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% 1Gillette has priced its shaving gel and foams above the industry
average. For example; Gillette shaving gel (195 g) is priced at 23453costs 60% more
than Nivea shaving gel (200g) is priced at 23463though Nivea has the one of the
best brand perceptions (and is the best in many surveys). The pricing strategy may
be suggests that Gillette is leveraging its customer loyalty, but it still has a big
market share as a result of its innovativeness and wide range of products.

|  %&
#'1 are a threat if they pass through high set up costs and
barriers.

For example: Gillette͛s ability to sustain a price premium and earn an attractive
return on its extensive investment three-blade platform was threatened by the
numerous imitators of the Mach3/Mach3 Turbo franchise, including disposables
and private label systems, and even including Gillette͛s own three-blade
disposable. This numerous imitations are threat to the company in the long term
as they going to reduce the sales of the original products.


 | | 
"+% %* %% $1 |%$ %! #$" %!#-,
$%, " !"*, % %#%! %!%!%
& %!,$,"  $#%$-%,
$"%! $(*%$(#($have resulted in signs of growth in
the triple blade and twin blade systems. Gillette came up with new and
improved products like Mach3 Turbo and New Vector Plus to cater to
the increasing needs of this section of the market. (in 2004)

$"%! $ "%! 7% % ,$'*  % %"

-% %( " -( )- ( ! , %%81has led
to an increased awareness of latest lifestyle trends and brands, which
have become an aspiration for many consumers. This increased
awareness coupled with the increase in disposable incomes has led to
a desire to upgrade lifestyles through owning and using better quality
brands. This increased demand has led to " !"!-"
especially in personal grooming division.


 | | 
" *%% ,$% ' . % )!' . %9trade
friendly policies and improvement in infrastructure have resulted in
a steady inflow of global investments into the markets which has
resulted in " !" %$*( %$(#%
##%  %( %($% $'4

Also, it can be said that (" !" %$ $ ,(%(:

(%(,#%! %!#($+#$(!-
" !""%"  % %$*,##4However,
since the market is still driven largely by price and not quality
(typically in rural markets and smaller towns), consumers might not
value the potential benefit of paying higher prices for better and
safer products.

Retailers powers also increasing.



 | | 
% $ %! #-1Pricing power is a $"%!
%, ;#($# $ has on the quantity
demanded of that product. Gillette͛s pricing power is
being further eroded by channel migration and
%$ %! $% %$# %! !% , $%
" !"# $, %%* %4 Pricing power is key to
revenue growth in a mature category especially when
Gillette͛s strategy has historically been to drive revenue
growth per consumer and not volume growth.
 |
 | | 
'$%  ,$1keep suppliers
prices low.
 
|
$ $.' ($1Gillette
has a market share with Braun. Already competes
with substitute products & brands.

*/0 %!!1Showing not shaving

as an unacceptable situation. %$%( '
" ':((  %,- 
# $4Gillette targets people with the
introduction of shaving cream, etc. which lanced
as a choice of people of king positions, for
example.
 | 
7%! # 8
The company͛s vision is ' ('%(*'
%%* %! ( *$%*%($
 %" #,:'%(,,$ *"% 
$# 4 This vision statement has led to the
development and introduction of various new products
especially in male grooming division and (# %,
$ %(##$"4

%$" %! -#($1Gillette constantly introduces new

products to the market with better technology and
performance. This new product launchs helps the company to
gain $#  *(*%!over its competitors.
 | 
7%! # 8$%(4
$" )
*#%1Gillette has always remained the technological
market leader in the razor division of the men͛s grooming segment. Its
" !"'%(-%:0$$#%$$"%! $(,
" #,%$.%(" !"'%(<  were compelling reasons to
penetrate and develop the entire value chain of the men͛s grooming
industry (razors, after shaves (balsams, etc.) and shaving gels/foams)

%( 1The brand loyalty in the Gillette shaving cream/gel/foam

segment is only 57% where customers would stick to it irrespective of the
availability in the place where they are shopping. 57% of the customers
would rather go to some other retailer in search for their preferred
shaving cream/gel/foam brand than to buy some other brand from the
same shop. This shows us that 57% of the customers (%" ,,
" #,('%("'%('$,# $" 0 %
" #,('%(: provided it͛s a reasonable price hike whereas 43%
would move to some other brand.
 | 
7%! # 8$%(4

%(  7$%(81 Gillette has the widest product range

and the deepest product line in the men͛s grooming
market. This is a double edged sword because of the variety
Gillette can offer and the cannibalization that can occur.
Gillette ,with its existing product variants, has to see that it
can extend the product life cycle and the individual stages
of each of the products.

