The Gillette® Fusion® ProGlide™ Power Razor is Gillette’s most advanced blade ever.

Thinner, finer
blades* with a low-resistance coating glide effortlessly through hair for less tug and pull, providing
incredible comfort, even if you shave every day.

Try Gillette Fusion ProGlide today; after one shave, you’ll stop shaving and start gliding

Company profile

Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in its portfolio
GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands and has carved a
reputation for delivering high quality, value-added products to meet the needs of consumers.

COMPANY HISTORY:

Incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited, its products
speak for themselves. The company is always been known for the strength of its brands, and always
continues to penetrate deeper into the hearts of Indian Consumers.

In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII Shaving System
and second was shaving cream with three variants. This was the First time that a shaving cream was
introduced in Indian markets with special features.

In the Year 1991-92, the company launched new technology Gillette products.

In the year 1992-93, the company launched the first advanced shaving product under the Gillette brand
name Gillette Presto ready shaver all over India. The company earned distinction of being included for the
first time in the top 100 companies in India, in terms of Market capitalization as published in Business
today.

In the year 1993-94, with the launch of Gillette Presto Ready shaver in February 1993, the company
commenced the launch of Gillette Shaving Products in India.

In the year 1995-96, launch of 7 0'Clock Ready II ready shave and relaunch of shave cream in two
variants, further strengthened the Brand name. During the year the company also launched under a
distribution arrangement tooth brushes under a well known international brand name Oral-B, which met
good success.

In the year 1996-97, the company launched the latest state-of-the-art Gillette Sensor Excel shaving
systems which met excellent consumer response. With the launch of these various products, the portfolio
of Gillette branded products has increased significantly.

In the year 1997, the company launched World renounced Gillette Sensor Excel for Women shaving
system, which met great response. It also launched Gillette Shave foam which was met with good
consumer response.

In the year 1998, the company successfully launched the Gillette Series range comprising Shave gel,
Shave Foam, After Shave Splashes, Conditioners and Deodorants, thereby making it the premier male
grooming company
In the year 1999, the company introduced Gillette Series shave gel tube and Gillette Sensor Excel single
cartridge pack. Also successfully launched Cool wave and Wild Rain range of personal grooming
products under the Gillette series line. In the First month of new Millennium, the company launched
Gillette Mach 3.

In the year 2000, the company launched successfully Gillette Sensor Excel for women grooming
category, and also launched Pacific Light. It also launched Geep Laserlite, a Sport flashlight. Company
successfully consolidated Duracell and Wilkinson business to leverage distribution strengths with mega
displays and sales promotion.

In the year 2001, the company launched the Gillette Series Arctic Ice Line of products during the first half
and undertook a series of very successful consumer promotions across product lines. It also launched the
Gillette Series Satin Care for Women Wild Berry Line, the Cool Blue Mach 3 and Gillette Centennial
Packs during the course of the year. Gillette India was ranked amongst the Top Ten Best Employers of
India in Best Employers of India conducted by Hewitt Associates and Business Today magazine.

In the year 2002, this was the year of turnaround for the company. In the first Quarter of 2003 unveiled a
whole new range of premium displays and POS of Duracell to establish leadership in Alkaline batteries
segment. The company made history by bringing the FIFA World Cup Champions Trophy to India for the
first time.

In the year 2003, Company successfully relaunched Gillette Foam in 4 Variants .Duracell also launched
its Ultra M 3 AA batteries, which was well received by consumers. Oral Care launched Power Oral Care
brushes, which were well received in the market. Towards the End of 2003, Company launched Gillette
Vector Plus.

In the year 2004, the Company launched Storm Force, a revolutionary after shave splash and New Ultra
Comfort Shaving Gel .In the fourth Quarter, Company launched two new Gillette Series Tube Shave Gel
variants, namely for Sensitive skin and Moisturizing, to suit different skin types.

In the year 2005, Company launched ?New Improved Gillette Vector Plus featuring all new contemporary
look. The Gillette Company, USA was acquired worldwide through merger in October, 2005 by Procter&
Gamble Company, USA creating the largest Consumer products Company in the World.

In the year 2006-2007, Company launched Gillette Presto Plus for more discerning consumers. Oral B
brand launched Oral B Vision and Kid in Premium Market Segment.

In the year 2007-2008, Company launched The Gillette Winners program that had sports legends Roger
Federer, Thierry Henry and Tiger Woods and Rahul Dravid. An innovative program "Free Dental Check
up" was organized to enable consumers to benefit from expertise of professional dentists at no cost. Oral-
B brand launched a new variant "Shiny Clean" targeted at the value segment.
Brands

Adds

Corporate social responsibility

P&G launches SHIKSHA'08

You can now help educate more Underprivileged children via simple brand choices.P&G
committs Rs. 1 crore. to its partner CRY, which will be allocated to projects focused on enabling
the child's right to education. Project Shiksha is part of P&G's global philanthropy program P&G
Live, Learn and Thrive that focuses on the development of children in need across the globe,
with Education of Children via Shiksha being the priority in India. Till Date, Shiksha has set
67,000 children across 435 communities on the path to the right to education with a donation of
over Rs.4 crore.
Hyderabad, Andhra Pradesh, April 14, 2008 /India PRwire/ -- ‘P&G announces Shiksha’ school
eduction program of underprivileged children in India. After helping lead over 67,000 children on
the path of education over the last 4 years, Procter & Gamble in partnership with Child Rights
and You is back again with SHIKSHA 2008.

India has the world’s largest number of children out of school. Every child in India has the right
to free, quality education, but still approximately one out of every two children, (close to 200
million) do not go to school. Even as the economy continues to grow at a fast pace, statistics
indicate that there are many challenges like poverty that will need to be taken in stride if this
growth is to be sustained. In an attempt to make a difference is when Procter & Gamble in
partnership with Child Rights and You, launched Shiksha, a National Consumer Movement now
running in its 4th year.

Shiksha, P&G’s Corporate Social Responsibility Program makes it easy for all consumers to
help educate underprivileged children by simply buying any of P&G’s large packs of Tide, Ariel,
Pantene, Olay, H&S, Rejoice, Vicks VapoRub, Whisper, Gillette Mach 3 Turbo, Gillette Series,
Oral B, Duracell or Pampers in the months of April, May & June ‘08. With a motto of ‘Padhega
India, Badhega India’ Shiksha believes that the secret to a Brighter India lies in the quality
education of our children. In this endeavour with us to bring Shiksha to life is key NGO partner
CRY.

Project Shiksha is a national consumer program that allows consumers to participate in a

national effort to support the education of underprivileged children in India via simple brand
choices. However, Irrespective of sales, P&G has committed a minimum of Rs. 1 cr. to its
partner CRY, which will be allocated to projects focused on enabling the child’s right to
education.

Project Shiksha is part of P&G’s global philanthropy program P&G Live, Learn and Thrive that
focuses on the development of children in need across the globe, with Education of Children via
Shiksha being the priority in India. Till Date, Shiksha has set 67,000 children across 435
communities on the path to the right to education with a donation of over Rs.4 crore. With the
help of CRY, the Shiksha projects include ones that work with the State Education Departments
to re-look at existing education policies; create awareness to build more schools with better
infrastructure and basic amenities like water, electricity, health; enroll more children into formal
schools and promotion of retention in schools; and build all-round development of children.

Informing about Shiksha, Shantanu Khosla, Managing Director, P&G India said, "As the
economy grows at 8-10% levels, we need to ensure that we lay down a strong foundation for
this growth to continue by investing in our future generation. In that context, education becomes
a fundamental issue that needs to be addressed. P&G globally is committed to the cause of
development of children in need via its corporate cause P&G Live, Learn, Thrive and Shiksha is
our response to the situation in India. Shiksha is unique because it empowers the consumer to
make a difference simply by choosing to buy quality products from P&G. Shiksha is not just an
initiative of one corporate and an NGO but a passion we as an organization strongly believe in.
‘Padhega India’ Tabhi tho ‘Badhega India’."

Irwin Fernandes, Director Western Region, Child Rights and You said, "The financial support
P&G, its media partners and consumers provide to CRY’s work is invaluable. Even more critical,
however, is the awareness of child rights that Shiksha helps create and the avenues it provides
for each of us to bring about change with social justice. India will only achieve her true potential,
when we make child rights our topmost national priority. To do this we have to go beyond
schemes and programs to address the real obstacles to growth – caste, class, gender and
governance. P&G’s choice to go beyond tokenism, to partner CRY and take the challenging
route is truly inspiring. I urge every Indian citizen to stand up for child rights.

Shiksha Supporter and Award Winning Actress Kajol said, "Shiksha, education, is one of the
most critical factors deciding the choices that life offers to a child. However, millions of children
in this country today are being deprived of this very important opportunity because quality
education is only possible when every child has adequate nutrition, proper healthcare, can live
in safe surroundings, is free to study, rest and play, and doesn’t have to work for a living. I
support project Shiksha in its endeavours to make a difference.

Shiksha Supporter and Veteran Actress Sharmila Tagore said, "I believe education plays a
fundamental role in shaping a citizen and leads the country to greater heights. In that sense,
education can be the foundation for an India we seek today where every child explores his or
her full potential and has the right to do so. Therefore, it is heartening to know that people like
you helped support the education of 67000 children last year. I urge people across India to
participate in Shiksha and make a tangible difference to the lives of the little ones."

Shiksha supported projects in 2006 – 2007. 1. JAAG (Mumbai, Ratnagiri, and Raigad,
Maharashtra), 2.Lokhit Samajik Vikas Sanstha (Osmanabad, Maharashta), 3. The Association
of People with Disability (Kolar, Karnataka), 4.Adhar (Bolangir, Orissa), 5.Mandra LC (Purulia,
WB), 6. Paridhi (Bihar), 7. Judav (Madhupur, Jharkhand), 8.Jan Shikshan Kendra (UP), 9. Jan
Mitra Nyas (Varanasi, UP), 10.Hanuman Van Vikas (Udaipur, Rajasthan), 11.Doaba Vikas
Evam Utthan Samiti (Kaushambi, U.P.

1. JAAG (Mumbai, Ratnagiri, and Raigad, Maharashtra), 2.Lokhit Samajik Vikas Sanstha
(Osmanabad, Maharashta), 3. The Association of People with Disability (Kolar, Karnataka),
4.Adhar (Bolangir, Orissa), 5.Mandra LC (Purulia, WB), 6. Paridhi (Bihar), 7. Judav (Madhupur,
Jharkhand), 8.Jan Shikshan Kendra (UP), 9. Jan Mitra Nyas (Varanasi, UP), 10.Hanuman Van
Vikas (Udaipur, Rajasthan), 11.Doaba Vikas Evam Utthan Samiti (Kaushambi, U.P)‘P&G
announces Shiksha’ school eduction program of underprivileged children in India. After helping
lead over 67,000 children on the path of education over the last 4 years, Procter & Gamble in
partnership with Child Rights and You is back again with SHIKSHA 2008

Gillette Children's Specialty Healthcare is an independent, not-for-profit hospital located in St.

Paul, Minnesota, with clinics in Duluth, Burnsville, Maple Grove, Minnetonka, and services for adult
patients at our St.Paul - Phalen Clinic. Gillette is internationally renowned for a level of pediatric expertise
that distinguishes us from many health care organizations

Gillette Children's Specialty Healthcare

 St. Paul Campus
o 183 - Administration Building
 St. Paul - Phalen Clinic 
 Brainerd Lakes Clinic
 Burnsville Clinic
 Duluth Clinic
 Maple Grove Clinic
 Minnetonka Clinic
 Willmar Clinic

Gillette brands

Gillette is a brand of Procter & Gamble currently used for safety razors, among other personal
care products. Based in Boston, Massachusetts, it is one of several brands originally owned by
The Gillette Company, a leading global supplier of products under various brands, which was
acquired by P&G in 2005. Their slogan is "The Best a Man Can Get". The original Gillette
Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer.

On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a
result of this merger, the Gillette Company no longer exists. Its last day of market trading—
symbol G on the New York Stock Exchange—was September 30, 2005. The merger created the
world's largest personal care and household products company. In addition to Gillette, the
company marketed under Braun, Duracell and Oral-B, among others, which have also been
maintained by P&G.
The Gillette Company's assets were initially incorporated into a P&G unit known internally as
"Global Gillette". In July 2007, Global Gillette was dissolved and incorporated into Procter &
Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household
Care. Gillette's brands and products were divided between the two accordingly.

Safety razors A safety razor is a razor that protects the skin from all but the very edge of the
blade. These razors eliminate the possibility of serious injury, which makes them more forgiving
than a straight razor.

History
Before the first safety razor

Before the invention of the first safety razor, most men used a straight razor. These razors are
available from several different manufacturers; but they are not very popular, because they
require more skill and attention to use properly

Invention

The first safety razor was invented in the late 18th century by a Frenchman, Jean-Jacques Perret,
who was inspired by the joiner's plane. As an expert on the subject, he also wrote a book called
Pogonotomy or the Art of Learning to Shave Oneself. In the late 1820s, a similar razor was made
in Sheffield, England. From the 1870s, a single-edge blade, mounted on a hoe-shaped handle,
was available in Britain and Germany. One of the rarest[citation needed] European razors was made by
"Comfort"[1] and, while this was not a true safety razor, it remains a landmark in razor design.
[citation needed]
None of these razors is considered a true safety razor.

Described as a razor in which "a small blade is held in a suitable frame and provided with a
guard to prevent the edge of the razor from cutting into the skin", the first American safety razor
was patented in 1888 by the Kampfe Brothers.[2] The new razor featured a wire skin-guard along
the razor’s edge. Only one edge of the blade is used to shave, and it must be removed often for
sharpening.
World War I

During World War I, Gillette worked out a deal with the U.S. Armed Forces to provide Gillette
safety razors and blades to every enlisted man or officer on his way to Europe as part of his
standard-issue gear. By the end of the war, some 3.5 million razors and 32 million blades were
put into military hands, thereby converting a substantial portion of young men to the Gillette
safety razor.

Switch to stainless steel

Gillette TV advertisement from the 1950's showing a man shaving.

Gillette manufactured carbon steel blades until the 1960s. These rusted quickly and required the
user to change blades frequently. In 1965, the British company Wilkinson Sword began to sell
blades made of stainless steel, which did not rust and could be used repeatedly until blunt.
Wilkinson quickly captured the British and European markets, and Gillette was forced to switch
its production lines to stainless steel to compete. Today, almost all razor blades are stainless
steel. The carbon-steel blade remains available; its modern version does not rust if it is rinsed in
alcohol after each shave. Because Gillette held the patent for the stainless blades but had not
acted on it, the company was accused of exploiting customers by forcing them to buy the rust-
prone blade.[3]

Single-edge razors

A less common variety of the safety razor is the single-edge razor. This razor is so named
because the blades have a single edge rather than double edges. These razors, although not in use
as much as they were in the 20th century, are still available worldwide. The most common of the
single-edge razors were made by the American Safety Razor Company under the name Ever-
Ready using its "'Radio' Blades"; the company also produced a shaving brush, which it called
"The Honest Brush". Another was the Gem Safety Razor Company under the name "Gem
Damaskeene Razor". It is possible to use common hardware-store blades for shaving, although
most shavers use blades that are made specifically for shaving.
Modern safety razors
Double-edged safety razors

A traditional double-edged razor blade, with its typical recognizable shape

Until the early 1970s, most safety razors were manufactured to accept a single, disposable razor
blade. These blades were manufactured with either one or two sharpened edges, depending upon
the design of the razor. This style of razor is made by a number of companies such as Merkur,
Treet, Weishi, and Parker. The blades are still being made today in a wide variety of countries
including the USA, Israel, Russia, Korea, Japan, and Egypt. Some of the brand names include
Merkur, Feather, Racer, Bigben, Lord, Treet and Bic.

Availability today

The 1961 Gillette Adjustable razor (commonly called the "Fatboy")

Single blade razors new and old are actively traded through auction sites and some shavers prefer
them. Single-blade safety razors come in a variety of configurations including the classic
sandwich type, adjustable, and the Twist to Open (TTO) model. The sandwich type has a head
that may be unscrewed from the body of the razor and disassembled for inserting a new blade.
Adjustables may also be sandwich type, but typically have a ring below the head of the razor that
may be adjusted to allow for greater or lesser blade exposure, which affects the level of
aggressiveness of the shave. TTO razors require the user to twist a knob at the bottom to open
butterfly doors where the blade is. Two popular TTO razors are the Gillette Super Speed and
Schick Krona. Safety razor blades are available from a variety of makers throughout the globe
including the American Safety Razor Company (ASRCO), Merkur, Derby, Feather, Bic, Dorco,
Treet, Croma, Lord, and Gillette.
Cartridges introduced

An innovation was the replaceable blade cartridge containing the blade which reduced the risk of
the user receiving a cut from the unprotected blades used up until then. These took the form of a
cartridge, with the blade fixed within a plastic enclosure of the type still in use today. In 1965
Gillette introduced the Techmatic razor which utilized a cartridge with a steel strip that could be
wound forward to expose a fresh section of new blade.

Twin blades

Circa 1971, Gillette introduced the Trac II, designed by Francis Dorion, which was the first
mass-produced multi-blade razor available in the United States. Rather than accepting standard
razor blades, this razor was fitted with a proprietary disposable blade cartridge containing two
separate blades. The claim is that research shows that twin blades give a closer shave than single,
because of hysteresis — the first blade tends to pull the hair, and the hair is unable to retract into
the skin before the second blade cuts it, resulting in a closer shave. Whether, or the degree to
which this works, is debatable.[4]

By controlling patents on the Trac II razor, Gillette was able to assure repeat sales of its multi-
blade cartridges for use in its razor. This was a natural extension of the razor-and-blades sales
philosophy. Gillette was able to sell these cartridges at a higher price than the single blades,
leading to higher profits. Competitors Schick and ASRCO were quick to follow this change,
introducing their own multi-blade razors.

Gillette subsequently introduced the Atra twin-blade razors (known as Contour in many parts of
the world), which featured a pivoting razor head that the company claimed would more closely
follow the shape of the face. The Trac II Plus and Atra Plus blades introduced later incorporated
a "lubricating strip".

Gillette followed the Atra system with the Sensor system, which featured twin blades that were
individually spring-loaded to adjust to the contours of the face. The Sensor system was later
modified as the SensorExcel system.

Disposable razor

The next innovation came with the introduction of the Bic disposable razor in 1974. Instead of
being a razor with a disposable blade, the entire razor was manufactured to be disposable.
Gillette's response was the Good News disposable razor which was launched on the US market
in 1976 before the Bic disposable was made available on that market.[5] Shortly thereafter,
Gillette modified the Good News construction to add an aloe strip above the razor, resulting in
the Good News Plus. The purported benefit of the aloe strip is to ease any discomfort felt on the
face while shaving. Plastic disposable razors and razors with replaceable disposable blade
attachments, often with two or three cutting edges (but sometimes with four and as of recently,
five cutting edges), are in common use today.
3- and 4-blade cartridges introduced

Gillette introduced the first triple-blade cartridge razor, the Mach3, in 1998, and later upgraded
the Sensor system by adding a third blade to create Sensor3. This escalated the "arms race" with
rival Schick/Wilkinson Sword. The marketing competition for blades in a cartridge has been
parodied since the 1970s. The debut episode of Saturday Night Live in 1975 included a parody
advertisement for the Triple Trac Razor, shortly after the first two-blade cartridge for men's
razors was advertised. In 2004, a satirical article in The Onion entitled "Fuck Everything, We're
Doing Five Blades" predicted the release of five-blade cartridges,[6] two years before their
commercial introduction.[7]

Schick/Wilkinson responded to the Mach3 with the Quattro, the first four-blade cartridge razor.
These innovations are marketed with the message that they help consumers achieve the best
shave as easily as possible. Another impetus for the sale of multiple-blade cartridges is that they
have high profit margins.[8] With manufacturers frequently updating their shaving systems,
consumers can become locked into buying their proprietary cartridges, for as long as the
manufacturer continues to make them. Subsequent to introducing the higher-priced Mach3 in
1998, Gillette's blade sales realized a 50% increase, and profits increased in an otherwise mature
market.[8]

Recent developments

Gillette Fusion razor cartridge.

The latest razor introduced by Gillette is the Gillette Fusion brand shaving system, which utilizes
a five-blade cartridge razor with an additional single blade for trimming. An entire line of
shaving products were introduced as part of the Fusion brand system.

Gillette has also produced powered variants of the Mach3 (M3Power, M3Power Nitro) and
Fusion (Fusion Power and Fusion Power Phantom) razors. These razors accept a single AAA
battery which is used to produce vibration in the razor. This action, as advertised by Gillette, was
intended to raise hair up and away from the skin prior to being cut. These claims were ruled in
court as "unsubstantiated and inaccurate."[9] Schick also offers a powered version of their Quattro
product called the Schick Quattro Power.
In 2008 British company King of Shaves launched in the United Kingdom the 4-blade Azor, a
so-called "hybrid synergy system razor" that they claimed to shave as close as rival products.
The Azor uses a much simpler two-shot construction method than other system safety razors and
the handle is made in the UK. The Azor has a flexible hinge instead of a pivoting head used by
other razors. King of Shaves claimed that the number of blades is not strictly important, it is the
sharpness and cleanliness of the blades that is important to getting a close shave. The Azor has
now been launched in the USA at Duane Reade.

As of January 2011, the Dutch supermarket chain Albert Heijn sells, under its store brand, six-
blades razor cartridges.

Difference between men's and women's razors

Woman's razor with disposable blades

Razors are generally marketed in men's and women's versions; the exact difference between the
two varies from color only for most disposable razors to completely different design principles.
By and large, men's and women's razor blades and disposable razors are interchangeable;
however, there is sometimes a difference in ergonomics; women's razors either have a longer
handle for longer reach or a paddle-shaped handle to allow for a lengthwise grip. Specialized
handle designs also exist, for shaving such areas as the underarms or the bikini line.

Newer products

 Trac II was the world's first two-blade razor, debuting in 1971. Gillette claimed that the
second blade cut the number of strokes required and reduced facial irritation.
o Trac II Plus is an identical model but adds a lubricating strip at the top of the
blade. The blades and handles are interchangeable.

The European versions of the Trac II and Trac II Plus are known as the GII and GII Plus
respectively.

 Atra (known as the Contour, "Slalom" in some markets) was introduced in 1977 and was
the first razor to feature a pivoting head, which Gillette claimed made it easier for men to
shave their necks.
o Atra Plus featured a lubricating strip, dubbed Lubra-Soft.
 Gillette Sensor debuted in 1990, and was the first razor to have spring-loaded blades.
Gillette claimed that the blades receded into the cartridge head, when they make contact
with skin, helping to prevent cuts and allowing for a closer shave. The **Sensor for
Women was released around the same time and is nearly identical, but has a wider
cartridge head.
o Sensor Excel was released in 1995. This featured "Microfins," a piece of rubber
with slits at the bottom of the cartridge and Gillette claimed this helped to raise
facial hairs, making for a closer shave.

 Sensor 3, has three blades instead of two. All Sensor handles can use all Sensor
cartridges. The Sensor range remains in production Good News! was the first disposable,
double-blade razor, released in 1976. The Good News! came in three forms: the
"original", the "Good News! Plus", which included a lubricating strip, and the "Good
News! Pivot Plus", which featured a lubricating strip as well as a pivoting head.

 Blue II is a line of disposable razors. In Latin America, it is marketed as the Prestobarba.

 Blue 3 is a line of three-blade razor, cheaper version of Sensor 3 (Sensor compatible).

Available also in disposable variant.

 Mach3 The first three-blade razor, introduced in 1998, which Gillette claims reduces
irritation and requires fewer strokes. It claimed five improved microfins, improved spring
blades, and a pivoting head with greater flexibility than previous Gillette products. It used
a blue lubrication strip that faded as the razor was used to encourage users to change their
blades more frequently. The Mach3 razor and blades are the best selling razor of all time.[
o Mach3 disposable. The above with a different plastic handle.
o Mach3 Turbo had ten microfins as opposed to the five on the original, a new grip
and claims improved lubrication and "anti-friction" blades. All Mach3 blades are
interchangeable between the three products in the range, so it is possible to use
the Mach3 Turbo blades on a Mach3 razor.
 Mach3 Turbo Champion has a slightly different handle design.
o M3Power is a battery-powered version of the Mach3 Turbo razor which can also
be used with the power switched off. The blades differ from Mach3 Turbo in
having what Gillette says is a new blade coating which it describes as
"PowerGlide". The lubrication and microfins are identical to Mach3Turbo. The
Mach 3 Power Nitro has a slightly different handle design.

