Institute of Business Management

Final Term Report

Marketing Management Summer 2018(MKT 302-D)

Presented to: Dr. Adnan Bashir

Group members:

Murtaza Raja
Ameet Lohana
Huda Moin

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 Executive Summary

This report was assigned to evaluate marketing practices of Gillette and their effectiveness
in Pakistan’s safety razors and personal care products sector. This report presents an
analysis of Gillette marketing position and its supply chain of integration.

The report prospects to analyze company present market position and its marketing
summary. It also summarizes Gillette growth in Pakistan, Price range and Pricing strategies.
The strategies adopted by the company to penetrate its current products and to develop its
future products in Pakistan. The report presents a brief informative review of company
portfolio and analyses it with various girds. It presents the distribution channels and
manufacturing of products in all over the Pakistan. It presents an analytical review of
Gillette’s SWOT analysis and presents a review of its STP.

The research has been conducted through secondary and primary resources. In which we
collected data from company’s representor, different sites and Gillette official website. All
references cited can be found in the appendix.

This report summed up comparative performance of Gillette.

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Table of Contents
Gillette’s Product Line:.........................................................................................................................6
Gillette’s product portfolio includes:.....................................................................................................7
..............................................................................................................................................................8
Mach 3 Fusion..........................................................................................................10
Fusion Proglide....................................................................................................................................10
............................................................................................................................................................10
Gillette’s Price Range and Pricing Strategy.........................................................................................10
Gillette’s Growth in Pakistan..............................................................................................................11
Gillette’s Online Platform...................................................................................................................14

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 Table of Content

Topics Page Number #

Background and Objectives 4

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 Product Portfolio 5-8
Price range & strategies 9
Gillette Growth and Segmentation 10-11
Positioning, packaging and libeling 11- 13
Promotion 14
Reason behind Merger & Leader 15-16
R&D 17
Distribution 18
Competitors 19
SWOT 20
Gray Area 21
Recommendation 21

History:
Gillette Pakistan Limited was incorporated on December 9, 1986 as a public limited
company under the Companies Ordinance, 1984 and is listed on Pakistan Stock Exchange
Limited. As a listed public company, Gillette Pakistan Limited submits comprehensive

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financial statements to the Securities and Exchange Commission of Pakistan (SECP) and the
Pakistan Stock Exchange, The Company is represented on several business associations and
key executives of the company are working on committees of these associations.

The Company is a subsidiary of Series Acquisition B.V., Netherlands, which is a wholly

owned subsidiary of P&G, USA. The parent company holds 91.4% of the issued share capital
of the Company while rest of the share capital is held by other individuals and corporate.

Mission statement:
Gillette has been at the heart of men’s grooming for over 100 years. Each day, more than
800 million men around the world trust their faces and skin to Gillette’s innovative razors
and shaving products. This commitment to giving men the very best is carried into our line
of personal care products, including deodorant and body wash. All designed for the unique
needs of men – helping them to look, feel and be their best every day.

Vision statement:
To build total brand value by innovating to deliver consumer value and customer leadership
faster, better and more completely than our competition.

Gillette’s Product Line:

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Kotler’s classification of 5 product levels:

In Gillette’s case, their levels are:

 Core Product: Quality of shave.

 Basic Product: Razor with comfortable grip, well packed.
 Expected Product: Blades the do not give cuts or rashes on skin.
 Augmented Product: razor with lubrastrip indicating when the blade needs to be
replaced, the anti-clogging push clean technology, etc.
 Potential Product: product customization could be one new development.

Gillette’s product portfolio includes:

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Double Edge:

7 o’clock

Disposable:

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G2:

Blue 2: Blue 2 Plus:

Blue 3 Simple Blue

3
Systems

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Mach 3 Fusion

Fusion Proglide

Gillette’s Price Range and Pricing Strategy

When dealing with Pakistan’s market, Gillette has always kept a limited portfolio which is in
line with the prevalent consumer segments in Pakistan. As Gillette is the market leader in
the segments it plays in, Gillette dictates the pricing for its sub brands. The key to their
pricing strategy is to enable trade up between their line ups.

A major factor that Gillette had to adapt to in terms of dealing with Pakistan’s market was
to eliminate Double Edge shavers and accelerate conversion from disposables to systems
razors. This proved to be quite an obstacle due to affordability. Gillette recognized that
consumers were ready to compromise comfort and shaving experience to save money.
Apart from this, there was an influx of Chinese razors which commoditized the market.

