Gillette Brand Portfolio Analysis
Post on 24-Oct-2014
Presented by: Sanjiv Kumar Batch : EMBA 2010
BRAND HIGHLIGHTS Gillette India Limited (GIL) is one of India's well-known FMCG Companies. The world's largest personal care and household products company. First in INDIA to introduce gel in tubes. Running since 111 years (1901-2012). Global Leader in premium shaving care segment Over 1 Billion men start their day with Gillette. Manufacturing operations located in 23 countries. Distribution in 200+ countries.
Core BusinessesGillette India Limited (GIL) has 3 core businesses: Grooming Portable Power
GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES
SOUTH AMERICA AFRICA AUSTRALIA
STRENGTHS Creativity and R&D investment Product availability worldwide People Reliance on Quality of Product Strong marketing and advertising Strong brand loyalty Market Leader OPPORTUNITIES Use of e-commerce Increased Grooming, changes in societal attitudes and consumer brand preference New product launches Increasing buying Power Demand for high quality products Still an infant industry in India with huge scope for growth in future
WEAKNESS Highly dependent on core business Expensive brand maintenance Heavy Dependence on Street Retail Outlets Gillette has multiple blade and razor systems but their cartridges are not interchangeable with their other models
New Competitors Growth in number of substitutes Electric shaving technology Economic downturn Cloning of successful brands
GLOBAL STRATEGY Corporate Objective global focus on consumer products global competitive advantage in quality, value added personal care/use products
Global Market competing in the triad markets (Europe, Japan, North and South America) industry concentration global market leadership in male and female grooming products
THE GILLETTE STRATEGY Global resources organised and deployed to achieve market leadership in all their products to maintain and increase existing market share in male and female grooming products Corporate Strategy aggressive research and advertising strategic diversification e g mergers & acquisitions new product developments (invest in technology and product innovation) focus on core competencies maximise e-commerce opportunities build strong product portfolio
Gillette Product Basket
GILLETTES STRATEGY IN INDIALaunching innovative and customised products Gillette has created a new market for the power battery toothbrush through Oral-B (the oral care subsidiary of Gillette India). It also introduced Mach3Turbo, a triple-blade shaving system in India. Gillette India has launched customised products specially designed for Indian consumers. It introduced Vector Plus, which is a twin blade system with push clean anti-clogging function in the mid-price segment.
Localisation of distribution system and wide distribution network Gillettes sales and distribution network is wide, enabling consumers all over the country to buy its products. Gillette has localised its distribution system and made it specific to the Indian market. Gillette has targeted the Indian market on a shop-by-shop basis as against the European and US market where there are only few major retailers.
Restructuring business to drive growth Gillette restructured its business in India in 2003. Strategic restructuring: Focused on grooming and oral care business while exiting battery and household appliances business. Financial restructuring: Focused on improving the margins, cost reduction and improving asset utilisation. The restructuring undertaken by Gillette paid off with increasing profits.
Leveraging Indias large market Gillette is tapping the large Indian consumer base to establish a strong presence in the country. The market for shaving blades in India is the largest in the world. The market for oral care (toothbrushes) is the second largest in the world, while that of batteries is the third largest in the world (all in volume terms). Apart from this the increasing consumer-spending capacity and the increase in retail activity are also some factors which attract Gillette to expand its business in India.http://www.ibef.org/download/GilletteIndia.pdf
Price Strategy Gillette Presto, a product designed to upgrade consumers who still use double-edge blades, with a product priced atRs18, and with refills priced at Rs5 which lasts up to 5 shaves. With the company pursuing a volume-led growth strategy, its advertising and promotion expenditure can be expected to continue growing at high levels. And, even as sales growth may continue to surprise on the upside, profit can be expected to lag for some time to come.
In a bid to increase share and growth, Gillette introduced the Mach3 in November 2011, priced at Rs125 or 60% lower than the Mach3 Turbo. This product is targeted at greater conversions from the doublededged segment, which accounts for 62% and 86% of the razors and blades market, in value and volume terms, respectively. And nearly half of this market comprises users who get their shaves done in a salon. Gillette is attempting to convert this segment by giving them a salon-quality shave at an affordable price.
MARKETING Strong distribution strategies played a prominent role in the robust growth, as a result of which Gillette brand has managed to tap both the premium and the value-for-money consumers Sharat Verma, Marketing manager of Gillette India The lower-value products, followed the companys realisation that while new and improved is still good, lower price works better in these tough times
PROMOTIONS AND ADVERTISEMENTS
Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo Sensitives conduct Gillette Shave Sutra The Worlds Largest Shaving Lesson 150 couples come together to break the world-record for the Largest Shaving Lesson EVER!! Gillette Shave Sutra demonstrates how with the comfort of Mach 3 Turbo Sensitive shaving becomes so effortless that even your partner can shave you. Tied up with Rediff-on-the-Net e-commerce to market its product Tied up with ZAPAK for The India Gaming Championship 2009 Uses sports as a major promotional vehicle Uses social networking sites like Facebook to promote its products and carry out different surveys
GILLETTE IN THE MINDS OF THE CONSUMERS
WHICH DISPOSABLE RAZOR DO YOU PREFER?
WHICH REPLACEMENT CARTRIDGES DO YOU USE?
WHICH SHAVING CREAM/SHAVING FOAM/SHAVING GEL DO YOU USE?
IF THE FIRST PREFERENCE IS NOT AVAILABLE,WHAT WOULD YOU BUY?
IF THE PRICE OF YOUR PREFERRED BRAND INCREAS WHAT WOULD YOU DO?
GILLETTE IN THE MINDS OF THE SELLERS
PRICE AND QUALITY OF THE PRODUCTSAlmost all the sellers surveyed feel that the Gillette products are premium in quality. The company offers products for middle as well as higher income groups. Gillette constantly strives to provide convenience and better quality to its consumers
The products are priced as per its quality. Though a little expensive, the price is worth the qualityAttractive advertisements and sponsoring events one of the key reasons for higher sales.
STOCK OF THE PRODUCTS IN THE SHOPSThe products are easily available.
Efficient follow-up by the distributors in the retail shops. Very rarely there occurs a shortage.
Gillette recently adopted D.C system for its modern trade. This has lead to better availability in the super markets.
COMPLAINTS AND SUGGESSTIONSHardly any complaints from the end-users. Minimal instances of the products procured from the distributors being defective. However, defects occurring during transportation can be neglected. The company must allow credit duration of a week. Better margins expected from the company. Shouldnt merely be a A SOCIAL SERVICE act by the retailers. Competitors offer 10-15% extra margin than Gillette. Blades more expensive than razors. Reduction in blade prices will help considerably in increasing the market share.