Gillette Case Study

Samantha Maurer
Kylen Huntwork
Crystal Bickof
Terri Menser
Harris Weinstein

Background of Gillette
Leader in market
Controlling market share
Mature company
Unrelated acquisitions
Competition - Razor Wars
Current marketing activities

Gillette vs. Schick

The Razor Industry

Saturation
Cultural changes
Is more innovation
possible?

http://video.google.com/videoplay?docid=577566760151
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ive+razor+commercial&hl=en&client=firefox-a

What is the Problem?

Continued Success of Fusion
Innovation
R&D
Product Design
Product Expansion
Marketing
Customer Attraction
Advertising

Product Innovation
Superior Product
Wide array
R&D
$750 Million on Mach3
Women
Complimentary Products

Whats next?

Marketing Innovation
Female Market
Millions of women shave
Global Market
60% sales global
Diversify Image
Website- The Best a Man Can Get

Customer Attraction
Increase Market Share
Dont stop at 70%
Embrace Cultural Diferences
Western culture
Maintain Growth
Ever-changing products

Reputation

Strengths

Brand Recognition
Multinational distribution
channels

Market Share (about

70%)
Competitors
Efficient Manufacturing
System

Lots of money for R&D

Marketing
Events/Athletes/Slogan

1-800 number
respond to complaints/innovate
products

Weaknesses
Future of Gillette = Fusion
Consumer skepticism (5
versus 3 blades)
Lost focus via poor
acquisitions in the past
Inability to continue growth
at high rates recently
Remained stagnant recently Sleeping Giant

5 Blade vs 3
Blade??

Opportunities
Expand dominating
market share
Globally
Acquisition of companies

Promote Western-style
culture
Campaigns to glamorize
clean-shaven

Make teenage
men/women lifelong users

Expand/innovate creams and

lotions

15% men dont shave due to

discomfort, and 3% dont care to

shave!
Products for hair removal in

other places

Threats
Saturated/mature market
Fierce competition
Ongoing legal battles
Consumer skepticism
Increased use of other hair removal techniques
Cultural Impediments
CASPIAN boycotts

Alternative Solutions for a

Mature Company
Squeeze Margins
Positive Cannibalism
Encourage Higher Usage
Diversify and Expand Brand
Stay Creative

Other Marketing Aspects

to Consider...
International Campaigns
Cultural Sensitivity
Celebrity Endorsements for Fusion
Advantages of Fusion over Mach3
Future of Womens Line

Recommended Long-term
Solution
Maintaining Current Status

Foreign Market Expansion

Sensitivity (cultures and traditions)
Glamorization
Market to the Market
In-store advertising system
Loss leader marketing strategy

Recommended Long-term
Solution
Maintaining Current Status

Foreign Market Expansion

Sensitivity (cultures and traditions)
Glamorization/Americanization
Market to the Market
In-store advertising system
Loss leader marketing strategy

New Perspective on
Marketing

Not only are we going to understand what is the same

everywhere, but were going to look to see what is
diferent everywhere.

-Chief Executive of BBDO Worldwide,

the Omnicom agency for Gillette

Procter and Gambles $57 billion purchase

The reciprocal influence of Venus and Mars

Japanese Consumers

Product Features

Recommended Long-term
Solution
Maintaining Current Status

Foreign Market Expansion

Sensitivity (cultures and traditions)
Glamorization
Market to the Market
In-store advertising system
Loss leader marketing strategy
Advertisement in Walmart

Recommended Solution
Issue at hand
Celebrity Endorsements
Encourage Cannibalization
Sponsorships/Promotions
Benefits

MARKET THE FUSION INDIRECTLY TO THE

PURCHASING CONSUMER

80%

MORE THAN