.

What strategies a new company entering Pakistan should adopt to compete effectively
Against Gillette?

Comsats Institute of Information Technology

Marketing Theory & Practice
Tutor: Kaleem ullah Muhammad

Authors
Masood Anwer-sp09-mba-205
Jawad ahmed-sp09-mba-063
Khawar malik-sp09-mba-067
M Ifrad-sp09-mba-089
Irfan sharif-sp09-mba-058
Irfan arshad-sp09-mba-057
M.Asad-sp09-mba-085
Abstract

Date May 25, 2009

Course name Marketing Theory & Practice
Program MBA
Group Masood Anwer
Jawad Ahmed
Khawar Malik
M Ifrad
Irfan Sharif
Irfan Arshad
M.Asad
Tutor Kaleem ullah Muhammad
Title
What strategies a new company entering Pakistan should adopt to compete effectively
against Gillette?
Problem Statement
What strategies a new company entering Pakistan should adopt to compete effectively
against Gillette?
Purpose Statement
The purpose of this research is to develop market strategy, price strategy to compete
effectively against Gillette.
Limitations
We have the time of two weeks which is not sufficient and the country is in the situation
of recession. We use the area of COMSATS University for questionnaire filling.
Target Audience
Management of Gillette, all stakeholder of Gillette and the people who want to start the
business of shaving range manufacturing.
Conceptual Framework
The conceptual frame work includes two models: 5 P’S and swot analysis. Marketing 5
P’S looks at the price, product, promotion, placement, and packaging trends of the
competitor company (Gillette). Swot analysis looks at the strengths, weakness,
opportunities and threats of the competitor.
Methodology
For this research, authors have collected primary and secondary data to collect the
information needed. The primary data was collected by a survey according to the models
used for the assessment. The survey was conducted by a questionnaire. The secondary
data was collected by internet and books.
Conclusions.
From primary data it is obvious that people are not satisfied with the pricing of the
Gillette and promotion is also lacking the same finding was revealed that price and
promotion is the weak points of the Gillette.
Acknowledgment

During our research, many people have helped us to make our work possible. We would
like to take this opportunity to show our appreciation to all. People who have been
encouraging and advising us throughout this project. First we would like to show our
gratitude to our tutor Kaleem-Ullah-Muhammad for his great support and continuous
help from day one of taking on this project. Second, we would like to thanks Mr. Abdul
shakoor who helped us in making this report possible and also Ayaz reshi who helped us
in this project.
Thirdly, special thanks goes to our class mates and university fellows who helped and
support us a lot in this project and cooperate with us in filling of questioner and providing
suggestions.
Last but not the least we would like to thanks our parents and families for their
continuous support from the start till the completion of this work.

Authors
Masood Anwer
Jawad Ahmed
Khawar malik
M Ifrad
Irfan sharif
Irfan arshad
M.Asad
1 Introduction
This marketing plan provides a complete assessment of market for the launch of a
new product range which can compete effectively against Gillette in Pakistan.

1.1 Market Research Process

Marketing research process is a set of six steps which defines the tasks to be
accomplished in conducting a marketing research study. These include problem
definition, developing an approach to problem, research design formulation, field work,
data preparation and analysis, and report generation and presentation.

1.1.1 Stages of marketing research process

Stages of marketing research process involves six steps

1.1.1.1 Problem Definition

The first step in any marketing research project is to define the problem. In defining the
problem, the researcher should take into account the purpose of the study, the relevant
background information, what information is needed, and how it will be used in decision
making. Problem definition involves discussion with the decision makers, interviews with
industry experts, analysis of secondary data, and, perhaps, some qualitative research, such
as focus groups. Once the problem has been precisely defined, the research can be
designed and conducted properly.

