Borderless Access - Global B2B Panel book-unlock 2024
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
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