CASE ANALYSIS
THE GILLETTE COMPANY…
Founded in 1901 by King C .Gillette
Market Leader in the Razor and Blades category
Strongly believes in continuous product
innovation.
Among the world’s first multinational organization.
Focus on providing high quality shaving products
at a fair price.
“There is no other article for individual use so
universally known or widely distributed.
In my travels I have found out it
in the most northern town in
Norway and in the
heart of Sahara Desert”
King C. Gillete on his safety Razor
BUSINESS SEGMENTS…
Blades and Razors
Personal Care (Shaving Gels, Foams, Deo’s etc)
Oral Care ( Toothbrushes and toothpaste)
Duracell Batteries
Braun (Kitchen appliances, hair care, steam
irons, etc)
THE PRODUCT LINE…
TARGET MARKET…
The target market is between the age group of
18 years to about 70 years.
Majorly Gillette targets males but also have got
some products for females(Venus)
DECISION PROBLEM…
Themain decision problem was the
recovery of company earnings to the
previously established levels.
RELATED ISSUES…
Declining market share ( BIC in disposable pen)
Unprofitable acquisitions leading to heavy loss.
How to cut down the per unit cost of product
Whom to acquire
Where to diversify.
MACRO ECONOMIC ANALYSIS…
Industry Status:-
Personal Grooming Industry
Increased four times from 2 billion in 2002 to 9.5
billion in 2008
Shift from double edged to twin and triple blade
razors.
Still market driven by price and not quality in rural
areas.
CONTD….
Economic Condition:
Increasing purchasing power of consumers
Developing economies becoming new markets
Increased Employment oppurtunities
Technological Conditions:
Advanced technology available for R&D
Increased awareness of lifestyle through cable and TV
aspiring many customers
CONTD…
Legal Framework:
Liberalization in many countries
Trade friendly policies
ALWAYS THE FIRST..…
First twin blade shaving system - Trac II
First twin blade disposable razor -Good news
First twin blade shaving system with a pivoting
head - Atra
The first twin blade shaving cartridge having a
moisturizing lubrastrip - Atra Plus
ALWAYS THE FIRST..…
First shaving cartridge with independent spring-
mounted twin blades - Sensor
First shaving cartridge with flexible microfins
- Sensor Excel
First three-bladed shaving system - Mach3
COMPETITORS….
Colgate-Palmolive - International Palmolive Shave Gel
and Palmolive Shave Foam
P & G- Old Spice shaving cream
HUL- Axe and Denim shaving cream
Godrej- Godrej Shaving Cream and Godrej Premium
Shaving Cream
7 o’clock Razors
Others - Dettol, Park Avenue
SWOT ANALYSIS….
Opportunities:-
Consumer Brand Preference
Demand for High Quality
New Innovative technology
Increased Grooming
Sophistication
SWOT ANALYSIS….
Threats :-
New Competitors (BIC etc)
Imitating the brands
Growth in Substitutes
SWOT ANALYSIS….
Strengths:-
Market Leader
Strong Brand Image
Global Presence
Aggressive Advertising
Quality & Innovation
Portfolio Range (Mach 3 etc)
SWOT ANALYSIS….
Weakness :-
Relatively
Static Market Growth
Heavy Dependence on High Street Retail Outlets
Product Strategies..
BLADES AND RAZORS…
Accounts for more than 40% of the sales and about
70% of companies profits.
Focus on technologically superior products.
Legendary Brands like Sensor, Sensor Excel , Mach
3
Heavy Investment in R&D
Variety of colors in Sensor Excel launched to attract
teenagers to develop life long customers.
Efforts to convert consumers from single and twin
blade razors to more profitable sensor ,sensor
excel etc.
PERSONAL CARE…
Strategy is to focus on the core grooming
products such as deodorants, shaving
preparations.
Intense competition forced Gillette to sell out
cosmetics and hair products segment.
Lead to increased focus.
DURACELL….
Holds 40% worlds market share in batteries.
Strategy was to add a new “leg” in portfolio.
Vast potential of alkaline batteries
Launched version like Duracell Ultra, line of AA and
AAA batteries. Charged premium.
Strategy was to emphasize R&D for introductions.
Pursued geographical expansion opportunities
Vast demand in markets like China, India, Russia
ORAL CARE…
Focus on technological developments and product
innovation. Eg Oral B Cross Action Toothbrush.
Combination of new products and geographic
expansion.
20% market share in manual and 70% market share
in power assisted brushes.
Strong Advertising and promotions.
BRAUN…
Struggled for profits and thus got out of focus.
Only shaving products, oral care products, hair
removal devices got emphasis.
Other segments like kitchen appliances, health care
etc were sold off.
CONCLUSION….
Gillette is strategically positioned as leader, and
regularly reorganises its products to respond quickly
to changes in business and competitive trends.
It has developed and maintained a high profile for
itself through aggressive marketing.
It has focussed on diversifying into various categories.
Focus is also on the maximising efficiency in
distribution.
RECOMMENDATIONS…
Continue with the strategy of continuous product
innovation.
Launch the products which are in declining stage in
developed countries in the developing countries like
Atra and Trac II.
Extend the PLC of products which are in maturity
stage like regular Gillette 7’o clock razor in the
developed countries in the developing countries.
RECOMMENDATIONS…
Upgrade the consumers in the shaving
gel/foam segment just like they have done in
the razor segment.
Make the presence strong in the Shaving
cream segment apart from the foam and gel
segment.
THANK YOU
