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‘GILLETTE’
BRAND AUDIT REPORT
               Submitted to:
         Ms. JAYASHREE SUNDAR
      Prof. FREDA J. SWAMINATHAN

   FORE School of Management, New Delhi




              Submitted by:

     ASHUTOSH KUMAR JHA [91011]
         NISHANT SINGH [91039]
          STUTI GUPTA [91056]
        SUDHIR MAKKAR [91057]
GILLETTE - BRAND AUDIT REPORT



                                     Table of Contents

   Acknowledgement ................................................................................. 3
   Executive Summary............................................................................... 4
   Introduction ........................................................................................... 5
   History - Gillette India .......................................................................... 5
   Gillette Products in India ...................................................................... 6
   Gillette’s Strategy ................................................................................... 7
   Competitor analysis ............................................................................... 9
   Brand portfolio .....................................................................................11
   Segmentation, Targeting and Positioning ..........................................11
   Marketing Mix ..................................................................................... 12
   SWOT Analysis .................................................................................... 14
   POP & POD ........................................................................................ 15
   Brand Elements ................................................................................... 16
   Brand Equity ....................................................................................... 20
   Philanthropy ........................................................................................ 26
   Role of celebrities ................................................................................ 26
   Threats to equity ................................................................................. 27
   Annexure .............................................................................................. 29
   References ........................................................................................... 33




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                                     Page 2
GILLETTE - BRAND AUDIT REPORT


                         Acknowledgement

We would like to express our heartfelt gratitude towards Ms. Jayshree Sundar and Prof. Freda
J. Swaminathan, our faculty at FORE School of Management for teaching us the various
aspects of brand management in theory as well as application, all of which have helped us
compile this report.


This is a comprehensive brand audit report with focus on all the elements of brand
management and the learning and knowledge imbibed from Ms. Sundar and Prof.
Swaminathan have gone a long way into helping us in preparing this report.


We appreciate your help and thank you for this guidance and support.


Date: 20th December, 2010
Place: FORE School of Management, New Delhi




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                 Page 3
GILLETTE - BRAND AUDIT REPORT


                        Executive Summary
Gillette has been the leading brand in men‘s grooming industry across the globe. With its
wide range of products caters to the premium segment of the men‘s grooming market. It faces
intense competition in the toiletries market whereas the competition in the razor market is not
that intense.

This report aims to study the brand equity of Gillette and factors contributing to it. Gillette is
a universally present brand which has emerged as most admired brand by customers in almost
every country. In an era of globalization, almost 70% market share globally is unheard of.
Studying the factors that have given Gillette ‗the best a brand can get‘ advantage would help
us understand what is needed for a brand to rise above the clutter and make itself
synonymous with industry itself.

For studying these we looked at factors that actually contribute to the brand equity like Brand
Image, Brand Personality, Brand Recognition, etc. This involved understanding what are the
things/ personalitiesWe also studied how and how much product features and innovation
contributes to the brand equity. Gillette has universally used celebrities as the face of their
brand. We have also looked at how having a celebrity face promoting your brand helps in
increasing the brand equity. We also looked at what are the risks involved with relying on
celebrities.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                       Page 4
GILLETTE - BRAND AUDIT REPORT

Introduction
The Gillette Company is the world leader in the men's grooming product category as well as
in certain women's grooming products. Although more than half of company profits are still
derived from shaving equipment—the area in which the company started—Gillette has also
attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman
brands) and correction products (Liquid Paper), toothbrushes and other oral care products
(Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of
company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its
products are sold in more than 200 countries and territories, with more than 60 percent of
sales occurring outside the United States.


History - 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.

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


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 5
GILLETTE - BRAND AUDIT REPORT

Gillette Products in India
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. It was incorporated in the year 1985 as Indian Shaving Products
Limited, now Gillette India Limited.

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. 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 tooth brushes under a well
known international brand name Oral-B as per distribution arrangement, further strengthened
the Brand name.