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As Gillette operates as a market leader with no potential threats from its competitors,
Gillette finds itself in a position where it adopts certain basic pricing strategies such as:

1. Set pricing objectives

2. Analyze Demand
3. Estimate Costs
4. Determine specific prices.

By following their guidelines for on their pricing strategy, Gillette have been able to
consciously use premium pricing for most products and average pricing for others. It’s
prices are relatively higher than those of its competitors but Gillette has managed to
maintain its customer’s loyalty by its worth as well as its marketing. The company asks its
customers to place more value on emotions rather than on its cost. Gillette also feels that
once its customers are accustomed to its high quality, they will pay no heed to its prices

Gillette’s Growth in Pakistan

After Gillette Pakistan Limited was incorporated in 1986, the company has risen up the
ranks and firmly established itself as Pakistan’s #1 safety razor company. Various factors
have helped contribute to Gillette’s rise and growth in Pakistan. While these factors are not
restricted solely to Pakistan’s market, they have still allowed for Gillette’s success in it.

Amongst factors that have contributed the most towards Gillette’s growth in Pakistan is
their superior product portfolio which allows them to cater to a specific need amongst all
their consumer segments. Through this, they are able to provide and analyze views on stock
type, company growth prospects, profit margin drivers, income contributions, market
leadership and operational risk. This has not only allowed their functioning on the Pakistan
Stock Exchange Limited to run but is also essential for investors conducting equity research
by investors or analysts supporting internal corporate financial planning.

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Another major factor influencing their growth was their merger with Procter & Gamble.
Through the merger, Gillette was able to drive scale across all its activity systems by
partnering with other brands at P&G; e.g. marketing activity deals, supply chain, etc. It also
gave them an added bonus of leveraging P&G’s marketing expertise which they have
accumulated over 170+ years through 150+ brands.

Gillette have always valued the importance of innovation and they consider it as the
backbone of their brand. With this in mind, Gillette has an annual budget of around $2
billion globally allotted to its Research and Development department. This allows them to
have a superior edge over other competitors present within Pakistan and, hence, has
allowed it to grow substantially ahead of its competitors in Pakistan’s market.

Gillette’s Market Segmentation

Market segmentation allows companies to divide larger markets into submarkets based
upon different needs or product preferences. These common characteristics allow
developing a standardized marketing mix for all customers in a particular segment. Through
segmentation, Gillette is able to better serve its customers wants and needs, sustain
customer relationships in all phases of the customers life cycle, carry out targeted
communication, stimulate innovation, increase market shares, allow for growth and
ultimately obtain higher profits.

A simple classification of Gillette’s market segmentation is as follows:

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Gillette’s strategy for market segmentation is known as Geoclustering. This strategy
involved combining several variables in order to define better, more defined market groups.
Gillette has identified gender, age, income, occupation, demographic variables and lifestyles
as a cluster in an attempt to more precisely define its market segments. Hence, Gillette’s
approach is a multi attribute segmentation technique.

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  M1: Males, 20’s- early 30’s, salaried, maintain lifestyles that have a bearing on their
buying behavior.
 M3: Males, late 30’s and above, not very high levels of disposable income, do not
value looks or status value of the products they buy.
 M2: Customers who lie between these two categories.
 P1234: Products.

Over the years, Gillette has taken on a segment by segment invasion strategy which has
allowed them to enter the market segment by segment without revealing their total
expansion plans, keeping their competitors unaware of which segment they will move into
next.

Gillette’s Online Platform

Internationally, Gillette launched its online Shaving Club in June 2016 to win back customers
who’ve defected to online market leader Dollar Shave Club and others, has seen the
subscription service get “off to a good start” and won 4 percentage points worth of online
market share in the blades and razors sector. In Pakistan, however, for consumer goods, e-
commerce is a channel that is still developing and contributes to less than 1% of the total
sales. Hence, Gillette Pakistan has not activated its global ecommerce campaigns as it does
in the international market. However, their plan is to invest behind ecommerce
disproportionately in the coming years as the channel starts to establish itself

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Positioning:
In today’s world of strategy convergence (undifferentiated strategies), pursuing a
meaningful and relevant positioning & differentiation has become imperative
for every company to give the customer a reason to demand their products.