 Venus is a female version of the Mach 3. Mach 3 blades can attach to a Venus handle
and vice versa.
o Venus Divine is a female version of the Mach3 Turbo.
o Venus Vibrance is a female version of the M3Power. Venus blades are
interchangeable across the line.
o Venus Embrace is a female version of the Fusion and is also marketed towards
cyclists.
 o Venus Breeze is a three-blade razor with shave gel bars built into the head of the
razor. Another version of the Breeze, the Venus Spa Breeze, is essentially the
same as the Breeze, but with a white tea scent to the shave gel bars. [1]
o Venus ProSkin MoistureRich, launched in January 2011 in the United States, is
an updated version of the Breeze, featuring MoistureRich shave gel bars that are
enhanced with a triple blend of body butters. [2]

The Gillette Fusion Power

 Gillette Fusion is a five-bladed razor released in 2006. The Fusion has five blades on the
front, and a single sixth blade on the rear for precision trimming.
o Gillette Fusion Power is a motorized version of the Fusion. The Fusion Power is
battery powered and emits "micropulses" that are claimed to increase razor glide.
[3]

o Fusion Power Phantom The Fusion Power Phantom (Stealth in UK) were
released in February 2007. It features a redesigned handle and a darker color
scheme than the original.[4]
o Fusion Power Phenom was released in February 2008. It has a new blue and
silver color scheme.[5]
o Fusion ProGlide was released on June 6, 2010 in North America. It claims to
have re-engineered blades with edges that are thinner than Fusion. They are
finished with low-resistance coating, which are claimed to allow the blades to
glide more easily through hair. [6]
o Fusion Power Cool White

2
ACKNOWLEDGEMENTS
The following project “GILLETTE: BETTER VALUE,
BETTER SHARE” and the customer survey were
successfully completed under the guidance of Prof S K Jain,
Lecturer, Delhi School of Economics. His guidance and
efforts were vital for the completion of the project for which
we are thankful. The cooperation and support extended by the
Gillette management also merits special mention. We also
thank our friends for their valuable and insightful suggestions,
comments and criticism. All the people who filled up the
questionnaire also deserve to be appreciated for their help,
cooperation and sometimes patience.
Thank you,
3
INDEX
Page
1) Objectives ……………………………………………………….. 5
2) Company Profile …………………………………………………. 6
3) Market Environment ………………………………………………..
12
a) Overview
b) Michael Porters Five Force Model
4) Competition ………. …………………………………………………
21
5) Analysis of Marketing Strategies ……………………………………
24
a) Brief Overview
b) Perceptual Map
c) Market Segmentation
d) Target Markets
e) Positioning
6) Marketing Mix ………… ………………………………………………
40
7) Product Strategy ………………………………………………………
43
a) Five Product Levels
b) Product Classification
c) Packaging and Labelling
d) Product Innovation: R&D
8) Pricing Strategy………………………………………………………….
53
a) The Nine Price Quality Strategies
b) Pricing Process
c) Selecting the Pricing Objective
d) Demand Analysis
e) Product Mix Pricing
f) How Gillette prices its products
g) Gillette Price Chart
9) Place Strategy …………………………………………………………
59
a) Distribution Network
4
b) Gillette Distribution Network
10) Promotion Strategy ……………………………………………………
63
a) Gillette strategy
11)Market Strategy ………………………………………………………
68
a) The BCG Matrix
b) The Gillette Razors BCG Matrix
12)Consumer Analysis ……………………………………………………
74
13)Distribution Analysis …………………………………………………
81
14)Recommendations …………………………………………………….
82
15) Bibliography
Appendix ……………………………………………………
91
16)Questionnaires
17)Company Checklist ……………………………………………………
92
18)Company Contacts ……………………………………………………
95
“In the grooming business, the great majority of male Gillette
shavers in developing markets use double-edge blades. The first
step up the performance/price ladder for these consumers is to
advance to Gillette twin-blade shaving systems or disposable
razors. In more developed markets, the movement may be entirely
within the systems category, as consumers’ trade up from twinblade
to triple-blade shaving.”
-
www.gillette.com
5
OBJECTIVES
To study the shaving razors market
scenario in India.
To suggest ways to convert double-edge
users to Gillette twin-blade users vis-à-vis
Presto and Vector Plus.
To find ways to upgrade existing Gillette
users up the value chain.
6

COMPANY
PROFILE
“In the more than 100 years since the Company was founded, Gillette
has gained, held and strengthened leadership positions through the
Company's strategy of managing its business with a long-term, global
perspective.”
COMPANY HISTORY:
7
King C Gillette established The Gillette Company (Gillette) in 1901 in
Boston. In 1903, Gillette produced its first razor. A year later, it obtained a patent
on the razor. Gillette showed its strong commitment to international expansion by
establishing a sales office in London and a manufacturing site in Paris, as early as
in 1905.
During the 1920s and 1930s, Gillette continued its efforts to expand market share
both at home and abroad. It also expanded its product line, introducing the
Brushless Shaving Cream in 1936 and the Kumpakt electric razor in 1938.
World War I came as a boon to Gillette, which supplied 3.5 million safety razors
and 36 million blades to the US armed forces.
During World War II in 1942, the War Production Board ordered Gillette to
dedicate its entire razor production and most of the blade production to the defence
forces. Gillette found itself in a comfortable situation where demand outstripped
supply. By the end of the war, servicemen had been issued 12.5 million razors and
more than 1.5 billion blades.
In 1948, Gillette acquired Toni Company which supplied personal grooming kits
for women. In 1950, Gillette began television advertising in a big way. The
company introduced a foamy shaving cream in 1953. Two years later, Gillette
moved into another new business, acquiring the Papermate Pen Company.
In 1967, Gillette again diversified, acquiring Braun AG, a German manufacturer of
small electrical appliances.
Gillette made an important move in 1984, when it acquired Oral B laboratories, a
leading toothbrush manufacturer in the US. Gillette used its global reach to put
Oral B in markets where entry was difficult on its own.
Gillette continued with its acquisition moves, buying Waterman, a leading
manufacturer of premium writing instruments, based in France. By the mid 1980s,
Gillette was operating five major businesses - blades and razors, toiletries and
cosmetics, stationery products, Braun appliances and Oral-B dental products.
In 1993, Gillette strengthened its position in the writing instruments business by
acquiring the Parker Pen Company (Parker). In 1996, Gillette diversified yet again,
acquiring Duracell International, the world's leading manufacturer of alkaline
batteries.
In the late 1990s, Gillette’s profitability has been under pressure. Due to the Asian
currency crisis, dollar profits in many overseas markets have shrunk considerably.
The company’s heavy investment of around $1 billion in the triple blade Mach-3
8
has also had its impact. During 1998 and 1999, Gillette missed most of its
quarterly sales and profit targets.
Currently, Gillette consists of three operating groups: Global Business
Management, Commercial Operations (Western Hemisphere) and Commercial
Operations (Eastern Hemisphere). The Global Business Management Group has
worldwide responsibility for R&D, manufacturing and strategic marketing of all
products. Commercial operations (Western Hemisphere) looks after trade
marketing and sales for all the products in North America and South America.
Commercial Operations (Eastern Hemisphere) has similar responsibilities for other
countries in the world.
GILLETTE IN ASIA
In the 1980s, Gillette began to make rapid inroads into Asian markets. By 1982,
Gillette had set up subsidiaries in Japan, New Zealand and the Philippines. In
addition, the company had established small marketing operations in Hong Kong,
Singapore and Taiwan. A joint venture became operational in China in 1983.
Gillette expanded its base in India and also started operations in Thailand and
Egypt.
GILLETTE: THE INDIA CHAPTER
Gillette entered India in 1984, with a 24% stake in Indian Shaving Products Ltd
(ISPL), a company it promoted jointly with the local Poddar Group. Later, it
increased its stake to 51%. The company has two arms in India, ISPL and
Wilkinson Sword, which it acquired in 1995. Gillette has set up a manufacturing
facility at Bhiwadi in Rajasthan. Recently, the company has indicated that it will
increase the capacity of its double edge blade unit to 700 million blades from the
current 340 million blades and disposable blades from 105 million to 140 million.
Gillette's distribution network currently controls 2000 distributors and 400,000
outlets all over India
The company's decisions over the past one year — to divest its electric gadget and
home appliances business under the Braun brand name, and its low-end battery
business under Geep, are aimed at focusing better on its core business — shaving
products. Female shaving products, in slow growth mode all these years, too have
been put on the backburner.
Year Event
9
1984 Company Incorporated in Rajasthan ,jointly promoted by House of
Poddar Enterprises(HOPE) and Gillette , USA
1986 Gillette takes over Sharpedge Ltd
1987 New twin blade shaving system called 7 O'Clock Ejtek P II
introduced.
1989 Diversification into shaving preparations and launching of premium
quality 7 O'Clock Ejtek shaving brush
1990 Launch of two new products namely 7 O'Clock Ejtek P II shaving
system with a metal spine and a shave cream in three variants
1991 Sabre Pens Ltd., Sheen Dental Products Ltd., Klosershav Products
Ltd., and Vanity Cosmetic Ltd., are wholly owned subsidiaries of the
Company
1993 Commence of launch of Gillette Shaving products in India with the
launch of Gillette Presto Readyshaver
1995 Launch of another Readyshaver under the Brand name of 7 O'Clock
Ready II. The Company also launched under a distribution
arrangement tooth brushes under the well known international brand
name Oral-B.
1996 Launch of "Gillette Sensor & Sensor Excel" shaving systems
Company introduces “Gillette Aerosol" shaving cream.
1997 Indian Shaving Products Ltd (ISPL) and Duracell India Pvt Ltd are
merging their respective Ltd and marketing networks.
Indian Shaving Products Ltd will be distributing the Duracell range of
batteries through its own sales and distribution network
1998 Company enters the ladies personal care segment with the launch of
the Gillette Sensor Excel for women
1999 Launch of Gillette "Mach-III", the three-blade razor
2000 Company approves amalgamation of Duracell (India) Pvt. Ltd. and
Wilkinson Sword India Ltd. with the company
2003 Gillette India awards its creative account to Ogilvy and Mather
following a global re-alignment of ad agencies
Gillette identifies the double edged blade segment as its growth
market driver.
2004 Gillette India Ltd launches battery-powered toothbrush, 'Cross Action
Power'
Gillette ropes in Beckham to promote its products
Gillette India announces launch of new generation triple blade shaving
10
system Mach3Turbo
GILLETTE: MISSION AND VALUES
OUR VISION:
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.
ORGANIZATIONAL EXCELLENCE:
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
workforce of the highest caliber. To support this Quest, each function employs
metrics to define, and implements processes to achieve, world-class status.
CORE VALUES:
As we work toward our Vision, three core Values define the way we operate:
ACHIEVMENT
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
11
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.
GILLETTE: THE PRODUCT BASKET
Alkaline Batteries Duracell
Blades & Razors Gillette, Mach 3, Sensor, Atra, Trac, Custom plus,
Good News, Agility.
Oral Care Oral-B
Small appliances Braun
Stationery Products Parker, Paper Mate, Watermen, Liquid Paper, Dryline
Toiletries Gillette, Right Guard, Soft & Dri,
Dry Idea, Satin Care
12

MARKET
13

ENVIRONMENT
Why Study Market Environment?
Conceptually, all of marketing is based on the idea that you must thoroughly know
the environment in which your business operates in order to successfully promote
and sell your product or service.
You may have developed a unique business idea, but why do you believe your idea
will be successful? Is it based upon discussion of the idea or presentation of a
prototype product or plan to friends and associates? If your business has been
operating for a while, you've probably thought about branching out with new
14
product lines, side businesses, or additional locations. How can you be sure the
odds are with you as you pursue new directions?
Ultimately,
Your idea must fulfill a need for your buyers and
Must do so in a way that's somehow superior to the competition, however
you define it.
If you want to be sure that your idea will do these two crucial things, you need to
know as much as you can about the following:
The marketing environment (Porters Five Force Model)
Your competitors (Competitors Analysis)
Marketing strategy (Perceptual Map)
Your target buyers (Segmentation, Target markets and Positioning)
Future market growth (BCG Matrix)
The Environment in India:
Gillette's experience in India indicates the type of challenges that the company
faces in emerging markets. India is the largest blade market in the world in volume,
though not in value terms. The Indian company, Harbans Lal Malhotra & Sons
(Malhotras), is the second largest blade maker in the world after Gillette. For long,
this company has enjoyed a monopoly and indeed been accused of many restrictive
trade practices.
Gillette entered India in 1984, with a 24 per cent stake in Indian Shaving Products
Ltd (ISPL), a company it promoted jointly with the local Poddar Group. Later, it
increased its stake to 51 per cent. The company has two arms in India, ISPL and
Wilkinson Sword, which it acquired in 1995. Gillette has set up a manufacturing
facility at Bhiwadi in Rajasthan. . Gillette's distribution network currently controls
2000 distributors and 400,000 outlets all over India.
The Indian Blade Market:
15
The Indian blade market consists of four broad segments
1) Flat blades
2) Disposables
3) Twin blades
4) Triple blades.
With this understanding of the basic classification of the Indian blade market, let us
now see the tools that help a company, in general, and also us in understanding the
environment.
TOOLS:
As stated above, a very important tool of studying the environment in any industry
is the Porters Five Force Model explained below:
MICHAEL.E. PORTERS 5 FORCE MODEL
1. Introduction:
16
The model of the Five Competitive Forces was developed by Michael E. Porter in
his book “Competitive Strategy: Techniques for Analyzing Industries and
Competitors” in 1980. Since that time it has become an important tool for
analyzing an organizations industry structure in strategic processes.
Porter’s model is based on the insight that a corporate strategy should meet the
opportunities and threats in the organizations external environment. Especially,
competitive strategy should base on and understanding of industry structures and
the way they change.
Porter has identified five competitive forces that shape every industry and every
market. These forces determine the intensity of competition and hence the
profitability and attractiveness of an industry. The objective of corporate strategy
should be to modify these competitive forces in a way that improves the position of
the organization. Porter’s model supports analysis of the driving forces in an
industry. Based on the information derived from the Five Forces Analysis,
management can decide how to influence or to exploit particular characteristics of
their industry.
2. The Five Competitive Forces:
The Five Competitive Forces are typically described as follows:
1) The threat of entry by new competitors.
2) The intensity of rivalry among existing competitors.
3) Pressure from substitute products.
4) The bargaining power of buyers.
5) The bargaining power of suppliers
17
Bargaining Power of Suppliers
The term 'suppliers' comprises all sources for inputs that are needed in order to
provide goods or services.
Supplier bargaining power is likely to be high when:
The market is dominated by a few large suppliers rather than a
fragmented source of supply,
There are no substitutes for the particular input,
The suppliers customers are fragmented, so their bargaining power is
low,
The switching costs from one supplier to another are high,
18
There is the possibility of the supplier integrating forwards in order to
obtain higher prices and margins. This threat is especially high when
The buying industry has a higher profitability than the supplying
industry,
 Forward integration provides economies of scale for the supplier,
The buying industry hinders the supplying industry in their
development (e.g. reluctance to accept new releases of products),
The buying industry has low barriers to entry.
In such situations, the buying industry often faces a high pressure on margins from
their suppliers. The relationship to powerful suppliers can potentially reduce
strategic options for the organization.
THE GILLETTE CASE:
It is indeed enjoying greater supplier power due to its sole presence in the
organized, premium technology shaving razors market in India. Also there are no
close substitutes to their razors. The only substitutes in terms of the product per se
are in fact very poor on the technology and quality fronts. For example: there are
several twin blade razors in the market but none would match the superior
technology of a sensor excel, or the triple blade offering by Super-Max 3 is in no
comparison with the Mach 3. So in reality there are no potential threats.
Bargaining Power of Customers:
Similarly, the bargaining power of customers determines how much customers can
impose pressure on margins and volumes.
Customers bargaining power is likely to be high when
They buy large volumes, there is a concentration of buyers,
The supplying industry comprises a large number of small operators
The supplying industry operates with high fixed costs,
The product is undifferentiated and can be replaces by substitutes,
Switching to an alternative product is relatively simple and is not
related to
high costs
19
Customers have low margins and are price-sensitive,
Customers could produce the product themselves,
The product is not of strategic importance for the customer,
The customer knows about the production costs of the product
There is the possibility for the customer integrating backwards.
THE GILLETTE CASE:
The buyers as a result are not very powerful as there are no close substitutes, they
buy in small numbers, switching to an alternate product is not easy (as one
cartridge does not fit another razor, and also because once an investment is made
on a premium Gillette razor, it is difficult for the consumer to leave it as such and
move on to another razor), and customers of Mach 3 razors (executive class which
comprises a sufficient market) are not price sensitive. However, the only thing the
customer can do is to revert to lower versions by compromising on technology or
switch over to barber shaving.
Threat of New Entrants:
The competition in an industry will be the higher; the easier it is for other
companies to enter this industry. In such a situation, new entrants could change
major determinants of the market environment (e.g. market shares, prices, customer
loyalty) at any time. There is always a latent pressure for reaction and adjustment
for existing players in this industry.
The threat of new entries will depend on the extent to which there are barriers to
entry. These are typically
Economies of scale (minimum size requirements for profitable
operations),
High initial investments and fixed costs,
Cost advantages of existing players due to experience curve effects of
operation with fully depreciated assets,
Brand loyalty of customers
Protected intellectual property like patents, licenses etc,
20
Scarcity of important resources, e.g. qualified expert staff
Access to raw materials is controlled by existing players,
Distribution channels are controlled by existing players,
Existing players have close customer relations, e.g. from long-term
service contracts,
High switching costs for customers
Legislation and government action
THE GILLETTE CASE:
The Indian shaving razor market is completely dominated by Gillette. Any new
entrants should very carefully launch themselves because they would be directly
pitting against a monopolist kind of market giant. Also the barriers to entry are not
many except minimum size requirements for economies of scale, high initial
investments and above all the retaliation by Gillette which could be anything.
However, there is news that the American Safety Razor would be soon entering the
Indian market. We can only wait and watch what would happen then.
2.4 Threat of Substitutes:
A threat from substitutes exists if there are alternative products with lower prices of
better performance parameters for the same purpose. They could potentially attract
a significant proportion of market volume and hence reduce the potential sales
volume for existing players. This category also relates to complementary products.
Similarly to the threat of new entrants, the treat of substitutes is determined by
factors like
Brand loyalty of customers,
Close customer relationships,
Switching costs for customers,
The relative price for performance of substitutes,
Current trends.
21
THE GILLETTE CASE:
As of date there are no close substitutes to any of the Gillette razors. The only close
substitute could be the American Safety Razor entering the Indian market soon. But
then again that would depend on the marketing strategies of the company.
Competitive Rivalry between Existing Players:
This force describes the intensity of competition between existing players
(companies) in an industry. High competitive pressure results in pressure on prices,
margins, and hence, on profitability for every single company in the industry.
Competition between existing players is likely to be high when
There are many players of about the same size,
Players have similar strategies
There is not much differentiation between players and their
products, hence, there is much price competition
Low market growth rates (growth of a particular company is possible only
at the expense of a competitor),
Barriers for exit are high (e.g. expensive and highly specialized
equipment).
THE GILLETTE CASE:
There is virtually no competition in most of the segments except in the flat blades
segment, low income segment, traditional double edged users ( laggards), and
technology-illiterates.
22
THE COMPETITORS
In the flat blade segment, which is also the cheapest, Malhotra dominates the
market. In the mid and high-end segments, Gillette has been the clear leader in
terms of new product introduction and branding. The Gillette brand has a high
recall and is associated with quality, precision and technology. From time to
time there have been rumours about the possibility of Gillette buying
out the Malhotras.
Overall Blade Market – In Terms Of Value (Rs 600 crore)
23
Source: AC Nielson-ORG MARG
Survey
Another issue which Gillette has to immediately address is penetrating the huge
barbers' market, which consists predominantly of flat blades. Gillette's new
launches in the flat blades segment, like Gillette Diamond and Gillette Platinum
have been priced four to five times higher than the offerings of competitors
Gillette's experience in India indicates the type of challenges that the company
faces in emerging markets. India is the largest blade market in the world in volume,
though not in value terms. The Indian company, Harbans Lal Malhotra & Sons
(Malhotra), is the second largest blade maker in the world after Gillette. For long,
this company has enjoyed a monopoly and indeed been accused of many restrictive
trade practices
However in the twin and triple blade segment, Gillette has undoubtedly been a
market leader with effectively no competition at all, both in volume as well as
value terms.
Twin Blade Market in India (Rs 168 crore)
24
Source: AC Nielson-ORG MARG Survey
Tomorrow’s Threat:
As seen below from the news archives, there could be a clash of two titans in the
near future with the entry of another American giant into the much desired Indian
market.
indiainfoline.com
ASRC eager to drive growth from Indian
market
New Delhi: American Safety Razor Company (ASRC), the $240-million global
shaving products major, is betting on India as a key growth market for the
company. With the company already having a significant presence in the North
American and Western
European markets, it is now making inroads into the Asian one and has identified
India as a focus market.
However, ASRC will not follow the same distribution strategy as it does in the
Western markets. The company is a leading provider of in-store brands globally,
25
0
10
20
30
40
50
60
70
80
GILLETTE OTHERS
supplying to retail majors such as Carrefour and Wal Mart. It also has its own
brands, with the most popular one being Personna. In India, however, the company
has inked a distribution tie-up with local firm, RP Electronics and rolled out blades
and razors under the Glide brand.
Though ASRC has not set any time-bound volume targets for its products in India,
the company is optimistic about the growth being seen in the market. As disposable
incomes in the country rise, it expects more people to upgrade from double-edged
blades to disposable. Interestingly, the market for shaving products in India holds
more potential than the Chinese one. The reason lies in the fact that the
consumption of blades per person in India is higher than in China, with Indian
males being more hirsute. Also, despite the market being captured by the dominant
leader Gillette, ASRC is hopeful that its value for money proposition (good quality
and lesser prices) will help it connect with the Indian masses. Glide products are
priced from Rs 10 (for the disposable) to Rs 110 (for the systems).
http://economictimes.indiatimes.com/articleshow/575888.cms

American Safety Razor to enter local

markets
The world's third largest shaving products maker, the American Safety Razor
(ASRCL), is planning to spread its wings in India through a distribution tie-up with
the Salora group. The Indian shaving products market, so far dominated by the
House of Malhotras and Gillette, will see a third large player for the first time
The $279m company has a large repertoire, but at the moment, it wants to focus on
disposables and shaving systems priced 15-25% cheaper than that of Gillette
At a later stage it also plans to bring in double edge razor blades with a “superior
technology” to take on House of Malhotra that virtually controls that segment
26