In the year 1996-97, the company launched the latest Gillette Sensor Excel shaving systems
which met excellent consumer response. In the year 1997, the company launched World
renounced Gillette Sensor Excel for Women shaving system. It also launched Gillette Shave
foam.

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
pronounced its perception as the premier male grooming company.

In the First month of 2000, the company launched Gillette Mach 3. In the year 2000 Gillette
launched Geep Laserlite, a Sport flashlight. Company also successfully consolidated Duracell
and Wilkinson business to leverage distribution strengths with mega displays and sales
promotion.

In the year 2001, Gillette undertook a series of very successful consumer promotions across
product lines. It also launched the Gillette Series Satin Care for Women Wild Berry Line. In
the year 2002, this was the year of turnaround for the company. In the year 2003, Company
successfully relaunched Gillette Foam. Towards the End of 2003, Company launched Gillette
Vector Plus.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                 Page 6
GILLETTE - BRAND AUDIT REPORT

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 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.

Besides the above mentioned product launches, company kept introducing new variants of
their existing products from time to time in market. These not only made product portfolio of
Gillette large but also proved its commitment to Indian market.


Gillette’s Strategy
The company has always been known for the strength of its brands, and continues to
penetrate deeper into the hearts of Indian Consumers.

When Gillette entered Indian shaving products market, it was 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
had 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 - 7O'Clock,
Sensor and Mach III, ISPL offers a continuing upgrade path for users.

Gillette has always created heroes out of their products and individual products have created
a name for themselves in market and are differentiated from each other easily. Mach 3,
Sensor Excel, Presto, etc are recognised names by themselves in market. And this has been
achieved by astute promotion campaigns and astute product launch campaigns of each single
product.

Years of product innovation and heavy investment in marketing and advertising has allowed
Gillette to occupy most dominant position of any of the major global consumer goods brands
with an estimated 70% share of the global razor blade category. Gillette instead of relaxing



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 7
GILLETTE - BRAND AUDIT REPORT

and being satisfied with its large market share, Gillette has made efforts to improve much
beyond that level of market share

Gillette has always priced its newly launched products at a high premium and relied on its
loyal follower base to keep coming back. Gillette launched its five-bladed Fusion line in 2006
with a 40% price premium over Mach3, its previous three-bladed offering.

To reduce threat from competitors, Gillette even when launching new products keeps old
product lines alive. This strategy has made Gillette‘s second best selling product its best
selling products best competitors and increased market share in process. Despite the fact that
Fusion and Mach 3 lines generating significant profits, with such a huge share of the shaving
market it makes more sense for Gillette to focus its marketing resources on switching its own
customers from Mach 3 to the more profitable Fusion line than trying to win any more share
from competitors.

Also Gillette‘s products are known to have a huge margin. Accusations have been made that
despite a retail price of £9.72 for a pack of four Fusion razor blades in UK, the actual
manufacturing and packaging costs for this product is less than 30p. (Source:
http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-brand-can-
get.html)

Gillette has supported its products with huge promotional blitzes. High and sustained
advertising has created a huge recognition factor for the brand. They have been universally
associated with some of the best known sportsperson at their peak. Besides they have also
sponsored sports events like golf, racing, etc as well as video gaming championships.

Structure

Post Gillette P&G merger, Gillette has adopted the organisation structure of P&G
2006onwards and effective July 1‘ 2006 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




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                    Page 8
GILLETTE - BRAND AUDIT REPORT

Competitor analysis
Colgate- Palmolive

Colgate-Palmolive is one of the largest companies in the FMCG sector. The Company had
launched 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.

Colgate-Palmolive has shaving products under the brand name Palmolive shaving cream. It
has three variants in the shaving cream/gel/foam category.

