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Gillette and the Men’s Wet
            Shaving Market

Group 8
Section B
Subash P.B. ||| Swaroop Vijayakumar |
Gillette – S(h)aving Men Since 1903


  King C.Gillette invented the safety razor systems in 1895

  Permanent razor handle – replaceable blade systems

  Huge invention – Changed the way men perceived shaving

  Dominated the market

  Concentrated on Advertising and Distribution


                                                        Product Lines by Company Division
                                                                6
Innovation at the                                                    32
                                                                                  Safety Razor-61
                                                          23                      Stationary-9
 Heart of Growth                                                                  Cosmetics-14
                                                                                  Braun Products-13

                                                                    11            Oral B-3
                                                               28
US Men’s Shaving Market

                                                                US Men’s Shaving
                                                                 Industry(100%)




                                                      Wet Shaving             Dry Shaving
                                                      Market (75%)            Market(25%)




                                                                Wilkinson Sword
                       Gillette(62%)     BIC(12.7%)                                         Schick(16.2%)
                                                                      (4%)




    Permanent(56%)   Disposables(24%)   Injectors(10%)          Permanent(54%)         Disposable(25.2%)    Injectors(21%)
Competitor Analysis




  Leader in the Injection shaving
                                         Mainly concentrated in the            Entered with Super Sword edge –
  market – controls over 80% of the
                                         disposable market segment             blade with a steel coating
  market
                                         Main Product – BIC shaver for         Introduced Ultra Glide to compete
  Late entrant in the disposable
                                         sensitive skin                        with Gillette’s Atra Plus – priced at 5-
  shaving market
                                         Core philosophy – maximum             8% lower
  Entered with narrow headed
                                         service, minimum price                Competed head on with Gillette in
  disposable razor – Slim Twin in 1988
                                         Planned to market only single blade   advertising – used comparative
  67% of its revenues are overseas –                                           advertisements
                                         disposable razors
  mainly Europe and Japan
Current State – Move Towards Disposables

 The Shift

   1980s: Consumers chose inexpensive disposable razors

   Gillette helped to foster trend : Focus on price, not quality

   Mainly preferred by the younger customers who do not perceive the differences
   between the system and disposable blades

  The Consequence


   Disposable razor market increases by 60%

   Loss of quality image, loss of profit

   *Gillette taught consumers the best razor was the
   cheapest one!
Situation Analysis

  Sales of Atra blades have leveled off & Trac II is
  declining

  Less focus on advertising – only what was left over
  was spent on advertising

  One half of advertising spent on Atra and rest spent
  on Good News

  Same themes for both system razors and disposables
  – ‘Essence of Shaving’

  90% product based and 10% image based advertising

  Men over forty have strong connection with Gillette

  Strong connection between Gillette and male image
  of shaving                                             Options
  Younger men prefer disposables – feel all razors are
  the same
                                                         No change . Watch yourself bleed

  Gillette logo does not give a masculine feel           Buck the Trend- Go for the Kill
  Woman identify Gillette name with men and shaving
Is Disposables the Way Forward?

                                                                              Therefore focusing
                                               Disposables represent a high   on disposables will
                                               volume business                lead to a constant
                                               The disposable shaver          price war, and may
                                               segment is growing at a fast   also lead to erosion
                                               rate                           of Gillette’s brand
                                                                              equity

                                                                              The disposables was
                                                                              a short term solution
   Every 1% change to disposables = $10m hit
                                                                              Further focus on
   One third of system razors’ margin
                                                                              creating low cost low
   Costlier to manufacture
                                                                              margin products will
                                                                              erode profitability
   Commoditization  Price war
                                                                              Hence Gillette
   Goes against the company philosophy of innovation                          should not pursue
                                                                              this strategy
   Core competency is their R&D prowess to get newer
   blades and razor systems
Going the System Razor Way

                                      Higher Margins for the products
                                      In line with Gillette’s core philosophy of
                                      product innovation
                                      Can leverage upon the brand
                                      In line with Gillette’s broader strategy
                                      Can focus all energies on the launch of
                                      new system razor product




         May lose out on the increasing
     disposable shaving category – a sizable
              chunk of the market
The Strategy Roadmap
Pre Launch

Strategy                                                                     Rationale
Move towards a global strategy                                               Pan European success of Contour Plus; Universal high
                                                                             quality product; “a shave is a shave everywhere”.




Move from product based to image based advertising; Initial marketing        Revitalizing the brand name; focusing on a pull strategy –
efforts should focus on the brand rather than product - Focus on an          the brand should sell
‘ultimate shaving experience’ for Gillette razors
Go for High Exposure advertising across Europe & US focusing on Gillette’s   Bringing the brand into focus and setting the stage for
core competency                                                              launch of new razor system.
Pull the plug on advertising for Disposables “Good News”; instead create a   Goes with the overall strategy of weaning away the
new disposable brand for women                                               customers from disposables to high end razors


Positioning

Position Gillette as a revolution in shaving & one the provides an much superior shaving experience on
the whole compared to disposable razors; one which gives supreme confidence and happiness

Statement : Gillette – Differentiates Men from the Boys
Pre Launch Television Commercial
 Essence

The main aim of the TVC would be to bring the brand into
focus and associate it with all facets of a man’s life


Storyboard




                     With a catchy jingle & booming background music, show clean
                     shaven men exceling in various spheres of life – sports, business
                     and also in various roles – as a father, friend, husband and
                     bridegroom etc. At last, there is a showing a system razor with a
                     voice over mentioning its benefit & mentioning the positioning
                     statement
The Strategy Roadmap – Launch Stage : Gillette Stimulus
 Marketing Mix



        Product: Spring mounted twin blades,           Price : $3.75 per system; slighter lesser Atra