Having so many product variants would be an unbeatable

advantage in upgrading the consumer throughout its
lifetime and also making it brand loyal in the process.
 | 
7%! # 8$%(4
#  *%* %%1Gillette faces intense competition in most markets. Its
products compete with widely advertised, well-known, branded products which
typically are sold at lower prices. The company͛s survival depends upon its ability
to (# , %" 0 %(,$#  *%* %%4

Due to %$(-%%(  %! %$*, the industry had a major

shift from traditional double-edged razors segment to twin and triple blades razors
segment.

Within the industry, cosmetics and personal care industry has been growing at an
average rate of 20 percent for the last few years. However, current consumption is
still low many countries in Asia which shows that there are further growth
opportunities.

Thus, the industry is growing at a decent rate but still is at an infant stage and this
offers great opportunities to players like Gillette and Colgate Palmolive to expand
their customer base to include " !"%',- (($##and
thereby increase their revenues and profitability.
 | 
7%! # 8$%(4
 % '1Gillette has made extensive
promotion campaign for its razors in the world market.
Roger Federer, Tiger Woods, David Beckham and
Thierry Henry are a few of Gillette͛s global
ambassadors called "# %4But for
example; India Gillette does not have any brand
ambassador as of yet though Irfan Pathan has done a
couple of ads for Sensor Excel. But, for the shaving
gel/foam there has not been much of advertisements.
In fact, there is only one ad for Gillette Series Shaving
Gel shown not too prominently. For the shaving
gel/products, Gillette has co-advertised with its razors.
 | 
7%! # 8$%(4
 % ' 7$%(81 An important finding
is that; not a single consumer is aware of the fact
that Gillette has many variants in the shaving
gel/foam category alone. This can be attributed
to the following reason:

The brand equity of Gillette is very high, but the

category development is pretty low. Since we see
a great opportunity for Gillette in the Shaving
cream category, we recommend an aggressive
promotional campaign for the new product.
 =| |

 * <  %* %!1Private Equity Investing

is investing into privately owned companies. A
private investor can inject capital into a business
that needs it. In return they will receive part-
ownership in the company. (Gillette is a publicly
traded company)

" %"#1Gillette Charitable & Educational

Foundation. (Environmental programs, social
initiatives and charitable initiatives)
 =| |7$%(8
#)% %%1 "%!- "  1With the help of Havas
Sports & Entertainment, Gillette welcomed three world renowned football stars to
the city of Valencia, Spain.
Hosted at the City of Arts and Sciences, one of the most modern and spectacular
architectural complexes, 12th May 2010, the Gillette Challenge without Limits
brought together 100 guests and media to witness the day's events. As part of the
Challenge without Limits, football players Thierry Henry and Rafael Marquez faced-
off in a challenge of skill, which consisted of each of them trying to score the most
goals while keeping their kick as precise as possible to help them attain the highest
scores. The shooting point was placed at 15 meters high, on the terrace of the
Principe Felipe Museum. The goal was situated on a vertical structure, 35 meters
away. Under these extreme circumstances and with gusts of wind as well, Henry
came out on top as the winner of the challenge. The Spanish football star Kaká,
who was also invited to the event, presented the winner with a check from Gillette
for the value of 1000 football kits to be (%(  % $%"4
 =| |7$%(8
22th of October 2010, Gillette signed an agreement with The Kraft Group
extending the company's strategic marketing and business partnership,
which includes exclusive naming and sponsorship rights to Gillette
Stadium through 2031. (that includes Gillette Stadium naming rights
through the 2031 NFL season)
>
 

 
  
 
 



   
Chip Bergh, group
president said, global male grooming, for Procter & Gamble, Gillette's
parent company, said in a statement
  

    

  
Kraft Group President Jonathan Kraft said that  

 

     
  
 


Kraft:     
 
  
  

 ! 
 

 
=| |7$%(8

 (*#%

#&#$0! %!%,$ %!%(,

#($(  ' %
=| |7$%(8
Harvard Business School professor Stephen Greyser said
that extending the Gillette     

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  Greyser also noted that Kraft
Group has 

  
 
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In Boston, Ian Rapoport wrote, 
   



    

 

    

 

  

 


 

 =| |7$%(8
ƒ In addition to the Gillette Stadium naming rights deal,
P&G's portfolio of sports marketing assets includes
agreements with the NFL, Nascar, Major League
Baseball and the International Olympic Committee.
&' 


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%    

   


 
 
   
Jonathan Kraft, president of The Kraft Group, said in a
statement. 
(