ANALYSING
MARKETING
STRATEGIES
27
A BRIEF OVERVIEW:
DEFINITION:
Market strategy is defined as an action plan for influencing customer choices and
obtaining a market share. Market strategy should entice customers to buy the
product or service. Market strategy encompasses customer perception of the
relationship between price and quality.
Market strategy also includes the distribution channels for the product, pricing and
terms of sale, promotion and advertising plan, marketing budgets, inventory
selection and management, visual merchandising, customer relations and an
evaluation of the marketing strategy.
WHY IS IT USED?
The marketing strategy provides information on what the market will be (retail,
wholesale) and what specific customer groups will be targeted, what will be sold,
where it will be sold, and how wide the area of distribution will be.
TOOLS:
Since a marketing strategy is the heart of any business entity, there are some tools
or concepts in this regard developed by the marketing experts and followed by
hundreds of companies the world over. The major tools of studying the marketing
strategies are:
1) Perceptual Map
2) The BCG Matrix
Now let us see how a perceptual map is useful (the other two strategies are
explained at a later stage).
THE PERCEPTUAL MAP
28
Perceptual Mapping is a useful statistical technique that provides an overview of
how customers perceive the different products in a market including each product's
relative strengths and weaknesses. A perceptual map summarizes the image of
several products on many different attributes in one graph, providing a very useful
overview of customer's perceptions of the market.
Whilst it has been criticized for oversimplifying what can be sometimes be
complex commercial problems, the two-dimensional Perceptual Map has become a
particularly useful vehicle for management to draw attention to an emerging market
opportunity, a new strategic direction, or a changing market condition.
THE CUSTOMER MATRIX:
The 'Customer Matrix' example illustrated below was developed by Cliff Bowman,
Professor of Business Strategy at Cranfield School of Management. A proactive
supplier will always consider how to maintain initiative within the market. A useful
starting point is to consider competitive position as a perceptual map in which
'Perceived Price' is plotted against 'Perceived Use Value'. If the supplier determines
that his solution is 'average' when compared to the competition, the alternative
courses of action are:
To achieve the status of lowest cost producer and offer lower prices than the
competition - i.e. move West. Here Bowman sites the work of Porter, and
emphasises the need for all organisations to become low cost (if not lowest
cost) producers so that at the very least market fluctuations can be
accommodated.
To move North by adding Perceived Use Value. Here Bowman is at pains
to point out that market segmentation plays a critical role in determining
what customers do actually value and that any advantage must be
sustainable.
Bowman then goes on to explore the interactive nature of these axes. For example
an increased share obtained by adding value can result (through economies of
scale) in lowest cost producer status. The move North West - sequentially adding
Perceived Use Value and cutting price - may offer the company the best strategy to
tackle the market and offer global potential, but the company must be nimble in
order to maintain its competitive position.
29
THE GILLETTE CASE:
With this understanding of what a perceptual map is, let us now see how the
Gillette razors appear on the map:
Gillette razors Vs Competitors: A Perceptual Map:
30
And now let us represent the perceptions of Gillette razors using the customer
matrix, by taking perceived price and perceived value as the two axes:
RAZORS PRICE QUALITY
GILLETTE:
Mach 3 high high
Sensor excel high neutral
Vector Plus low high
Presto high high
COMPETITORS:
Gallant low neutral
Super max 3 high low
Laser low low
31
THE GILLETTE RAZORS – PERCEPTUAL
MAP
32
VECTOR PLUS
SENSOR EXCEL
PRESTO
MACH 3
MARKET SEGMENTATION
DEFINITION:
Market segmentation is dividing a larger market into submarkets based upon
different needs or product preferences. These common characteristics allow
developing a standardized marketing mix for all customers in a particular segment.
NEED FOR SEGMENTATION:
Segmentation needs to be undertaken for the following reasons:
Better serving customers needs and wants
Higher Profits
Opportunities for Growth
Sustainable customer relationships in all phases of customer life cycle
Targeted communication
Stimulating Innovation
Stimulating Innovation
Higher Market Shares
33
For segmentation to be effective, the following criteria should be kept in mind:
Feasibility: Having in place a marketing program for each segment and
drawing advantages from that.
Distinguishing ability: market segments have to be diverse enough to show
different reactions to different marketing mixes.
Accessibility: The segment has to be accessible and servable for the
organization.
Relevance: The size and profit potential of a market segment have to be
large enough to economically justify separate marketing activities for
this segment.
Measurability: It has to be possible to determine the values of the variables
used for segmentation with justifiable efforts.
The traditional variables for segmentation are as follows:
Geographic:
Land or region
Rural or metropolitan area
Demographic:
34
Age, sex, marital status
Income, occupation, education
Religion, nationality, ethnical group
Psychographic:
Social status
Lifestyle-type
Personal type
Behavioral:
Intensity of product use
Brand loyalty
User behaviors
Marketers have to choose those variables that are relevant for segmenting the
market for a particular product. The basic rule is to focus on a limited number of
important variables.
THE GILLETTE CASE:
A simple classification of market segments on the basis of the above would be as
follows:
35
TARGET MARKETS
DEFINITION:
Once market has been divided into segments, a process of identifying market
segment opportunities (basis the attractiveness of the segment and the company’s
resources and objectives) takes place.
TYPES OF TARGETING:
Single Segment Concentration
M1 M2 M3
BENEFIT
SEGMENTS
DEMOGRAPHICS BEHAVIOURISTICS PSYCHOGRAPHICS FAVOURED
BRANDS
Quality of
shave
Executives,
working men
Regular and heavy
users
High autonomy
Value oriented
Gillette
Convenience Employees Regular and heavy
users
Hedonistic
High self-involvement
Gillette
Technology/
fashion
Teens/youth, midlevel
executives
First time users,
appearance conscious
High sociability,
active
Gillette
Price
Consciousness
Low income,
illiterates, unaware
of technology
Laggards, nonregulars
Hypochondriac
conservative
Local players
36
X
Selective Specialization
M1 M2 M3
XX
X
Product Specialization
M1 M2 M3
XXX
Market Specialization
M1 M2 M3
X
X
X
Full Market coverage
M1 M2 M3
XXX
XXX
XXX
37
THE GILLETTE CASE:
The approach of Gillette to market segmentation is in line with the above
mentioned. Gillette follows a strategy known as Geoclustering which involves
combining several variables in order to define better –defined target groups. This is
thus a multi attribute segmentation technique.
Primarily, Gillette has identified gender, age, income, occupation, generation
(demographic variables) and lifestyles (psycho graphic variable) as a cluster in an
attempt to more precisely define its market segments.
The Selective specialization pattern would apply to Gillette as explained:
Low High
Gillette defines
M1 M2 M3
P1 MACH 3
TURBO
P2 MACH 3
P3 SENSOR
EXCEL
P4 VECTOR
PLUS
38
M1 comprising of those group of male customers who are either in their twenties or
early thirties, have a high disposable income (if student, then those who spend
comfortably), are salaried, belong to the current generation and maintain
lifestyles that have a bearing on their buying behaviour.
M3 on the other hand would comprise of such male customers who are in their late
thirties or above, do not have a very high disposable income, and are not very
conscious of their looks or the status value of the products they buy.
M2 would comprise of customers who lie between these two customer groups.
PI Product 1
P2 Product 2
P3 Product 3
Segment-by-Segment Invasion Plans
The core philosophy behind this concept is to enter the market segment by segment
without revealing one’s total expansion plans so that competitors are caught
unawares as to the segment into which the firm will move in next.
THE GILLETTE CASE
Gillette has also followed a similar strategy in the India market.
Conventional
Shaving
Ready Shaving Premium Shaving
Triple Blade
C5
Twin Blade
C2 C4
Double Edge / Flat C1
C3
39
Blades
THE SEQUENCE OF EVENTS:
1986 (C1): Company manufactures two types of blades, the premium 7 O'Clock
Ejtek Super Platinum and the stainless brand 7 O'Clock Ejtek Super Stainless
1993 (C2): Company commences the launch of Gillette Shaving products in India
with the launch of Gillette Presto Readyshaver.
1995 (C3): Company launches another Readyshaver under the Brand name of 7
O'Clock Ready II
1996 (C4): The Company successfully launches "Gillette Sensor & Sensor Excell"
shaving systems
1998 (C5): Company announces launch of new generation triple blade shaving
system Mach3Turbo
POSITIONING
WHY POSITIONING?
In today’s world of strategy convergence (undifferentiated strategies), pursuing a
meaningful and relevant positioning & differentiation has become imperative for
every company in order to give the customer a reason to demand their products.
Jack trout says, “While positioning begins with the product, the concept really is
about positioning that product in the mind of the customer in an over
communicated environment. The advertiser should present a simplified message
and make that message consistent with what the consumer already believes by
focusing on the perceptions of the consumer rather than on the reality of the
product.
The best way to get into the mind of the consumer is to b the first
Gillette has always been on its toes when it comes to introducing latest technology
products and has thus reaped the benefits of being the first entrant, the latest being
the introduction of mach3 turbo in India and mach 3---- abroad
40
According to Al Ries and Jack Trout, “The Fathers of Positioning” a Market
Leader should:
Not boast about being number one.
If the firm does so, the consumers may feel that the company is insecure in
its position if
It must reinforce this by saying so
Can adopt multi-brand strategy i.e. introduce multiple brands rather than
changing existing ones that hold leadership positions. It is often easier and
cheaper to introduce a new brand rather than change the positioning of an
existing brand. Ries & trout call this Single Position Strategy, because
each brand occupies a single, unchanging position in the minds of the
consumer
Must be willing to embrace change rather than resist it.
THE GILLETTE CASE:
Gillette as a market leader has been careful not to boast about its position. Also it
has always introduced new brands to target different market segments (presto for
lower end, mach3 for upper end etc.) instead of bringing about changes in any one
particular razor to maintain the distinct image of each of its razor in the mind of the
customer.
Positioning, as Philip Kotler defines, is the act of designing the company’s offering
and image to occupy a distinctive place in the mind of the target market i.e. create a
customer focused value proposition, a cogent reason why the target market should
buy the product.
In the words of Jan Welborn Nicholas, the most successful entrepreneurs learn to
transform their passion into position.
Positioning is a Perceptual Location. It's where your product or service fits into
the marketplace. Effective positioning puts you first in line in the minds of
potential customers.
That's why it's so important for entrepreneurs to transform their passion into a
market position. If you don't define your product or service, a competitor will do it
for you. Your position in the market place evolves from the defining characteristics
of your product.
41
THE ELEMENTS OF POSITIONING:
The primary elements of positioning are:
Pricing. Is your product a luxury item, somewhere in the middle, or cheap,
cheap, cheap.
Quality. Total quality is a much used and abused phrase. But is your
product well produced? What controls are in place to assure consistency?
Do you back your quality claim with customer-friendly guarantees,
warranties, and return policies?
Service. Do you offer the added value of customer service and support? Is
your product customized and personalized?
Distribution. How do customers obtain your product? The channel or
distribution is part of positioning.
Packaging. Packaging makes a strong statement. Make sure it's delivering
the message you intend.
Positioning is your competitive strategy. What's the one thing you do best? What's
unique about your product or service? Identify your strongest strength and use it to
position your product.
THE GILLETTE CASE:
For Gillette their strength lies in the superior quality of their razors ,all of which
are imported from the US (untouched by hand),except for presto and they have
used this strength wisely to position their product over the years. Unquestionable
quality of Gillette products has been the most important factor in making it a
market leader.
VALUE DISCIPLINES:
Micheal Treacy and Fred Wiersema proposed a positioning frame work called
“Value Disciplines”
Within its industry a firm could aspire to be:
42
Product leader – advancing on technological frontier
Operationally excellent firm – highly reliable performance
Customer intimate firm – high responsiveness in meeting individual
customer needs
THE GILLETTE CASE:
Through our research and analysis, it is evident that Gillette has acquired the status
of the first two disciplines but needs to work on achieving a minimum performance
level in the third as well.
THE UNIQUE SELLING PROPOSITION:
According to Rosser Reeves every company should develop a “Unique Selling
Proposition (USP) or promote only one central benefit of the product which makes
communication to target market easier; employees are clearer about what counts
and it is easier to align the whole organization with a central positioning. But
nowadays marketers feel that double positioning may be more distinctive i.e. the
co. can cash in two benefits at the same time.
THE GILLETTE CASE:
In our case Gillette has been able to cash on the ‘sata – sat’ philosophy or in other
words a razor which gives u the smoothest shave in least possible time without any
compromise on their quality.
POSITIONING ERRORS:
Kotler points out that a company must avoid four major positioning errors:
1) Under positionin g : buyers only have a vague idea of the brand
2) Over positioning : buyers have too narrow image of the brand
43
3) Confused positionin g : buyers have a confused image of the brand
(company makes too many claims about the product or changes brand
positioning frequently)
4) Doubtful positioning : buyers do not believe the claims the brand makes.
THE GILLETTE CASE:
With respect to avoiding confused positioning Gillette has been successful. Gillette
has traditionally been positioned as a premium, high quality product. Thus even
though the company has acquired 7’o clock ,Wilkinson & Wilman ( gradually
eliminating competition) it has carefully distanced itself from these lower segment
brands to avoid confusion among the buyers about Gillette’s image.
POSITIONING POSSIBILITIES:
Also a company can choose from different positioning possibilities.
a) Attribute positioning: positioning itself on a particular attributes- size/number
of years of existence
b) Benefit positioning: product is positioned as a leader in certain benefit
c) Use/application positioning: position the product as best for some
use/application
d) User positioning: position the product as best for some user group
e) Competitor positioning: the prod claims to b better in some way than a named
competitor
f) Product category positioning: product is positioned as leader in certain product
category
g) Quality/price positioning: product is positioned as offering the best value
THE GILLETTE CASE:
Here Gillette has traditionally focused on
Application positioning-best for the finest shave
Quality positioning- unquestionable quality (imported razors)
THE MARKETING MIX
44
WHAT IS A MARKETING MIX?
The term was coined by Neil H. Borden in his article 'The Concept of the
Marketing Mix' in 1965.
The 'marketing mix' is probably the most famous phrase in marketing. The
elements are the marketing 'tactics'. Also known as the 'Four Ps', the marketing
mix elements are price, place, product, and promotion.
Some commentators will increase the mix to the 'five Ps', to include people. Others
will increase the mix to 'Seven Ps', to include physical evidence (such as
uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g.
a visit the Disney World).
The concept is simple. Think about another common mix - a cake mix. All cakes
contain eggs, butter, flour, and sugar. However, you can alter the final cake by
altering the amounts of mix elements contained in it. So for a sweet cake add more
sugar! It is the same with the marketing mix. The offer you make to you customer
can be altered by varying the mix elements. So for a high profile brand increase the
focus on promotion and desensitize the weight given to price.
Essentials of marketing mix:
Product: Defines the characteristics of your product or service that meets the
needs of your customers.
Price: Decide on a pricing strategy - do not let it just happen! Even if you
decide not to charge for a service (a loss leader), you must realise that
this is a conscious decision and forms part of the pricing strategy.
Promotion: This includes all the weapons in the marketing armoury - advertising,
selling, sales promotions, Public Relations, etc.
Place (or
route of
distribution):
Some of the revolutions in marketing have come about by changing
this P. Think of telephone insurance and the internet! A bit of lateral
thinking here might reap rewards for your business.
Now these can be viewed in a graphical representation:
45
46
A marketing mix is a combining of these four variables in a way that will meet or
exceed organizational objectives. A separate marketing mix is usually crafted for
each product offering. When constructing the mix, marketers must always be
thinking of who their target market are. Mix coherency refers to how well the
components of the mix blend together. A strategy of selling expensive luxury
products in discount stores has poor coherency between distribution and product
offering.
In the long term, all four of the mix variables can be changed, but in the short term
it is difficult to modify the product or the distribution channel. Therefore in the
short term, marketers are limited to working with only half their tool kit. This
limitation underscores the importance of long term strategic planning.
With this simple understanding of what a marketing mix means and to what extent
it can in fact affect a company’s sustenance in an industry, let us now see how each
of these four factors influence the company and what the respective strategies are
that the Gillette company is taking.
47

PRODUCT
STRATEGY
48
THE PRODUCT
A product is anything that can be offered to a market for attention, acquisition, use
or consumption. The primary purpose of a product is to satisfy a want or a need.
Each product can be seen through product levels, with each level adding more
value to the product. Initially, Kotler had proposed three product levels.
The Three Level Classifications:
Augmented
Product
Core
Produ
ct
Actual
Product
THE GILLETTE CASE:
The core product would be the quality of shave
The actual product would comprise of the razor designed so as to give a
comfortable grip and packed in an appealing manner.
The augmented product would include the superior technology that
Gillette shaving products are known for and the reliability that comes
with the Gillette brand name.
The Five Level Classifications:
49
Technology Brand
Packaging
Design
Core
Benefit
Kotler has now revised this to a five product level. At the heart of it lies the core
product, next the basic product followed by the expected product and augmented
product. The potential product would lie in the outermost circle.
Potential Product
Augmented Product
Expected Product
Basic
Product
Core
Product
THE GILLETTE CASE:
Core Product: Quality of Shave
Basic Product: Razor with comfortable grip, well packed
Expected Product: Blades that do not give cuts or rashes on skin
Augmented Product: Razor with lubrastrip indicating when the blade
needs to be replaced, the anti-clogging push-clean technology, etc.
Potential Product: product customization could be one new
development.
50
PRODUCT CLASSIFICATION
Products may be classified on the following basis:
1) Durability and Tangibility
Durable Goods
Non durable Goods
Services

2) Consumer Goods Classification

Convenience Goods:
These include those goods which are purchased
frequently, immediately and with minimum
effort. These are available at multiple purchase
locations.
Shopping Products
These are bought less frequently. The consumer
makes the purchase decision only after gathering
sufficient product information. The potential buyer
typically compares the product with that of
competition on the basis of price, style and quality
before making the purchase decision.
Specialty Goods
Such goods require a special purchasing effort.
They are known for their unique characteristics
and are available at select locations.
Unsought Goods
These include goods that the consumers do not
want to normally think about. These goods require
advertising and personal selling effort.
3) Industrial Goods Classification
These are classified in terms of how they enter the production process and their
relative costliness.
Material & parts : goods that enter the manufacturer’s product
completely.
Capital Goods : long lasting goods that facilitate developing the finished
product.
51
Supplied & Business Services : Short lasting goods and services that
facilitate developing or managing the finished product.
The Gillette Case
Gillette shaving products meet the attributes of convenience goods as
They are purchased frequently and with the minimum of effort.
Buying is on a regular basis
There are multiple purchase locations for the product.
Further within this category, Gillette shaving products can be further classified
as Staple Goods.
52
PACKAGING AND LABELLING
WHAT IS PACKAGING?
Packaging comprises of all activities of designing and producing the container for
the product.
This container may include up to three levels of material:
Primary Package : Tetra pack, bottle, sachet, etc
Secondary Package : cardboard box, etc
Shipping Package : Cartons, etc
WHY PACKAGING?
Packaging has been getting increasing focus as a marketing tool for the following
reasons:
They promote Company and /or Brand Image
It is an opportunity to incorporate innovative features which can bring added
convenience to the consumer and in turn higher profits to the producer.
With rising incomes, consumers increasingly are willing to pay a little more
for the appearance and prestige of well – designed packages.
DECISIONS INVOLVED:
The following decisions are involved in the process of coming out with an effective
package
53
1) Identifying what the primary purpose of the package is.
2) Choosing the right colour, which is in line with the product ?
3) Amount of text to be written
4) Size, shape and materials to be used.
LABELLING:
Once the packaging decision is taken, it needs to go through engineering tests to
ensure the effectiveness/robustness of the package under normal conditions. This is
followed by testing it at the dealer/intermediary and consumer level. Finally,
labeling is done to identify, describe and promote the product.
Packaging and labelling therefore is an important element and can not be ignored
while formulating the product strategy.
The Gillette Case:
However, for a product like Gillette shaving razors, it does not play a very
significant role. A customer who buys a Gillette shaving product does not consider
the package an important enough factor which would influence his buying
behaviour. Labeling does have some significance for a product associated primarily
with quality, like Gillette razors. Therefore, while Gillette’s consumers do not base
their buying decision on the basis of the packaging, their comfort levels would be
influenced by the labelling.
54
RESEARCH AND DEVELOPMENT
“Gillette holds its edge by endlessly searching for a better shave.”
- Wall Street journal, December 10, 1992.
Let us now go through the company’s constant focus towards research and
development since its inception.
At the last turn of the century, King Gillette founded what would become a
corporate giant, based on a simple yet essential invention: the safety razor
with disposable blades.
THE DISPOSABLE:
One morning in 1895, Gillette, now living in Boston, had a revelation: if he could
put a sharp edge on a small square of sheet steel, he could market a safety razor
blade that could be thrown away when it grew dull, and readily replaced. Gillette
visited metallurgists at MIT, who assured him his idea was impossible. It took
Gillette six years to find an engineer, William Emery Nickerson (an MIT-trained
inventor), who could produce the blade Gillette wanted.
THE ‘T’-SHAPED RAZOR:
55
The 'T'-shaped razor with disposable double-edged blades, has been one of the
dominant razor shapes since its initial introduction at the turn of the century. The
blades are the only ones with two cutting edges, which doubles the amount of
shaving which can be done by a single blade. Moreover, the blades are intended to
be immediately disposable.
THE TWIN BLADE SHAVING:
Shaving with the double edged blades has its own drawbacks – it requires men to
normally shave twice and even more to get a smooth close shave. These type of
razors had a complex securing/detaching mechanism and various other not required
design materials and stylistic components, manufacturers came up with the new
technology of twin edged razors –which were of both disposable kind and ones
which came with a replaceable cartridge. This product became an instant hit as it
was very easy to handle and also gave a closer shave with less irritation and cuts.
Gillette has the Sensor Excel and Presto razors in this category.
APPLYING R & D - PRODUCT INNOVATION
Gillette constantly believes in providing its customers improved variants.
Following are some of the features that the company has added to its products:
The lubrastrip-– a blue stripe that indicates when to change over to a new
cartridge
The push-clean technology-prevents clogging of hair in between the
blades by using the twin instruments of spacer and button.
The moisturizer strip-moisturizes the skin while we shave and we get a
clean shave without rashes.
The platinum blade-superior metal for safety and better shave
The pivoting head- flexible head to run freely on the facial curvatures.
VECTOR PLUS- A CASE STUDY
The company realized that in India people have different shaving habits i.e. low
shaving frequency, tough beard etc., and also the customer complained of hair
clogging in the twin edged razor. Another problem specific to the Indian conditions
was the lack of running water. It adapted its designing to meet Indian requirements
and presented Gillette Vector Plus, an anti-clogging twin blade system with a
56
contemporary look that offers a smooth, close, safe and convenient shaving
experience at an affordable price.
The noticeable superior performance of Vector Plus over double edge, and also
other twin blade razors comes from superior “rust-free” twin blades with
lubrastrip and pivoting head, while the Push button cleaning mechanism
provides anti-clogging facility.
According to Regional Business Director Manoj Kumar, "Gillette Vector Plus has
been created keeping in mind the shaving habits of a large number of Indian
consumers, especially those who use double-edge blades. Infrequent shaving leads
to longer stubble/hair and that coupled with use of still water leads to clogging of
twin blades for people who shave infrequently. Gillette Vector Plus with 2 Gillette
blades and a unique push clean button has been designed to address this and offer
the consumers a smooth and close shave."
Now read this to believe:
“We bleed so that you can get a good
shave at home.”
-A Gillette Employee.
At Gillette 200 volunteers from various departments come to work
unshaven each day, troop to the second floor of company’s South
Boston manufacturing and research plant, and enter small booths
with a sink and a mirror. There they take instructions from technicians
on the other side of the small window as to which razor, shaving
cream, or after shave to use, and then they fill out questionnaires.
This practice helps Gillette to constantly improve their products and
also reflects upon the company’s commitment to providing quality
products.
57
This commitment of the employees of the Gillette company sums up the amount of
effort Gillette puts in constant research and development to provide its customers
with a better product for a safer, closer shave.

PRICING
58

STRATEGY
THE 9 PRICE-QUALITY STRATEGIES:
INTRODUCTION
We need to set price when we have a new product, or when we enter a new
market with an existing product
How? Need to decide what position you want your product to be in
Philip Kotler identified 9 price-quality strategies
HIGH PRICE LOW
PRICE
59
HIGH
QUALITY
LOW
QUALITY
THE PRICING PROCESS:
1) Set Pricing Objectives
2) Analyze demand
3) Estimating costs
4) Draw conclusions from competitive intelligence
5) Select pricing strategy appropriate to the political, social, legal and
economical environment
6) Determine specific prices
SELECTING THE PRICING OBJECTIVE
Possible Pricing Objectives
1) Profit objectives e.g.
a) Targeted profit return
2) Volume objectives e.g.
a) Dollar or unit sales growth
b) Market share growth
3) Other objectives e.g.
a) Match competitors’ price
b) Non-price competition
PREMIUM HIGH VALUE SUPER VALUE
OVER
CHARGING
MID VALUE GOOD VALUE
RIP-OFF FALSE
ECONOMY
ECONOMY
60
DEMAND ANALYSIS:
The demand analysis sums the reactions of many individuals who have different
price sensitivities. The first step in estimating demand is to understand what affects
price sensitivity. Nagle identified 9 factors:
1) Unique-value effect
2) Substitute-awareness effect
3) Difficult-comparison effect
4) Total-expenditure effect
5) End-benefit effect
6) Shared-cost effect
7) Sunk-investment effect
8) Price-quality effect
9) Inventory effect
PRODUCT MIX PRICING:
The pricing must be modified when it is a part of the product mix. The types are:
Penetration pricing: Where the organisation sets a low price to increase
sales and market share.
Skimming pricing: The organisation sets an initial high price and then
slowly lowers the price to make the product available to a wider market.
The objective is to skim profits of the market layer by layer.
Competition pricing: Setting a price in comparison with competitors.
Product Line Pricing: Pricing different products within the same product
range at different price points. An example would be a video manufacturer
offering different video recorders with different features at different prices.
The greater the features and the benefit obtained the greater the consumer
will pay. This form of price discrimination assists the company in
maximizing turnover and profits.
Bundle Pricing: The organization bundles a group of products at a reduced
price. Gillette does follow this practice of bundling its shaving accessories
together and offer it as a value pack.
Psychological pricing: The seller here will consider the psychology of
price and the positioning of price within the market place. The seller will
therefore charge 99p instead £1 or $199 instead of $200
61
Premium pricing: The price set is high to reflect the exclusiveness of the
product. An example of products using this strategy would be Harrods, first
class airline services, Porsche etc.
Optional pricing: The organisation sells optional extras along with the
product to maximise its turnover. This strategy is used commonly within the
car industry.
THE GILLETTE CASE:
With all the above tools and directions for pricing, Gillette India ltd. prices its
products by taking into account the nine price-quality objectives and also the
pricing objectives. After a detailed analysis of the above guidelines, it has been
consciously using premium pricing for some products and average pricing for
some. It strives for profits, market share and eventually ends up the market leader.
The price cut offer on vector plus was to take on the smuggled versions that
had entered the Indian market.
The hike in the price of presto from Rs 12 to Rs 15 was to induce the
customer to move on to vector plus.
It doesn’t need to follow all the 6 steps of pricing as it is a market leader with no
potential threats. Some steps are redundant. It follows the following steps:
1) Set Pricing Objectives
2) Analyze demand
3) Estimating costs
4) Determine specific prices
Its strategies are very much evident from the following price chart of all the
Gillette razors and blades.
62
THE GILLETTE PRICE CHART
Triple Blade Shaving System
Razor + 1
cartridge
2
cartridges
4
cartridges
8 cartridges
Mach 3 235.00 158.00 305.00 585.00
Mach 3
Turbo
395.00 200.00 380.00 695.00
Double Blade Shaving System
Razor + 1
cartridge
2
cartridges
4
cartridges
8 cartridges
Vector
Plus
29.00 35.00 65.00***
Sensor
Excel
125.00 55.00* 240.00 485.00
7’o clock P
II
56.00 80.00**
*1 piece only, packs of 2 not available
**pack of 5 cartridges
*** pack of 6 cartridges is for Rs. 65.00
63
Disposable Shaving Systems
Variant Price (Rs.)
Presto 15.00
7 O’clock 12.00
64