1.1.1.2 Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or

theoretical framework, analytical models, research questions, hypotheses, and identifying
characteristics or factors that can influence the research design. This process is guided by
discussions with management and industry experts, case studies and simulations, analysis
of secondary data, qualitative research and pragmatic

1.1.1.3 Research Design Formulation

Research design is a framework or blueprint for conducting the marketing research

project. It details the procedures necessary for obtaining the required information, and its
purpose is to design a study that will test the hypotheses of interest, determine possible
answers to the research questions, and provide the information needed for decision
making. Conducting exploratory research, precisely defining the variables, and designing
appropriate scales to measure them are also a part of the research design. The issue of
how the data should be obtained from the respondents (for example, by conducting a
survey or an experiment) must be addressed. It is also necessary to design a questionnaire
and a sampling plan to select respondents for the study.
More formally, formulating the research design involves the following steps

1. Secondary data analysis

2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and
experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

1.1.1.4 Field Work or Data Collection

Data collection involves a field force or staff that operates either in the field, as in the
case of personal interviewing (in-home, mall intercept, or computer-assisted personal
interviewing), from an office by telephone (telephone or computer-assisted telephone
interviewing), or through mail (traditional mail and mail panel surveys with persecuted
households). Proper selection, training, supervision, and evaluation of the field force help
minimize data-collection errors.

1.1.1.5 Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected, or edited, and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the
questionnaire. The data from the questionnaires are transcribed or key-punched on to
magnetic tape, or disks or input directly into the computer. Verification ensures that the
data from the original questionnaires have been accurately transcribed, while data
analysis, guided by the plan of data analysis, gives meaning to the data that have been
collected. University techniques are used for analyzing data when there is a single
measurement of each element or unit in the sample, or, if there are several measurements
of each element, each RCH variable is analyzed in isolation. On the other hand,
multivariate techniques are used for analyzing data when there are two or more
measurements on each element and the variables are analyzed simultaneously.

1.1.1.6 Report Preparation and Presentation

The entire project should be documented in a written report which addresses the specific
research questions identified, describes the approach, the research design, data collection,
and data analysis procedures adopted, and present the results and the major findings. The
findings should be presented in a comprehensible format so that they can be readily used
in the decision making process. In addition, an oral presentation should be made to
management using tables, figures, and graphs to enhance clarity and impact.
For these reasons, interviews with experts are more useful in conducting marketing
research for industrial firms and for products of a technical nature, where it is relatively
easy to identify and approach the experts. This method is also helpful in situations where
little information is available from other sources, as in the case of radically new products.

Market research process

Stages of market research process

Problem definition

Development of an approach

Research design formulation

Field work data collection

Data preparation & analysis

Data preparation & analysis

Figure 1: Market Research Process

1.2 Gillette Background

1.2.1 Company overview

Gillette is a brand of Procter & Gamble currently used for safety razors among other
personal hygiene products. Based in Boston, Massachusetts, it is one of several brands
originally owned by The Gillette Company, a leading global supplier of products under
various brands, which was acquired by P&G in 2005.Their slogan is “The Best a Man
Can Get”
The Gillette Company was founded by King C. Gillette in 1901 as a safety razor
manufacturer. It was based in Boston, Massachusetts, United States. On October 1, 2005,
Procter & Gamble finalized its purchase of The Gillette Company. As a result of this
merger, the Gillette Company no longer exists. Its last day of market trading - symbol G
on the New York Stock Exchange - was September 30, 2005. The merger created the
world's largest personal care and household products company. In addition to Gillette, the
company marketed under Braun, Duracell and Oral-B, among others, which have also
been maintained by P&G.
The Gillette Company's assets were initially incorporated into a P&G unit known
internally as "Global Gillette". In July 2007, Global Gillette was dissolved and
incorporated 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.
1.2.2 History

