Running head: GILLETTE MARKETING CASE ANALYSIS
Marketing Case Analysis
Gillette Safety Razor Company
MGMT 530, Marketing Strategy
June 11, 2012
Tyler Brewer
Southwestern College Professional Studies
Pam McEwen
Ryan Dresher
Allan Murdock
Ash Moss
Stacey Cook
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Running head: GILLETTE MARKETING CASE ANALYSIS
Executive Summary
Gillette is known around the world as the manufacturer of quality razors, shaving cream
and other personal care products. This case study attempts to evaluate the past, current and
future marketing elements of the company. An Introduction and Background, Marketing
Management Profile, Competitive Profile, Environmental Opportunities and Threats Profile,
Marketing Capabilities Profile, Proposed Marketing Strategies and, finally, a Conclusion will
complete the analysis and show insight into the structure, ideas, and future possibilities of
marketing strategy within the company. The challenges of a mature market and limited
innovation opportunities and the strengths of brand loyalty and large existing market share are
major topics of this analysis. At the conclusion, there will be a recommendation of a future
marketing strategy for Gillette to consider.
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Running head: GILLETTE MARKETING CASE ANALYSIS
I.
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Introduction/Background
A. Company Business Profile
1. Domain
Gillette targets globally in all demographics and specializes in the development of
products in the following areas: Personal grooming, consumer portable power,
stationery and small electrical appliances.
2. History
Between the 1800s and 1900s, straight razors became very popular and coined the
golden era of the straight edge razor. Men went to barbers to have their mustaches
and beards trimmed. This American-European inspired style contributed to women
shaving as well. The need to shave created an opportunity in 1901 for King C.
Gillette to create the first safety razor with a replaceable blade. This razor was easy
to control and resulted in fewer nicks and cuts. Patented on November 15th 1904,
the safety razor soon overtook the
high maintenance straight edge razor as a
market leader. The safety razor’s popularity quickly favored the disposable razor
giving rise to Gillette’s increased utility and success with little competition until
Wilkinson Sword introduced the stainless-steel blade in 1962 (Ferrel and Hartline,
2011) .Thus, begun the razor wars. (See Appendix A 1901 -2010 Innovation
Timeline)
II.
Marketing Management Profile
A. Vision Statement
The Gillette Company’s Vision is to build Total Brand Value by innovating to
deliver consumer value and customer leadership faster, better and more completely
than our competition. This Vision is supported by two fundamental principles that
provide the foundation for all of our activities: Organizational Excellence and Core
Values.
Attaining our Vision requires superior and continually improving performance in
every area and at every level of the organization.
Our performance will be 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
Running head: GILLETTE MARKETING CASE ANALYSIS
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workforce of the highest caliber. To support this Quest, each function employs
metrics to define, and implements processes to achieve, world-class status (Proctor
and Gamble, 2012).
B. 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 long-term 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 (Proctor and
Gamble, 2012).
C. Value Statement
As we work toward our Vision, three core Values define the way we operate.
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 (Proctor and Gamble, 2012).
Running head: GILLETTE MARKETING CASE ANALYSIS
III.
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Competitive Profile
A. Rank
According to Proctor & Gamble, Gillette currently holds 71% of the global
market.
B. Weapons
2010 Gillette introduces Gillette Fusion® ProGlide™ and Gillette Fusion®
ProGlide™ Power shaving systems. The breakthrough shaving technology of
Gillette Fusion ProGlide includes blades with 15% thinner, finer blade edges that
Effortlessly glide through hair and over skin for increased comfort.
2008 Gillette announces Gillettes Champion ambassador-baseball icon, Derek
Jeter.
2007 Gillette announces that Tiger Woods, Roger Federer, and Thierry Henry will
take on a role as brand ambassadors: the Gillette Champions.
2005 Gillette expands the M3Power line with the introduction of the sleek black
and green M3Power Nitro, inspired by high performance vehicles.
2005 Gillette introduces MACH3 Comfort Gel, a shave gel with Anti-Friction
properties to provide the best glide available.
2005 Gillette launches the Gillette Fusion® shaving system with manual and
power razors and a complete line of pre- and post-shaving products. Gillette
Fusion razors are the first to feature innovative technologies both on the front and
back of the blade cartridge, with a five-blade Shaving Surface™ on the front of
the cartridge and a Precision Trimmer on the back.
2004 Gillette introduces M3Power® – the first micro-powered wet shaving
system for men – making it easier to shave more thoroughly with one easy power
stroke (Proctor and Gamble, 2012).
C. Competitive Structure
Gillette’s competitive structure is pure competition. Long rivalries exist between