PLACE
STRATEGY
65
Definition:
A place strategy refers to how an organization will distribute the product or service
they are offering to the end user. The organization must distribute the product to the
user at the right place at the right time. Efficient and effective distribution is
important if the organization is to meet its overall marketing objectives. If the
organization underestimates demand and customers cannot purchase products,
because of it profitability will be affected.
What channel of distribution to use?
Two types of channel of distribution methods are available. Indirect distribution
involves distributing your product by the use of an intermediary. Direct distribution
involves distributing direct from a manufacturer to the consumer, for example, Dell
Computers. Clearly direct distribution gives a manufacturer complete control over
their product.
Indirect Distribution Direct Distribution
Distribution Strategies:
Depending on the type of product being distributed there are three common
distribution strategies available:
66
1. Intensive distribution: Used commonly to distribute low priced or impulse
purchase products eg chocolates, soft drinks.
2. Exclusive distribution: Involves limiting distribution to a single outlet. The
product is usually highly priced, and requires the intermediary to place much detail
in its sell. An example of would be the sale of vehicles through exclusive dealers.
3. Selective Distribution: A small number of retail outlets are chosen to distribute
the product. Selective distribution is common with products such as computers,
televisions household appliances, where consumers are willing to shop around and
where manufacturers want a large geographical spread.
If a manufacturer decides to adopt an exclusive or selective strategy they should
select a intermediary which has experience of handling similar products, credible
and is known by the target audience.
THE GILLETTE CASE:
The appointment of distributors is handled by Gillette India directly. In NCR
region, a separate well-defined area is allocated to each distributor.
The distributor appoints the EFF (Effective Field force). This comprises a team of
5-6 people who work directly under the distributor and are paid by him (and not the
company).
The broad structure in the distribution network is as follows :
Assistant Sales Manager (ASM)
Territory Sales Manager (TSM)
Distributor
EFF
The goods are stored at depots before they move into the hands of the distributor.
The ASM and TSI are on company payroll.
The Territory Sales Manager prepares the TMR (Total Market Report) detailing
important variables like market share, growth trends, etc for the area under him.
Also, it is the TSI who communicates schemes and benefits rolled out by the
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company to the distributor who in turn informs his EFF. The TSI meets distributors
on a monthly basis for periodic review. The TSI is responsible for the
targets/performance of the area under him and he is expected to communicate
actual results back to the company on a regular basis.
In NCR Region, the margin being given at the retail level is 12%. One distributor
has approximately 1100 shops under him. There are around 15-20 distributors in
Delhi. The distribution is monitored basis off take and the distributor’s (or
distributor’s appointed person) frequency of visiting the retail outlet is keeping in
view the availability of ready stock. In Delhi, sale of goods to the retailer takes
place on both a cash as well as credit basis. The distribution chain in Delhi is
known to be smooth and without bottlenecks with ABSOLUTELY NO
PROBLEMS being reported with regard to handling and acquiring stocks. On an
average, a retail unit stocks the maximum number of Prestos, in relation to Vector
Plus and Mach 3
DISPLAY:
The company has developed innovative display units for both smaller kirana and
bigger supermarkets. It seeks to increase sales through
1) Increased range - increase in the number of SKU’s (Stock Keeping Units)
2) Deepening the impact of a Gillette wall – the height at which the wall is
displayed should at the eye level of the customer.
3) Depth – ensuring availability of product range at the retail outlet
The company does not interfere in any manner as far as the putting up of Gillette
walls in shops is concerned i.e. it is entirely at the discretion of the retailer. For
more sophisticated outlets, racks are used designed in ways such that they take up
minimum space
For the high-end products, the move is from hanging cards to a grooming center
where the entire grooming regime is brought together.
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PROMOTION
STRATEGY
69
WHY PROMOTION?
Promotion keeps the product in the minds of the customer and helps stimulate
demand for the product
PROMOTION STRATEGIES:
A successful product or service means nothing unless the benefit of such a service
can be communicated clearly to the target market. An organizations promotional
strategy can consist of:
Advertising: Is any non personal paid form of communication using any
form of mass media. Companies can run the same advertising campaigns
used in the home market or change them for each local market. Broadly a
company can choose from three different advertising strategies.
The company can use the same ad everywhere (across different regions and
countries), varying only the language, name, colors etc.
It can use the same theme globally but adapt the copy to each local market.
The third approach consists of developing a global pool of ads, from which
each country selects the most appropriate one.
Public relations: Involves developing positive relationships with the
organisation media public. The art of good public relations is not only to
obtain favorable publicity within the media, but it is also involves being
able to handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term.
Could involve using money off coupons or special offers.
Personal selling: Selling a product service one to one.
Direct Mail: Is the sending of publicity material to a named person within
an organisation. There has been a massive growth in direct mail campaigns
over the last 5 years. Spending on direct mail now amounts to £18 bn a year
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representing 11.8% of advertising expenditure ( Source: Royal Mail
2000). Organisations can pay thousands of pounds for databases, which
contain names and addresses of potential customers. Direct mail allows an
organisation to use their resources more effectively by allowing them to
send publicity material to a named person within their target segment. By
personalising advertising, response rates increase thus increasing the chance
of improving sales.
THE GILLETTE CASE:
TV/Radio – Gillette has an extensive advertisement campaign being run on
television.
The company uses a mix strategy for its ad campaigns for different products. It has
adopted the first approach for mach3 & mach3 turbo ads wherein it uses a
standardized ad across all countries , only making changes in the language, colors
etc. For the lower segment razors like vector plus & presto it retains the global
theme but adapts it to local market needs.
The advertisement for each product has been developed keeping in mind a specific
section of the market. For E.g. Vector plus ad campaign targeted towards middle
income group has that specific backdrop in the ad. Whereas Gillette Mach 3, a high
end product, has a campaign portraying foreign models to cash in on the tendency
of the Indians that anything associated with foreigners is of good quality and meant
for the higher class. The vector plus ad also comes during the telecast of cricket
matches in the form of “push clean facts- factual information of the game.” (The
name push clean actually stands for the push-clean technology)
Print – This medium is mainly used by Gillette to spread awareness of their centsoff
deals i.e. their reduced price packs and banded packs. Several ads are flashed in
daily newspapers and magazines to advertise these schemes.
Internet- The Gillette website is excellent and there are dedicated websites for
their new products which present the product and related information in a very nice
manner.
However the company does not have a India specific website which we believe the
company can develop as an additional promotional tool.
Also the company can try and inform people about the new technology in shaving
and about the right way to get a smoother shave, through the use of direct mails and
71
pop up ads. SMS can also be a very handy tool to spread awareness about discounts
and other promotional schemes.
Movie/Soaps- This is another avenue Gillette can explore and reap great benefits
from. As we know movies have great influence on not only youth but among all
ages .So Gillette can have tie-ups with movie/producers and can show use of
Gillette products in the same. This can also be a very handy tool to reach the less
educated and lower income groups. Gillette has already associated itself with the
Hollywood movie iRobot, we suggest them to try something similar here.
Based on consumer survey we found that the ad- recall is very less and also the ad
is not having a great impact on the people. Therefore we suggest that Gillette ropes
in a Bollywood star or a cricketer for its advertisements which have not only a
greater impact but also help the ad recall and retention.
Sales Promotion:
It consists of diverse collection of incentive tools , mostly short term , designed to
stimulate quicker or greater purchase of products or services by consumers or the
trade .
Sales promotion includes tools for:
1) Consumer promotion –. In this kind of promotion, ‘Reduced price packs’
are offered in which single package is sold at reduced price. ‘Banded
packs’ of two related products sold at lower price than sum total of the two
are also offered. ‘Premiums’ are also offered i.e. a free gift is given with the
product.
2) Trade promotion - Price-off i.e. a straight discount off the list price on
each case purchased during a stated time period .The other are allowances
which include advertising allowance that compensates the retailers for
advertising the manufacturers’ product and also a display allowance that
compensates them for carrying a special product display.
3) Business and sales force promotion - This includes participation in trade
shows and conventions, sales contests which aim at the sales force or
dealers to increase their sales result over a stated period. Other method is
‘Specialty Advertising’ in which low cost items bearing the company’s
name and address are given to prospects and customers.
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THE GILLETTE CASE:
Consumer promotion - Gillette offers Price Packs (cents-off deals) i.e.
offers to consumers’ savings of the regular price of the products flagged on
the label or package. When shaving gel for example is given free with mach
3 turbo it is called a CP Offer - Consumer Promotion Offer.
Trade promotion - Gillette, at present as found in our survey is not much
into using trade promotion tools.
Business and sales force promotion - The sales force (EFF) is given an
additional incentive for the sales achieved by them over & above their
target. This is paid as a percentage of the additional sales achieved.
However, the company was unwilling to disclose the exact percentage to us.
The company works on a slab system wherein the incentive payout increases
with higher sales achieved. The company follows a 'Points System’ for the EFF
i.e. targets are given in terms of points/time period. Higher points are earned by
the EFF individual for selling a higher variant

MARKET
73

STRATEGY
The Boston Consulting Group (BCG)
matrix
It is a simple tool for assessing a company's position relative to others in terms of
its product range. It is a 2x2 matrix plotting market share against market growth.
History of the BCG Matrix
 1960’s – diversification of businesses
 Need for universal management tool
 First implementation in 1969 by Boston Consulting Group
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Why use it?
The BCG matrix helps a company think about the portfolio of products and
services which it offers and make decisions about which it should keep, which it
should let go and which it should invest further in.
When is it used?
It is used in initial audit discussions to identify “product development
opportunities.”
The company then plots its products on the matrix — for example a product in a
fast growing market in which it has a low share would appear in the top left hand
area, whilst one in which it had a high market share but where the market was
growing slowly would appear in the bottom right.
How to use a BCG matrix?
Key Assumptions of BCG Matrix
Stable cost/price relationship (Not valid if the firm is pricing on projected
lower average unit costs in the future)
Market leader influences the average costs
Profit margin is a function of market share (This ignores profitable niches)
BCG Matrix Format
 Vertical Axis = Relative Market Growth
 Split at 10% by a horizontal line
 Horizontal Axis = Relative Market Share
 Split at 1x by a vertical line
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WHAT IT MEANS:
To help the analysis and stimulate the subsequent discussion the BCG model offers
four descriptions of the product/market combinations which might be found:
Stars represent those products or services which the company has a high share of
the market and the market is growing. They should be invested in further to
maintain the growth.
Cash cows represent those products in which the company has a high market share
but where the market is mature and slow growing or even declining. These
products should be 'milked' to provide cash for investments in future product areas.
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Dogs are products where the company has low market share and where the market
itself is not growing. These should be dropped from the portfolio to release funds
for investment in more attractive opportunities.
Questi on marks are those products in which the company ahs low share but where
the market is beginning to take off or has significant growth potential. They need to
be watched closely and investment maintained to keep a presence since they could
become tomorrow's starts — but equally the commitment should not be too high
since they could also turn out to be tomorrow's dogs!
THE GILLETTE RAZORS BCG MATRIX
With the study of the BCG Matrix, we have tried to apply this concept to this
project of ours. We have analyzed the razor market and then placed the various
razors and blades of Gillette in the relevant quadrants.
Analysis:
The reasons for placing the product portfolio in the above manner is as follows:
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WILKINSON BLADES P II, WILMAN RAZORS
7 O ‘CLOCK BLADES
MACH 3, PRESTO SENSOR EXCEL, STERLING,
VECTOR PLUS
DOGS: 7 O’ CLOCK P II AND WILMAN RAZORS
Here we have considered Wilman razors and the 7 O’Clock razor P II because
Wilman razors are losing market share very rapidly while the 7 O’Clock razors are
too expensive for their segmentation. Consider this: the P II, which is a twin razor
costs Rs.85 while a Vector Plus costs only Rs.29, which also has several added
features like superior technology, imported blades, anti-hair clogging mechanism,
etc. As a result, they have a low market share as well as low market growth, as the
complete eradication of double edged shaving pattern is one of the primary
objectives of Gillette
QUESTION MARKS: SENSOR EXCEL, VECTOR PLUS AND STERLING
Here we put sensor excel because it has been losing its market share due to its
pricing close to that of Mach 3 . A Sensor Excel would initially cost Rs.125 and it
successively boils down to Rs.3 per shave (price per shave), which is the same for
that of Mach 3 (which however costs Rs.235 initially). People actually are tending
to buy either vector plus or Mach 3 as a result of which Sensor Excel is becoming
redundant. Vector Plus is one product with tremendous potential for market growth,
since it combines superior technology, great looks, attractive and competitive price
and above all the Gillette tag. Then we have the Sterling, the double-edged razor
which may not have much growth in the future, which also doesn’t gel with the
company’s objectives but then it is the only such product in the company’s product
basket. There still are some customers who use only double-edged razors and are
also specific about the 7 o’ clock brand.
STARS: MACH 3 AND PRESTO
Here we placed Mach 3 and Presto because they have a high market share as well
as market growth. Presto would never decline in sales because the market for a
disposable razor always exists due to its simple characteristic of ready to use and
throw. Mach 3, the premium product of the company has also been a huge success
amongst its segmented markets of youth and executives and its demand is only
growing. So the company has in fact launched more innovations or developments
of the basic product like Mach 3 Power and Mach 3 Turbo.
CASH COWS: WILKINSON AND 7 O’ CLOCK BLADES (FLAT BLADES)
The reason for putting them here is that they currently enjoy both high market share
as well as market growth. But now there could be slow growth or even decline in
this segment due to decline in double-edged razors ( if the company succeeds in its
objective), so these products should be 'milked' to provide cash for investments in
future product areas.
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Evaluation of BCG Matrix: Pros
 Simple and rapid
 Solid basis for decision-making
 Good measurability of market share and growth
 Provides information about efficient resource allocation within the
organization
 Generator for strategic options
Evaluation of BCG Matrix: Cons
 Oversimplifies complex decisions
 Only 2 factors considered = creates risk
 Uncertainty in market and SBU definition
 Only considers current businessesà no dynamics
 Does not recognize possible synergies between SBUs
 Can fall prey to the “GIGO” syndrome
Conclusion
As long as management understands that the BCG Growth/Share Matrix generates
options which require further analysis and validation, this tool can greatly enhance
strategic decision making
79

CONSUMER
ANALYSIS
80
On the basis of our questionnaire and consumer survey, we found the following:
BRAND RECALL:
FREQUENCY OF SHAVE:
81

once in 3-
82
PLACE OF PURCHASE:

THE REASONS FOR CHOOSING A PARTICULAR RAZORS

convinience
80
90
100
83
Impact of Promotions
64%
21%
15%
Yes
No
May be
Ad Recall
29%
71%
Yes
No
84
7 O'clock : A Gillette product?
33%
67%
Yes
No
WILKINSON: A GILLETTE PRODUCT?
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Analysis of the consumer questionnaires
Post completing the survey , we got down to the task of analyzing the data that we
got . This was important for us to try and understand the shaving market scenario,
consumer behaviour and consumer perception about Gillette.
Frequency of Shave
Of the sample of 200 that we surveyed we found that while 31% of the respondents
shaved on a daily basis, 28% of the respondents shaved every alternate day. Also,
slightly over one third (34%) were only shaving once in 3-4 days.
Therefore, 62% of the respondents (34+28) was not shaving on a daily basis. Our
findings corroborate the fact that shaving frequency in India is low and shaving
conditions relatively tough.
Brand Recall
This was the first question that we put to our respondents. Also, to try and gauge
their natural response , we did not provide them with options.
Upon consolidation of survey results, we find that an overwhelming 84% of those
surveyed mentioned Gillette as the brand they associate with shaving.
Place of Purchase
Since shaving products would fall under the category of convenience goods being
bought on a regular basis, we wanted to find out the place from which the buyer
was making the purchase.
We found that more than half(56%) of those surveyed were making the purchase
from locality stores and 22% were making their purchases from Departmental
stores.
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Reasons for choosing a particular razor
100 respondents mentioned quality of shave as the primary attribute that they
consider when they make their buying decision. Another 52 respondents based their
decision on
the ‘convenience of shave’ while 48 respondents considered factors other than
quality and convenience behind their purchase decision.
Impact of Promotions
64% of the respondents said that they would respond favourably to promotional
schemes brought out by the company. However, 21% said that any such
promotional schemes would not influence their buying behaviour and the
remaining 15% were not sure.
Ad Recall
More than two third of the respondents were unable to recollect seeing a Gillette ad
indicating below average ad recall for Gillette shaving products. Others who did
recollect could primarily recall their Sata Sat ad.
7 O’clock and Wilkinson as Gillette brand s
This was the last question that we put to our respondents. A majority of
them(around two third) were unaware that 7 O’clock and Wilkinson
were actually under the Gillette umbrella and perceived them as brands
of competition.
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Analysis of interaction with the distributors &
the retailers
In our study, we interacted with both the distributors as well as the
retailers and we found that:
Both the distributors & the retailers were well stocked with Gillette shaving
products- both in terms of quantity and range of products. Therefore,
availability of the product is not a problem. Whereas it was not the same
with competitive products like Supermax, 365 that are not readily available
at all retail outlets.
The distributors supply both in cash & credit terms to the retailer.
The frequency of supplies from the distributors to their respective retailers
is different in different cases. in some the retailer receives the supplies on
need as basis, others receive it according to a pre-determined time frame of
a every 3 days(for outlets in big shopping malls, departmental stores) week,
fortnightly.
Neither the retailer nor the distributors face any problem of defective items
or any other complaints from the end user.
The retailers receive a margin of 12 % on all Gillette products ( with the
exception of vector plus, on which the margin is only 10%) as compared to
24-25% margin on competitive products.(house of Malhotras & local
players)
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There are no formal feedback forms that the company circulates but any
problem is carefully handled. Also the option of online booking for these
agents is not available as of now.
In the words of one of the distributor (merchandiser)
“ Gillette is very professional in its approach as far as distribution is concerned.
House of Malhotras is a ‘Lala company’. Their attitude towards the retailer is a
take it or leave it kind of attitude.”
RECOMMENDATIONS
A set of recommendations have been developed for Gillette India keeping the
following factors have been in mind
à Consistency: We have tried to ensure that we do not lose focus
of the outlined objectives.
à Viability: We have tried to come up with suggestions which are
cost effective, practical and can be implemented by the company.
à Market Realities: The Indian shaving market has a lower
shaving frequency and relatively poor shaving conditions.
We recommend that the company could adopt the following strategies.
Gillette walls – Going beyond the shop
These have been put up by Gillette as a strategy behind cash counters in large shops and
departmental shops to promote impulse buying.
Both the designing of the wall and the placing of the razors/cartridges is done in
such a manner so as to capture the customer’s attention and ‘push him’ into buying
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the product (Gillette is known for pressure selling since it deals in premium
products).
It is suggested that
1) These be put up in new places beyond shops eg college canteens and
cafeterias, coffee bars, cinemas & multiplexes. The company can display
the entire range or a particular price range of products that it offers
depending upon target market visiting these places.eg: college canteenpresto,
vector plus
2) These walls are designed aesthetically and have a particular theme that goes with the
area where the walls are being put up. Eg. A wall in a college canteen would have
bright vibrant colours and photographs of college goers as this would appeal more
to a College going market.
Gillette Gift Packs
These are currently available in the market. However, the company normally promotes them
and tries to increase off take during the festive season. We suggest that the company could
target the following new segments
1) The Corporate Gift Market – Gillette products are known to be premium products
and the company enjoys a good brand image in the market. Therefore, there is potential to
make inroads here. (Though it would be imperative that the company brings out smart and
well designed cases that would make it a decent gift item for a corporate gift.)
2) Wedding Gift market – This will require attractive packaging. A mirror can also be
included on the inside flap of the case. Also, keeping in view the nature of the occasion,
some perfume etc might have to be included as a part of the gift pack as simply giving a
razor along with cartridges may convey the wrong message.
3) Birthday Gifts – The company can promote Mach 3/Mach 3 Turbo as the best gift
that a friend / family member can give to a teenager who has just started shaving.
4) Valentine gifts – this particular day has gained a lot of importance in the past few
years thanks to excessive commercialization. Gillette can cash on this day too by coming out
with attractive gift packs during this time with special focus on mach3 /mach3 turbo
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Warranty Card
Gillette products are of supreme quality. The company does not suffer from a problem of
goods returns of defective pieces from vendors. However, to increase the perceived value of
the product in the mind of the customer; the company could provide a warranty card along
with its premium end products – Mach 3 and Mach 3 turbo. Since Gillette offers unmatched
product quality, the cost implications of product replacement would be minimal.
Further, Gillette could do product differentiation by offering different warranty periods for
different cartridge packs (2-4-8). Therefore, a pack of 8 cartridges would have maximum
warranty while a pack of 2 cartridges would cover a lesser period for defects.
Also, during the consumer survey we realized that there is a problem of counterfeit Gillette
products in the market.
To counter this, the company could start putting holograms on its products which will
a) Help consumers differentiate between counterfeit and genuine Gillette products.
b) Establishes “trust” in the company products in the minds of the consumer
The Mach 3 experience
We recommend that Gillette should position its premium Mach 3 product as a superior
shaving experience rather than ‘just a shaving product’. Since, we came across quite a few
consumers who perceive mach 3 to be an expensive product; the company should position it
as a product bundle. The following add-ons can be included.
1) Razor Stand for washroom – Gillette Mach 3 and Mach 3 turbo packs should be
accompanied with a plastic stand that can be placed on the washroom wall next to the mirror.
This would lead to added convenience for the user. A holder can be provided which could
be used for keeping the razor along with other toiletries like tooth brush, tooth paste etc.
2) Travel Pouch for razor: it has been seen that most people face a problem in keeping
their razor safely when travelling (in a way that does not damage the blade). Thus the
company can provide a small (plastic/Rexene/polyester) pouch with mach3/mach3 turbo
purchases or with a bulk (3-4) purchase of presto (as many people use presto while travelling
rather than their normal Gillette razor)
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3) Warranty card – As mentioned above, this could be included for all Mach 3 and
Mach 3 razors and cartridges. It gives the buyer, especially those who perceive the product
to be expensive a sense of value for money.
4) Information Leaflet – A leaflet could be included as a part of the pack which would
include the following information
How to use Mach 3 – the ideal way
Cleaning your Mach 3 (tips like use of hot water is better than cold water)
The ideal shave /tips on shaving
5) Satisfaction survey relating to the user’s experience with Mach 3 could be included
as a tear sheet which consumers could send back to the company. It has two advantages
It gives valuable data to the company of what Mach 3 users think about and expect
from the product
It makes the customer feel special.
Gillette Shopping Card
Gillette could actually come up with the idea of launching a “Gillette shopping card” , one
for supermarkets and another for locality stores.
In up-market departmental stores/supermarkets:
This would be exactly like a credit card minus the magnetic strip i.e. just like the
Planet-M card, or the Ebony card. The card can be initially given with the purchase of a
MACH 3 razor or the gift pack. When a customer makes a purchase, he automatically gets
some points, which can be later redeemed for any product at the store, instead of just Gillette
products. Also the card holders would be entitled for events like lucky draws, donor passes
to musical events, tickets to a newly released cinema, discounts in select eating joints and
shopping malls for transactions above a certain amount, even grocery items, etc.
Another way of getting a shopping card is to tie up with supermarkets and
shopping malls, like Ebony, Big Bazaar, Giant, Nanz, etc. that have their own shopping
cards. In this type of agreement, whenever a person buys a Gillette product, he would be
given more points in addition to the normal points system followed by the store, which could
be redeemed for any purchases from the store.
Advantages:
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The incentive of redeeming points would surely induce the customer to buy
Gillette products.
Since the range of products is better displayed in a supermarket, a customer may
be influenced to buy other Gillette products also; maybe even a higher version of the razor
he usually buys.
The store would also be benefited as more customers would now be motivated
to buy their Gillette products from them rather that a kirana store.
In locality stores:
It would be issued at select merchant establishments that stock Gillette products. The
cards would be for different pre approved values of 500/-, 1000/, 2000/- , carry a certain
validity period and be used for purchasing Gillette products within that validity period.
In case the total purchase value is less than the card value the customer would be
reimbursed the remaining amount in cash. At the time when the customer purchases the
card he would be entitled to certain sops like movie tickets, free passes to music
concerts, lucky draws etc.
The merchant would be paid the cash value of the card upon depositing the same with
the company.
Benefit s :
The company is getting the consumer’s commitment beforehand to make Gillette
purchases in the coming future.
Privileged Gillette consumers would be eligible for attractive offers. They would feel
different from users of other brands.
The maximum benefits would be tagged with the highest value card. The nature of
the benefits that would come with the card would be as mentioned before.
Youth
In our consumer survey, we realized that a majority of the respondents who were
between 18-25 years of age were using Gillette because of a “sense of pride” apart from
its ‘Brand value’. Gillette we believe stands to gain if it positions itself as the ‘Brand of
the youth’. It can do this in two ways.
College Festivals
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Since the scope of our project is limited to NCR, we recommend that the company
associates itself with festivals and other events carrying mass appeal in Delhi
University ,Indraprastha University, IIT, DCE,etc.
The Gillette card
The youth is the segment that is most attracted to a concept like a shopping card, either
exclusively for Gillette or one combined with a store. They are, in fact, the most
impulsive customers who would be influenced by add-ons like entry to musical shows,
movies, etc.
Pitching retailer against retailer
We questioned even some retailers during the course of our project. Upon enquiry, we found
out that competitors were giving a higher margin to the retailer than Gillette. The retailer is a
very crucial element in the distribution strategy. He even plays a vital role in shaping the
image of a product, which means he cannot be neglected for long. In spite of this, they do
not have specific targets. Therefore, the company can actually fix incentive based targets.
The company could have a concept of monthly / quarterly lucky draw for retailers
exceeding their targets and could keep a holiday package or high value consumer
durable as the prize for the winner of the draw.
R & D : Giving a Technical push
At present along with the Malhotras, there are a number of local players in the market selling
twin blade razors. Even though Gillette is the market leader there still is scope for them to
increase their market share further. One way of doing this is to constantly come up with
newer versions or products.
Gillette could also work on coming with special razors
For trimming corn and callous in the feet
To prevent skin irritation caused by shaving (people with sensitive skin)
Single blade disposable (or non-disposable) for the more price conscious.
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.
Strong Advertising Pitch
Gillette has traditionally been using foreign models in its Mach3 ad campaigns & for its
other products like vector plus, presto they have not used any specific Indian brand
ambassador. Therefore, the amount of mind share that the ad is able to capture is on the
lower side. (this is backed by our survey ).
It is suggested that the company uses an Indian model or actor or sports person to cash in on
his appeal to promote its range of shaving razors.
Through our survey, we were able to narrow down on 4 choices: Sharukh Khan,
Fardeen Khan, John Abraham and Sachin Tendulkar.
We believe that John Abraham would be best suited for a Gillette shaving range ad
campaign because he generally remains unshaven and has that image in the public mind.
Therefore a clean shaven John Abraham will have a lasting impact in the consumer’s mind.
Also, all Gillette products except for Presto are manufactured outside India. The fact that
none of their products (except Presto) are touched by a human hand is an additional selling
point for the company and should be highlighted in a subtle manner in the advertisements.
We found consumers lacked awareness of this fact and were impressed when they were told
about this during the course of our survey.
The company can make use of the latest ad medium of SMS. The huge spurt in cell phone
usage can be wisely tapped by Gillette for reaching its customers. Since this medium maybe
costly so the company can use it for communicating offers and discounts on its products if
not for general advertising .e.g. communicating the latest price cut on vector plus
Guerilla warfare
The company could occasionally take on its competitors completely by surprise by coming
out with new and innovative Ideas.
95
Some possible strategies could be:
Vector plus free with purchases of INR 500 and above at select grocery /
departmental stores
Presto free with purchases of INR 200/250 and above at select grocery / departmental
stores
This would be in the nature of a limited period offer.
The above strategy can be extremely successful in penetrating those households (through
the housewife) wherein the males of the household are loyal customers of another brand for
years & no sales pitch or salesman can change their preference except maybe a experimental
use of the free product.
The Barber Shop
3.9 billion blades are consumed annually in India, a third of which sits in
barbershops. So technically, 50 per cent of the shaving population goes to barber
shops.
Therefore Gillette could develop a strategy wherein its sales force specifically
targets people frequenting barbershops.
The primary challenge in this regard is the cost per shave, which is much lower for
a conventional double edge razor than for even the lowest variant of twin blade
(Presto). It is not feasible to try and upgrade a price sensitive consumer in this
segment.
We therefore suggest the following
1) Bulk Deals of Gillette 7’o Clock, Wilman & Wilkinson with Barbers :
The three come closest in the Gillette product chain to the low cost products of
House of Malhotras. Barbers can be convinced & financially motivated to move
from either unbranded blades or from competition to these basis the following
strengths:
a) Demand is inelastic. The barber will always have a steady flow of
customers. He can therefore afford to make bulk purchases (if given proper
incentives).
b) A blade is a durable product. Bulk Purchases made can be stored with ease.
96
A barber provides numerous services apart from shaving like hair cuts, head
massage, etc .customers waiting for their turn typically watch TV or flip through
magazines. we suggest that the barbers could be given incentives to stock some of
Gillette’s razors & other products to attract the attention of waiting customers.
This exercise may induce self shavers to make on the spot purchases and saloon
shavers to try out new products
2) Making /Production of Shingle outside shops:
We suggest that Gillette starts a scheme wherein it makes the shingle carrying the
name of the barbers shop. While it would produce these for the barber at a
subsidized cost (i.e. less than what the barber would incur by getting it made
himself), approximately a 10% strip at the bottom would be dedicated to the
Gillette name and punch line.
This would help promote brand recall among consumers frequenting the shop and increases
the possibility of them moving from barber shaving to self shaving. Since such an activity is
not in line with Gillette’s core competence, it could be outsourced to a third party.
3) Shaving Mugs & Brushes at Barber shop carrying Gillette name
It is suggested that Gillette could offer free shaving mugs and brushes to barbers who enter
into Bulk deal contracts with it. These would have ’Gillette’ along with its punch line
embossed on them. A consumer typically sits for 10-15 minutes in a fixed position while
getting a shave done. Since the consumer is not in a position to move/undertake any other
activity during that time; we believe that this becomes a good strategy to get him thinking
about Gillette- capturing his attention span. We further believe that this would definitely
prompt a one time purchase of Gillette shaving products and may push the customer in the
medium to long term towards self shaving.
97
RAM LAL AND SONS
GILLETTE- THE BEST A MAN CAN GET
BIBLIOGRAPHY
Porter, E Michael, Competitive Strategy: Techniques for Analyzing Industries and
competitors,1970.
Kotler, Philip Marketing Management, chapters 3,5,6,8,9 and 13, the millennium edition,
2000.
Ries, Al and Trout, Jack, The 22 Immutable Laws Of Marketing
Ries, Al and Trout, Jack, Positioning, (few specific points)
http://economictimes.indiatimes.com/articleshow/796982.cms
http://economictimes.indiatimes.com/articleshow/761804.cms http://
economictimes.indiatimes.com/articleshow/757445.cms
http://economictimes.indiatimes.com/articleshow/756896.cms
http://economictimes.indiatimes.com/articleshow/705603.cms
http://economictimes.indiatimes.com/articleshow/758829.cms
http://economictimes.indiatimes.com/articleshow/665732.cms
http://economictimes.indiatimes.com/articleshow/653580.cms
http://economictimes.indiatimes.com/articleshow/648475.cms
http://economictimes.indiatimes.com/articleshow/628507.cms
http://economictimes.indiatimes.com/articleshow/575888.cms
http://economictimes.indiatimes.com/articleshow/553014.cms
http://202.87.40.171/comp/CompanyIndex.asp
http://202.87.40.171/comp/ChairSpeech.asp
http://202.87.40.171/comp/News.asp
http://syndication.indiatimes.com/articleshow.cms?msid=19996485
http://www.valuenotes.com/krc/apr2001.asp?ArtCd=27039
http://www.mouthshut.com/readreview/31405-1.html
http://tss.indiatimes.com/sampet-mkting.htm
http://economictimes.indiatimes.com/cms.dll/articleshow?msid=185104
http://www.hindu.com/2003/10/30/stories/2003103001791603.htm
http://www.bcg.com/publications/publication_view.jsp?pubID=451&language=English
98

