GILLETTE

“GILLETTE IS THE GLOBAL

LEADER IN MALE TOILETRIES
PRODUCTS”
Data Monitor Research, Oct. 2007
JANAK DEORA

ANIRBAN DAS

RAHUL GARG

VIKASH VERMA

MOHIT KR. SHARMA

SHARAD
BHARADWAJ
 THE GILLETTE
COMPANY
•1901 Founded by King 108
C Gillette
YEARS with William Nickerson in Boston.
1901-2008
•1902 1st Product – Double edged, T shape disposable razors.
•1914 Gillette brokers deal with US Army (3.5 Mn razors, 36 Mn blades)
•1950 Spends $6 Million for TV rights to Baseball World series for 6 years.
•1973 Net Sales exceed $1Billion & in 1980 it exceeds $2 Billion.
•2001 Gillette has 61 Facilities in 25 Countries, and employs 40,000 people
•In 2005 Gillette merged with Procter & Gamble, forming one of the
world’s largest consumer goods companies.
•Gillette is now on 16th position as a brand in the world with a $19,579 million
turnover.
•Today, Gillette operates 32 manufacturing facilities in
15 countries and employs more than 30,000 people.
GILLETTE WORLDWIDE MANUFACTURING
SUBSIDIARIES

UK
EUROPE ASIA
NORTH
AMERICA

SOUTH
AMERICA
AFRICA
AUSTRALIA
 GILLETTE
PRODUCT RANGE
GLOBAL STRATEGY
 Corporate Objective
global focus on consumer products
 global competitive advantage in quality, value added personal
care/use products

 Global Market
 competing in the triad markets (Europe, Japan, North and South
America)
 industry concentration (SWOT Analysis)
 global market leadership in male and female grooming products
THE GILLETTE STRATEGY
 Global resources organised and deployed to achieve
market leadership in all their products
 to maintain and increase existing market share in male
and female grooming products
 Corporate Strategy
 aggressive research and advertising
 new product developments (invest in technology and
product innovation)
 focus on core competencies
 maximise e-commerce opportunities
 build strong product portfolio
 GILLETTE MARKET STRATEGY
 Strategic Market Objectives
 Achieve a well integrated programme of marketing mix
elements.
 To enter the direct sell market via the Internet.

 Target Market Analysis

 early entry into the UK market by the FDI mode
 presence in the UK as a strategy for European Common Market
 high industry concentration ratio (SWOT Analysis)
 market leadership in men’s shaving products
GILLETTE'S PROFIT BY
PRODUCT
Gillette Profits by Product

Blade and Razor 2500

profits up 11% in 2000

Profit $Millions
2007, due mainly 1500
Braun Products
Oral-B Products

to sales of Mach 3. Duracell Products

Toiletries
1000
Blades & Razors

500

0
y2007 y2006 y2005
Year
 COMPANY SWOT ANALYSIS
Strengths Weaknesses
Market Leader Long Development Cycles
Strong Brand Image Relatively Static Market Growth
Global Presence Heavy Dependence on High
Aggressive Advertising Street Retail Outlets
Quality & Innovation Expensive Brand Maintenance
Portfolio Range (Mach 5
etc)
Demographic Changes New Competitors
Changing Societal Cloning of Successful
Attitudes brands
Consumer Brand Increasing Buyer Power
Preference (Inventory De-stocking)
Demand for High Quality Growth in Substitutes
products Own Label Fits
Economic Downturn
Opportunities Threats
BLADES & RAZORS SEGMENT

Grooming
Male & Female

Shaving Products Toiletries

Blades & Electric Pre-Shave Post-Shave Deodorants

Razors Shavers

Disposable Shaving Replacement

Razors Systems Blades
 WET SHAVING PRODUCTS

•Mach3 Turbo •SensorExcel for Women

•Mach 3 •Sensor for Women
•Sensor & Sensor Excel •Agility
•Atra •Gillette for Women Venus
•Trac II
•Custom Plus
•Good News
MARKET POSITIONING

Price

Wilkinson
Gillette
BiC

Own Labels

Quality
 BLADES & RAZORS STRATEGY
• Innovation through Research & Development

• Premium Brand - Premium Price

• Build Global Product Branding

• Build Strong Brand Loyalty

• Greater Efficiency at Lower Cost.

• Maintain Superior Growth in Market Share

• Build Shaving Systems Sub-Segment

• Invest in technology and product innovation

FUTURE GILLETTE STRATEGIES
• High Branding/Quality - Premium Price
• Develop New Market Segments & Niches through R&D
• Maintain/Promote Strong Brand Loyalty
• Tailoring Demographic Targeting (E.g. US vs Europe)
• Reduction in Product Unit Costs
• Grow Razor Systems Segment
• Strategic Alliances (Suppliers and Distributors)
• Shedding Non-Core Businesses (E.g. Papermate)
Conclusion
•Diversifying capital, investment, products &
other resources to maintain & expand position
as market leader.

•Strategically positioned as leader, & regularly

reorganising its structures to respond quickly
to changes in business & competitive trends.

•Developing & maintaining a high profile for

its brand names through marketing.

•Continuing to maximise efficiency in

production & distribution.

•To remain as the market leader of Grooming

sector products for the foreseeable future.
 GILLETTE STILL THE
GLOBAL LEADER IN MALE
TOILETRIES PRODUCTS
So in deed
“The best a Man can get”