Gillette, Schick and Bic all of whom carry a similar product mix. Niche
competitors carry classic type straight razors, safety razors and classic style
shaving creams, soaps and aftershaves.
Running head: GILLETTE MARKETING CASE ANALYSIS
IV.
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Environmental Opportunities and Threats Profile (External Uncontrollable Elements)
The Marketing Environment
A. Opportunities and Threats
Competitive Forces
Opportunity:
Gillette is now under the ownership and guidance of Proctor & Gamble. This has
allowed the company to develop into the world’s premiere leader of grooming
products as the company has used its leverage with P&G to develop marketing
programs.
Threat:
Due to competitive 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. Gillette’s razor war with Schick has left both companies
with almost no new products to develop.
Economic Forces
Opportunity:
During the economy woes of 2008, Gillette launched an advertising campaign that
reminded consumers of the value possessed by Gillette’s products.
Threat:
Despite Gillette’s campaign, consumers used different brands due to their lower
prices. As a result, Gillette lost some of its market share. Gillette may lost more
market share as the economy is still shaky.
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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 it supports a candidate that a
consumer does not like.
Legal and Regulatory Forces
Opportunity:
Gillette has the opportunity 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.
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.
Sociocultural Forces
Opportunity:
Women in different areas of the world are beginning to shave as Americans do.
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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.
B. Implication Statement
Gillette is now under the control and direction of Proctor & Gamble. This has
created an opportunity for the company as Proctor & Gamble serves 4.4 billion
consumers around the world and is the multinational manufacturer of 50
leadership brands (Proctor and Gamble, 2012). This has provided Gillette with
more leverage within the industry. Saturation of the US market has forced
Gillette to expand in other areas. This includes Gillette’s global marketing
campaign and its goal to enter into previously untapped markets. The world’s
economy has resulted in a loss of income for the shaving leader. As a result,
Gillette has addressed the situation by tailoring its advertisements to concentrate
on price strategies. To date, the company has not become involved with any
political forces. Gillette will need to be considerate of sociocultural and legal
forces as global expansion is continued. Use of technological forces can assist in
this regard.
V.
Marketing Capabilities Profile
A. Strengths and Weaknesses
Target Market(s)
Identification
Gillette targets globally in all demographics
Target Market #1: Men over the age of 15 and women over the age of 13 in the US
Strength:
Within the US, 94 million men shave. 83% of these men prefer to wet shave with
a razor. Within the US, 100 million women age 13 and up remove hair in some
way. 94% of these women prefer the use of a razor blade (Ferrel and Hartline,
2011).
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Weakness:
There is a lot of competition within this industry. Although, Gillette dominates
the industry, the competition has provided products that perform as well as
Gillette’s do but that are also more affordable.
Target Market #2: Men and women living in countries outside the US
Strength:
1.3 billion men shave worldwide. Technology has influenced women living
outside of the US to begin shaving (Ferrel and Hartline, 2011).
Weakness:
15% of men living around the world do not shave due to discomforts associated
with shaving. 7% of men living around the world do not shave due to religious
reasons and 3% do not care to shave. Gillette must consider this information
when marketing globally (Ferrel and Hartline, 2011).
Target Market #3: Sports fans
Strength:
Gillette has been able to reach a worldwide audience due to its sponsorship of
athletic activities. 60% of Gillette’s sales is now generated outside the US. The
company’s reputation and image has doubled as a result of this added exposure
(Ferrel and Hartline, 2011).
Weakness:
A lot of these fans tend to purchase cheaper brands as there is a lot of competition
within the industry.
Marketing Mix
Product
Strengths:
Gillette has expanded its product portfolio to include hair and body products in an
effort to provide consumers with the full “shower experience.” The launch of
these new products has resulted in an increase of market share and reinforced
Gillette’s standing as the industry’s leader in male grooming.
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Weaknesses:
The wet-shaving market has reached maturity and Gillette must find a way to hold
on to its market share.
Price
Strengths:
Gillette has a strong brand name. Some consumers are loyal to the brand and
willing to pay more for the Gillette name.
Weaknesses:
Gillette’s products are typically higher than the competition’s. An example of
this would be Gillette’s Fusion Power vs. Schick’s Quattro Titanium and
Gillette’s own Mach 3..The razor is approximately $2 more and the cartridge refills are approximately $1 more per cartridge. According to Consumer Reports,
Fusion is no better than the Mach 3. Yet, it costs considerable more. In addition,
