured by Reckitt Benckiser. Apart
from hygiene care products, Dettol also brings the best quality shaving creams.
Dettol launched its shaving cream in the year 1996 as an extension from the
brand. Dettol has a value market share of 10.8%.
15
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
SWOT ANALYSIS
STRENGTHS
16
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
Gillette always kept its product packing very attractive with the use of
vibrant colours and catching design of their dispensers. All the shaving
foam/gel products of Gillette are very easy to use and hence customers
are highly satisfied and this helped the company to attain better consumer
brand recall and hence a good position in the market.
WEAKNESS
The main weakness of the brand is the price. Gillette shaving foam/gel
products are priced much higher than the products offered by the
competitors in the market. It is strength and the quality image of the
brand which is one reason why Gillette products are priced high in the
market. But this has been given the company a small drawback when it
comes to customer feedback, where most consumers opt for products
available in cheaper prices especially in the Indian market.
All variants of Gillette foam/gel are not available in all the retail stores or
shops. Gillette heavily depends on large retail outlets or supermarkets in
tier 1 cities. The shaving gel – Gillette Mach3 Irritation defence and
Gillette Fusion Pro-Glide are only available at most metro cities and
select tier 2 cities. The other range of shaving gels are available in most
cities and towns but in very few quantities. Gillette only offers its basic
shaving foam and gel on all retail outlets and towns.
17
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
OPPORTUNITIES
THREATS
The major threat for Gillette India is the competition the company is
facing over the years. Brands like Vi-John and Godrej have products
priced lower than the Gillette products, which is a serious threat to the
brand. Gillette should find ways to get over the competition pressure and
look forward to attain market leader position in the future.
18
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
RECOMMENDATIONS
Since Gillette has the advantage of having wide and deep product line in
men’s shaving market, it can act more like a double edged sword for the
reason that Gillette has a wide range of products in offer and can result in
cannibalisation. Considering the cities where Gillette’s products have
almost reached maturity stage in the product lifecycle, there the company
can think of venturing into the neighbouring global markets.
Gillette has still not explored the shaving cream market in India. The only
shaving cream which the company launched was the “7o’ Clock shaving
cream”, which was a total disaster. Hence Gillette should develop a
shaving cream which will cater the needs of the mass segment mostly
dominated by the competitor products. Gillette was only focusing on the
shaving foam/gel products totally.
Another important finding of our study was that the customers were
unaware of the fact that Gillette has nine variants in shaving foam/gel
category alone. This can be mainly because of the following reasons:
o Gillette has high brand equity but the category development is very
low
o Most consumers have low involvement or search for less
information, which implies that shaving cream/gel/foam is more of
a commodity.
o Gillette has only spent on advertising its razors. Gillette never
came up with a dedicated advertisement for its shaving foam/gel
alone. This has resulted in limited information available for the
public about the different shaving foam/gel products the company
offers.
19
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
The company has to give more priority to its promotional activities than
what it is been currently carried out, in order to increase customer loyalty
and repeat purchase of their shaving foam/gel products.
Gillette should further consider pricing its products on par to that of the
competitor’s product pricing by which the customers will thereby
consider Gillette products instead of the other shaving brand foam/gel.
20
SECTION-C | GROUP-2 FINAL REPORT - GILLETTE
BIBLIOGRAPHY
https://www.wikipedia.org/
http://www.gillette.com/
http://www.economictimes.com
https://www.scribd.com/
http://finance.yahoo.com/news/india-mens-grooming-products-market-
153800753.html
http://pitchonnet.com/blog/2015/06/22/male-grooming-products-age-
market-explodes-india/
http://www.businesstoday.in/magazine/cover-story/india-small-brands-vi-
john/story/184702.html
http://articles.economictimes.indiatimes.com/2015-07-
08/news/64212207_1_vi-john-vimal-pande-dettol
http://brandequity.economictimes.indiatimes.com/
http://www.business-standard.com/
http://www.marketing91.com/marketing-mix-of-gillette/
21