Proctor & Gamble

Before buyout of Gillette, in the shaving cream/gel/foam category it had a very strong brand
in the market, Old Spice. Old Spice has products in each of the cream, gel and foam category.
Since the acquisition, P & G has gone easy on Old Spice brand and promoted Gillette more

Wilkinson Sword

Wilkinson Sword is one of the only two brands which competes with Gillette across all the
product ranges from razors (both twin blades as well as ready shavers), shaving creams/ gel/
foams and aftershave range. Wilkinson Sword has been in Indian market for almost as long as
Gillette but, as in global market, has not been able to break Gillette‘s stranglehold on ready
shaver or shaving accessory market.

SuperMax

SuperMax is only other company with presence across all whole product range of shaving.
Recently SuperMax‘s head of India operation claimed to have 60% of twin-blade Indian
market by volume. Both these firms have almost negligible promotional campaigns. But,
SuperMax has gained advantage from the fact that Gillette, with its focus on ready shavers,
has cut on the promotion campaigns for the twin-blades sold under name 7o‘Clock.

HLL

With this massive distribution network in place, HLL enjoys commanding position in many
FMCG products in Indian market.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 9
GILLETTE - BRAND AUDIT REPORT

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 its distribution system these brands have
a deeper reach to the Indian consumers.

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.

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. One observation is
that even the premium shaving cream from Godrej is priced quite below the competitors
products of same quantity.

Fa

Fa has two shaving cream products in the market.

Park Avenue

Park Avenue has long been player in shaving cream and Aftershave market. It has also been
backed by promotional campaigns. Also eponymously named clothing line‘s reputation has
worked well for the shaving accessories range too.

Local players

There were many organised and unorganised local player. Since the early 1990‘s the industry
has seen large shift in the consumer perceptions and consumption patterns. Many local
players like Topaz and Panama gave way to the larger players in market after failing to
compete on the reputation and innovative products fronts.

Other Brands

Other competitive brands like Dettol, Vicco are also there in the market scene. These are not
premium segment brands and were priced accordingly.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 10
GILLETTE - BRAND AUDIT REPORT

Brand portfolio
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 7O'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)


Segmentation, Targeting and Positioning
Segmentation

The segmentation that Gillette adopts can be classified as a multi segmentation approach.
There are different levels to this segmentation starting with a demographic segmentation.

Gillette had in 1990‘ s particularly targeted higher income consumers. Thus, we see that
income segmentation has been the main factor when Gillette decided to segment the market.
Even now the basic segmentation has been on basis of income but with wider portfolio now
they target well to do middle class primarily. Gillette understands with lower rate of shaving
in India, its products would be successful among segment of population which considers
shaving to be a desirable activity. Gillette after seeing the success of the Mach 3 Turbo,
decided to offer a similar product for women-Venus Power. So, Gillette has also used gender
segmentation.

Gillette has also been using lifestyle segmentation. It has always targeted professionals with
active professional life which requires them to be well-groomed and smart. Its usage of
sportsperson heavily in its campaigns has been to highlight this main point. All the celebrities

FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                    Page 11
GILLETTE - BRAND AUDIT REPORT

endorsing Gillette have image of well-grromed and cultured within their profession as well as
outside the playing field.

With growth of India, the target segment of Gillette has also greatly increased. The aspiring
middle-class has proven to be the sitting market waiting for Gillette to come and tap it.

Targeting

Gillette has targeted the affluent and growing middle class and upper class segment through
marketing promotion to create a associative and aspirational connect. It has used TV
commercials in sports telecasts like Formula1 racing, FIFA World Cups, Cricket matches,
etc. Bigger the event, like football world cup, more intensive is Gillette‘s promotional efforts.
Besides TVC, Gillette has relied on adverts in print media. Gillette has traditionally published
its adverts in lifestyle magazines and publications. They also has in-shop branding in larger
shops to reach their target audience.

Positioning

Based on the lifestyle segmentation, Gillette has selected ambitious and well-groomed
professionals as its target segment. Traditionally it has positioned itself as a premier product
in shaving and grooming range with premium pricing. Ever since 1920s, even in face of
competition, Gillette has maintained its premium pricing and relied sustained customer
loyalty to maintain its leadership position. It also positions itself cut above its competitors
through launch of new and innovative products every few years with perceived benefits and
advantages over its already available products.


