2. The company established by King Camp Gillette on 28 September
1901 in Boston.
Initially it was American Safety Razor Company.
The invention of Razor was patented in 1904.
1905 Develops new markets by opening London Offices.
1914 Gillette brokers deal with US Army (3.5 Million razors, 36
Million blades)
In 1952, its name changed to The Gillette Company.
In India, co. established on 9th February 1984, in Rajasthan as Indian
Shaving Products Limited and was jointly promoted by House of
Poddar Enterprises and Gillette co.
Now it is called as Gillette India Ltd.
Merged with Duracell (India) Pvt. Ltd. and Wilkinson Sword India
Ltd.
3. 1973 Net Sales exceed $1Billion.
1980 Net Sales exceed $2 Billion.
Sold off to P&G in 2005 for $57 billion
Launched various innovative products to capture the Indian
Audience
Market leader in premium shaving care segment
Good reputation for delivering high quality, value added products
Still in the infant stage with great opportunities ahead. Saw a 16%
growth in 2008
Awarded as the 13th most global brand by Bloomberg
Businessweak
References:
http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22
http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm
4. BRAND HIGHLIGHTS
Gillette India Limited (GIL) is one of India's well-known FMCG
Companies.
The world's largest personal care and household products
company.
First in INDIA to introduce gel in tubes.
Running since 111 years (1901-2012).
Global Leader in premium shaving care segment
Over 1 Billion men start their day with Gillette.
Manufacturing operations located in 23 countries.
Distribution in 200+ countries.
7. STRENGTHS WEAKNESS
Highly dependent on core business
Creativity and R&D investment Expensive brand maintenance
Product availability worldwide Heavy Dependence on Street Retail
Outlets
People Reliance on Quality of Product
Gillette has multiple blade and razor
Strong marketing and advertising
systems but their cartridges are not
Strong brand loyalty interchangeable with their other models
Market Leader
SWOT
OPPORTUNITIES ANALYSIS THREATS
Use of e-commerce
Increased Grooming, changes in societal New Competitors
attitudes and consumer brand preference
Growth in number of substitutes
New product launches
Electric shaving technology
Increasing buying Power
Economic downturn
Demand for high quality products
Cloning of successful brands
Still an infant industry in India with huge
scope for growth in future
8. GLOBAL STRATEGY
Corporate Objective
global focus on consumer products
global competitive advantage in quality, value
added personal care/use products
Global Market
competing in the triad markets
(Europe, Japan, North and South America)
industry concentration
global market leadership in male and female
grooming products
9. THE GILLETTE STRATEGY
Global resources organised and deployed to achieve
market leadership in all their products
to maintain and increase existing market share in
male and female grooming products
Corporate Strategy
aggressive research and advertising
strategic diversification e g mergers & acquisitions
new product developments (invest in technology
and product innovation)
focus on core competencies
maximise e-commerce opportunities
build strong product portfolio
10.
11. GILLETTE’S STRATEGY IN INDIA
Launching innovative and
customised products
Gillette has created a new market
for the power battery toothbrush
through Oral-B (the oral care
subsidiary of Gillette India). It also
introduced Mach3Turbo, a triple-
blade shaving system in India.
Gillette India has launched
customised products specially
designed for Indian consumers. It
introduced ‚Vector Plus‛, which is
a twin blade system with push clean
anti-clogging function in the mid-
price segment.
12. Localisation of distribution system
and wide distribution network
Gillette’s sales and distribution network is
wide, enabling consumers all over the
country to buy its products.
Gillette has localised its distribution system
and made it specific to the Indian market.
Gillette has targeted the Indian market on a
shop-by-shop basis as against the European
and US market where there are only few
major retailers.
13. Restructuring business to drive
Gillette restructured its business in India in
2003.
Strategic restructuring: Focused on grooming
and oral care business while exiting battery and
household appliances business.
Financial restructuring: Focused on improving
the margins, cost reduction and improving asset
utilisation.
The restructuring undertaken by Gillette paid
off with increasing profits.
14. Leveraging India’s large market
Gillette is tapping the large Indian consumer base to
establish a strong presence in the country. The market for
shaving blades in India is the largest in the world.
The market for oral care (toothbrushes) is the second
largest in the world, while that of batteries is the third
largest in the world (all in volume terms).
Apart from this the increasing consumer-spending
capacity and the increase in retail activity are also some
factors which attract Gillette to expand its business in
India.
http://www.ibef.org/download/GilletteIndia.pdf
15. Price Strategy
Gillette Presto, a product designed to upgrade
consumers who still use double-edge blades, with
a product priced atRs18, and with refills priced at
Rs5 which lasts up to 5 shaves. With the company
pursuing a volume-led growth strategy, its
advertising and promotion expenditure can be
expected to continue growing at high levels.
And, even as sales growth may continue to
surprise on the upside, profit can be expected to
lag for some time to come.
16. In a bid to increase share and growth, Gillette
introduced the Mach3 in November 2011, priced at
Rs125 or 60% lower than the Mach3 Turbo. This
product is targeted at greater conversions from the
doubled-edged segment, which accounts for 62%
and 86% of the razors and blades market, in value
and volume terms, respectively. And nearly half of
this market comprises users who get their shaves
done in a salon. Gillette is attempting to convert
this segment by giving them a salon-quality shave
at an affordable price.
http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html
17. MARKETING
Strong distribution strategies played
a prominent role in the robust
growth, as a result of which Gillette
brand has managed to tap both the
‚premium‛ and the ‚value-for-
money‛ consumers – Sharat
Verma, Marketing manager of
Gillette India
The lower-value products, followed
the company’s realisation that while
‚new and improved‛ is still
good, ‚lower price‛ works better in
these tough times
21. GILLETTE ‘SHAVE SUTRA’
Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo
Sensitive’s conduct Gillette Shave Sutra – The World’s Largest
Shaving Lesson
• 150 couples come together to break the world-record for the
Largest Shaving Lesson EVER!!
• Gillette Shave Sutra demonstrates how with the comfort of
Mach 3 Turbo Sensitive shaving becomes so effortless that even
your partner can shave you.
22. Tied up with Rediff-on-the-Net e-commerce to market its product
Tied up with ZAPAK for The India Gaming Championship 2009
Uses sports as a major promotional vehicle
Uses social networking sites like Facebook to promote it’s products
and carry out different surveys
38. PRICE AND QUALITY OF THE PRODUCTS
Almost all the sellers surveyed feel that the Gillette
products are premium in quality.
The company offers products for middle as well as higher
income groups.
Gillette constantly strives to provide convenience and
better quality to its consumers
The products are priced as per its quality. Though a little
expensive, the price is worth the quality
Attractive advertisements and sponsoring events one of
the key reasons for higher sales.
39. STOCK OF THE PRODUCTS IN THE SHOPS
The products are easily available.
Efficient follow-up by the distributors
in the retail shops.
Very rarely there occurs a shortage.
Gillette recently adopted D.C system
for its modern trade. This has lead to
better availability in the super markets.
40. COMPLAINTS AND SUGGESSTIONS
Hardly any complaints from the end-users.
Minimal instances of the products procured from the
distributors being defective. However, defects occurring
during transportation can be neglected.
The company must allow credit duration of a week.
Better margins expected from the company. Shouldn’t merely
be a ‘A SOCIAL SERVICE’ act by the retailers. Competitors
offer 10-15% extra margin than Gillette.
Blades more expensive than razors. Reduction in blade prices
will help considerably in increasing the market share.