In 1895 King C. Gillette, an ambitious traveling salesman, had two problems. One was
his dulled razor and the other was his lack of a "right" product to market. Gillette
envisioned an inexpensive, double-edged blade that could be clamped over a handle, used
until it was dull, and then discarded. Gillette spent about six years trying to perfect his
safety razor, despite pessimistic views of scientists and tool-makers.
In 1901 Gillette joined forces with William Nicker-son, a Massachusetts Institute of
Technology-educated machinist, who helped Gillette form the American Safety Razor
Company. While Gillette raised the $5,000 they needed, Nickerson developed production
processes to make Gillette's idea a reality. In 1903, with Gillette as the president of a
three-person directorate, the company began production of razors.
In October 1903 the company was renamed the Gillette Safety Razor Company. Product
advertising began that year. In 1904 Gillette received a patent on the safety razor and
bought a six-story building in Boston. The company paid its first cash dividend in 1906.
While earnings increased steadily due to print advertising, Gillette also concentrated on
international expansion. In 1905 a London sales branch was established; followed in
1909 by a small manufacturing plant in Paris; and offices in Germany, Austria,
Scandinavia, and Russia. Foreign business accounted for 30 percent of Gillette's profits
by 1923.
King Gillette fought off challenges for control of the company from John Joyce, a major
investor in the company. Gillette bowed out in 1910 after selling a substantial portion of
his controlling share to Joyce. Even though Gillette retained the title of president, Joyce
took charge of the active management of the company until he died in 1916. Edward
Aldred, Joyce's long-time friend and an investment banker, bought Joyce's interest in the
company, retained Joyce's management team, and took control.
Gillette supplied 3.5 million razors and 36 million blades to troops during World War I,
earning a large number of new loyal customers. Five hundred new employees were hired.
In 1921 when Gillette's patent expired, a new and improved safety razor, which sold at
the price of the old one, was introduced. Growth and expansion, both domestic and
foreign, continued. The company received favorable publicity when it became royal
purveyor to the Prince of Wales in 1922 and to King Gustav V of Sweden in 1924, and
when the Paris office gave Charles Lindbergh a Gillette Gold Traveler set the day after he
completed the first transatlantic flight.
At the end of the 1920s Gillette faced two major problems that led to a loss of confidence
in the company and lower stock prices. In 1929 Stock prices fell from a high of $125 to
$18. This crisis led to management reorganization. Gillette made a bold advertising move
when it admitted that the blade it had introduced in 1930 was of poor quality. The
company then introduced what became its most recognizable product, the Blue Blade.
Even though the Blue Blade kept Gillette a leader in the field, profits remained
disappointing through the Depression.
In 1939 Gillette restored the company's advertising budget, relying successfully on heavy
broadcast sports advertising. During World War II almost all of Gillette's production
went to the military. Even though foreign production and sales declined domestic
production more than made up for it. The backlog of civilian demand led to record sales
until 1957. During this time Gillette started broadening its product line by introducing
brushless shaving cream; ball-point pens and home permanents were added to the product
line through acquisitions.
Gillette reorganized in 1964 as a diversified consumer products company. It pursued the
strategy of internal development of new product lines and acquisition of other companies
to add to its product lines. This strategy brought mixed results. New products, which
included Toni hair-color products, Earth Born shampoos, luxury perfumes, and small
electronic items (smoke alarms, watches, and calculators) all failed. The acquisition of
the West German Braun Company gained the company entry into the European electric-
shaver market, but a Justice Department antitrust suit prevented Gillette from introducing
the Braun shaver in the U.S. market until 1984. Other companies acquired in this period,
including Eve of Roma perfume, Buxton leather goods, Welcome Wagon, and
Hydroponics Chemical Company never found the right fit with the company and was
later sold.
Colman M. Mockler Jr., who came to Gillette in 1957, took charge of the company in
1975. Mockler sorted through all the new acquisitions, sold off the least successful ones,
and retained those that either were successful or had a good line of products that needed
to be marketed more efficiently. Mockler also increased Gillette's advertising budget and
undertook company-wide cost cutting measures. In 1984 Gillette acquired Oral-B,
enabling it to branch into dental-care products.
The growing fear of fluorocarbons was one of the biggest problems faced by Mockler. He
eventually replaced the propellant in Gillette's aerosol cans. This move was followed by
new product launches, which recovered a quarter of the deodorant market for Gillette.
Bic was a French competitor that threatened Gillette's pen and Cricket lighter products.
Once again Gillette countered by competing with Bic on price while emphasizing the
higher quality of its pens and lighters. By 1980 Gillette had improved profitably despite
Bic's challenge.

1.2.3 Product Range

1.2.3.1 Razors

 Safety razor (Gillette Safety Razor invented in 1895[citation needed] and patented
in 1904)
 Razor marketed specifically to women (Milady Décolleté, 1916)
 Razor dispenser (1946)
 Stainless Steel blades (Super Stainless, 1963)
 Double-blade razor (Trac II, 1971)
 Disposable double-blade razor (Good News!, 1976)
 Razor with a pivot point (Atra/Contour, 1977)
 Razor with a lubricating strip (Atra/Contour Plus, 1985)
 Razor with spring-loaded blades (Sensor, 1990)
 Razor with microfins (Sensor Excel, 1995)
 Razor with three blades (Mach3, 1998)
 Manual Razor with battery power (M3Power, 2004)
 Razor with five blades (Fusion, 2007)
 Razor with rear trim blade (Fusion, 2007)
Fig: 2
Source: www.Googleimages.com

