TAMEKA BROWN ADELARIN YEMI-SOFUMADE FION LAU

ERIC PALMER ANDREW HALLORAN TIM POE

MKTG 8030: Team 2

COMPANY OVERVIEW

• King Camp Gillette was inspired by a fellow inventor with the paradigm “the most successful invention is one that can be purchased over and over again by satisfied customers.”

• The Gillette safety razor company was established in 1901 with the successful production of a mass produced safety razor and blade.

• Maintained marked dominance until 1962 when Wilkinson Sword introduced their stainless steel razor blade.

• Today, Gillette still maintains a dominant market share in the U.S. and across the globe under ownership of Proctor & Gamble.

~MOST RECENT OFFER IS THE 5 BLADED GILLETTE FUSION

SITUATION ANALYSIS

• Gillette enjoyed years of success pioneering the disposable razor and introduced new razors with added technology.

• Gillette Mach 3

• Gillette Fusion

• Innovation in razors and blades is stymied by a lack of new technology and increasing customer reluctance to pay for the latest and greatest in shaving technology.

• Gillette brand is well known.

• Historically, the branding and advertising campaign has been male centered and very successful at integrating marketing campaigns into sports, entertainment and traditional media.

PROBLEM STATEMENT

How can Gillette maintain competitive

advantage in a mature market

without creating trivial innovation?

ASSUMPTIONS

• Gillette cannot lower prices

• Still in recession (2009)

SWOT ANALYSIS

• Innovation

• Dominant market share

• Strong branding and successful marketing strategy

• Proctor and Gamble’s resources

• Complimentary products

Strengths Weaknesses

Opportunities Threats

• Rise in market demand for personal

care products

• Emerging Global Market

• Female market segment

• Underserved minor market

segments

• Schick Company

• Critics and Consumer Reports

• Depressed economy

• Competition’s price strategy

• Consumer safety groups and

regulations

• New products without substantial

technological improvements

• Primary product is in the maturity

stage of its product life cycle

• High price points

• Narrow segment focus

PORTER’S 5 FORCESIN THE

PERSONAL GROOMING MARKET

RivalryIntense Rivalry in Personal Grooming

SuppliersBarr

iers

BuyersSu

bstit

utes

Gillette is a large supplier with influence on retailers for price and placement

Customers have other cost effective substitutes. Easy to switch to competitors.

Large buyers have bargaining power in this space: Wal-mart, Target, etc

High barriers for potential competitors to enter the market on a large scale

MARKETING ALTERNATIVES CONSIDERED

Marketing Alternatives

Razor Innovation – “Lazer Razor”

Subscription Service - “Personal care clubs”

Market to new target segments

Partnerships with the travel industry

Continued expansion of personal grooming products

DECISION CRITERIA

Evaluation Criteria Weight Description

Increase US market share

30% Primary source of revenue

Increase global expansion

30% Greatest opportunity for growth

Increase brand equity 20% Leverages our brand name to increase competitive advantage

Low investment cost 10% Cost is a secondary factor

Low competitive threat 10% High entrance barrier for new competitors to replicate and hard to duplicate by our main competitor

DECISION ANALYSIS MATRIX

Criteria Weight

Marketing Alternatives

Razor Innovation

Subscription Service

Market to new target segments

Partnerships with travel industry

Continued expansion of

personal grooming products

Increase US market share 30% 4 3 5 2 4

Increase Global expansion 30% 3 1 4 2 3

Increase Brand equity 20% 4 3 5 4 4

Low investment cost 10% 1 2 2 3 2

Low competitive threat 10% 5 1 1 1 1

Total Score 3.5 2.1 4.0 2.4 3.2

Rating Scale: 5 = highest impact; 3 = moderate impact, 1 = least impact

RECOMMENDATIONS

Primary Recommendation: Market to new target segments

Steps:

1) Initiate a study to determine most profitable market segment.

2) Assemble a cross functional marketing team (Customer

Marketing, Marketing Communications, Ad Agency) to

define the strategy to reach the target audience

3) Implement the strategy and measure the results.

This recommendation broadens the customer base to be a more inclusive brand.

• Revise slogan from “Gillette, the best a man can get” to “Gillette, the best anyone can get”

RECOMMENDATIONS

Secondary Recommendation: Research and Development of “Lazer Razor”. Innovation is inherent to Gillette and will help maintain long term competitive advantage.

QUESTIONS?