Stacey Cook Ryan Dresher Pam Mc Ewen Ashley

Stacey Cook Ryan Dresher Pam Mc. Ewen Ashley Moss Allan Murdock Gillette Case Study #1

Overview � Introduction/Background � Marketing Management Profile � Competitive Profile � Environmental Opportunities and Threats Profile (ETOP) � Marketing Capabilities Profile � Proposed Marketing Strategies � Conclusion

Introduction/Background � Domain ◦ ◦ � Personal grooming Consumer portable power Stationary Small electrical appliances History ◦ 1800’s and 1900’s �Straight Razors �Barbers ◦ 1901 and after �King Camp Gillette invented safety razor � 1962 Wilkinson Sword invents stainless steel blade

Marketing Management Profile � Vision Statement ◦ The vision of the Gillette Company involves building total brand value by means of innovation in an effort to deliver consumer value and leadership faster and better than the competition. Gillette’s vision is supported by two fundamental principles that provide the foundation of all company activities: organizational excellence and core values. Attainment of this vision requires superior and continual improvement performance in every area and at every level of the organization. Gillette’s performance is guided by a clear and concise strategic statement for each business unit and by an ongoing quest for excellence within all operational and staff functions. This quest for excellence requires hiring, developing and retaining a diverse workforce of the highest caliber. To support this quest, each function employs metrics to define and implement processes to achieve world-class status.

Marketing Management Profile � Mission ◦ ◦ ◦ Statement The Gillette Company is a globally focused consumer products company that seeks competitive advantage in quality, value-added personal care and personal use products. We compete in four large, worldwide businesses: personal grooming products, consumer portable power products, stationery products and small electrical appliances. As a company, we share skills and resources among business units to optimize performance. We are committed to a plan of sustained sales and profit growth that recognizes and balances both short- and longterm objectives. Our mission is to achieve or enhance clear leadership, worldwide, in the existing or new core consumer product categories in which we choose to compete

Marketing Management Profile � Value Statement ◦ Achievement: We are dedicated to the highest standards of achievement in all areas of our business. We strive to consistently exceed the expectations of both external and internal customers. Integrity: Mutual respect and ethical behavior are the basis for our relationships with colleagues, customers and the community. Fair practice is the hallmark of the Company. Collaboration: We work closely together as one global team to improve the way we do business every day. We communicate openly and establish clear accountability for making decisions, identifying issues and solutions, and maximizing business opportunities

Competitive Profile � Rank ◦ According to Proctor & Gamble, Gillette currently holds 71% of the global market � Weapons ◦ Innovative products � Mach 3 Turbo � Fusion Power ◦ Celebrity Spokespeople � Tiger Woods � Roger Federer � Thierry Henry � Competitive Structure ◦ Purely Competitive

ETOP � Competitive ◦ Opportunity Forces �Gillette is now under the ownership and guidance of Proctor & Gamble ◦ Threat �Saturation of the US market, Gillette must determine how to use its resources to capture more consumers by means of product-line extensions or marketing campaigns

ETOP � Economic Forces ◦ Opportunities �During the economy woes of 2008, Gillette launched an advertising campaign that reminded consumers of the value possessed by Gillette’s products ◦ Threats �Despite Gillette’s campaign, consumers used different brands due to their lower prices

ETOP � Political Forces ◦ Opportunity �Gillette could take advantage of the US election coming up by supporting one of the candidates ◦ Threat �Gillette could lose some of its market share if its supports a candidate that a consumer does not like

ETOP � Legal and Regulatory Forces ◦ Opportunity �Gillette has the opportunity to continue global expansion by entering into previously untapped markets ◦ Threat �Laws and regulations may prevent Gillette from entering these markets as it may be an offense in some countries to shave or use body products due to consumer culture

ETOP � Technological ◦ Opportunity Forces �Gillette could use technology, the internet, to obtain suggestions from consumers to determine how the company can advance ◦ Threat �Due to the fact that the company has reached its level of maturity, seeking advice from consumers may result in a loss of resources

ETOP � Socio-cultural ◦ Opportunity Forces �Women in different areas of the world are beginning to shave as Americans do ◦ Threat �These women may decide to buy a cheaper brand as they begin to realize that there is not much difference between Gillette’s product and the competition

Marketing Capabilities Profile � Target Market #1 ◦ Men over 15 YRO, women over 13 YRO in US ◦ Strength- Millions of both men and women shave ◦ Weakness- Gillette needs to maintain and research current information

Marketing Capabilities Profile Cont. � Target Market #2 ◦ Sports Fans ◦ Strengths- Gillette has been able to reach a worldwide audience ◦ Weakness- Cheaper products available

Marketing Capabilities Profile Cont. � Target Market #3 ◦ Men and Women residing in countries outside of the United States ◦ Strengths- Technology does have an impact ◦ Weakness- Gillette must take in account religious and socio cultural impacts

Marketing Capabilities Profile Cont. � Marketing Mix � Product ◦ Strengths- Gillette has been able to expand its product portfolio ◦ Weakness- Market has reached Maturity

Marketing Capabilities Profile Cont. � Price ◦ Strength- Brand name ◦ Weakness- Products cost considerably more than the competition

Marketing Capabilities Profile Cont. � Distribution ◦ Strength- Products distributed globally ◦ Weakness- Competition is also available globally

Marketing Capabilities Profile Cont. � Promotion ◦ Strength- Gillette holds 71% of the industry’s market share with a global market ◦ Weakness- US sales have decreased

Proposed Marketing Strategies � Alternative ◦ Pros 1; Upcoming Trends �What does society have to offer ? �Market to the strengths of the population �Be consumer friendly ◦ Cons �Keep up with the movement of society �Know the risks of what is the movement �Know costs

Proposed Marketing Strategies � Alternative ◦ Pros 2; Continued Innovation �Marketing �Update razor functions �Keep quality up to date ◦ Cons �Costs �Raw materials �R & D costs

Proposed Marketing Strategies � Alternative ◦ Pros 3; Listen to customer �Make people share ideas �Give them a chance to win prizes ◦ Cons �Cost

Proposed Marketing Strategies � Alternative ◦ Pros 4; Expand Globally �Use resources �Penetrate untapped markets �Result in greater market share �Greater promotion of brand ◦ Cons �U. S. market will continue to plummet �Need to keep focus of the consumers of the U. S.

Conclusion � What alternative was selected? ◦ Vision �Build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition. ◦ Mission �Seek competitive advantage in quality, value-added personal care and personal use products. ◦ Value �Consistently exceed the expectations of our internal and external customers.

Alternative 3 ◦ Voice of customer �Must understand focus on what they need. �The consumer knows what he needs ◦ Threats �Little room for innovation �Saturated Market ◦ Strengths �Brand �Loyal customers �Large market

The Marketing Concept ◦ Primitive �Focus on innovation �Give the customer what the company thinks he needs ◦ Modern �Customers are educated �Customers want to tell company’s what they need �Customers have innovative ideas ◦ Result �Utilizing Internet will build brand get customers interested in Gillette �Giving large prizes gives socially friendly perception �Large market will provide large sample for accurate data

Program Management ◦ Development �Must be completed by Senior Marketing Manager. �Utilizing ideas by subordinate managers and employees ◦ Senior Leadership �Must approve, support and drive �Must change culture of company ◦ Implement �Launch customer focus program �Change mindset of employees