anjalicutek
Anjali Khurana
Marketing Mix of Gillette : 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.
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 alsoshows 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: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.Push Approach: 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.
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.
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 alsoshows 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: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.Push Approach: 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.
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