1.2.3.2 Foams

 Gillette foam regular

 Gillette foam moisturizing
 Gillette foam sensitive skin
 Gillette fusion tough beard hydra shaving foam
 Gillette fusion sensitive skin shaving foam
 Gillett lemon and lime shaving foam
 Gillette comforts glide lemon and lime shaving foam
 Gillette comforts glide lemon and lime shaving foam
 Gillette Mach 3 shaving foam
 Gillette shaving foam pacific
Fig: 3
Source: www.Googleimages.com
1.2.3.3 After shave lotions

 Gillette series after shave lotion sensitive skin.

 Gillette fusion aftershave hydra cool balm.
 Gillette fusion aftershave hydra sooth balm.
 Gillette fusion aftershave splash cool wave.
 Gillette Series aftershave gel sensitive skin.
 Gillette series aftershave lotion.
 Gillette series aftershave hydra cool gel.
Fig: 4
Source: www.Googleimages.com
1.3 Financial standings

Annual Revenue: $83.5 billion USD (▲10% FY 2008) · Employees: 138,000 · Stock
Symbol: NYSE: PG ·

Source: www.pg.com

1.4 Brand worth

Some of Gillette’s profit and sales may not have been due to the direct worth of the
product, but due to it being presented to the public from a well-known company. In 1999
Gillette, as a company, was worth US$43 billion and it was estimated that the brand
value of Gillette was worth US$16 billion. This equated to 37% of the company’s value,
which was the same as DaimlerChrysler, one of the world's largest car manufacturers at
the time.

1.5 Gillette in Pakistan

Gillette is operating in Pakistan for several years. Gillette Pakistan Limited is engaged in
marketing and selling of blades and razors, personal care products, alkaline batteries,
household appliances and oral care products, and contract manufacturing of toothbrushes.
On October 1, 2005, Procter and Gamble Company, USA (P&G) acquired The Gillette
Company, USA, previously and the parent company. B.V. Netherlands is the wholly
owned subsidiary of P&G, USA.

1.5.1 Key persons in Pakistan

Chairman of the Board Saad Khan

Chief Executive Officer, Director Hans Dewaele

Secretary, Director Saeed Akram

1.5.2 Financial standing in Pakistan

Gillette Pakistan Ltd has posted a profit after tax of Rs 78.075 million for nine months of
2008-09, but did not declare dividend. According to financial results dispatched to
Karachi Stock Exchange here on Monday, pre-tax profit surged to Rs 96.329 million as
earning per share improved to Rs 4.07 during the period ending March 31, 2009.

1.6 Problem Statement

What strategies a new company entering Pakistan should adopt to compete effectively
against Gillette?

1.7 Purpose Statement

The purpose of this research is to develop market strategy, price strategy to compete
effectively against Gillette.

1.8 Target Audience

Management of Gillette, all stakeholder of Gillette and the people who want to start the
business of shaving range manufacturing.

1.9 Limitations

We have the time of two weeks which is not sufficient and the country is in the situation
of recession. We use the area of COMSATS University for questionnaire filling.

2. Conceptual Framework

The authors are presenting three models in the consecpual framework. The first model is
marketing mix. Second model used is swot analysis amd third one is tha rule of three.

2.1 Five P’s

5 P’s include product, price, placement, promotion and packaging.

2.1.1 Product

A tangible object or an intangible service that is mass produced or manufactured on a

large scale with a specific volume of units. Intangible products are often service based
like the tourism industry & the hotel industry. Typical examples of a mass produced
tangible object are the motor car and the disposable razor. A less obvious but ubiquitous
mass produced service is a computer operating system.

2.1.2 Price
The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the
price of product if other stores have the same product.

2.1.3 Place

Place represents the location where a product can be purchased. It is often referred to as
the distribution channel. It can include any physical store as well as virtual stores on the
Internet.