Gillette sales figures showed that the company was selling more razors than
cartridge refills. Within the industry, razor manufacturers normally earn the
majority of their income from the sale of cartridge refills (Ferrel and Hartline,
2011).
Distribution
Strengths:
Gillette products are distributed globally and may be found in nearly store.
Weaknesses:
The competition is also available in these stores and consumers often buy their
products over Gillette products.
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Promotion
Strengths:
Gillette has concentrated on promoting its products globally. As a result it has
successfully blurred the lines of nationality, language, and ethnicity as consumers
the world over become familiar with the Gillette brand. Globally, Gillette now
holds 71% of the industry’s market share.
Weaknesses:
Sales with the US have slowed down and has resulted in a loss of billions of
dollars.
VI.
Proposed Marketing Strategies
A. Alternative 1
Capitalize on upcoming trends
Pros
Making use of what society has to offer, and capitalize on it, to insure that profits
can continue. Market to what the population dictates. Be consumer friendly.
Cons
What society wants or what the next fad is to society, and integrating themselves
in the fad. It may last a long time, or be a bleep in a short time.
B. Alternative 2
Continued innovation
Pros
Use marketing innovations, and update the razor functions to improve quality to
show the target markets that they are proven to bring quality to the consumer.
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Cons
The costs associated with these actions could allow costs overruns in the
marketing, and improvements through raw materials.
C. Alternative 3
Listen to the voice of the customer through the web. Launch a new campaign to
have the target markets give Gillette new ideas for razors, deodorants and
bodywash and reward them heavily for it. Give them trips around the world, free
products and cash.
Pros
Makes people want to get on and share ideas, especially for a chance to win a trip.
Gets consumers thinking intimately about the product.
Cons
Will cost a lot initially.
VIII. Conclusion
A. What alternative was Selected
In order to exceed the expectations of our external customers, as mentioned in the
company’s value statement, Gillette must focus on, and understand, the voice of
the customer. Alternative 3 most closely meets the marketing objectives of the
company with regard to the marketing opportunities, threats, strengths and
weaknesses. Given the saturation of the current target markets and the limited
possibility of practical innovation, the voice of the customer will be the
benchmark for future marketing strategy. With an aggressive campaign to
understand what loyal customers and prospective customers need from Gillette,
the firm will be able to more effectively delight those markets. Additionally, with
the possibility of young European generations leaning on Western culture for
future shaving styles, the culture should be well understood. Gillette should
launch the campaigns globally.
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B. Will there be a different Marketing Concept
Until now, Gillette has relied more on innovation and improvements in product
mix to gain market share. Although there has most likely been some focus on
feedback and customer surveys, a more aggressive campaign will be required to
truly understand the consumer and his and her needs. Men and Women in many
different cultures are customers of Gillette. With such a large target market, a
marketing program to fulfill the requirements of understanding the voice of the
customer is going to require a large investment in resources of capital and
employees. The results of this campaign will be critical to the future of Gillette
products and sales.
C. Will there be a Revised Marketing Program and how will the plan be managed
The marketing program will need to be revised by the Senior Marketing member
of the company. This program should be reviewed and agreed on and fully
supported by the rest of the Senior Leadership Team. Without the support of
these key players, the marketing program may fizzle out early or be trumped in
priority by other agendas. With the Senior Leadership Team driving the
campaign and possibly even tweaking the mission and vision statements to more
align with concerns about the voice of the customer, the marketing program will
become culture within the company, changing the mindset of all Gillette
employees to consider the customer in their everyday job duties. The program
could be carried out in two parallel phases. The aggressive marketing campaign
via the internet will bring in ideas and needs of the consumers and also understand
more about the demographics, psychographics and habits of each target market,
possibly even revealing new markets. The second, yet concurrent phase would be
a campaign to align employees with the consumers needs and desires. This
marketing program will effectively drive innovation with a purpose and
practicality.
Running head: GILLETTE MARKETING CASE ANALYSIS
References
Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. (5th ed.). Mason, OH: Southwestern Cengage Learning.
Proctor & Gamble. (2012). P&g. Retrieved from www.pg.com/en_US/company/index.shtml
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Appendix A
http://news.gillette.com/about/timeline
Gillette Time line
2010