While positioning begins with the product, the concept really is

about positioning that product   in the mind of the customer in an over communicated
environment. The advertiser should present a simplified message and make that message
consistent with what the consumer already believes by focusing on the perceptions of the
consumer rather than on the reality of the product.

The best way to get into the mind of the consumer is to b the first Gillette has always been
on its toes when it comes to introducing latest technology products and has thus reaped the
benefits of being the first entrant.

The Gillette Case:

Gillette is positioned as the best brand for men’s grooming needs. However, for each
shaving segment it is positioned uniquely to ensure maximum relevance. The three shaving
segments are, 1) Double Edge shavers (Lower income/primarily rural areas), 2) Disposable
shavers (Mid income, Urban and rural), 3) Systems shavers (High income, Urban)

Double Edge Disposable System

Gillette as the Best value Gillette as the Best Gillette as the Best
brand for their grooming performance brand for their experience brand for their
needs grooming needs grooming needs

Packing and labeling:

Packaging comprises of all activities of designing and producing the container for the
product. This container may include up to three levels of material:

Primary Package: Tetra pack, bottle, sachet, etc.

Secondary Package: cardboard box, etc.
Shipping Package: Cartons, etc.

Packaging has been getting increasing focus as a marketing tool Following are some
reasons:

• They promote Company and /or Brand Image

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• It is an opportunity to incorporate innovative features which can bring added convenience
to the consumer and in turn higher profits to the producer.

• With rising incomes, consumers increasingly are willing to pay a little more for the
appearance and prestige of well – designed packages.

Once the packaging decision is taken, it needs to go through engineering tests to ensure the
effectiveness/robustness of the package under normal conditions. This is
followed by testing it at the dealer/intermediary and consumer level. Finally, labeling is
done to identify, describe and promote the product.

Packaging and labeling therefore is an important element and can’t be ignored while
formulating the product strategy.

The Gillette Case:

However, for a product like Gillette shaving razors, it does not play a very significant role. A
customer who buys a Gillette shaving product does not consider the package an important
consider enough factor which would influence his buying behave ours. Labeling does have
some significance for a product associated primarily with quality, like Gillette razors.
Therefore, while Gillette’s consumers do not base their buying decision based on the
packaging, their comfort levels would be influenced by the labeling

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Promotion Strategies of Gillette:
Gillette spends billions of dollars on its advertising policies. To market their products, they
have used an emotional marketing strategy. The advertisements are smooth and cool giving
an unstoppable feeling. A brand identity has been created with marketing and sales in mind.
The company has used unique and diverse tactics to maintain their customer base as well as
to rope in new consumers. By looking at the ads, one can see the confidence and the
unbeatable feeling on the model’s face and this transforms the mindset of the buyer. The
marketing focus is on the emotion rather than the product itself. The customers want to
cash in this passion by buying Gillette products. The ads have turned a basic act of shaving
into a grooming ritual evoking a strong response amongst the viewers.

Top Brand Ambassador of Gillette.

For international market,

famous personalities have
been roped in as the brand
ambassadors. ‘Roger Federer’-
an iconic tennis player, ‘Tiger
Woods’ – the master
champion of Golf, ‘David
Beckham’ – the world-famous
footballer and Thierry Henry
have acted in Gillette ads.
Some of the other persons to
act in Gillette ads are
‘Michael Clarke’ – the
Australian cricketer, Derek Jeter and Park Ji- Sung. In India Rahul David, the famous
cricketer and Irfan Khan, the famous actor, have acted in ads for Gillette products.

To increase its sales Gillette has single handedly implemented revolutionary ideas with
military precision and patience. It has sponsored famous sports personalities as well as
games like football to upgrade its image. Gillette has targeted its promotional policies on
the current ambassador of the company. Gillette products are advertised in the print media
like newspaper and magazines and in the visual media like internet and television

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R&D investment of Gillette and its importance:
Innovation is the backbone of this brand, being a market leader Gillette has to innovative
and creative otherwise there are a lot of other brands they cater the market.

R&D is most important part of every company, every company try to make most innovative
and unique products. Therefore, most of the company invest as more as they can. Like
Gillette also do most prominent research, so they can be the market leader. P&G invests 2
billion over all.