2.1.4 Promotion

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion. Advertising covers
any communication that is paid for, from and cinema commercials, radio and Internet
adverts through print media and billboards. One of the most notable means of promotion
today is the Promotional Product, as in useful items distributed to targeted audiences with
no obligation attached. This category has grown each year for the past decade while most
other forms have suffered. It is the only form of advertising that targets all five senses
and has the recipient thanking the giver. Public relations are where the communication is
not directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied customers or
people specifically engaged to create word of mouth momentum. Sales staff often plays
an important role in word of mouth and Public Relations.

2.1.5 Packaging

The activities of designing and producing the container or wrapper for a product are
called packaging. Package may include primary container e.g. the tube holding the
Colgate toothpaste, a secondary package is thrown away when a product is about to be
uses e.g. the card board box containing the tube of Colgate, shipping package s necessary
to store identify and ship the product e.g. a corrugate box containing six dozen tubes of
Colgate toothpaste.
 Product
Variety
Quality
Design
Features

Price Place
List price Channels
Discount Coverage
Allowances Locations
Credit terms Logistics

5 P’s

Promotion Packaging
Advertising Primary packaging
Personal selling Secondary packaging
Sales promotion Shipping packaging
Public relation

Figure: 5 model of 5 P’s

2.2 Swot Analysis

Swot analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.

Figure: 6 Swot analysis model

Source: www.googleimages.com

2.2.1 Strength

Attributes of the person or company those are helpful to achieving the objective.
2.2.2 Weakness

Attributes of the person or company those are harmful to achieving the objective
2.2.3 Opportunities

External conditions those are helpful to achieving the objective.

2.2.4 Threats

External conditions which could do damage to the business's performance

2.3 Rule of three

Porters rule of three gives three types of strategies to compete in the market. After
assessing the market with the help of swot analysis now an appropriate competitive
strategy has to be selected that is one which fits the competitive strengths.

Cost leaders

Rule of 3

Focus Differentiati
marketing on

Figure: 7 rule of three

Source: Authors

2.3.1 Cost leaders

A business or competitive strategy in which the organization competes on the basis of

having the lowest cost in its industry. Cost leadership strategy a low cost leader
aggressively searches out efficiencies in production marketing and other areas of
operations overhead is kept to a minimum and the firm does not everything it can to cut
cost.

2.3.2 Differentiation

A business or a competitive strategy in which a company offers unique products that are
widely value by customers. Sources of differentiation might be exceptionally high quality
extra ordinary service innovative design technological capability or an unusually positive
brand image. The key to this competitive strategy is that what ever product service
attributes is chosen for differentiating must set the firm apart from its competitors and b
significant enough to justify a price premium that exceeds the cost of differentiation.
2.3.3 Focus marketing

A business or competitive strategy in which a company peruses a cost or differentiation

advantage in a narrow industry segment. “That is managers select a market segment in an
industry and attempt to exploit it rather than serve the broad market segment based on
product variety type of end wire distribution channel or geographical location of buyer.

3 .Methodology

Topic of
interest

Problem &
Purpose Statement

5 P’s Conceptual Swot analysis

Framework
Rule of 3

Primary data Methodology Secondary data

Questionnaire Books Internet

Finding & analysis conclusions

Recommendations
3. Methodology

The methodology section is presenting the basic research processes the authors
have used, the approach used to find an answer to the research questions,
choices of topic selection, the literature reviewed, the methods used to collect
primary and secondary data. It will also present the analytical perspective,
Conclusions and recommendations as well as the limitations of the research.

3.1 Research Process

In this research the authors have decided to follow the research process
Described below:

The research process stars from topic of interest where authors select the topic. Overall
the topic selection included identification of problem and purpose of the chosen topic.
After identification of problem and purpose statement the author did the conceptual
framework in which three models are used. The first model is 5 p’s and the second
method is SWOT analysis and the third method is Rule of three. The primary and
secondary data was collected. The primary data was collected through questioner and the
secondary data was collected through literature books and from the internet. after the
collection of data the data was analyzed and concluded in order to come up with
recommendations for target audience.

3.2 Topic selection

This part explains in details why the authors have chosen this specific topic for
the research.

