SUYASH NI GOTI A 1 3P1 1 6

ASHI R MADAAN 1 3P1 31

KAUSHI K TRI LOK NI HLANI 1 3P1 48
MAYANK RATHORE 1 3P1 50
NI KHI L JAI N 1 3P1 52
Gillette India Ltd.
(Indian Shaving Products Limited ISPL)
Key Facts about Gillette
Gillette: Market entry through JV with Poddars
Premium products like 7 OClock Ejtek, Super Stainless, Super
Plantinum priced 50-80% over Wiltechs products
Stainless steel blades
3% market share in India vs 70 % Gillettes global share



Introduction
India the largest market in volume terms with 2.4 billion
blades annually and 250 crores in value terms
High demand for Carbon steel blades
Competitive Landscape
House of Malhotras
High Market Share ( 80% - 90% of total market )
Popular Brands are Panama, Topaz, Laser, Silver prince etc.
Capacity of 1500 million blades per annum
Excellent Distribution Network
Wiltech (RP Goenka group)
Market Share close to 5% of total market
Substantial improvement in capacity utilization to ~ 80%
Doing very well in twin blade category with market share close
to 50%
Priced their blades 50% above to House of Malhotras product


ISPLs Distribution Channel
Current Utilization of Lipton network provides
following advantages:
Well established sales network with intensive distribution
reach
Various customers segments ranging from premium to mass
market
Low cost arrangement with Lipton charging 5% commission
Better utilization of distribution channel for Lipton with an
opportunity to increase profit with no additional investment


Current Situation
Less than 3% total market share despite 2 years of
existence
Accumulated losses of Rs. 7.24 crores by the end of
financial year 1995
Studies and Customer Surveys indicated that there
are no serious flaws in ISPLs products, pricing or
positioning





Problems with current strategy
Sales of force of Lipton might not be equipped to
handle channel promotions of shaving blades
Liptons sales force might not be able to reach
pharmacy stores, an important Point of Sale for
shaving blades

Recommendations
The market for Gillettes product is in urban regions,
where it had close to double digit market share
Tying up with Lipton spreads Gillettes marketing
efforts very thin
Would be better for Gillette to establish its own Sales
network for urban and semi urban region
Would allow company to supplement the pull
strategy with push strategy in the marketing
channels through in-store brand promotion



Market Analysis Framework
Market geography Market size
Market density Market behavior


Creating a marketing channel that
helps Gillette to distribute to the
right target geography (urban
regions)




Targeting only urban and semi-
urban markets will allow Gillette to
benefit from efficient congestion
Given the market size of target
markets, we need to ascertain the
cost of serving a customer through
Bucklins Model


The key criteria here would be
where market buys? - Urban
regions