Marketing Mix
Product: Gillette‘s global product portfolio includes products in shaving razors (twin-blades,
ready shavers, use-n-throw ready shavers), Razors for females, shaving lather (creams, gels
and foams), After shave lotions (alcohol based and non-alcohol based), deodorants and anti-
perspirants, hair-care (shampoos and conditioners), hair creams and gels. These products are
directly under Gillette brand. In India, Gillette has actively promoted only razors, shaving
lathers, aftershaves and deodorants.

There are multiple variants within these product lines to suit individual skins and
requirements.



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                     Page 12
GILLETTE - BRAND AUDIT REPORT

Gillette has introduced innovative products like Sensor Excel, Mach3, Duracell alkaline
batteries, disposable razors, twin/triple edge cartridges to the Indian consumers. It has
captured a market share of more than 88 per cent in the premium shaving systems segment.

Price: As already mentioned Gillette has traditionally priced its products at a premium to an
extent where some market analysts believe it to be fleecing customers relying on customer
loyalty. Some products are said to carry as high as 3000% mark-up price over the
manufacturing cost.

Place: Gillette is one of the most widely distributed brand across globe. 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.

The distribution chain is known to be smooth and without any problems regarding handling
and acquiring stocks. On an average, a retail unit stocks the maximum number of Prestos, in
relation to Vector Plus and Mach 3. Also as compared to Presto being available almost at
every grocery store, Mach 3 and sensor Excels are stocked at shops of certain size only which
are also able to provide prominent display space.

Promotion: Gillette relies heavily on promotional campaign with celebrity endorsement,
targeted specially towards young men.

Gillette India benefits from its parent‘s spending, strategy on advertisement and brand
promotion. Gillette has a long history of promotions for its products, especially towards
young men. Current promotions include sponsorship of sports events such as the Rugby
League Tri-nations and shipping their then-flagship product (currently the Fusion) to males in
the United States around the time of their 18th birthday. Athletes such as Roger Federer,
Tiger Woods, Shoaib Malik, Derek Jeter, Thierry Henry, Kenan Sofuoglu, Park Ji-Sung,
Rahul Dravid, and Michael Clarke are sponsored by the company. Marketing experts have
highlighted "the curse of Gillette", given the mishaps that happen to sports stars associated
with the brand.

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

FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                      Page 13
GILLETTE - BRAND AUDIT REPORT

countries , only making changes in the language, colours etc. For the lower segment razors
like vector plus & presto it retains the global theme but adapts it to local market needs.

Print– This medium is mainly used by Gillette to spread awareness of their percents-off 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 the company can develop as an
additional promotional tool.


SWOT Analysis
                STRENGTH                                          WEAKNESS

 Strong brand equity                             Profitability highly dependent on core

 Market Leadership                               Over-reliance on high-street retail outlets
                                                   for premium products
 Well Diversified portfolio

 Technological Innovation

 Wide distribution network

 Loyal customer base

              OPPORTUNITY                                          THREATS

 New product launches                            Imitations / disposables are a threat to
                                                   the Gillette’s offering
 Price increases in premium shaving
 segments                                         Pressure on pricing power

 Changing Demographics and Societal              Competitive environment
 Attitudes

 Low Shaving frequency




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                     Page 14
GILLETTE - BRAND AUDIT REPORT

POP & POD
Points of Parity

   1) Gillette has traditionally differentiated its razors from those of its competitors by
       claiming to provide a closer, more comfortable shave.

   2) The quality of products is very good in terms of durability, accuracy, design and ease
       of use. Also much diversified product portfolio.

   3) Strong promotion strategies and advertisements including famous personalities from
       very fields like media, sports etc..

   4) A brand having multiple offering under its umbrella should be having same value
       experienced by the buyer. Organizations need to be offering same values under a
       Brand. A change in values across the product line turns the consumer into a confused
       buyer. Gillette is successfully executing vice-versa effect for decades.