3..2.1 Interest and Relevance

The author wants to select the topic in the field of their interest and relevant. The author
selects the topic which is to derive a strategy for launching a new product competing
against Gillette effectively. The strategy includes price strategy, marketing strategy.
Gillette is the multi national company which have great quality in their product but their
prices are also high. The new company entering to a market competing against Gillette
give first priority to the price of their product as well as other necessary things. As the
Gillette is also a market leader so the new company will also give priority to the
marketing strategy. For competing against Gillette it is also a difficult task but also a very
interesting one. To device a strategy that will be suitable for a new company that have a
ability to capture the market share of Gillette.
There were several reasons for selecting the topic and competing against Gillette.
1. Gillette is the market leader and most of the market share is captured by Gillette.
2. The price of the Gillette product is also high.
3. The Gillette product is also not accessible to lower class.

3.2.2 Durability
The topic of this research is also a durable as the new company can use the author
recommendations in the long run as they can apply the improved suggestion in the long
term perspective. There is the chance that the policy of the Gillette might be changed
with time but the research can be useful for the new company for competing against
Gillette and also capturing the market share of Gillette.

3.2.3 Topic adequacy

According to the topic requirements for this research the topic has to in the field of
marketing. The research topic fulfills the requirements and marketing strategy is the core
focus. Marketing strategy is the wide topic which covers many things but the author
narrowed it down to 5 P’s. The topic involves not just strengths and weakness of Gillette
and also the opportunities and threats of new company. The author found this topic to be
adequate for the research purpose because of its practical importance to the company as
well as its long term usefulness of the company.

3.2.4 Access

Access to information is very important throughout the whole research process. The fact
that a lot of information is given Gillette in the internet and also about marketing strategy
information is given in internet and books.

3.2.5 Resources

There is a lot of work done in books and internet on marketing and price strategy. The
resources for collecting primary data are questioner and for the secondary data the author
use internet and books. Questioners are filled by university student therefore the primary
data is collected from university students. There are many different theories also which
representing different perspectives. These works allowed the authors to go
Through as many of them as they could during the limited time for the research to
Come up with an accurate understanding of the concept of price and marketing strategy
for a new company. The other models allow the author to implement the strategies in a
better way.
This research work involves using differed software and tools especially Ms
Office. However the authors took the data from the questioners and used Microsoft Excel
to present the interpretation of the information collected. The soft wares haven’t been too
complicated for the authors to use and they found them to be of great use to them to
effectively present and analyze the findings.

3.3 Literature Review

This chapter discusses the literature used by different authors and sources, which have
been used for building up the knowledge of research to find the core theories for the
theoretical framework. In general we used five P’s, swot analysis and rule of there.

3.3.1 Product
 Product means the goods and services combination the offers to the company offers to
the market. Thus a food Escape consist of nits and bolts ,spark plugs, piston, headlights,
and thousand of other parts. Food offers several escape models and dozens of optional
features. The car comes fully serviced and with a comprehensive warranty that is as much
a part if the product as the tailpipe,

3.3.2 Price

Price is the amount of money customers have to pay to obtain the product. Ford
calculates suggested retail price that its deals might’s charge for each Escape. But ford
dealers rarely charge the full sticker price. Instead they negotiate the price with each
customer, offering discount, trade allowances, and credit terms. Theses actions adjust
price for the current competitive situation and bring into line with the buyers perception
of the cars value.

3.3.3 Place

Place includes company activities that make the product available to target consumers.
Ford partners with a large body of independently owned dealerships that sell the
company’s many different models. Ford selects its dealers carefully and supports them
strongly. The dealers keep an inventory of Ford automobiles, demonstrate them to
potential buyers, negotiate price, close sales and service the cars after the sale.

3.3.4 Promotion

Promotion means activities that communicate the merits of the products and persuade
target customers buy it. Ford Motor Company spends almost 2.4 billion each year on
advertising more than 600 per vehicle, to tell customers about the company and its many
products.
3.3.5 Packaging

Strong, imaginative packaging should embody all your brand values, representing all
your business stands.

3.4 SWOT

Overall evaluations of company’s strength, weakness, opportunities and threats.

Strength:
Internal capabilities that may help a company reach its objectives

Weakness:
Internal limitations that may interfere with a company’s ability to achieve its objectives.

Opportunities:
External factors that the company may be able to exploit to its advantage.
Threats:
Current and emerging external factors that may challenge the company’s performance.