                                                   Stimulus
                                                      Promotion – blitzkrieg advertising campaign;
         Place – Existing outlets & distribution
                                                      associations with major sporting events like
                        network
                                                      Superbowl in US & soccer leagues in Europe



 Positioning


 Position Gillette Stimulus as one that has a state of the art shaving system & provides a clean shave due
 to its product features


 Statement : Gillette Stimulus – The closest shave a man can get
Gillette – The Best a man can get
      Thank You for listening

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Gillette and Men's wet shaving market

  • 1. Gillette and the Men’s Wet Shaving Market Group 8 Section B Subash P.B. ||| Swaroop Vijayakumar |
  • 2. Gillette – S(h)aving Men Since 1903 King C.Gillette invented the safety razor systems in 1895 Permanent razor handle – replaceable blade systems Huge invention – Changed the way men perceived shaving Dominated the market Concentrated on Advertising and Distribution Product Lines by Company Division 6 Innovation at the 32 Safety Razor-61 23 Stationary-9 Heart of Growth Cosmetics-14 Braun Products-13 11 Oral B-3 28
  • 3. US Men’s Shaving Market US Men’s Shaving Industry(100%) Wet Shaving Dry Shaving Market (75%) Market(25%) Wilkinson Sword Gillette(62%) BIC(12.7%) Schick(16.2%) (4%) Permanent(56%) Disposables(24%) Injectors(10%) Permanent(54%) Disposable(25.2%) Injectors(21%)
  • 4. Competitor Analysis Leader in the Injection shaving Mainly concentrated in the Entered with Super Sword edge – market – controls over 80% of the disposable market segment blade with a steel coating market Main Product – BIC shaver for Introduced Ultra Glide to compete Late entrant in the disposable sensitive skin with Gillette’s Atra Plus – priced at 5- shaving market Core philosophy – maximum 8% lower Entered with narrow headed service, minimum price Competed head on with Gillette in disposable razor – Slim Twin in 1988 Planned to market only single blade advertising – used comparative 67% of its revenues are overseas – advertisements disposable razors mainly Europe and Japan
  • 5. Current State – Move Towards Disposables The Shift 1980s: Consumers chose inexpensive disposable razors Gillette helped to foster trend : Focus on price, not quality Mainly preferred by the younger customers who do not perceive the differences between the system and disposable blades The Consequence Disposable razor market increases by 60% Loss of quality image, loss of profit *Gillette taught consumers the best razor was the cheapest one!
  • 6. Situation Analysis Sales of Atra blades have leveled off & Trac II is declining Less focus on advertising – only what was left over was spent on advertising One half of advertising spent on Atra and rest spent on Good News Same themes for both system razors and disposables – ‘Essence of Shaving’ 90% product based and 10% image based advertising Men over forty have strong connection with Gillette Strong connection between Gillette and male image of shaving Options Younger men prefer disposables – feel all razors are the same No change . Watch yourself bleed Gillette logo does not give a masculine feel Buck the Trend- Go for the Kill Woman identify Gillette name with men and shaving
  • 7. Is Disposables the Way Forward? Therefore focusing Disposables represent a high on disposables will volume business lead to a constant The disposable shaver price war, and may segment is growing at a fast also lead to erosion rate of Gillette’s brand equity The disposables was a short term solution Every 1% change to disposables = $10m hit Further focus on One third of system razors’ margin creating low cost low Costlier to manufacture margin products will erode profitability Commoditization  Price war Hence Gillette Goes against the company philosophy of innovation should not pursue this strategy Core competency is their R&D prowess to get newer blades and razor systems
  • 8. Going the System Razor Way Higher Margins for the products In line with Gillette’s core philosophy of product innovation Can leverage upon the brand In line with Gillette’s broader strategy Can focus all energies on the launch of new system razor product May lose out on the increasing disposable shaving category – a sizable chunk of the market
  • 9. The Strategy Roadmap Pre Launch Strategy Rationale Move towards a global strategy Pan European success of Contour Plus; Universal high quality product; “a shave is a shave everywhere”. Move from product based to image based advertising; Initial marketing Revitalizing the brand name; focusing on a pull strategy – efforts should focus on the brand rather than product - Focus on an the brand should sell ‘ultimate shaving experience’ for Gillette razors Go for High Exposure advertising across Europe & US focusing on Gillette’s Bringing the brand into focus and setting the stage for core competency launch of new razor system. Pull the plug on advertising for Disposables “Good News”; instead create a Goes with the overall strategy of weaning away the new disposable brand for women customers from disposables to high end razors Positioning Position Gillette as a revolution in shaving & one the provides an much superior shaving experience on the whole compared to disposable razors; one which gives supreme confidence and happiness Statement : Gillette – Differentiates Men from the Boys
  • 10. Pre Launch Television Commercial Essence The main aim of the TVC would be to bring the brand into focus and associate it with all facets of a man’s life Storyboard With a catchy jingle & booming background music, show clean shaven men exceling in various spheres of life – sports, business and also in various roles – as a father, friend, husband and bridegroom etc. At last, there is a showing a system razor with a voice over mentioning its benefit & mentioning the positioning statement
  • 11. The Strategy Roadmap – Launch Stage : Gillette Stimulus Marketing Mix Product: Spring mounted twin blades, Price : $3.75 per system; slighter lesser Atra Stimulus Promotion – blitzkrieg advertising campaign; Place – Existing outlets & distribution associations with major sporting events like network Superbowl in US & soccer leagues in Europe Positioning Position Gillette Stimulus as one that has a state of the art shaving system & provides a clean shave due to its product features Statement : Gillette Stimulus – The closest shave a man can get
  • 12. Gillette – The Best a man can get Thank You for listening