Points of Difference

   1) Strongest distribution network thought the world in its product category

   2) Gillette also enjoys leader position in shave preparation market. Gillette's share of the
       shave preparations category stands at 60% of market, distinctly ahead of other major
       players including Palmolive So follows premium pricing strategies.

   3) Gillette is ripe to reposition itself from the tag "innovation" and let Fusion drive the
       innovation wheel. Fusion looks to be a serious effort as Gillette has launched
       HydraGel shave gel and HydraCool after shave products under Fusion sub-brand.

   4) Gillette ensures that the Investors and Community sections have all of the detail
       necessary to underpin the brand‘s credibility. Anyone wishing to invest in Gillette can
       find everything from live stock quotes and charts to annual reports and webcasts, as
       well as the ability to buy the company‘s shares online.

   5) Gillette has put up a lot of effort on building their homepage which is very popular. It
       looks cool and has a nice pale-blue shade which reflects the real power under it. On
       the cause-related front, Gillette uses the site to promote a number of initiatives on a
       national and international level that help enhance brand value by bringing some much


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 15
GILLETTE - BRAND AUDIT REPORT

       needed support to not just disadvantaged communities, but also to key causes such as
       women‘s cancer programs.


Brand Elements
Brand elements are those trademarked devices that serve to identify and differentiate the
brand. These are also sometimes known as brand identities. Items like brand name, logo,
mnemonics, characters, spokespersons, slogans and jingles are some items that can be
characterized as brand elements. All or most of them are trademarked and registered by the
parent company of the brand and these are what appear in front of the consumer in the
brand‘s communication and help increase recall of the brand as these are things that the
consumers remember a brand by.

According to theory, there are some specific criteria which need to be kept in mind while
deciding on the brand elements. These are points which when satisfied help in serving the full
purpose of having brand elements. Some of these criteria are:

1. Memorable – These elements should be easily recognized and can be easily recalled.

2. Meaningful – If not all then most of the brand elements should have a meaning and
    should associated in some or the other way with the culture and values of the brand.

3. Likeable – In simple terms brand elements should be fun, interesting or may be
    aesthetically pleasing so that the consumers like it and attach positive connotations with
    these elements.

4. Transferable – Brand elements need to be the same for different markets and
    geographies, for different product or service categories. So transferability across these
    boundaries is critical.

5. Adaptable – They must be flexible and the company should be able to update them as
    and when required.

6. Protectable – They should be legally protected from counterfeiting and copyrights
    violation.

Now keeping these criteria in mind, let us have a look at the brand elements associated with
Gillette and according to the consumers, how well do these elements stand up to the criteria
defined above.


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 16
GILLETTE - BRAND AUDIT REPORT

1. Brand Name – Gillette

   Gillette is one of the best known names across globe in FMCG sector. Gillette has over
   800 products in almost 180 countries across globe. Gillette company was named after the
   founder of company, King C. Gillette. Gillette name sounds modern and has no negative
   connotation in any of the languages in any of the markets it has operated in. It being a
   foreign brand attracts consumers who feel proud to be associated with a big international
   brand. It is easy in terms of memorability and having a long history attached to it along
   with the geographies it is now operating in; it has proved its adaptability and
   transferability.

   Internationally Gillette changed its founding name, Gillette Safety Razor Company, to
   Gillette Company in 1950s when it started diversifying into other varied products. In
   India, Company was established with name ‗Indian Shaving Pvt. Ltd.‘ but later changed
   to Gillette India Ltd.

   There are different strategies which can be adopted when choosing brand names. Gillette
   adopts a ‗dualithic‘ brand name strategy for many of its products. Ina survey when asked
   to name Gillette products, 7 out of 10 respondents considered ‗Mach 3‘ and ‗Fusion‘ to
   be individual brand names and didn‘t precede these names with ‗Gillette‘. This strategy
   can be used in order to ensure differentiation between the products; as if all products just
   fell under the ‗Gillette‘ brand name, it would be difficult to achieve a perceived
   difference.
       The suggestiveness of the brand names can be a contributing part of a brands identity
   and can help build positive associations with the brand and create positive brand
   attitudes. The brand name ‗Mach3‘ for instance, is a term linked to the speed in which
   certain jets can travel and may be associated with:
           • Very fast speed
           • Precision
           • The ‗3‘ blade system
2. Brand Logo

   Gillette logo has evolved over last century. It
   is uniform across globe upholding the
   impression of globally reliable brand locally


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 17
GILLETTE - BRAND AUDIT REPORT

   available. Logo exudes the characters brand stands for-stylish, clean and modern.

