Gillette Case Study #1 - Ryan Dresher E

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Stacey Cook

Ryan Dresher

Pam McEwen

Ashley Moss

Allan Murdock

Introduction/Background

Marketing Management Profile

Competitive Profile

Environmental Opportunities and Threats

Profile (ETOP)

Marketing Capabilities Profile

Proposed Marketing Strategies

Conclusion

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

Rank

◦ According to Proctor & Gamble, Gillette currently holds 71% of the global market

Weapons

◦ Innovative products

 Mach 3

 Mach 3 Turbo

 Fusion

 Fusion Power

◦ Celebrity Spokespeople

 Tiger Woods

 Roger Federer

 Thierry Henry

Competitive Structure

◦ Purely Competitive

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

Economic Forces

◦ Opportunities

 During the economy woes of 2008, Gillette launched an advertising products campaign that reminded consumers of the value possessed by Gillette’s

◦ Threats

 Despite Gillette’s campaign, consumers used different brands due to their lower prices

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

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

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

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

Target Market #1

◦ Men over 15 YRO, women over 13 YRO in US

◦ Strength - Millions of both men and women shave

◦ WeaknessGillette needs to maintain and research current information

Target Market #2

◦ Sports Fans

◦ StrengthsGillette has been able to reach a worldwide audience

◦ WeaknessCheaper products available

Target Market #3

◦ Men and Women residing in countries outside of the United States

◦ StrengthsTechnology does have an impact

◦ WeaknessGillette must take in account religious and socio cultural impacts

Marketing Mix

Product

◦ StrengthsGillette has been able to expand its product portfolio

◦ WeaknessMarket has reached Maturity

Price

◦ StrengthBrand name

◦ WeaknessProducts cost considerably more than the competition

Distribution

◦ StrengthProducts distributed globally

◦ WeaknessCompetition is also available globally

Promotion

◦ StrengthGillette holds 71% of the industry’s market share with a global market

◦ WeaknessUS sales have decreased

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

Alternative 2; Continued Innovation

◦ Pros

 Marketing

 Update razor functions

 Keep quality up to date

Cons

 Costs

 Raw materials

 R & D costs

Alternative 3; Listen to customer

◦ Pros

 Make people share ideas

 Give them a chance to win prizes

Cons

 Cost

Alternative 4; Expand Globally

◦ Pros

 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.

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

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