3.5 Rule of Three:

3.3.1Cost Leader
3.3.2 Product leader
3.3.3 Focus Market
4. Finding & analysis conclusion

4.1 Findings from Primary Data

The findings from the survey conducted about the product, price, place, promotion
and packaging of the targeted competitive i.e. Gillette

4.1 Background and General Questions

From the general question asked in the survey it was found that almost 93 % people are
from the ages of 20 to 25. 75% people use Gillette products remaining 25% are using
different products available in the market. Those not users of Gillette are using because
others brands mainly due to price affordability.

4.1.1 Price of Gillette

1. The price of Gillette is affordable?

Strongly agree Agree Uncertain Disagree Strongly disagree

This question was asked about the price of Gillette to assess that are people satisfied with
the price of Gillette.

Level Of Satisfaction Out Comes

strongly agree 6
agree 19
uncertain 14
disagree 43
strongly disagree 9

Table: 1 showing level of satisfaction or dissatisfaction about price of Gillette

Source: survey conducted

Graph: 1 showing level of satisfaction or dissatisfaction about price of Gillette

The survey result show that most of the people are not satisfied with the price of the
Gillette.55% people are disagree about the price of Gillette. 14% are uncertain about the
price and 31% are satisfied with the price of the Gillette.

4.1.2 Product of Gillette

2. The Gillette offers best quality?

Strongly agree Agree Uncertain Disagree Strongly disagree

This question was asked about the products of Gillette to assess that are people satisfied
with the products of Gillette.

Level Of Satisfaction Out Comes

Strongly Agree 24
Agree 55
Uncertain 7
Disagree 4
Strongly Disagree 1

Table: 2 showing level of satisfaction or dissatisfaction about products of Gillette

Source: survey conducted

Graph: 2 showing level of satisfaction or dissatisfaction about products of Gillette

The survey result shows that most of the people are satisfied with the products of Gillette.
The Gillette is offering best products with distinct features .87% people are satisfied with
the products of Gillette.8% people are uncertain about the products of Gillette and only
5% people seems to be dissatisfied with the products of Gillette.
4.1.3 Placement

3. The Gillette is easily available in your area?

Strongly agree Agree Uncertain Disagree Strongly disagree

This question was asked about placement of Gillette weather Gillette is easily available
every where?

Level Of Satisfaction Out Comes

Strongly Agree 18
Agree 53
Uncertain 14
Disagree 4
Strongly Disagree 2

Table: 3 showing level of satisfaction or dissatisfaction about placement of Gillette

Source: survey conducted

Graph: 3 showing level of satisfaction or dissatisfaction about placement of Gillette

The survey result showed that most of the people are satisfied with placement and
distributions of Gillette.78% people are satisfied with the placement 15% people are
uncertain. 7 % are dissatisfied with placement of Gillette.
4.1.4 Promotion

4. Gillette commercials are often seen?

Strongly agree Agree Uncertain Disagree Strongly disagree

This question was asked about the promotion of Gillette.

Level Of Satisfaction Out Comes

Strongly Agree 14
Agree 12
Uncertain 18
Disagree 40
Strongly Disagree 7

Table: 4 showing level of satisfaction or dissatisfaction about promotion of Gillette

Source: survey conducted

prom otion
number of person

50
40
30 Series1
20
10
0
uncertain
strongly

agree

disagree

disagree
strongly
agree

le ve l s atis faction

Graph: 4 showing level of satisfaction or dissatisfaction about promotion of Gillette

The survey results showed that most of the people are not satisfied with promotions of
the Gillette. 52% people are not satisfied and 19% people are uncertain showing that only
29% people are satisfied with the promotions.
4.1.5 Packaging

5. You are satisfied with the packing of Gillette?

Strongly agree Agree Uncertain Disagree Strongly disagree

This question was asked about packaging of Gillette to assess weather people are
satisfied with the packaging of the Gillette.

Level Of Satisfaction Out Comes

Strongly Agree 28
Agree 47
Uncertain 9
Disagree 5
Strongly Disagree 2

Table: 5 showing level of satisfaction or dissatisfaction about promotion of Gillette

Source: survey conducted

Graph: 5 showing level of satisfaction or dissatisfaction about packaging of Gillette

The survey result showed that most of the people are satisfied with the packaging of the
Gillette. 82% people are satisfied and 10% are uncertain. Only 8% people are dissatisfied
with the packaging.