   Logo has always been written either in blue or black or in white with blue/black
   prominently in the background. Blue colour represents the clean and smooth side of the
   brand while black lends the smart and sophisticated look to the brand logo. Words are
   written in clean and legible font which is easily readable. A shining point in the images
   (like one over ‗G‘ in the represented image) reminds of the sharp edged blades Gillette
   has so much come to be associated with.

3. URL (Uniform Resource Locator)

   The website link or URL for the global website is http://www.gillette.com. Within this
   website there are company specific links. Country specific sites majorly display the
   range of products available and give out very little other details. Main global link has
   major details about the company. Besides this link Gillette also has other assorted
   websites    linked    to   its   sponsored     events    and    organised     events,   like
   http://www.gillettechampions.com/. It is easy to remember and use, hence making it an
   effective brand element.

   With Changing times Gillette has also made its presence felt on new age trends like
   social networking websites. http://www.facebook.com/#!/gillette

   Campaigns such as ‗Women against Lazy Stubble‘ have their own link such as
   http://www.shaveindia.com/pressrelease.php.

4. Slogan

   Gillette‘s slogan ‗THE BEST A MAN CAN GET‘ has been used for past few years and
   is universally accepted as a very apt slogan for the brand. Going by the meaning of the
   tagline, it can be interpreted in two ways

    i. Best shaving product a man can get
    ii. Best condition a man can get into is only after using Gillette product

   Although two meanings can render a slogan ambiguous and confusing, in this case both
   the meanings are complimentary and add value to the brand in consumer‘s mind. Slogan
   is easy to remember and catchy. It also makes the target segment of the products very
   clear.



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 18
GILLETTE - BRAND AUDIT REPORT

   Statement also comes out as a strong and confident statement which would assure
   customers of putting their faith in hands of a brand which has confidence of saying it is
   best in the market. This slogan has also greatly assisted Gillette in becoming one of the
   most trusted brand in market.

5. Packaging

   The packaging of a product has been described as the ‗silent
   salesman. In Packaging important aspects are:

         Who your customers are

         Should be both aethetical as well as functional

         Suitable for your distribution selling style

         Physically Safe and environmentally neutral

         Economical

   Gillette's packaging fulfils the entire above criterion. Packages are in company's colours
   and hence very easily recognisable. These have been designed keeping in mind the razors
   they are supposed to contain. Packages are mostly of treated plastic which is physically
   safe and easy to handle as well as economical.

   Transparent coverings on the front make for a good display on the shop
   windows and one of the visual appeals. Colour of packs has been kept
   blue/ black keeping in general product coloration tone. But for female
   centric products colours have been kept soft and feminine.

   Cartridges come in various sizes of 4,6 and 8 for different price range.
   Inner hard plastic case keeps blades safe from damage as well as
   causing damage to other goods during transit and stocking.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                 Page 19
GILLETTE - BRAND AUDIT REPORT




Brand Equity
Customer Based Brand Equity occurs when the consumer has a high level of awareness and
familiarity with the brand and holds some strong, favourable and unique brand associations in
memory. The two primary sources of building brand equity are as follows.

1. Brand awareness

    Awareness about the brand consists of two dimensions, brand recognition and brand
    recall. Let us see the steps taken by Gillette to build awareness among consumers about
    the brand and also how Gillette performs on these parameters.