Reasons Being Market Leader:

Distribution channels:
Gillette is most profitable because of its strong distribution channel. It is available all
over the Pakistan; you will hardly find any other brand in Pakistan with strong
distribution. As a Being FMCG product, distribution is most prominent part of every
FMCG products. Because customers are very fixable to use any other product.
Early bird advantage:
Strong promotions:
Unique way to greater the value:
o Example of Gillette Mack 3
Warranty:

Benefits from merger with P&G:

Gillette become the P&G’s marketing expertise accumulated over 170+ year through
150+ brands.
Distribution expansion, P&G’s becoming as most famous FMCG brand promotes
sales of Gillette all over the world.

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The Distribution Network
A Place strategy refers to how an organization will distribute the product or service they are
offering to the end user. The organization must distribute the product to the user at the
right place at the right time. Efficient and effective distribution is important if the
organization is to meet its overall marketing objectives. If the organization underestimates
demand and customers cannot purchase products, because of which profitability will be
affected.

Gillette uses indirect method to distribute its product. Indirect distribution involves
distributing a product by the use of an intermediary. From Manufacturer to Wholesaler to
Retailer to consumer.

Manufacturer

Wholesaler

Retailer

Consumer

The Competitors of Gillette

Since Gillette is a multinational brand therefore it has competitors all over the world but are
not necessarily in the competition. The Brand image and perception that the Gillette has
made in their consumers mind have actually excluded the competition.

Competitors in Pakistan :-

1- Bic in Disposables
2- Treat in Double Edge

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Bic  
BiC, is a corporation based in Clichy, France best known for making ballpoint pens. It was
founded in 1945 by Baron Marcel Bich and has become known for
making disposable consumer products such as lighters, razors, mechanical pencils,
and printed paper products.

 Bic started to produce disposable razors during the 1970s. In 1975, the brand released the
one-piece polystyrene razor, that became a highly demanded product. During the 1980s Bic
Shaving product reached $52 million in sales and conquered 22.4% of the market shares. Bic
is also known for making disposable razors for both men and women.

Treet
Treet Corporation Limited is part of one of the oldest and largest business groups of
Pakistan. It is the sole manufacturer of razor blades and disposable razors in the country.
Even though it was incorporated as a public limited company in 1977, its first razor blade
manufacturing unit was set up at Hyderabad in 1954 and the second unit was set up at
Lahore in 1975. Treet is known for its quality products and this is the reason we export our
products to all corners of the world. Over 30 countries that encompass Australia, China
Middle East, Africa and as far as Canada in North and Brazil in South America.

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Competitors outside Pakistan
1- King of shaves
2- Schick Hydro
3- Kodak
4- Fuji

SWOT Analysis of Gillette:

Strengths:

P&G has developed its triple blade razor, which is unique and developing
technology to attract its users.
This razor has more life than other razor because of uranium coating, which
increase lifespan.
It most easy to use razor, which rarely gives cuts.
Distribution channels are very strong, everyone can access company’s product on
their footsteps.
Aggressive products advertising with world’s top personalities.
The company has most innovative and creative R&D, which provides innovative
product to their users.

Weaknesses

Gillette is expensive personal care products than other companies.

The company has to face a lot of problems to maintain costlier products.
Some environmental issues can affect the quality and quantity of the products.

Opportunities

The company must consider customer brand preference.

Expand dominating market share
 Globally
 Acquisition of companies

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 Emphasis on personal hygiene through marketing:
 As more people learn about the importance of personal hygiene,
the company may benefit for the fact that they provide the
products necessary. Gillette could profit tremendously as more
people become aware and educated on the importance of
personal hygiene.

Threat

There are so many emerging products in the market, which will be threat for the
products of P&G.
Expensive products will make consumer to use
cheap products.
Increasing trend against shaving:
 The trend of today of facial growth is
acceptable in society.
 After shaving with blades and razors their
great rick of aggressive growth of hair.

Grey Areas

Recommendation

1- No products for female.

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 Bibliography:

https://www.slideshare.net/tejaaasgk/teja-gillette

https://www.scribd.com/doc/32659954/GILLETTE

http://marketingdawn.com/

https://www.marketing91.com/marketing-and-strategy-models-and-concepts/

https://www.marketresearch.com/

https://www.slideshare.net/Ankit786/gillete-2703498

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