2010
Gillette introduces Gillette Fusion® ProGlide™ and Gillette Fusion® ProGlide™ Power shaving systems. The
breakthrough shaving technology of Gillette Fusion ProGlide includes blades with 15% thinner, finer blade edges that
effortlessly glide through hair and over skin for incredible comfort.
2000s
2000

2008
Gillette announces Gillette Champions ambassador—baseball icon, Derek Jeter.

2007
Gillette announces that Tiger Woods, Roger Federer, and Thierry Henry will take on a role as brand ambassadors:
the Gillette Champions.
more...

2005
Gillette expands the M3Power line with the introduction of the sleek black and green M3Power Nitro, inspired by highperformance vehicles.

2005
Gillette introduces MACH3 Comfort Gel, a shave gel with Anti-Friction properties to provide the best glide available.

2005
Gillette launches the Gillette Fusion® shaving system with manual and power razors and a complete line of pre- and
post-shaving products. Gillette Fusion razors are the first to feature innovative technologies both on the front and
back of the blade cartridge, with a five-blade Shaving Surface™ on the front of the cartridge and a Precision Trimmer
on the back.

2004
Gillette introduces M3Power® – the first micro-powered wet shaving system for men – making it easier to shave more
thoroughly with one easy power stroke.

2004
Running head: GILLETTE MARKETING CASE ANALYSIS
Gillette introduces the Sensor3 refillable triple-bladed shaving system to the Sensor family of razors.

2003
Gillette introduces the premium triple-bladed Sensor3 disposable razor to the Sensor family of razors.

2001
Gillette introduces MACH3Turbo® featuring new blade edge technology that delivers the closest and most
comfortable shave with less irritation, even when shaving against the grain.
1990s
1990

1998
Gillette’s MACH3® shaving system, the first triple-blade shaving system, "breaks the performance barrier."

1994
Gillette introduces SensorExcel featuring five flexible microfins for a closer shave.

1992
Gillette launches Gillette Series line of shaving products with its signature Cool Wave fragrance.
1980s
1980

1989
Gillette introduces Sensor, the first razor with spring-mounted twin blades.

1986
Gillette introduces the first disposable razor with a lubricating strip – Good News! Plus.

1985
Gillette introduces the first razor with a lubricating strip – Atra Plus.
1970s
1970

1977
Gillette introduces Atra, the first razor with a pivoting head.
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Running head: GILLETTE MARKETING CASE ANALYSIS

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1976
Gillette introduces Good News!, the first twin blade disposable razor for men.

1971
Gillette introduces Trac II, the first twin-blade shaving system.
1960s
1960

1969
Gillette introduces platinum chromium coating of blades, designed to enhance corrosion resistance.

1963
Gillette introduces a coated stainless steel blade – Gillette Super Stainless.

1960
Gillette introduces the Super Blue Blade featuring a silicone coating.
1950s and Earlier
1950

1957
Gillette introduces an adjustable razor with three settings – for light, medium and heavy beards.
more...

1946
Gillette introduces the first blade dispenser –the Gillette Blue Blade Dispenser – and eliminates the need to unwrap
blades.
more...

1938
Gillette introduces the Gillette Thin Blade.

1932
Gillette introduces the Gillette Blue Blade.

1904
Running head: GILLETTE MARKETING CASE ANALYSIS
Gillette receives the first U.S. patent on the safety razor, sales soar to 90,000 razors and 12 million blades.
more...

1903
Gillette manufactures the first safety razor. By year’s end, Gillette sells 51 razor sets and 168 blades.
more...

1901
King C. Gillette invents the safety razor with disposable blades.
more...
(Ferrel and Hartline, 2011)
(Proctor and Gamble, 2012)
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