APPENDIX
AND
ANNEXURES
THE CONSUMER QUESTIONNAIRE:
Name:
Age:
Address:
Monthly Income/Expenses Groups:
o Up to Rs 5,000
o Above Rs 5,000 to Rs 10,000
o Above Rs 10,000 to Rs 15,000
o Above Rs 15,000 to Rs 20,000
o Above Rs 20,000
99
1 What brand do you associate with shaving razors/cartridges ?
_______________________________________________
1. From where is the razor/blade/cartridge generally purchased?
 Departmental store
 Chemist
 Grocery
 Gift Shops
 Locality store
 Other: _____________
2. Which razor do you use?
 Disposable
 Double Edged
 Twin Blade
 Triple Edged

( QUESTIONS IF RESPONDENT IS A DOUBLE EDGE

USER )
1 How often do you shave?
 Daily
 Every alternate day
 Once in 3- 4 days
 Once a week
 Fortnightly
2 Which blade do you use?
 Laser
 Topaz
 Supermax
 7’o clock
 Wilkinson
3) Reasons for your choicea)
( try and gauge natural response without giving options i.e.
impromptu )
_________________________________________________
b) (give attributes and ask them to rank their preference in case
respondent opts for more than one choice)
 dad or peer has been using it
 convenience of use
 quality of shave
 use of less shaving cream and/or water
100
 price
4) Have you faced any problems while using a Double edged razor?
 Problem of cuts
 Time consuming
 Maintenance and handling
5) Have you ever tried a twin blade razor?
If yes, why did you switch back to doubleedge________________________
if no, reason for not trying
______________________________________
( QUESTIONS FOR TWIN/TRIPLE/DISPOSABLE RAZOR USER )
1. How often do you shave?
 Daily
 Every alternate day
 Once every 3-4 days
 Once a week
 Fortnightly
2. Reasons for your choicea)
( try and gauge natural response without giving options i.e.
impromptu )
________________________________________________
b) (give attributes and ask them to rank their preference in case
respondent opts for more than one choice)
 dad or peer has been using it
 convenience of use
 quality of shave
 use of less shaving cream and/or water
 price
3) Problems faced if any in twin edged?
 Cuts
 time consuming
 maintenance and handling
 clogging of hair
 hard shave
101
4) Have you ever used a double edged razor?
If yes, reasons for shifting to twin edged
________________________________________________________________
___
5) Which razor /cartridge do you use?
Razor : Gillette / 7 o clock / Wilkinson / Wilman / Gallant
Cartridge: Gillette / 7 o clock / Wilkinson / Wilman / Gallant
6) If Gillette then which?
 Presto
 7oclock
 Vector
 Sensor Excel
 Mach3
 Mach3 turbo

(For respondents who have never used Gillette or have moved

away from it after using it)
1) Have you ever used a Gillette razor?
Yes- Why did you switch over to ____________________________
no---reasons? ____________________________________
a) unaware
b) associate it as a product of upper segment
c) problem in availability
d) price (if yes-are you aware that Gillette imports razors- if no
then ask—does this knowledge change your perception?)
3) Which of the following attributes do you associate with Gillette; how do
you rate them
PARAMETRES strongly agree agree disagree strongly disagree
Value for money
Technology
Safety
Quality of shave
Sense of pride
3) Do you recall any ad of Gillette?
If yes, What do you like in the ad? _________________________________
102
What do you think was the intended message?________________________
Suggest a possible brand ambassador for Gillette.______________________
4) Is your buying behaviour affected when Gillette comes out with promotional
schemes .
(price discounts, one cartridge free with 4,etc)
 Yes
 No
 Maybe
5) Did you know that 7’o clock and Wilkinson sword are actually Gillette
products?
103
THE RETAILER QUESTIONNAIRE:
1. Name :
2. Address:
3. What are the different shaving products you deal in?
__________________________________________________________________
______
___________________________________________________________________
___
4. Which all Gillette products do you deal in?
 Razors
 Shaving Gel / foam
 After Shave Gel
 After shave lotion
 Cartridges
 Deodorant
5. Which Gillette razors and cartridges do you deal in?
RAZORS CARTRIDGES MARGINS
Presto
Vector Plus
Sensor Excel
Mach 3
Mach 3 Turbo
6. What is the form of purchase?
 Cash
 Credit
 Both Combined
 Any other ____________
104
7. Please give details of retailers you supply to
L
ocation Number
8. What is the basis of delivery?
 Fixed / pre determined
If yes, please specify
o Weekly
o Fortnightly
o Monthly
 As and when the retailer orders
9. From where do they obtain the stocks?
 Directly from the company
 C&F agents
 Others
10. Any problems faced in purchasing of stocks? Were they properly handled?
__________________________________________________________________
___________________________________________________________________
___________
11. What is the form of sale?
 Cash
 Credit
 Both combined
 Others
12. If the form is credit, then is there any scope for sales returns?
___________________________________________________________________
___________________________________________________________________
__________
13. Is there provision for online booking?
105
 Yes
 No
14. Is there any provision for Vendor feedback?
 Yes
 No
15. What are the competitive / other brands that you deal in?
RAZOR CARTRIDGES MARGIN ON RAZORS
16. How would you compare Gillette with others on the following parameters :
GILLETTE OTHERS
Margin on razor
Schemes to dealers
Delivery system
Convenience
Dealing with co./agents
Payment systems
Handling of stocks
Handling/solving
problems/queries
Efficiency-online booking
106
COMPANY CHECKLISTS
Reasons for hike in price of Presto from Rs 7.5 to Rs 12 to Rs
15.
Gillette ad strategy and why the company continues to
pursue it despite poor ad recall.
Reasons for advertising only at the time of new product
launches and price cuts and not on a regular basis otherwise
Reasons for not projecting Wilman and Wilkinson as
products from the Gillette stable despite acquisition of ISPL
Cost to company of a Gillette wall
Payment made to retailer for putting a Gillette wall in his
outlet.
Reasons for not playing upon the fact (in ads) that all Gillette
shaving razors (except Presto) are imported and not locally
manufactured.
107
COMPANY CONTACTS AND OTHER SOURCES
108
Inbox : Read Mail [ Back to Inbox ]
Printable Format | Show full Headers Prev | Next
Move to Folder...
109
"akshay berry" <akshay_berry@rediffmail.com>
To: rishi.dhingra@gillette.com
cc:
Subject: Marketing Project on Gillette shaving range
30 Aug 2004 13:22
Dear Sir
We are students of Delhi School of Economics ( Master in International
Business ) and are doing a marketing project on Gillette's range of shaving
razors.
The thrust of the project is to try and upgrade double edge users (who
comprise 90% of the market) to twin blade systems and also to upgrade
existing Gillette users up the value chain.
We also intend to do some surveys at the level of the consumer and retailer
and would be glad to provide data or any other information collected, if
required by you.
Request you to kindly give us an appointment / direct us to the concerned
person who could guide us/provide some data in this regard.
We would be highly obliged and would not take too much of your valuable
time.
Our group comprises of 5 students C V R Shekhar, Deepika Mittal, Anshul
Sood, Ivan Passanah and myself.
Thanks & Regards
Akshay Berry
MIB 1st Semester
Original Message --
From: Rishi Dhingra <Rishi_Dhingra@gillette.com>
To: "akshay berry" <akshay_berry@rediffmail.com>, “shekhar”
shekharcvr@yahoo.com , “deepika” deepikamittal19@yahoo.co.in ,“anshul”
110
anshulsood@hotmail.com , “ivan” ivan83@rediffmail.com
Cc: Himava Nath <Himava_Nath@gillette.com>
Subject: Re: Marketing Project on Gillette shaving range
Forwarded Message [ Save to my Yahoo! Briefcase | Download File ]
Subject: Re: Marketing Project on Gillette shaving range
To:
"akshay berry" akshay_berry@rediffmail.com, , “shekhar” shekharcvr@yahoo.com , “deepika”
deepikamittal19@yahoo.co.in ,
“anshul” anshulsood@hotmail.com , “ivan” ivan83@rediffmail.com
CC: "Himava Nath" <Himava_Nath@gillette.com>
From: "Rishi Dhingra" <Rishi_Dhingra@gillette.com>
Plain Text Attachment [ Download File | Save to my Yahoo! Briefcase ]
Dear Akshay, Shekhar, Deepika, Anshul and Ivan
You could get in touch with Himava Nath at the Gillette India
office
and he
could potentially share with you whatever is "non confidential"
stuff.
Regards,
Rishi Dhingra,
Business Manager, Grooming
AMEE Group
Tel : 44(00)20 8847 7258
Fax: 44(00)20 8847 8800
email: rishi_dhingra@gillette.com
111
-- Original Message --
From: Valerie_Ducasse@gillette.com
To: akshay_berry@rediffmail.com
Subject: Re: 4311623A
Forwarded Message [ Save to my Yahoo! Briefcase | Download File ]
From: Valerie_Ducasse@gillette.com
To: akshay_berry@rediffmail.com
Subject: Re: 4311623A
Plain Text Attachment [ Download File | Save to my Yahoo! Briefcase ]
September 14, 2004
Mr Berry,
Thanks for visiting our website! We have forwarded your email to
the
Gillette office in your country. You should receive a local
response
within 15 business days. If you do not get a reply, please let me
know.
Thanks again for visiting our site and for your comments!
Valerie D.
Consumer Service Associate
4311623A
The HTML graphics in this message have been displayed. [Edit Preferences - What's
This?]
Delete Reply Forward Spam Move...
112
THE END
113
IIM Indore

Group 6 Section B

1. EXECUTIVE SUMMARY 2. INTRODUCTION OF PROJECT 3. HISTORY OF GILLETTE 3.1. FOUNDATION OF

GILLETTE INDIA 3.2. GILLETTE’S STRATEGY IN INDIA 3.3. SALES 3.4. STRUCTURE 3.5. PRODUCT DETAILS 4.
ANALYSIS OF GILLETTE 4.1. FINANCIAL ANALYSIS 4.2. VISION AND FUTURE GROWTH 4.3. EXTERNAL
FORCES 5. PERSONAL GROOMING INDUSTRY – AN OUTLOOK 5.1. INDUSTRY ANALYSIS 5.2. COMPETITOR
ANALYSIS 5.2.1. COLGATE-PALMOLIVE 5.2.2. PROCTOR & GAMBLE 5.3. HLL 5.4. GODREJ 5.5. FA 5.6.
OTHER BRANDS 6. GILLETTE SHAVING CREAM DIVISION
IIM Indore

6.1. PRODUCT 6.1.1. GILLETTE PRODUCTS IN THE SHAVING CREAM/GEL/FOAM DEPARTMENT 6.1.2.
GILLETTE’S RANGE OF SHAVING GELS AND FOAMS 6.2. GILLETTE SHAVING GEL - AN INSIGHT 6.3. PRICE
6.4. PLACE 6.5. PROMOTION 7. MARKET RESEARCH 7.1. RESEARCH PURPOSE 7.1.1. PROBLEM OR
OPPORTUNITY 7.2. RESEARCH OBJECTIVE 7.2.1. RESEARCH QUESTION 7.2.2. RESEARCH BOUNDARIES
7.3. RESEARCH DESIGN 7.3.1. RESEARCH APPROACH 7.3.2. RESEARCH TACTICS 7.4. IMPLEMENTATION
7.4.1. DATA COLLECTION - PHASE 1: 7.4.2. PHASE 2: FINAL SURVEY 7.4.3. DATA PROCESSING 7.5.
RECOMMENDATION AND CONCLUSION 7.5.1. PLAYING WITH THE PLC: 7.5.2. LAUNCH GILLETTE
SHAVING CREAM 7.5.3. PROMOTION 7.5.4. SALES AND MARKETING 7.5.5. CONTINUE WITH
UPGRADATION 8. FUTURE CHALLENGES 9. MARKETING PLAN FOR SHAVING CREAM

Group 6 Section B

20 20 20 22 24 25 26 28 28 28 28 28 28 29 29 31 31 31 32 32 36 36 37 37 38 38 40 41
IIM Indore

9.1. MARKETING AUDIT 9.1.1. INDUSTRY OUTLOOK 9.1.2. GILLETTE’S CURRENT POSITION (WHERE WE
ARE AND WHERE WE ARE HEADING??) 9.1.3. FUTURE OUTLOOK WITH SHAVING CREAM (WHERE WE
WILL HEAD?) 9.2. MARKETING MISSION 9.2.1. TARGET CUSTOMERS AND THEIR NEEDS 9.2.2.
MARKETING OBJECTIVES 9.3. STRATEGIC PRIORITIES 9.4. MARKETING STRATEGY 9.4.1. SEGMENTATION
9.4.2. POSITIONING 9.4.3. REAL POSITIONING 9.4.4. PSYCHOLOGICAL POSITIONING 9.5. MARKETING MIX
9.5.1. PRODUCT AND SERVICE 9.5.2. PRICING 9.5.3. PROMOTION 10. APPENDIX 10.1. GILLETTE-
TIMELINE 10.2. SWOT ANALYSIS 10.3. ORGANIZATIONAL STRUCTURE 10.4. PRODUCT PORTFOLIO 10.5.
FINANCIAL ANALYSIS 10.5.1. SHARE HOLDING PATTERN 10.5.2. PROFIT & LOSS ANALYSIS 10.5.3.
BALANCE SHEET ANALYSIS 10.5.4. CASH FLOW ANALYSIS 10.5.5. COMPARATIVE ANALYSIS 10.5.6.
VALUATION 10.6. COMPETITOR’S ANALYSIS

Group 6 Section B

41 41 41 42 42 42 42 42 43 43 44 46 46 46 46 48 48 50 50 52 54 56 57 57 57 61 63 64 65 67
IIM Indore

10.6.1. COLGATE PALMOLIVE 10.6.2. PROCTOR & GAMBLE 10.6.3. HLL 10.6.4. GODREJ 10.6.5. OTHER
COMPETITORS 10.7. CUSTOMER SURVEY QUESTIONNAIRE 10.8. FOCUS GROUP DISCUSSION FORMAT
10.9. AGE PROFILE OF SAMPLE POPULATION 10.10. SHAVING PRODUCT PREFERENCE 10.11. PLACE OF
BUYING 10.12. RECALL PATTERN 10.13. USER PREFERENCE 10.14. BRAND SATISFACTION OF GILLETTE
10.15. BRAND LOYALTY IN SHAVING CREAM/GEL/FOAM MARKET 10.16. PRICE SENSITIVITY IN SHAVING
CREAM/GEL/FOAM MARKET 10.17. FISHBEIN ANALYSIS 10.18. BRAND PREFERENCE BASED ON
INDIVIDUAL ATTITUDE SCORE 10.19. AVERAGE ATTITUDE PERCEPTION SCORE OF EACH BRAND 10.20.
FACTOR ANALYSIS 10.21. PERCEPTUAL MAPPING 10.22. CLUSTER ANALYSIS

Group 6 Section B

67 67 68 68 69 70 75 79 79 80 80 81 81 81 82 83 83 84 84 87 90
IIM Indore

Group 6 Section B

1.

Executive Summary

Gillette has been the leading brand in men‟s grooming industry in India and across the globe. Gillette
with its wide range of products caters to the premium segment of the men‟s grooming market. Gillette
faces intense competition in the shaving preparations market (shaving gel/foam/cream) whereas the
competition in the razor market is not that intense. With the intense competition Gillette has to cater to
the various needs of the consumers. This project aims at identifying the problems faced by Gillette in the
shaving preparation market. Through the project we have found an opportunity for Gillette India in the
shaving cream segment which is the biggest segment in Indian shaving preparation market and Gillette
has no presence in it. The research we conducted also supports this fact. We have suggested a
marketing plan for Gillette Shaving Cream along with other suggestions for Gillette to face the
competition in the near future and the long run.
IIM Indore

Group 6 Section B

2.

Introduction of project

The objective of the study is to understand the consumer attitude and buying behavior for Gillette
Shaving Gel And Foam. To understand the former part, we created a focused group questionnaire and
conducted a focused Group Discussion (FGD) on Shaving Cream, gel and foam. We analyzed the
questionnaire and the FGD to create an extensive questionnaire understanding the buying behavior of
consumers of Gillette Shaving gel/foam and other brands. We had a Fishbein analysis done on the 84
respondents from Indore to identify how much of buying intension is due to attributes and how much
due to influence by referrals. We further extended the study to understand the perceptual mapping of
brands. Our analysis has revealed that the consumer is satisfied with the brand Gillette and its
attributes. However Gillette has not performed well with the customers who are slightly price sensitive.
This following detailed analysis is presented in our assignment.
IIM Indore

Group 6 Section B

3.

3.1.

History of Gillette

Foundation of Gillette India

Gillette India was incorporated on 9th February 1984 at Rajasthan. House of Poddar Enterprise (HOPE)
and Gillette Company, U.S.A. (Gillette), promoted it. Gillette India manufactures and markets Gillette
Grooming Products and distributes Oral – B and Duracell products. More than 60 % of the products sold
in India are locally manufactured by Gillette India. Parent company Gillette (Refer Time Line, section
10.1) owns a majority stake in Gillette India. Company entered into a foreign collaboration agreement
with HOPE for setting up of a company for the manufacture of stainless steel razor blades in which
Gillette agreed to subscribe 24% of the equity capital. This agreement provided technical collaboration
by Gillette over the full range of technical know-how and technical assistance for the manufacture of
razor blades, razors and shaving systems. In 1985, the company came out with an IPO for raising Rs 26
million to fund the setting up of its plant at Bhiwadi in Rajasthan. Company placed a plant for the
manufacture in the first phase, 200 million stainless steel razor blades per annum in the starting. Blades
manufactured by the Company were of two types, the premium 7 O'Clock, Ejtek Super Platinum and the
stainless brand 7 O'Clock Ejtek Super Stainless. Company took over Sharpedge Ltd., by acquiring the
entire share capital of that company. Company also merged Duracell (India) Pvt. Ltd. and Wilkinson
Sword India Ltd. with the company. Company introduced new twin blade shaving system called 7
O'Clock Ejtek P II with platinum enriched edges in 1987 and changed the shaving system in the India.
Sabre Pens Ltd., Sheen Dental Products Ltd., Klosershav Products Ltd., and Vanity Cosmetic Ltd., are
wholly owned subsidiaries of the Company. During the mid-nineties, the company's product range
widened with new products being introduced in the market namely, Gillette Presto ready shaver,
7O'Clock Ready-II shaver, Gillette Sensor Excel shaving system, Gillette shave gel, conditioners,
deodorants, etc. It also started distributing Oral B toothbrushes, Duracell range of batteries and Luxor
and Parker pens. Gillette enhanced its range in men‟s shaving products, it has also entered the women's
shaving product segment. In
IIM Indore

Group 6 Section B

1998, the company decided that it would use Gillette as its pre-eminent brand placing it ahead of the
7O'Clock brand.

