Transcript Gillette Case Study #1 - Ryan Dresher E

Stacey Cook
Ryan Dresher
Pam McEwen
Ashley Moss
Allan Murdock
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Introduction/Background
Marketing Management Profile
Competitive Profile
Environmental Opportunities and Threats
Profile (ETOP)
Marketing Capabilities Profile
Proposed Marketing Strategies
Conclusion
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Domain
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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
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Vision Statement
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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
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Mission Statement
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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
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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
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Rank
◦ According to Proctor & Gamble, Gillette currently
holds 71% of the global market
Weapons
◦ Innovative products
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Mach 3
Mach 3 Turbo
Fusion
Fusion Power
◦ Celebrity Spokespeople
 Tiger Woods
 Roger Federer
 Thierry Henry
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Competitive Structure
◦ Purely Competitive
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Competitive Forces
◦ Opportunity
 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
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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
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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
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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
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Technological Forces
◦ Opportunity
 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
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Socio-cultural Forces
◦ Opportunity
 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
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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
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Target Market #2
◦ Sports Fans
◦ Strengths- Gillette has been able to reach a
worldwide audience
◦ Weakness- Cheaper products available
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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
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Marketing Mix
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Product
◦ Strengths- Gillette has been able to expand its
product portfolio
◦ Weakness- Market has reached Maturity
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Price
◦ Strength- Brand name
◦ Weakness- Products cost considerably more than
the competition
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Distribution
◦ Strength- Products distributed globally
◦ Weakness- Competition is also available globally
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Promotion
◦ Strength- Gillette holds 71% of the industry’s
market share with a global market
◦ Weakness- US sales have decreased
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Alternative 1; Upcoming Trends
◦ Pros
 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
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Alternative 2; Continued Innovation
◦ Pros
 Marketing
 Update razor functions
 Keep quality up to date
◦ Cons
 Costs
 Raw materials
 R & D costs
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Alternative 3; Listen to customer
◦ Pros
 Make people share ideas
 Give them a chance to win prizes
◦ Cons
 Cost
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Alternative 4; Expand Globally
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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.
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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.
◦ Voice of customer
 Must understand and focus on what they need.
 The consumer knows what he needs
◦ Threats
 Little room for innovation
 Saturated Market
◦ Strengths
 Brand
 Loyal customers
 Large market
◦ 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 and get customers
interested in Gillette
 Giving large prizes gives socially friendly perception
 Large market will provide large sample for accurate
data
◦ 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