    (i) Brand Recognition – If a brand cue is given, how accurately a consumer can confirm
       the band prior to actual exposure is termed as brand recognition. The brand
       recognition comes out to be very strong for Gillette. Any exposure to ready shavers or
       aerosol based shaving lathers instantly leads to association with Gillette. This high
       level of association has been formed because of Gillette‘s presence in these markets
       devoid of any strong competition. Gillette‘s name has been so deeply associated with
       razors and shaving that even mention of shaving brings out name of Gillette out of
       consumer.

  (ii) Brand Recall – Brand recall is the consumer‘s ability to retrieve the brand from his
       memory when he asked about the product or service category, the needs fulfilled by
       the category or other such details. Gillette scores strongly on this front also and has,
       according to the consumers, the maximum brand recall. In the survey conducted to
       study company‘s brand equity it was found that when asked about men‘s grooming



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 20
GILLETTE - BRAND AUDIT REPORT

      products, first company 85% people thought of was Gillette. Brand recall in case of
      razors and Shaving lathers is even higher.

      Having strong brand awareness certainly helps as it helps the brand become a part of
      the consideration set and increase consumer‘s purchase motivation. The awareness
      also increases knowledge about the offerings and helps the consumer make intelligent
      choices about what he wants, hence increasing his purchase ability.

2. Brand Image

   Creating strong and positive brand image requires communication and marketing
   programs which can link certain favorable terms and connotations with the brands in the
   minds of the consumer. These brand associations can be built not only through
   advertising but also through direct exposure and information from other sources. Public
   relations and good service levels are critical to building a good brand image for the
   brand. Brand image is boosted if product matches or exceeds consumer expectation and
   suffers otherwise.

   In case of Gillette, Brand image has been formed through company‘s products and
   communication. Gillette has made its name as best that a man can get in his attempt to
   become smart and well-groomed. Gillette‘s long association with successful athletes has
   given it an image of competition and success, as well as its international appeal. Gillette
   is also seen as an innovative company always coming up with something new and
   markedly better than anything presently available in market.

3. Mental Map
   A mental map is generally a visual depiction of the core brand associations and can be
   useful in defining the brand mantra. Many of these core brand associations come from
   the brand‘s positioning and communication strategies. These are points which in essence
   define the brand‘s identity and representation.
   Based on the consumer survey some of the brand associations that can be mapped onto a
   mental map for Vodafone are depicted below. Then from this mental map, we will be
   able to define the brand mantra for Vodafone.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 21
GILLETTE - BRAND AUDIT REPORT


                                                         Masculine
                                         Image            Reliable
                                                        Upper-Class
                                                         Confident




          Performance                                                 Sports

  Value for money                                                                Golf

    Convenient                                                             American football

     Innovative                                                                Car racing

 Customer Oriented                                                              Cricket
                                                                               Football


                        People                         Negatives


                       Masculine                     Premium Priced
                         Active                         products
                        Affluent                     No female brand
                     Well -Groomed                    Over relying on
                                                       sports stars



                                   Gillette’s Mental Map


These associations have been created over the period due to the promotions and celebrities
associated with the brand.

4. Brand Mantra


Brand Mantra reflects the essential heart and soul of the brand and is a synthesis of many
core brand associations. According to most of the communication and corporate social
responsibility activities Gillette does all over the world and also in India, a few terms come
out quite clearly, making up Gillette‘s brand mantra. Adding to that the mental map that we
have managed to create brings out certain core brand associations which can be fine tuned to

FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                    Page 22
GILLETTE - BRAND AUDIT REPORT

derive major aspects to form brand mantra. Gillette‘s brand associations point towards a
reliable, smooth and successful. Based on these we can project mantra as being a
sophisticated brand offering premium products which are reliable and trustworthy.