3.2.

Gillette’s Strategy in India

The Indian shaving products market is characterized by a 97% share of double-edged blades - a business
dominated by the Malhotras, with brands like Topaz and Panama. Instead of going head-on against
them in this highly price-sensitive market, ISPL has chosen to focus on premium products. The strategy
has been to bring more people into the twin-edged segment, and then gradually move them towards
even more premium products. Also, by segmenting the market with offerings at different price points - 7
O'Clock, Sensor and Mach III, ISPL offers a continuing upgrade path for users.

3.3.

Sales

Gillette India's sales jumped 106 per cent to Rs 516.80 crores after the addition of new businesses from
the merged companies. But operating profit margins of the merged entity has dropped to 12.9 per cent
in 2000, from 19.3 per cent in 1999. As a result, Gillette India's operating profits rose by a lower 38 per
cent to Rs 67.16 crore. This suggests that the merging companies have far lower levels of profitability
than Gillette India. Presently Gillette India Ltd today announced 36.6 per cent higher net profit at Rs
61.22 crores for the 12 months ended December 31, 2004 on 9.73 per cent growth in sales at Rs 446.57
crores.
3.4.

Structure

Post Gillette P&G merger, Gillette has adopted the organisation structure of P&G 2006 onwards and
effective July 1,06 relocated its headquarters from Gurgaon to P&G Plaza in Mumbai, which will house
all P&G subsidiaries in India. P&Gs organizational structure is broadly divided into three heads:
GBU(Global Business Unit), MDO(Market Development Organization)and GBS(Global Business
Services).Gillette moved from business units based on geographic regions to GBUs based on product
lines. MDOs develop market strategies to build business based on local knowledge and GBS bring
IIM Indore

Group 6 Section B

together business activities such as accounting, human resource systems, order management and
information technology, thus making it cost-effective. The present structure of P&G is shown in the
section 10.3.

3.5.

Product Details

Company Manufacture stainless steel razor blades. Gillette India has a wider portfolio of core business
of shaving products sold under Gillette, 7‟0 Clock and Wilkinson brands, Battery and flashlights business
and oral care products (Oral B). Company has strong presence in shaving razor blades market. It has the
premium quality 7 O'Clock Ejtek shaving brush, 7 O'Clock Ejtek P II shaving system with a metal spine
and a shave cream in three variants, Gillette Presto Readyshaver, Readyshaver under the Brand 7
O'Clock Ready II, tooth brushes under the well known international brand name Oral-B, Gillette Sensor &
Sensor Excel shaving systems which met with an excellent consumer and trade response, Gillette Shave
Foam, Gillette Aerosol" shaving cream, new generation triple blade shaving system Mach3Turbo etc.
Company also entered into ladies personal care segment with the launch of the Gillette Sensor Excel for
women. Company has strong diversified portfolio to increase its male personal products coverage.
Company has tied up with Rediff-on-the-Net e-commerce to market its product and increase its
customer base.(Section 10.4 for product line)
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4.

4.1.

Analysis of Gillette

Financial Analysis

Since its entry into India market in 1984, Gillette has been following a strategy of inorganic growth by
acquiring domestic companies in oral care, battery, blades and razors and stationery business. The
company witnessed tremendous growth during the later half of 1990s. Net sales increased from Rs 107
crores in 1997 to Rs 477 crores in 2000 representing a growth rate (CAGR) of 45 %. Similarly, CAGR for
net profits over the same period was over 50%. However, operating margin declined from 19.8% in 1997
to 14.0% in 2000. This further declined to less than 1% in the year 2001. Further, negative sales growth
and increased expenses led to a net loss of Rs 28 crores in 2001. This poor financial performance forced
the company to undertake a major restructuring program. Over the next 2 years, Gillette concentrated
on reducing overheads and better working capital management to increase profitability. As a result of its
restructuring program, the company reported net profit of Rs 44.82 crores in 2003. Since then, company
has been growing at a steady rate which has resulted in increased valuation of the company.

4.2.

Vision and Future Growth

The company‟s vision is to build total brand value by innovating to deliver consumer value and
customer relationship faster, better and more effectively than its competitors. This vision statement has
led to the development and introduction of various newer products especially in male grooming division
and adoption of a more customer oriented approach. Restructuring in 2002-03 brought about a major
shift in the future strategy of the company. The company decided to disassociate itself from non-
profitable and nonstrategic businesses to focus on profitable businesses. It started focusing on the
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grooming and oral care business and exited the battery (except Duracell) and household appliances
activities. Gillette currently, is the market leader in the male grooming division and is expanding very
aggressively into female grooming business through introduction of products such as wet shaving
products and hair expiation devices. The company is also focusing on exploring ways to capture the
expanding oral care segment in the near future. Oral care segment contributed approximately 13% of
company‟s revenues in 2006 as against only 7% a year ago. (Section 10.5 for Financial Analysis)

4.3.

External Forces

The external environmental factors in terms of increasing purchasing power of the Indian consumers
and a high level of interest in personal grooming amongst Indian men and a strong focus of the company
to create awareness for technologically advanced products have resulted in signs of growth in the triple
blade and twin blade systems. In 2004, Gillette came up with new and improved products like Mach3
Turbo and New Vector Plus to cater to the increasing needs of this section of the market. Further,
penetration of cable television into the smallest of Indian towns has led to an increased awareness of
latest lifestyle trends and brands, which have become an aspiration for many consumers. This increased
awareness coupled with the increase in disposable incomes has led to a desire to upgrade lifestyles
through owning and using better quality brands. This increased demand has led to higher sales growth
especially in personal grooming division. The Government's continued focus on liberalization; trade
friendly policies and improvement in infrastructure have resulted in a steady inflow of global
investments into the Indian market which has again resulted in higher income levels due to increased
employment opportunities and sustained economic boom. Thus, it can be said that due to higher
income elasticity of demand, demand for personal grooming products are expected to grow at a rate
higher than the rise in income levels of people. However, since the market is still driven largely by price
and
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not quality (typically in rural markets and smaller towns), consumers might not value the potential
benefit of paying higher prices for better and safer products.
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5.

5.1.

Personal Grooming Industry – An Outlook

Industry Analysis

Due to increased awareness and rising income levels, the industry is expected to undergo a major shift
from traditional double-edged razors segment to twin and triple blades razors segment. Razor blade
market has tripled from Rs 2 billion in 1986 to Rs 6 billion in 2006. In value terms, in 2003, double-edged
blades comprised 78%, systems 15% and disposables 7%. As per AC Nielsen/ORG's estimates, the
domestic shaving preparations market in 2003 was pegged at Rs 1.5 billion. Within the industry,
cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few
years. However, current consumption is still below many countries in Asia which shows that there are
further growth opportunities. In 2004, market size of men's personal care segment is estimated at
approximately Rs 750 crores, with Gillette having the largest market share. Thus, the industry is growing
at a decent rate but still is at an infant stage and this offers great opportunities to players like Gillette
and Colgate Palmolive to expand their customer base to include higher number of lower middle class
people and thereby increase their revenues and profitability.

5.2.

Competitor analysis

5.2.1. Colgate-Palmolive Colgate-Palmolive is one of the largest companies in the FMCG sector. The
Company has launch of its International Palmolive Shave Gel and Palmolive Shave Foam in the year
2000, in response to growing consumer interest in skin conditioning benefits. The Chairman of Indian
Operations mentioned that the company‟s strategy for Personal Care is to remain in top niches. Every
year, they intended to take 3-4 initiatives. Colpal has shaving products under the brand name Palmolive
shaving cream. It has three variants in the shaving cream/gel/foam category. They are shown below:
IIM Indore Colgate-Palmolive‟s Shaving Cream/Gel/Foam:

Group 6 Section B

The Price of each of these products is mentioned with size of the pack in the table below Product
Palmolive Lime Palmolive Moisturizer Palmolive Delux (Section 10.6.1) Weight (gms) 70 70 70 Price (Rs.)
37 39 39

5.2.2. Proctor & Gamble Proctor & Gamble, USA operates in India through three entities. 65% subsidiary
Procter & Gamble Hygiene & Healthcare (PGHH), which is focused on Anticold (Vicks), and Feminine
Hygiene (Whisper). In the shaving cream/gel/foam category it has a very strong brand in the market, Old
Spice.
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Old Spice has products in each of the cream, gel and foam category. These three categories are shown in
the form of a tree below. Proctor & Gamble‟s Shaving Cream/Gel/Foam:

The prices of Old Spice shaving cream, gel and foam products are mentioned in the table below: Product
Old Spice Foam Old Spice Gel Old Spice Cream Quantity 200 ml 60 gm 70 gm Price (Rs.) 110 50 45

It can be observed from the table that even the Old Spice Cream is priced higher than the premium
products of other competitive brands.(Section 10.6.2)
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5.3.

HLL

Hindustan Lever Limited, which is now called as Hindustan Unilever Limited, is a subsidiary of Unilever
(USA). It is the largest FMCG company in India. It is also reputed to be the largest exporter of India. It‟s
distribution network is very strong. It has over 2000 suppliers and associates and about 7000
redistribution stockists. With this massive distribution network in place, HLL enjoys commanding
position in many FMCG products in Indian market. In the Shaving Cream/Gel/Foam category also HLL
has two brands. Both of them are very strong brands in the Indian market. With the help of the its
distribution system these brands have a deeper reach to the Indian consumers. These brands are shown
in the tree below:

HLL‟s Shaving Cream/Gel/Foam:

The pricing of shaving products by HLL for both Axe and Denim is almost same. It is also very similar to
that of Old Spice shaving cream. But HLL does not have any product in the gel or foam category to
compete brands like Old Spice and Gillette.
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Product Axe Shaving Cream Denim Xclusive (Section 10.6.3)

Weight (gms) 70 70

Price (Rs.) 45 43

5.4.

Godrej

Godrej is a domestic brand of shaving cream and now it is looking to expand in the global market for hair
color and shaving creams. It has two variants in the shaving cream category. They are Godrej Shaving
Cream and Godrej Premium Shaving Cream. The price of these two is shown in the table below. One
observation is that even the premium shaving cream from Godrej is priced quite below (44%) below the
competitors products of same quantity. Product Godrej Shaving Cream Godrej Premium Shaving Cream
(Section 10.6.4) Quantity 100 gms 70 gms Price (Rs.) 25 25

5.5.

Fa

Fa has two shaving cream products in the market. Fa is offering 30% extra shaving cream (21gms) with
70 gms pack. Both of its products are priced exactly the same. Product Fa Oceanic Fa Dynamic (Section
10.6.5) Quantity (gms) 70+21 70+21 Price (Rs.) 40 40
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5.6.

Other Brands

Other competitive brands like Dettol and Park Avenue are also there in the market scene. The price for
their shaving cream product is mentioned below. These are not premium segment brands and were
priced accordingly. Dettol cream which comes in 70 gms pack is currently offering 40% extra in its
regular product for Rs. 37. Whereas Park Avenues shaving cream is sold in 70gms pack for the price of Rs
36. (Section 10.6.5)
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6.

6.1.

Gillette Shaving Cream Division

Product

Introduction Gillette has always remained the technological, market leader in the razor division of the
men‟s grooming segment. Its‟ high brand awareness, market acceptance as a technological leader for
hi-performance razors and high brand equity were compelling reasons to penetrate and develop the
entire value chain of the men‟s grooming industry (razors, after shave and shaving gel/foam).

6.1.1. Gillette products in the shaving cream/gel/foam department Gillette has a range of shaving
products for different types of skins and user requirements. However, Gillette has consciously not
chosen to have shaving cream in its product line. Gillette worldwide and Gillette India have cited the
following reasons for not launching a shaving cream and restricting itself to only shaving gel and foam: 
Technically speaking, gels offer more lubrication than that of creams. This means that gels have more
anti-friction properties than creams. This enhances the effectiveness of the razor‟s glide on the skin.  
 Weight-to-weight, gels are cheaper than creams. Gel, being a solid in a liquid, can include any
additional ingredients like moisturizer, aloe vera, vitamin E etc. Foams have been pre-perfected with the
optimum lather required for shaving and Gillette was already a market leader in the foam segment. The
demand for foams was on the rise due to minimal effort required on the part of the consumer. 6.1.2.
Gillette’s range of shaving gels and foams All of Gillette‟s shaving gel/foam products come under the
brand name “Gillette Series”. All the 10 variants are in the premium segment. Gillette has virtually no
presence in the basic and core product categories. Our analysis has shown us that
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shaving gel/foam is more commoditized in India and that 81% of the Indian consumers use cream and
not gels or foam. Gillette in the customer value hierarchy: Green – Gillette Gel, POTENTIAL Moisturizing
gel PRODUCT Conditioning Yellow – Gillette Foam Moisturizer

Sensitive EXPECTED PRODUCT Deep Cleansing Deep Cleeansing Gel BASIC PRODUCT

CORE PRODUCT

Ultra comfort Lemon Godrej V John Old Spice Denim Dettol

Pure

&

Sensitive
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The customer value hierarchy shows us clearly that Gillette has no product in the basic or core category
which is dominated by the creams. This segment accounts for more than half the entire market.
Following are the variants in the product width:

GILLETTE SERIES S. NO. 1 2 3 4 5 6 FOAM Foam Conditioning Foam Deep cleansing Foam Pure and
Sensitive Foam Moisturizer Foam Senitive skin Foam Lemon GEL Gel Moisturizing Gel Sensitive Skin Gel
Ultra Comfort

6.2.

Gillette Shaving Gel - an insight

The Gillette shaving gel/foam series has been developed as a technologically superior product. Gillette is
the only company to have 10 product variants in this category. No other competitor has even more than
5 variants. So, Gillette has the deepest product line and the widest product width. Gillette Series has
many firsts to its credit in the Indian market:    First to introduce Shaving gel in the Indian market
First to include ingredients like Aloe vera and Vitamin E in its gels and foams. First to introduce foams
with no fragrance in “Pure and Sensitive”

Brand Development Index and Category Development Index Gillette has the highest brand equity in the
men‟s grooming industry. The brand Gillette is more of a life style product than just a grooming
product.
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High

Category Developme nt Index Low

Gillette Shaving gel/foam Low Brand Development Index Packaging With shaving cream/gel perceived as
a commodity by the majority in India, the packaging, Point of purchase plat an important role in the
consumer‟s mind while deciding which product to buy. The Gillette Series has been designed and
packaged with a futuristic theme to communicate to the consumer the subtle message that only Gillette
offers you the most advanced in shaving products. Gillette was the first in India to introduce gels in
tubes. The shaving tube for GEL is very different in design. It is glossy and can rest on its cap unlike the
competitor‟s tubes. The FOAM series comes in metallic cylinders. High
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6.3.

Price

Gillette has 10 product variants of shaving gel/foam for the Indian market. All the 10 products are in the
premium category ranging from Rs 53 to Rs 210 for the minimum and maximum SKUs. Gillette has
priced its shaving gel and foams well above the industry average. For instance, Gillette foam priced at
Rs. 210 costs 60% more than OLD SPICE foam though Old Spice has the one of the best brand
perceptions (and was the best in our survey). The pricing strategy suggests that Gillette is leveraging its
customer loyalty ( i.e. the consumers who are brand loyal to Gillette razors). The following table shows
the Gillette Series price for all the 10 product variants. We shall see the competitor‟s prices in detail in
the competitor analysis. FOAM VARIANTS    Conditioning Deep cleansing Pure Sensitive   
Moisturizer Senitive skin Lemon 200 200 200 120 120 120 QUANTITY (ml) 250 250 PRICE (Rs) 210 210
210

and 250

GEL VARIANTS    Moisturizing Sensitive Skin Ultra Comfort

QUANTITY (gms) 60 + 20 60 + 20 60 + 20

PRICE (Rs) 53 53 53
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6.4.

Place

The distribution network of Gillette is very robust. They have P&G‟s distribution network in addition to
Gillette India‟s existing one. The distribution network is a combination of own network and that of a
franchisee. As of now, Gillette India has the same distributors in the 20 cities that P&G operates with.
The distribution network follows a hub and spoke model. The hubs are the 20 cities. The spokes are the
various Tier 2 and Tier 3 cities and towns around the major hub. These cities are managed by the
exclusive distributors in those cities. Every city has only one franchisee distributor. These tier 2 and 3
cities (spokes)thus serve as a feeder market to the hubs. Each franchisee distributor has his own set of
employees working for him. The distributor also manages his own fleet costs to supply to the retailers.
There are no wholesalers. As told to us by the distributor in Indore, this is the hub and spoke model for
the Mumbai hub: Indore

Dadra and Nagar Haveli Aurangabad MUMBAI (HUB) Pune Panaji The distribution network in Indore:
Indore is a feeder market getting its feed from Mumbai. We went to the exclusive (franchisee)distributor
in Indore. Indore‟s distributor is called Life Science Corporation near ADLABS Mall. This is their
distribution network for Indore:
IIM Indore Distributor (1)

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Area Sales Manager (2)

Sales Representatives (4)

Fleet Drivers(4) The sales representatives go with the drivers to the various Retailers under their
geographic span and take orders every week. The credit period offered is one week. So, for every week
the order is taken and supplied, the amounts due for the previous week would be collected. The two
sales managers have split the city into two parts for their span of control. They are in charge of the big
retailers, super markets etc.

6.5.

Promotion

Gillette has made extensive promotion campaign for its razors in the Indian market and the world
market. Roger Federer, Tiger Woods, David Beckham and Thierry Henry are a few of Gillette‟s global
ambassadors called Gillette Champions. But for India Gillette does not have any brand ambassador as of
yet though Irfan Pathan has done a couple of ads for Sensor Excel. But, for the shaving gel/foam there
has not been much of advertisements. In fact, there is only one ad for Gillette Series Shaving Gel shown
not too prominently. For the shaving gel/products, Gillette has co-advertised with its razors.

Bundling Bundling has always been the norm for Shaving cream/gel products. This is mostly due to the
fact that shaving creams/gels are generally purchased together with
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razors/aftershaves. There is always at least one trade promotion across the 10 product variants of
Gillette throughout the year. The trade promotions include 33% extra on many variants. When we went
to Big Bazaar for price survey, we found that 4 of the 10 variants had the 33% free trade promotion. In
addition to this, Shaving gels/foams have been bundled with Mach 3 Razors for a slightly higher price.
The foams(the ones priced at Rs 210) bundle a Gillette Sensor Excel with them occasionally.
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7.

7.1.

Market Research

Research Purpose

7.1.1. Problem or opportunity Gauge brand recall for various shaving cream/gel/foam brands,
specifically Gillette. Map the shaving cream/gel/foam market and competitive positioning within it. To
understand the buying intention of Gillette shaving gel and foam users and analyze the effect of non-
attribute factors To understand the brand loyalty of customers towards shaving cream/foam/gel Identify
the parameters that play the most important role in a consumer‟s choice of buying shaving
cream/gel/foam using Factor and Cluster analysis.

7.2.

Research Objective

7.2.1. Research Question What is the inter-brand recall of shaving cream/gel/foam brands and their
existing image in the consumer‟s mind? What is the effect of non-attribute factors on the purchasing
decision of Gillette shaving gel/foam? How strong is the brand loyalty of customers towards shaving
cream/gel/foam? What are the factors that play the most important role in a consumer‟s choice of
buying shaving cream/gel/foam?
7.2.2. Research Boundaries The research was conducted in Indore and the respondents were chosen on
the basis of their usage of shaving cream/gel/foam.
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7.3.

Research Design

7.3.1. Research Approach

Exploratory Problem Research

Causes of the problem

Descriptive research

Causes of the problem Phase One -> Secondary Data The group in the initial phase of the project focused
on secondary data collection. The data collection primarily focused on       history of Gillette the
financial results of Gillette, products of Gillette organizational structure the competitors in the market
the strategy adopted by Gillette and its competitors in the market.
IIM Indore 

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The secondary data collected in the first phase of the project helped the group in getting better
understanding of the shaving cream/gel/foam market and the various brands competing in this market.

Phase Two -> FGD After the secondary data collection was complete, two focused group discussions
were done. A group of 3 people and a group of 6 people were used for the two FGDs. Through these
FGDs, the various attributes that a person looks for in the shaving cream/gel/foam were listed down.
FGDs also helped the group in understanding the buying behavior, the consumption pattern, the
influencers etc which further helped in preparation of the questionnaire. Phase Three -> Questionnaire
From the results of FGDs, a pilot questionnaire was formed. The purpose here was to get an accurate
snapshot of particular aspect of the market environment hence the pilot study was a descriptive
research that identified all possible problems and factors influencing buyer behavior. An analysis of the
pilot questionnaire was done. From the analysis, the redundant variables, hard to analyze variables etc
were removed so that people could easily fill in the questionnaire. After the pilot test, the final
questionnaire was formed. The questionnaire was designed to capture both quantitative and qualitative
information. The overall design of questionnaire has tried to capture data in the following areas: To
answer the question of what are the predominant constituents of shaving cream/gel/foam consumers in
terms of:      Profile and age Buying Behavior and Decision-making process and to answer how
Gillette compares with competition and what should it be targeting to be able to grow Relative
importance of different attributes Brand awareness and preference Brand switching behavior/ Brand
Loyalty
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7.3.2. Research Tactics   Questionnaire (Refer section 10.7.) Sampling Plan

The theoretical population: All people aged 16-80 in Indore who have purchased shaving
cream/gel/foam. Sampling Frame: Residential areas, malls, parlors, Restaurants are places where the
respondents where drew our respondents were interviewed. Relevant Sample Size: 84

7.4.

Implementation

7.4.1. Data Collection - Phase 1: FGDs The FGDs were aimed at helping us to   Define the target
segments better Identify the important attributes that add in the target customers shaving experience
The FGD questionnaire is given in section 10.8

A preliminary definition of main two segments is: Experimenters and Adopters (EA): This category of
consumer comprises of males from the age group 16-30 years. These are the people who are willing to
try new brands. These people are generally found to be taking more care than others in terms of
grooming. These people want to make a style statement through the products they are using and hence
are generally found using highly advertized products. They tend to prefer shopping centers with a wide
variety. MHI: Rs 10,000/- to Rs 20,000/-.
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Suspicious Traditionalists (ST): These are men who are more traditional and not very much willing to try
new brands. They are a slightly older age group (33-50 years) whose main concern is the safety and
health of their skin. They also show a preference for herbal products or brands that have been present
in the market place for many years and which they have already tried and tested. MHI criteria: Rs
5,000/- to Rs 20,000/-.

7.4.2. Phase 2: Final Survey The Final Survey helped us to collect data on       Main influencers
towards the purchase of Shaving Cream/Gel/Foam, Benefits that are most important for each segment
of customers, Comparative brand and benefit perceptions, Trade-offs between price and quality,
Preferred point of purchase, Consumer‟s position within the Needs Hierarchy Model (Awareness,
Knowledge, Liking, Preference, Commitment and Conviction) with respect to own and competitive
brands and consumer satisfaction.

7.4.3. Data Processing Age profile, product preference and place of purchase of the surveyed sample are
mentioned in section 10.9, 10.10 and 10.11 respectively.

Data Analysis Brand Recall: A sample of customers, which is representative of the Indore population,
was surveyed and the first unaided recall of the Shaving Cream/Gel/Foam brands by these customers
was recorded. (Refer section 10.12)
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It was observed that Gillette Shaving Gel/ Foam had the highest brand recall amongst all the competing
brand of shaving cream/gel/foam. This can be attributed to various reasons like brand perception, usage
pattern, advertisement expenditure etc. some of which would be analyzed in the subsequent sections.

Buying Intention The survey administered had questions which measured the importance of various
attributes like price, brand image, fragrance, offers & discounts of various shaving cream/gel/foam and
specifically for Gillette shaving gel/foam.

Fishbein Analysis The survey also measured the attribute scores for other competing brands like Old
Spice, Denim, Godrej, V-John and Dettol. Along with the data for Gillette, an average attribute score was
computed across the 84 samples for each attribute for each of the shampoo brands. Fishbein analysis
was performed by converting the Likert scale from 1 to 5 to -2 to 2. Consumer‟s attitude about each
brand was calculated and plotted as shown below. (Section 10.17, 10.18, 10.19, 10.20)

Chart: Consumer attitude about each brand

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Clearly Old Spice had the highest consumer perception score followed by Gillette and Denim. But taking
a look at individual consumer attitude score, we found that Gillette was prefferred by almost 40% of the
people surveyed and Old Spice by 30%.