Questionnaire
The purpose of the questionnaire to device a strategy to launch a product range which can
compete against Gillette
Section “A”
6. Name(optional)
______________________

7. Age Group
20-25 26-30 31-35 36-40 41-45  46-50
8. Do you shave regularly?
Yes No
9. Do you use Gillette shaving products?
 Yes  No
If NO fill Section “B” If YES fill Section “C”
Section “B”
10. Which brand you use for shave?
_____________________________________________________________________

11. Why You Use above written brand?

Price Quality  Nearly available After watching advertisement  Attractive

packing
Section “C”
12. The price of Gillette is affordable?

Strongly agree Agree Uncertain Disagree Strongly disagree

13. The Gillette is easily available in your area?

Strongly agree Agree Uncertain Disagree Strongly disagree

14. The Gillette offers best quality?

Strongly agree Agree Uncertain Disagree Strongly disagree

15. Gillette commercials are often seen?

Strongly agree Agree Uncertain Disagree Strongly disagree

16. You are satisfied with the packing of Gillette?

Strongly agree Agree Uncertain Disagree Strongly disagree

17. Your comments about Gillette?

________________________________________________________________________

4.2 Findings from Secondary Data

From the secondary data which was collected through websites and books. The internet
was used to look at the financial reports and any articles about Gillette. Magazines were
also reviewed to get any appropriate information which can be help full. After reviewing
the above written medium it was found that Gillette is weak as far as price is concerned
and as Gillette has generated reasonable goodwill people are buying it regularly so there
is no need for more promotion.

4.3 Swot analysis

In this section the authors have done a swot analysis of the situation in the context to the
questionnaire. From the result of the survey it is concluded

4.4 Overall Conclusions

From primary data it is obvious that people are not satisfied with the pricing of the
Gillette and promotion is also lacking the same finding was revealed that price and
promotion is the weak points of the Gillette.

5. Recommendations

The recommendations are based upon the conclusion and to give the recommendation the
third model is used now. From the finding it is concluded that Gillette can be competed
on the basis of price and promotion.
According to the rule of three to compete in the market any organization can adopt three
approaches

 Cost Leaders
 Differentiation
 Focus Marketing

In this case if any company wants to compete against Gillette in Pakistan. The company
should adopt the 1st which is cost leader. New company should do every thing reduce the
cost. By doing this price of products can be reduced.

Differentiation can not be adopted because the most of the people are satisfied with the
products of Gillette.
New company can also effectively compete against Gillette on the basis of focus
marketing. Company can target the age groups 20 to 25. The survey result shows the age
group is mostly using the Gillette. By doing aggressive promotion campaign. This age
group can be exploited by lowering the price with the help of cost leader and by attractive
promotions.

Appendix 1
The purpose of the questionnaire to device a strategy to launch a product range which
can compete against Gillette
Section “A”
18. Name(optional)
______________________

19. Age Group

20-25 26-30 31-35 36-40 41-45  46-50
20. Do you shave regularly?
Yes No
21. Do you use Gillette shaving products?
 Yes  No
If NO fill Section “B” If YES fill Section “C”
Section “B”
22. Which brand you use for shave?
_____________________________________________________________________

23. Why You Use above written brand?

Price Quality  Nearly available After watching advertisement  Attractive

packing
Section “C”
24. The price of Gillette is affordable?

Strongly agree Agree Uncertain Disagree Strongly disagree

25. The Gillette is easily available in your area?

Strongly agree Agree Uncertain Disagree Strongly disagree

26. The Gillette offers best quality?

Strongly agree Agree Uncertain Disagree Strongly disagree

27. Gillette commercials are often seen?

Strongly agree Agree Uncertain Disagree Strongly disagree

28. You are satisfied with the packing of Gillette?

Strongly agree Agree Uncertain Disagree Strongly disagree

29. Your comments about Gillette?

________________________________________________________________________

_______________________________________________________________________
6. References

6.1 Internet

6.1.1 www.wikipedia.com (SWOT analysis)

6.1.2 www.google.com
6.1.3 www.Gillette.com
6.1.4 www.gillette.com.pk
6.1.5 www.googleimages.com
6.1.6 www. P&G.com

6.2 Books

6.2.1 Principles of Marketing by Philip kolter

(5 P’s)
6.2.2 Introduction to Management by Mary Coulter
(Rule of three)