Factor Analysis A factor analysis was carried out to obtain the group of attributes which can be grouped
together. Hence 4 factors were obtained as follows –     Factor 1  Product attributes (Fragrance,
Brand Name, Foam Formation, Antiseptic Attributes and Ease of Use) Factor 2  Price Sensitivity (Price, It
keeps my Skin Soft And Offers/Discounts) Factor 3  Point of Purchase (Availability in Stores and Stylish
Package Design) Factor 4  Additional Features (Color of Shaving cream/gel/foam and Ingredients)

Perceptual Maps Attribute scores were averaged under each factor for each of the Shaving
cream/gel/foam. Then graphs were plotted (Refer section 10.21) for the perceptual map along the
dimensions as shown.

Observations:  In Indore, the surveyed samples perceive that Gillette primarily targets consumers
which are more focused on the product attributes like brand, foam formation, ease of use etc whereas
the perception of price sensitive consumer towards Gillette was found to be of an over priced brand.  
For price sensitive customers products like V-John, Godrej and Dettol were more satisfying than Gillette.
The surveyed sample considered Gillette to have the best packaging among all the brands. This feature
highlights the fact that point of purchase is an
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important selling point for the shaving cream/gel/foam market and Gillette has been outperforming the
competitors.  High satisfaction in the availability in stores further shows the robust distribution system
that Gillette has put into place to cater to diversified markets.  Although not much differentiation can
be introduced in the product per se (low satisfaction scores for all brands), still Gillette is found to be
seen as a brand which brings out products with new features like lemon, conditioner etc.  Distance
matrix analysis shows that the consumers are most satisfied with Gillette in all the cases except when
the purchasing decision is based on price along with additional features.

Brand Loyalty The questionnaire had specific questions to measure the brand loyalty for the brand that
the consumer was using at that point of time. From the graphs shown, it can be concluded that the
Brand loyalty in the Shaving cream/gel/foam segment is only 57% where customers would stick to it
irrespective of the availability in the place where they are accustomed to shop. This figure says that 57%
of the customers would rather go to some other retailer in search for their preferred shaving
cream/gel/foam brand than to buy some other brand from the same shop. Price sensitivity measured
along the lines of a hypothetical price increase in their preferred shaving cream/gel/foam brand was
around 43%. This figure indicates that 57% of the customers do not shift from their preferred brand to
some other brand because of a price hike in their preferred brand, provided it‟s a reasonable price hike
whereas 43% would move to some other brand. (Refer section 10.15.)

Cluster Analysis On the basis of the four factors identified through factor analysis, the group performed
Cluster analysis for two, three and four clusters separately. This was done to identify a
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market segment which Gillette should focus on in the near future especially if it decides to launch a
product in shaving cream category. 55% of the sample used shaving cream. Considering this to be a
reasonable estimation of the real usage, the decision to enter the shaving cream market seems to be a
lucrative option to explore. The output of cluster analysis is shown in section 10.22. Out of the three
analysis performed the one with three clusters was giving the best representation of the segments in
which the market can be divided. (Refer section 10.22) The population can be segmented into three
segments on the basis of factors.  Cluster 1 is most price sensitive and values additional features the
least. This cluster comprised of one third of our sample size. As Gillette is a premium brand which
focuses on differentiating its products from the competitors and upgrading the customers in the value
chain. So targeting this cluster will not be a strategically appropriate decision.  Cluster 2 is more
influenced by attributes of the products and is not a price sensitive segment. Gillette through its shaving
gel and foam series is currently catering to this segment. This segment comprised of more than one
fourth of the survey sample.  Cluster 3 is concerned about the attributes, additional features as well as
price. This segment comprised of more than forty percent of the survey sample. Gillette can target this
segment with the introduction of shaving cream which will be dealt with in the marketing plan of the
report.

7.5.

Recommendation And Conclusion

7.5.1. PLAYING WITH THE PLC: Gillette has the widest product range and the deepest product line in the
men‟s grooming market. This is a double edged sword because of the variety Gillette can offer and the
cannibalization that can occur.
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Gillette ,with its 9 existing product variants and the new shaving cream, has to see that it can extend the
product life cycle and the individual stages of each of the 10 products. For example, the regular foam
and Gillette 7‟o clock regular razor are on the maturity/decline stagein the metropolitan cities. Without
much effort, these products can be promoted aggressively in neighbouring countries like Bangladesh,
Srilanka and states like Orissa, Bihar and the North East and can have a revitalization and an extended
maturity phase. Having so many product variants would be an unbeatable advantage in upgrading the
consumer throughout his lifetime and also making him brand loyal in the process

7.5.2. LAUNCH GILLETTE SHAVING CREAM This has been the main finding of our project. Our Fishbein
analysis, perception mapping ,cluster and factor analyses support the idea. The potential is huge and the
shaving cream can also be launched in other similar market demographies like Bangladesh, Pakistan,
Nepal and Srilanka. By launching Gillette shaving Cream, Gillette would have a brand leader or a fighter
brand in every stage of the customer value hierarchy. The shaving cream would have slightly stripped
down attributes of the gel and foam variants. This is because we should entice only the existing cream
consumers and not the gel/foam users.

7.5.3. PROMOTION One important finding of our FGDs and Consumer Survey was that not a single
consumer was aware of the fact that Gillette has 9 variants in the shaving gel/foam category alone. This
can be attributed to one or more of the following reasons:  The brand equity of Gillette is very high
(57% TOMR in our study). But the category development is pretty low.
IIM Indore  

Group 6 Section B

The consumers have low involvement and do not search for information. This implies that shaving
cream/gel/foam is more of a commodity. Gillette has spent on advertisements only for the razors and
not on shaving gel/foam or aftershaves. Hence the information available to public is limited.

To decommoditize the category, to increase customer loyalty and repeat purchase, promotions have to
be done on a bigger scale than what is currently been done. The promotions should have more of a pull
effect in the advertisements that communicate not just the price and offers/discounts but also the
values, attributes which the consumer can relate to. In short, more information has to be communicated
to the consumer through ads, trade promotions etc. Some initiatives by Gillette:   ADVANTAGE
GILLETTE: Three Gillette winners from India were sent to the finals of the 2006 Wimbledon GILLETTE
GULLY CRICKET: Gillette cleverly combined cricket and youth in this version of street cricket in which the
winners were awarded Rs 1 lakh.

7.5.4. SALES AND MARKETING Currently, Gillette India uses only the distribution network of P&G. P&G‟s
sales and marketing knowledge can be utilized by Gillette to great extent in the future, especially in
Srilanka, Bangladesh and Nepal.

7.5.5. CONTINUE WITH UPGRADATION Gillette has been very successful in its strategy of upgrading the
consumer in the razor segment. Gillette has made sure that it makes its consumers move up the product
chain by introducing new, technologically superior products and phasing their PLC very well. But sadly,
this approach is missing in the shaving gel/foam segment. Though there are 9 variants, there has been
no effort made to communicate to the consumer of the superior quality and attributes.
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Hence, we suggest that Gillette adopt its “upgrading the consumer” strategy for the shaving preparation
segment also. This upgradation has 2 main advantages:   We can fully leverage the Product life cycle
and the individual phases of the products in different markets We can make the consumer loyal to the
brand over his lifetime.
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Group 6 Section B

8.

Future challenges



Introduce a product which would be designed specifically for Indian consumer and satisfy aspiration of
youths. To match the increased demand patterns in the country. Launching of innovative products in
regular and short intervals First and foremost, shaving cream accounts for roughly 80% of the market
and Gillette has a very weak presence in the cream segment. It‟s only cream product “7‟o Clock Shaving
cream” has been a big flop.

Gillette‟s‟ products are descending the customer value hierarchy from that of a potential product
towards an expected product. Competitors like Denim, Axe are moving up the hierarchy. So, Gillette will
find it tough to charge the premium it has till now charged.

It is also highly likely that Gillette may not fully absorb the consumers who upgrade from shaving cream
to gel or foam. Hence, Gillette‟s market share might not grow as good as their competitor HLL and Old
Spice.


Gillette‟s major challenge lies in entering the mass market through a shaving cream the way it
successfully did with razors.
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9.

Marketing Plan for Shaving Cream

After conducting industry and competitor analysis of personal grooming industry and understanding the
product portfolio of Gillette, the group came to the conclusion that Gillette should enter the shaving
cream market more aggressively with a new brand immediately. Suggested below is the marketing plan
for the introduction of the new product.

9.1.

Marketing Audit

9.1.1. Industry Outlook Shaving preparations and after-shaves market stood at Rs 125 crores in 2003.
Considering a YOY growth of around 7%, the current market size is Rs 163 crores. In 2003, shaving
creams constituted 81% of the market i.e. Rs 101 crores. Since, the market share of gel and foam
products is increasing at a very rapid pace (from 10% in 2000 to 19% in 2003), we can say that the share
of shaving cream in the entire market has fallen down to approximately 70%. Thus, the current market
size of shaving cream in 2007 is around Rs 114 crores.

9.1.2. Gillette’s current position (Where we are and where we are

heading??)

In 2003, Gillette had 17% market share in the shaving preparations market which gives a turnover of
approximately Rs 21 crores. Most of these sales were driven by gel and foam products. 7‟ O clock,
Gillette‟s only brand in the shaving cream market was not very successful and therefore, we can say
that Rs 101 crores market remained tapped by the company. Even in 2003, the situation has not
changed much. Although Gillette has been able to increase its share in gel and foam products, shaving
cream market worth Rs 114 crores remain more or less untapped. Thus, to become a market leader in
the entire shaving preparations market, Gillette can not continue to ignore the shaving creams market.
IIM Indore

Group 6 Section B

9.1.3. Future Outlook with shaving cream (Where we will head?) The introduction of a shaving cream
with improved attributes will directly compete with current products like Axe, Denim etc. This will
enable the company to establish its hold over the Rs 114 crores shaving preparations market.

9.2.

Marketing Mission

9.2.1. Target Customers and their needs The primary customers of the company will be those belonging
to cluster 3 (Refer Cluster Analysis for details). This cluster accounts for almost 40% of the entire market.
These customers are concerned about the attribute and additional features besides price. The brands
like Axe and Denim can be said to be catering to the needs of this cluster.

9.2.2. Marketing Objectives Gillette should target to capture around 6-8% of the entire shavings cream
market which means revenue of approximately Rs 7-9 crores in the first year. There will not be any
product cannibalization (with 7‟O clock) as both cater to different segments within the shaving
preparations market.

9.3.

Strategic Priorities

This step involves portfolio analysis of company‟s products in the market. Company derives almost 80%
of its revenues and 90% of its profits from Personal Grooming division. Within this particular division,
majority of the sales come from its razors division. Gillette is an undisputed leader in this sub segment.
Similarly, company leads in the market for gel and foam products. Thus, Today’s business is driven by
this two sub segments.
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Group 6 Section B

In the future, Gillette still needs to concentrate on its two major sub segments for regular cash flows.
However, the new product in the shavings cream market can also become tomorrow‟s breadwinner for
the company. Oral Care business has shown volatile performance over the years and thereby, has led to
irregular cash flows.

Gillette‟s portable power business has been facing stiff competition from the alkaline batteries in the
market. This division grew by only 4% in terms of revenues in the year 2005-06. And in fact, there was
decline in the profit figures from this division by approximately 60%. The company can consider
divesting this segment to direct its investments to Oral Care and the new shavings cream product.

9.4.

Marketing Strategy

9.4.1. Segmentation In the shaving cream/foam/gel market there exist different categories of customers
who have different needs and are willing to pay different amount for the product that meets their
demand. Introduction of shaving cream would help Gillette identify the needs of the customers and take
advantage of the segment which has not yet been targeted by the company. Price sensitivity,
importance of attributes, point of purchase decision makers and customers influenced by additional
features are the factors on which we will segment the shaving cream market.  Segment One-> is most
price sensitive and values additional features the least. This segment has one third of our sample size. As
Gillette is a premium brand which focuses on differentiating its products from the competitors and
upgrading the customers in the value chain, targeting this segment will not be a strategically appropriate
decision.  Segment Two-> is more influenced by attributes of the products and is not a price sensitive
segment. Gillette through its shaving gel and foam series is
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currently catering to this segment. This segment has more than one fourth of the survey sample. 
Segment three-> is concerned about the attributes, additional features as well as price. This segment
comprised of more than forty percent of the survey sample. Gillette through its shaving cream can enter
this segment.

9.4.2. Positioning Market research  Market research results have been analyzed in section 7 of the
report. The following conclusions from the survey helps us in identifying the positioning of the Gillette
shaving cream:  Target market:- The target market has been identified as the customers who are
concerned about the attributes of the shaving cream but are not willing to shift from the current price
band to a higher price band.  Competitor Brands:- The competitor brands have been discussed in
section 5. The Gillette Shaving Cream will be competing with brands like Old Spice and Denim.  Choice
Criteria:- As per our findings (Section 7.4.3) the 4 factors on grouping attributes post factor analysis that
contribute to the shaving cream/foam/gel purchase decision are:  Factor 1  Product attributes
(Fragrance, Brand Name, Foam Formation, Antiseptic Attributes and Ease of Use)  Factor 2  Price
Sensitivity (Price, It keeps my Skin Soft And Offers/Discounts)  Factor 3  Point of Purchase (Availability
in Stores and Stylish Package Design)  Factor 4  Additional Features (Color of Shaving cream/gel/foam
and Ingredients)  Customer Evaluation:- Perceptual maps in the section 10.21 shows how the
customers evaluate Gillette with respect to competitive brands.
IIM Indore 

Group 6 Section B

The customers surveyed in Indore found Gillette to be significant along both factor 1 and factor 3 giving
it an image of high quality brand with attractive packaging and best availability.



Old Spice and Denim are its closest competitors in factor one and two respectively. Gillette lags behind
all its competitors in factor 2 which includes price and offers. In factor 3, additional features, all
companies have below satisfaction level performance which implies that the variants introduced in the
market for shaving cream/gel/foam are not able to satisfy the demand of the consumers.

Positioning Strategy The present perception of the brands between factors one and two is shown below.

Gillette shaving cream needs to position itself above Old Spice and Denim in order to attract the target
segment.
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9.4.3. Real Positioning In the survey conducted, Gillette had the top of the mind recall of 57%. This
shows that Gillette has an excellent real positioning in the men‟s grooming market and Gillette shaving
cream can leverage this positioning in the target market.

9.4.4. Psychological Positioning Gillette shaving cream will primarily alter the attributes importance in
the target segment by increasing the importance of attributes like brand name, foam formation etc and
decreasing the importance of price. This will be consistent with its strategy of moving the customers up
the value chain.

9.5.

Marketing Mix

9.5.1. Product and Service Customer value hierarchy chart in the 4 P‟s analysis shows that Gillette
products (7‟ O clock) is currently fulfilling only the core and basic needs to some extent. Further, it also
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Group 6 Section B

shows that Gillette does not have any product fulfilling the basic needs and expected needs of the
consumers. Thus, our new product will cater to these needs. Further, since, our new product will target
the third cluster; it has to be very strong on attributes. Again, additional features need to be there to
satisfy the basic and expected needs of the people. Our new product will have superior fragrance and
higher antiseptic attributes. Further, initially, the product shall be launched with variants like lemon and
musk. The new Gillette Cream would target the basic and core product consumers where Gillette has no
presence so far. So, the customer values promised and delivered would also be different from that of
the premium segment. The focus would be to indianise the product. This is important because we have
to reach a larger, price sensitive, not so loyal segment of the market. So far, Gillette has only followed a
dumping strategy in India with very little customization. For our new product, this strategy would not
work well. The customer values to be promised and delivered by the new GILLETTE Shaving Cream are:
Functional value: The utilitarian/functional promise would be “ The best possible shave from the best
Shaving cream”. The existing price range in the market for a 70 g shaving cream is Rs 25 (Godrej) to Rs
45 (Old Spice). We would price our Cream at Rs 40 which is below that of Old Spice and Denim (Rs 43).
We would also promise the basic attributes ( soft on skin, lather etc.) . Social Value: The espoused social
value would be from the angle that everyone in the family and society have an instant respect and
admiration for the clean shaven Gillette man. Emotional value: The emotional value promised is of great
importance for a commoditized product like a shaving cream. The espoused value would be the
charming yet masculine Gillette man who is attractive to all the people including women. Epistemic
value:
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Group 6 Section B

The novelty value should be such that it must entice only the cream users, not our gel/foam users.
Hence, we must tell about how good a cream it is and the active ingredients involved in the product.
Conditional Value: The best possible start for the day would be the conditional value. The value
communicated should be of a confident, satisfied, charged up young Indian for the day‟s grind.
COMMUNICATION OF VALUE: We would adopt a push cum pull strategy to communicate the above
values. Our ads would involve a sturdy, tough, smart Indian and project him as the Gillette man (much
like the Marlboro man). The focus would be on the shaving cream though we will also co-advertise
Gillette Razors.

9.5.2. Pricing The customers in the target cluster are not very price sensitive. The customers in the
cluster prefer brands like Axe and Denim which lie in the price range of Rs 43-45 for a 70ml pack.
However, since Gillette is perceived as an expensive brand as compared to its competitors, we plan to
price our new product slightly cheaper than these brands. As per our analysis, Gillette should charge a
price of Rs 42 for 70ml pack.

9.5.3. Promotion Since we see a great opportunity for Gillette in the Shaving cream category, we
recommend an aggressive promotional campaign for the new product. Our promotion would adopt a
push cum pull strategy.
IIM Indore Push Approach:

Group 6 Section B

The product would be pilot tested in Indore itself where we have performed our market research. We
would offer a 20g tube of the Gillette Shaving Cream free with every Gillette Presto( Priced at Rs 17) and
30g with Gillette Vector ( Priced slightly at above Rs 50). The selling price of the tube being Rs 40 and the
margin at 25%, we would incur around Rs 8 for the 20g tube and Rs 12 for the 30g tube. The increase in
sales of the razors would be a good indication of the interest shown by the consumers in the new
shaving cream. This promotional strategy might also give Gillette consumers who want to upgrade
themselves to the premium shaving cream category from the regular category. The level of success of
the pilot project would help us in modifying the product for the national launch. Pull Approach: So far,
Gillette has always shown ads which are futuristic in nature ( Shaving with Mach 3 on a space shuttle is
an example). But the advertisements for the shaving cream have to be Indianised. This is the biggest
challenge for Gillette which has so far treated the Indian market as a dumping ground for its outdated
products in the US. Our advertisement has to entice the target consumer - the aspiring consumer who
comes from the middle and lower middle class and gives importance to attributes but is also price
sensitive. Our target consumer is widespread throughout the country- rural, urban(including Tier 2 and
Tier 3 cities) and rurban. The ads have to appeal to the customer values mentioned above.
IIM Indore

Group 6 Section B

10.

Appendix

10.1. Gillette- Timeline

1895-In the United States, KING CAMP GILLETTE, a salesman for the Baltimore Seal Company, originates
the idea for a new disposable razor blade. For the next six years, he will promote and sell this idea to
backers and toolmakers in order to make his dream shaver a reality.

1901 -GILLETTE teams up with MIT engineer and machinist WILLIAM NICKERSON in Boston,
Massachusetts. Together, they modify the safety razor by manufacturing a double-edged blade that is
disposable and replaceable; it receives a U.S. patent this same year. This is a T-shaped razor which opens
at the top so the user can insert a new blade after tossing out its dull, used predecessor. These blades
are cut from a template, rather than forged

1903 - GILLETTE begins his legendary climb to the top as king of the U.S. shaving market, thanks to his
shaver‟s high quality, low price affordability, and his keen approach to marketing. In 1903, his total sales
were 51 razors and 168 blades.

1904 - GILLETTE'S total sales for the new state-of-the-art safety razor reach 90,000 razors and 123,000
blades.

1905 - GILLETTE opens his first overseas office, headquartered in London, England to market products in
Europe 1910 - WILLIS G. SHOCKEY receives a U.S. patent for his WIND-UP SAFETY RAZOR, the forerunner
of electric shavers. It has a wind-up-by-hand flywheel that operates for a limited amount of time.
IIM Indore

Group 6 Section B

1914 - 1918: WORLD WAR I - GILLETTE works out a mega deal with the U.S. Armed Forces, which
provides his safety razor and blades to every enlisted man or officer on their way to Europe as a regular
part of their standard issue gear. This creates tremendous worldwide promotion and publicity
opportunities for Gillette‟s company and products. 1960 - GILLETTE safety razors with long lasting
stainless steel blades hit the U.S. market. Later, other inexpensive injector-type cartridges and
disposable razors become available. 1960s -70s - DISPOSABLE RAZORS, which can neither be sharpened
or replaced, hit the market for both men and women. They are to be used 2-3 times, then thrown away.
Numerous manufacturers economically design them in simple shapes, which make them inexpensive to
produce and sell. 1971 - GILLETTE begins to aggressively market a new twin-blade razor on a wide scale,
even though there have been similar razors available since the 1930s. 1984- Gillette entered Indian
market through a joint venture as a minority shareholder. 1986- Launched the 7‟o clock brand 1993-
Launched the Presto readyshaver brand 2000- Launched the Mach-3 and women 2002- It gained more
shares so that it had three fourth of the shares. During these two decades Gillette followed inorganic
growth by acquiring domestic companies in oral care, battery, blades and razors and stationery business.
2004- The company launched the next generation triple blade shaving system, Gillette Mach Turbo,
Gillette VectorPlus. Further in personal care segment the company has launched Storm Force after shave
splash and New Ultra Comfort Shaving Gel & Gillette shaving gel, shaving foam and linen series for
IIM Indore

Group 6 Section B

Series Tube Shave Gel Variants, namely Sensitive Skin and Moisturising to suit different skin types. 2005-
The company‟s parent company Gillette, USA was acquired by the Procter & Gamble Company, USA
worldwide through merger in October 2005. In India, the company while continuing as a separate legal
entity, will also, be part of the Procter & Gamble company, USA. The company has started the process of
transition from its current distributor structure to the P&G Distributors

10.2. SWOT ANALYSIS

Strengths Strong brand equity Gillette‟s portfolio contains well established brands such as Gillette and
Braun, Oral-B line and Duracell. It eases the introduction of new products, as consumers are already well
acquainted with the names and more receptive to promises of improved user experiences. The strength
and quality image of these brands allows the company to charge higher prices and achieve high margins.

Market Leadership The company‟s product are well known with a reputation of quality are also market
leader in their respective segment.

Well Diversified portfolio Gillette has a well-diversified portfolio in terms of product diversification and
market diversification. Diversification of this nature helps the company avoid the risk of
overdependence on any one source for its revenue stream.

Weakness Profitability highly dependent on core business

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Group 6 Section B

Gillette‟s profitability is highly reliant on the performance of its razors and blades business. A
substantial portion of its revenues come from this sector. Any downturn in the sector or in Gillette‟s
competitive position within it could have a serious negative effect on the company.

Over-reliance on a single customer Wal-Mart Stores is Gillette‟s major customer. With a large part of its
revenues originating from a single costumer, the company is at risk of adversely affecting its business,
operating results and financial condition if its strategic relationship with WalMart Stores is terminated
for any reason.

Opportunities New product launches Gillette is known for constantly introducing new products in the
market with better technology and performance. This new product launches will help the company to
gain competitive advantage over its competitors.

Price increases in premium shaving segments Gillette has been increasing the price of its razors and
blades at an average rate of around 4% per year over the last ten years. This price increase will help the
company to accumulate more profits from the present level of sales.

Growth potential for battery business in China The Chinese battery market is a large and fast-growing
market. Gillette has acquired a majority interest in the Fujian Nanping Nanfu Battery Company. This has
resulted to significantly improve the performance of the company‟s overall battery business and will
have its impact on the future performance of the company.

Threats
IIM Indore Imitations / disposables are a threat to the Mach3 offering

Group 6 Section B

Gillette‟s ability to sustain a price premium and earn an attractive return on its extensive investment
three-blade platform is threatened by the numerous imitators of the Mach3/Mach3 Turbo franchise,
including disposables and private label systems, and even including Gillette‟s own three-blade
disposable. This numerous imitations are threat to the company in the long term as they going to reduce
the sales of the original products.

Pressure on pricing power Gillette‟s pricing power is being further eroded by channel migration and
increasing consumer resistance to paying significantly higher prices for innovation. Pricing power is key
to revenue growth in a mature category especially when Gillette‟s strategy has historically been to drive
revenue growth per consumer and not volume growth.

Competitive environment Gillette faces intense competition in most markets. Its products compete with
widely advertised, well-known, branded products, as well as private label products, which typically are
sold at lower prices. The company‟s survival depends upon its ability to adopt itself in this kind of
competitive environment.

10.3. Organizational Structure

Gillette India now has the organizational structure of P&G worldwide. The key elements are: 1. Global
Business Units (GBU‟s)- build major global brands with robust business strategies. P&G moved from
four business units based on geographical regions to seven business units based on global product lines.
The various GBUs are: • Baby Care/Family Care • Beauty Care/Feminine Care • Fabric & Home Care
IIM Indore • Snacks & Beverage • Health Care

Group 6 Section B

2. Market Development Organizations (MDO) - build local understanding as a foundation for marketing
campaigns. P&G has eight MDO. • North America • Asia/ India/ Australia • Northeast Asia • Greater
China • Central-Eastern Europe/ Middle East/ Africa • Western Europe • Latin America 3. Global
Business Service(GBS)- provide business technology and services that drive business success. Different
GBS Centers are: • GBS Americas located in Costa Rica • GBS Asia located in Manila • GBS Europe,
Middle East & Africa located in Newcastle
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10.4. Product Portfolio

       Gillette India has the following product lines: Double edge- 7‟o clock and Wilkinson sword
Disposables-Wilkinson sword twin 2, Gillette presto Systems- PII, Sensor, Vector, Mach3 Shave prep- Gel
and foams Batteries- Duracell Oral care- Oral B toothbrush
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10.5. Financial Analysis

10.5.1.

Share holding pattern

10%

2%

Indian Promoters 47% Foreign Promoters Non- Institutional Investors Institutional Investors 41%

Chart 2: Break up of ownership in 2006

There has been a great shift in the shareholding pattern of the company since its entry into Indian
market in 1984. Gillette entered India through a joint venture as a minority shareholder. Its share
increased to around 75% in 2002. In 2006, almost 88% of the company was owned by the promoters
(foreign and Indian). Out of the remaining 12%, 10% is owned by non-institutional investors and thus,
only 2% lies in the hands of institutional investors.

10.5.2.

Profit & Loss Analysis

Net sales of the company grew at a CAGR of 45% during the period 1997-2000. After that there was a
downfall in the company and for the first time, Gillette India ended the year with a net loss of around Rs
28 crores. This was primarily due to significant increase in employee cost and other miscellaneous
expenses. In 2001, revenues declined to Rs 453 crores from Rs 477 crores a year earlier. Revenue figures
further reduced by around 18% in 2002 to approximately Rs 385 crores. Although due to
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restructuring, the damage was controlled to some extent in 2003, yet there was a further fall of 3% in
the revenue figures. Since it‟s restructuring in 2003, company has recorded double digit growth rate in
revenues. However, the growth rate was moderate in 2005 as compared to the figures in 2004.

Revenues 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 Revenues

Chart showing revenue figures over last 6 years

Revenue Growth 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% 2001 2002 2003
2004 2005 Revenue Growth

Chart showing Revenue growth over last 5 years

Despite higher revenue growth in late1990s, operating margin of the company declined from 20% in
1997 to 14% in 2000. Similarly, net profit margin almost remained constant at around 5% over the time
period. The situation worsened further in 2001, and company reported a net loss of 6%.
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Group 6 Section B

In 2002, Gillette undertook restructuring initiatives and it took the company two years to revive its
operations. In 2003, company recorded a net profit of Rs 44.82 crores. It entered into contracts with
new suppliers for better raw material prices and also brought about a significant reduction in wastages.
As a result of which, raw material cost as percentage of net sales declined from 46% in 2001 to 31% in
2003. Further, miscellaneous expenses reduced to just Rs 15.57 crores in 2003 from Rs 82.68 crores in
2001. The net profit margin increased to 12.45% in 2003 and the operating margins stood at 25.90%.
Improved financial performance led to an increase of almost 120% increase in share prices over the year
2003.

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% 2000 2001 2002 2003 2004 2005
Operating Margin Net Profit Margin

Chart showing profitability margins over last 6 years

Segmental Revenue Q2, Revenue Segment Grooming Portable Power 113.99 6.97 90.63 6.71 by Business
2006 Q2, 2005 % Change (YOY) 25.78% 3.87%
IIM Indore Oral Care Total 18.54 139.5 14.75 112.09

Group 6 Section B 25.69% 24.45%

EBIT Segment

by

Business

Grooming Portable Power

40.39 0.62

26.37 1.82

53.17% 65.93%

Oral Care

0.91

4.46

79.60%
Total

41.92

32.65

28.39%

EBIT Margins Grooming Portable Power Oral Care Table showing segmental performance 35.43% 8.90%
4.91% 29.10% 27.12% 30.24%

The above table clearly shows that major chunk of company‟s revenues and profits come from Personal
Grooming segment. In Q2 2005, almost 80% of company‟s revenues and profits came from grooming
division. Oral care contributed around 12% of the revenues and remaining came from portable power
division (Duracell).

In Q2 2006, although oral care division witnessed a growth of 26% in terms of revenues, but the profit
figures declined by almost 80%. This was primarily due to increased
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competition leading to higher selling expenses. Thus, in this quarter, grooming division contributed
more than 90% of operating profits.

10.5.3. Year

Balance Sheet Analysis

Debt Equity Ratio Fixed Ratio Assets Turnover

2000 2001 2002 2003 2004 2005

0.79 0.45 0.00 0.00 0.00 0.00

3.34 1.99 1.74 1.94 2.76 3.42

Table showing key ratios After restructuring its operations in 2002-03, company has adopted a zero debt
policy. It has become an all equity firm with no reliance on debt. Thus, debt equity ratio of the company
reduced to 0 from 2002 onwards from 0.45 in 2001. All the debt was paid off with the funds obtained
from the parent company as capital grant. This way company reduced its financial risk to zero. Fixed
Assets turnover ratio has also increased from 1.99 in 2001 to 3.42 in 2005. This shows that there has
been improved and better utilization of company‟s fixed assets.

Ratios Net Profit Margin Assets Turnover ratio Leverage

2000 5.53% 1.12 1.79

2001 -6.13% 1.13 1.45

2002

2003

2004

2005

1.68% 12.45% 14.99% 15.09% 1.40 1.00 1.26 1.00 1.29 1.00 1.31 1.00
IIM Indore ROE 11.15% 10.07% Table showing DuPont Analysis

Group 6 Section B 2.35% 15.63% 19.33% 19.74%

From the table we can observe that, Return on Equity (ROE) of the company has increased from 10.07 %
in 2001 to 19.74% in 2005. If we look at the three individual components of ROE, we can see that the fall
in leverage has been very well compensated by an increase in profitability. Further, assets turnover ratio
has remained almost constant over the years. This shows that the company is following a policy of
increasing margins to maximize shareholder‟s wealth. During restructuring, company concentrated on
reducing its working capital

requirements through efficient better inventory management and following a stringent credit policy.
Gillette went for direct distribution model (Gillette- Distributor- Retailer) to reduce its investment in
providing credit to retailers. Thus, the cash conversion cycle of the company reduced from 36 days in
2001 to almost 0 days in 2003. Working capital turnover ratio increased from 3.11 in 2001 to 3.93 in
2003 reflecting better working capital management by the company. However, in the subsequent years
the ratio again declined due to higher cash balance maintained by the company. Further, reduced
investment in debtors was compensated by an increase in loans & advances to suppliers. Thus, Gillette
could not build on the benefits of restructuring in terms of better utilization of working capital.

Year

Working Capital Turnover Ratio

Current Ratio

Debtors Collection Period

Creditors Payment Period

Inventory Holding Period

Cash Conversion Cycle

2000 4.89 2.23 56 52 49 53

IIM Indore 2001 3.11 2002 3.75 2003 3.93 2004 2.66 2005 2.33 2.02 24 68 32 2.15 24 70 41 2.02 24 71
47 1.71 41 111 57 1.99 66 95 65

Group 6 Section B

36

(13) 0

(5)

(12)

Table showing Working Capital Management and Liquidity of Gillette

10.5.4.

Cash Flow Analysis

Cash flows in a company can be broadly divided into three areas:

Cash Flow from Operating Activities Cash flows from this segment have not seen any improved over the
past four years despite a rise in revenues. In fact, cash flows have declined to Rs 76.58 crores in 2005
from a high of 124.44 crores in 2001.
Cash from Financing Activities Company has not issued any new equity over the last five years. During
2001, company paid off most its debt which has resulted in negative cash flows from this segment.
Majority of the cash flows in this segment comprise of dividends paid by the company.

Cash from Investing Activities

IIM Indore

Group 6 Section B

Gillette has consistently incurred capital expenditure to purchase its fixed assets. Further, company has
been consistently earning interests on its loans & advances which has resulted in positive cash flows in
few of the years.

10.5.5.

Comparative Analysis

In the personal care segment, HLL is by far the largest player in the industry. But P&G Hygiene enjoys
highest net profit margin of approximately 24% on a turnover of around Rs 520 crores. Gillette also has
the reputation of high margin company in the industry. In the latest quarterly results, Gillette reported a
margin of around 21% in this segment. It is followed by Colgate Palmolive (15%) and HLL (12%) and
Reckitt Benckisire (11%). Companies Current Ratio Fixed Assets ROCE (%)

Turnover Ratio Hind. Lever Gillette India Johnson & Johns. P & G Hygiene 0.82 1.91 1.04 1.6 5.1 1.82 6.21
4.24 3.32 4.31 56.62 32.93 164.01 74.91 71.69 52.86

Colgate Palmolive 0.97 Industry Average 0.97

Table showing key ratios of Gillette and its competitors

The above table clearly shows that Gillette has a better short term solvency as compared to its
competitors. It has a current ratio of 1.91 as against the industry average of 0.97. However, company
has not been able to make the best utilization of its fixed assets. Therefore, it has fixed assets turnover
ratio of 1.82 as against the industry average of 4.31. Similarly, Gillette has lower returns on its capital
employed in the business.
IIM Indore 10.5.6.

Group 6 Section B

Valuation

The share of the company declined from Rs 700 in 2001 to Rs 317 in 2003 because of poor financial
performance in terms of reduced revenue figures and margins. However, in 2003, the share price more
than doubled to Rs 713.90 in Jan 2004. This was the result of increased profitability due to restructuring
efforts done by the company. In the recent year, share prices have increased by around 20%. The
market capitalization of the company has increased from Rs 845 crores in 2001 to Rs 2695 crores in
2007.

Year

Share Price

Market Capitalization (Rs crores)

1-Jan-01 699.95 1-Jan-02 269.00 1-Jan-03 317.00 1-Jan-04 713.90 1-Jan-05 699.95 1-Jan-06 735.00 1-
Jan-07 869.95 2,695.19 2,802.74 2,392.11 2,205.20 2,292.22 1,022.51 845.06

Table showing share prices and market capitalization

IIM Indore Note: All prices are adjusted for bonus and rights issue

Group 6 Section B

In the recent years, company has adopted a liberal dividend policy. In 2005, company declared 100%
dividends. Dividend Announcements Year End 2005 2004 2003 2002 2001 2000 1999 1998 32.59 27.7
27.7 8.96 7.33 4.88 3.86 2.83 Dividend Dividend (%) 100 85 85 27.5 22.5 15 30 22

Table showing Dividend announcement

IIM Indore

Group 6 Section B

10.6. Competitor’s Analysis

10.6.1.

Colgate Palmolive

Colgate-Palmolive has three products in the shaving cream/gel/foam segment. Palmolive shaving
creams are enriched with revitalizing sea minerals, this rich formula refreshes and against irritation.
They are formulated with soothing Aloe-Vera, this rich foam is mild on skin and helps guard against
irritation. One variant is a creamy formula featuring palm extract to hydrate and moisturize skin. This
cream in a long thin tube is very easy to use. As you just put onto your face and use your shaver and it
will get all your stubbles of your face leaving it nice and smooth. skin protects razor

10.6.2.

Proctor & Gamble

Old Spice is one of the top brands across world in the shaving products category. In the shaving cream
market it has a good hold over the perception of the consumers. It is recognized by its fragrance and is
seen as a macho brand. It is has products in all the three categories (cream, gel and foam). Old Spice is
also present in after shave market and its after shave product is very dominant in the market. It has a lot
of products in the shaving products market. This also makes the brand much stronger than its
competitor.
IIM Indore 10.6.3.

Group 6 Section B

HLL

Hindustan Lever Limited is the biggest player in the Indian FMCG market. It has two brands in the
shaving cream segment. Axe and Denim. HLL has extended its brand „Axe‟ which is a success in the
deodorant market to the shaving creams. The Axe shaving cream has very good awareness scores
among the consumers. It comes in various fragrances, colors and its packaging also has many variants.
Denim is another shaving cream from the house of HLL. This is almost in the same segment as that of
Axe in terms of price and product attributes.

10.6.4.

Godrej

invested heavily for the expansion in this market. They have bought a shaving cream manufacturing and
marketing company in South Africa and are looking forward to some other alliances for the presence in
global market. The shaving cream from Godrej is among the lowest priced shaving cream in the market.
It is targeting the price sensitive customer in the Indian market. But the quality of the product is
satisfactory in spite of its near about

Godrej is the domestic brand of shaving cream for Indian market. Recently Godrej has

half the price than its competitors. Although, variants are few in terms of size, fragrance and packaging,
it is still in the shopping list of many consumers.
IIM Indore 10.6.5.

Group 6 Section B

Other Competitors

Brands like Fa, Dettol and Park Avenue are also present in the market. Although they do not account for
a very significant market share but then also the awareness of these brands is fair enough to consider
them as competitors. Dettol is associated with antiseptic attributes and is quite popular with health
conscious consumer. Other brands like Fa and Park Avenue focus on the regular consumer by portraying
themselves as a sporty cool brand by associating with adventurous lifestyles.
IIM Indore

Group 6 Section B

10.7. Customer Survey Questionnaire

Customer Survey: Questionnaire

Name: Date: Name of interviewer: 1. What is your age? Less Than 18 18-23 years 23-28 years 28-45
years Greater Than 45

2. What is your occupation? Government Service Private Service Business Self-Employed Student
Homemaker Others (please specify) __________

3. How often do you shave? Daily Alternate Days Twice a week Once a week At irregular intervals
IIM Indore 4. What type of shaving product do you prefer to buy? Shaving Cream Shaving Gel Shaving
Foam

Group 6 Section B

5. Where do you generally buy the shaving cream/gel/foam? Grocery shop Super market/ Departmental
stores Specialty Stores Chemist shop Any shop near by
Group 6 Section B

6. Which brands of shaving cream/foam/gel are you aware of? (Unaided recall)

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol e) Axe j) Blue Stratos

n) Others (Please specify)

7. Which brands of shaving cream/foam/gel are you aware of? (TOM – tick only one)

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol e) Axe j) Blue Stratos

n) Others (Please specify)

8. Which brands of shaving cream/foam/gel are you aware of? (Aided recall)

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol e) Axe j) Blue Stratos

n) Others (Please specify)

9. Which of the following brands do you use personally? (Tick only one)

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol e) Axe j) Blue Stratos

n) Others (Please specify)

10. Which of the following brands have you bought since the last six months?
a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol e) Axe j) Blue Stratos

n) Others (Please specify)

11. Please rate the following sources of information according to the level of importance of each source
(1 – Least Important; 5 – Most Important)
IIM Indore Friends Family Retailer Advertisements Packaging ___ ___ ___ ___ ___ ___

Group 6 Section B

Magazines or newspapers Saloons Any Other ___ ___

12. How satisfied are you with Gillette shaving foam/gel? (if used) Highly Satisfied Moderately Satisfied
Neither satisfied nor dissatisfied Moderately Dissatisfied Highly dissatisfied

13. If your FIRST preference is not available then what do you do? Purchase some other brand from the
same shop/ store. Purchase the same brand from some other store.

14. If the price of your most preferred brand increases what would you do? Shift to another brand Still
buy the same brand

15. If you choose to shift then which Brand will you prefer? Page | 73
IIM Indore

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O‟Clock c) Palmolive h) Park Avenue m) Nivea d)
Godrej i) Dettol

Group 6 Section B

e) Axe j) Blue Stratos

n) Others (Please specify)

16. Please rate the factors given below on scale of 1 – 5 based on the importance they hold for you in
purchase decision of a shaving cream/foam/gel. (1 least important to 5 most important)

No Attributes / Benefits a b c d e f g h i j k l Price Availability in stores Fragrance Stylish package design

Brand name Color of the shaving cream/foam/gel Foam formation Antiseptic attribute Ease of Use It
keeps my skin soft Ingredients Offers/Discounts

Ratin g

17. Please rate the following brands on the scale of 1-5 for the attributes mentioned below i.e. write 5 if
you feel the attribute is good enough to fully satisfy you and mark 1 if you feel the attribute could not
satisfy you. (1 fully dissatisfied to 5 fully satisfied – Show cards with the ratings on them) Page | 74
IIM Indore

Group 6 Section B

Attributes / Benefits

1 No Old Spice 2

Brands

3 4 5 6 Brand Dettol Godrej Gillette Denim chosen in Q 9

abcdefgijklM

Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving
cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients
Offers/Discounts

10.8. Focus Group Discussion Format

   Introduction Presentation of the Purpose Discussion of the procedure

FGD:

Focus Group Discussion

Page | 75
IIM Indore

Group 6 Section B

We conducted two FGDs for our product- Gillette Shaving gel/foam. We had also conducted interviews
with barbers from the biggest salon in Rau. Focus Group 1: 3 college students from SGSITS Indore (Age :
18-22) Focus Group 2: 6 employees (managerial level) of ICICI Branch at M.G Road (Age : 2545).
Following are the questions that helped us in moderating the entire discussion and the answers that
majority in the group agreed to: 1) Type of shaving: cream/gel/foam  FG 1: The college students now
use gel and were using cream before  FG 2: The office goers preferred foam for its ease of use and
otherwise used cream/gel 2) What product first comes to your mind when I say Shaving cream?  FG 1:
The college goers were unanimous – Gillette  FG 2: The older persons went for Godrej/ Palmolive and
the three younger ones said Gillette. 3) Brands you are aware of?  FG 1: came up with many brands,
but not only the traditional ones. (Old Spice, Palmolive, Godrej, Axe, Denim, Gillette, Park Avenue,
Dettol, V-John)  FG 2: came up with many national brands ( Old Spice, Palmolive, Godrej, Gillette,
Dettol) 4) How often do you shave?  FG 1: Once or twice a week (no social compulsion, limited pocket
money)  FG 2: Every day 5) The reason for shaving?( official/social compulsions, like to be clean shaven)
 FG 1: a time for oneself, like shaving  FG 2: mainly office and personal (read “wife”) compulsions, also
do not like to be seen unshaven (amounts to being unclean) 6) Does the brand of the cream/gel really
matter for shaving?  FG 1: no. only gets the job done. (The group was loyal to the razor- Gillette)  Page
| 76 FG 2: not really. (This group too was loyal to the razor- Gillette)
IIM Indore

Group 6 Section B

7) Self shave or salon? why?  FG 1: Self. Other brands, hygiene, have lots of time for self shave  FG 2:
Self. Hygiene, time factor, it is a time for one self. 8) Have you switched brands?  FG 1: yes, quite
frequently.  FG 2: no. not very recently. (Just one person was into experimenting with new products
every time he goes to buy shaving cream/gel/foam) 9) If so, why?  FG 1:just to try out new brands.
Offers. (Inference: They haven‟t settled to for a brand)  FG 2: only sometimes. for a change or
unsatisfied. More loyal to brands. 10) Where do you purchase?  FG 1: the nearest place or Big Bazaar 
FG 2: with regular shopping 11) Currently which brand do you use? Are you satisfied?  FG 1: Gillette,
Cinthol, one used electric shaver  FG 2: Gillette, Denim 12) Information search?  FG 1: ads don‟t
influence. Decision is made at the point of purchase  FG 2: ads don‟t influence. Many times decision is
made before coming to store. 13) Do you buy the product yourself or your family members buy it for
you?  FG 1: brand influenced by brother or father  FG 2: self purchase 14) Have you seen an ad for
shaving cream?  FG 1:no, not really. Creams aren‟t as important as aftershave and razors.  FG 2:
Don‟t have time to watch television, especially ads. 15) What do you expect from a shave? (soft skin/get
the job done/fragrance etc.)  FG 1: smoothness, get the job done  FG 2: get the job done, not harsh on
skin 16) The attributes you look for in your shaving cream/gel/foam? Page | 77
IIM Indore

Group 6 Section B

The two groups together came up with 12 attributes after a few minutes. They had 4 attributes that
overlapped as shown.

FG 1: Price Stylish package design Antiseptic attribute Color of the cream/foam/gel Lather formation
Availability in stores Offers/Discounts Brand name FG 2: Ease of Use Keeps the skin soft Ingredients
Fragrance Lather formation Availability in stores Offers/Discounts Brand name COMMON ATTRIBUTES:
Lather formation, Availability in stores , Offers/Discounts, Brand name.

17) What do you expect from a shaving cream?  FG 1: smooth shave  FG 2: good lather, smooth and
quick shave 18) Are you aware that weight to weight Gillette is costlier than all other brands? Page | 78
IIM Indore   FG 1:yes FG 2:yes

Group 6 Section B

19) Do you know the difference in pricing of Gillette?  FG 1:The group wasn‟t surprised with the price
catalogue we provided  FG 2: The group was surprised 20) Would you still keep buying Gillette even if
the price was further raised?  FG 1: Depends on the pocket money we get  FG 2: Yes 21) What do you
think of Gillette?  FG 1: The best brand  FG 2: Better compared to others 22) Why Gillette?  FG 1:
Good quality of shave  FG 2: Better shaving experience, very satisfied.

10.9. Age Profile of Sample Population

10.10.

Shaving Product Preference

Page | 79
IIM Indore

Group 6 Section B

10.11.

Place of Buying

10.12.

Recall Pattern

77%

Unaided Recall of Gillette Brand

Top of Mind Recall of Gillette Brand 56% Page | 80

IIM Indore Aided Recall of Gillette Brand 89%

Group 6 Section B

10.13.

User Preference

10.14.

Brand Satisfaction of Gillette

10.15.

Brand Loyalty in Shaving Cream/Gel/Foam Market

If your FIRST preference is not available then what do you do? Option 1 Page | 81 Purchase some other
brand from the same shop/ store
IIM Indore Option 2 Purchase the same brand from some other store

Group 6 Section B

10.16.

Price Sensitivity in Shaving Cream/Gel/Foam Market

If the price of your most preferred brand increases what would you do? (Q 14) Option 1 Option 2 Shift to
another brand Still buy the same brand

Page | 82
IIM Indore

Group 6 Section B

10.17.

Fishbein Analysis

Fishbein Attitude Model

Ao =

biei

i=1

where, Ao = Attitude toward the object (brand) bi = belief about the brand‟s possession of the attribute
ei = evaluation of the attribute as being good or bad n = there are a limited number (n) of attributes
which the person will consider

10.18.

Brand Preference based on Individual Attitude score

Page | 83
IIM Indore

Group 6 Section B

10.19.

Average attitude perception score of each brand

10.20.

Factor Analysis

Total Variance Explained Initial Eigenvalues Total % of Variance 24.208 15.665 12.510 9.699 8.029 6.977
6.403 4.781 4.163 3.426 2.217 1.922 Cumulative % 24.208 39.873 52.383 62.082 70.111 77.088 83.491
88.272 92.435 95.861 98.078 100.000 Extraction Sums of Squared Loadings Total 2.905 1.880 1.501
1.164 % of Variance 24.208 15.665 12.510 9.699 Cumulative % 24.208 39.873 52.383 62.082

1 2 3 4 5 6 7 8 9 10 11 12

2.905 1.880 1.501 1.164 .963 .837 .768 .574 .500 .411 .266 .231

Extraction Method: Principal Component Analysis.

Page | 84
IIM Indore

Group 6 Section B

Component Matrix(a) Component 1 Price Availability in stores Fragrance Stylish package design Brand
name Color of the shaving -.317 -.006 .549 .329 .653 .390 .744 .654 .742 .341 .153 .379 2 .654 .347 .086
-.144 -.011 -.589 -.084 -.026 .018 .677 .366 .596 3 .391 .429 .455 .628 .023 .065 .145 -.197 -.302 -.230
-.584 .113 4 -.048 -.049 .203 .373 -.448 .446 -.310 -.087 -.011 -.138 .597 .317

cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients
Offers/Discounts Extraction Method: Principal Component Analysis. a 4 components extracted.

Page | 85
IIM Indore

Group 6 Section B

Scree Plot

3.0

2.5

2.0

Eigenvalue

1.5

1.0

0.5

0.0 1 2 3 4 5 6 7 8 9 10 11 12

Component Number

Page | 86
IIM Indore

Group 6 Section B

10.21.

Perceptual mapping

Page | 87
IIM Indore

Group 6 Section B

Page | 88
IIM Indore

Group 6 Section B

Page | 89
IIM Indore

Group 6 Section B

10.22.

Cluster Analysis

Two Cluster Analysis

Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.0 3.4 3
2.8 2 3.2 2.7 2 2.0

Number of Cases in each Cluster

Cluster

12

36.000 48.000 84.000 .000

Valid Missing

Three Cluster Analysis

Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 2.9 3.4 2
1.8 2 4.1 1.8 2 2.3 3 3.7 2.8 3 2.8
Number of Cases in each Cluster

Page | 90
IIM Indore

Cluster 1 2 3 Valid Missing 28.000 22.000 34.000 84.000 .000

Group 6 Section B

Four Cluster Analysis

Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.2 3.2 3
3.6 2 2.0 2.5 3 2.6 3 3.6 2.5 2 2.2 4 3.8 3.5 3 1.6

Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing 16.000 10.000 30.000 28.000 84.000 .000

Page | 91