                     Sophisticated                      Premium

                                          Gillette's
                                       Brand Mantra

                         Reliable                      Trustworthy

                                     Gillette’s Brand Mantra


5. Customer Based Brand Equity Analysis

According to the formal definition, customer based brand equity is the differentiated effect
that brand knowledge has on customer‘s response to the marketing of that brand. A brand is
said to have positive customer based brand equity when the customer responds more
favourably to a product or service and the way it is marketed when the brand is identified
than when it is not. If customer holds a positive view about the brand and is ready to purchase
existing product and new launches of brand readily, a positive customer based brand equity is
said to exist. Brand equity is reinforced within customer through promotions, sponsorships of
events, customer service and CSR activities. But the biggest component still happens to be
the satisfaction with the product.

There are three dimensions which need to be analyzed to find out the customer based brand
equity of a brand which are:

    Differential Effect

    Brand Knowledge

    Consumer response to marketing


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 23
GILLETTE - BRAND AUDIT REPORT

CBBE pyramid shown below evaluates how Gillette performs on each of the mentioned
parameters. This would in turn help us evaluate how strong or weak is the company‘s brand
equity and which are spots where Gillette needs to improve.




                             Gillette’s CBBE Model Analysis

1. Brand Salience

    Brand salience defines and measures the awareness of the brand in the minds of the
    consumers. It is the identity step of the pyramid and lets us know what the consumer
    knows about the brand. This relates to customer‘s knowledge about the company and
    products offered by it. Consumer survey shows that consumers are very much familiar
    with the company and its range of products on offer. All the products on offer by Gillette
    are recognised by large percentage of the consumer. This provides Gillette with very
    strong brand salience.

2. Brand Performance




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 24
GILLETTE - BRAND AUDIT REPORT

   Performance consists of factors like features of products, reliability, product
   effectiveness, durability and price. Here too Gillette scores high on all parameters.
   Gillette‘s products have very high functional value for customers, and product
   performance has been as per consumer‘s expectations. Reliability and durability has also
   been satisfactory. Even pricing, which industry analyst are slightly higher was deemed to
   be satisfactory by most consumers. On this parameter also Gillette scores highly.

3. Brand Imagery

   Imagery relates to the satisfaction of the customer‘s psychological needs, unlike his
   functional needs which can be related to performance. User experience determines how
   the imagery is formed in customer‘s mind, what he thinks of the brand, how he perceives
   it to be. Responses showed that almost all the respondents consider Gillette to be
   strongly masculine brand with predominantly male oriented products. Gillette has been
   only associated with male sports stars. Also, Gillette is best known for its shaving range
   and shaving is predominantly a male thing. Tagline of company says ‗Best a Man can
   get‘, getting imagery of a masculine brand even more clearer.

4. Consumer Judgments

   Judgments consist of factors like quality, credibility, superiority and consideration.
   Gillette is known as company with modern and very reliable products. 95% of the
   consumers responded with satisfied rating, out of which 65% were highly satisfied
   rating. 87% of the consumers believed Gillette‘s product were highly reliable and
   durable.

   This shows that even on consumer judgement parameter, Gillette scores highly. Its
   customers are satisfied with the quality and accept its durability and reliability

5. Consumer Feelings

   This is the response of the consumer in terms of his emotional reactions and responses
   towards the brand. Responses were positive towards the brand, see the brand as
   trustworthy and mostly feel loyal to the brand. There were no positive or negative
   extreme emotion attached with the brand.

6. Consumer - Brand Resonance




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                    Page 25
GILLETTE - BRAND AUDIT REPORT

     This is the peak of the pyramid and defines and measures the relationship and level of
     identification of the consumer with the brand. Factors like loyalty, attachment and
     engagement are associated with this step. Consumers today are willing to spend more for
     something they perceive to be better and advanced. Adoption of an international brand
     with internationally successful products seems to them a step of moving ahead or getting
     best available globally. Gillette has an international pedigree and their promotional ads
     highlight this through internationally successful sportspersons and western models.
     Gillette creates a very high connect on this parameter too.


Philanthropy
Shiksha

Our signature CSR program has in its 6th year helped improve the lives of over 150,000
children across 602 communities with a donation of over Rs.5 crores by all the P&G group
companies in India. Shiksha moved onto a new vision of creating tangible, visibly long-
lasting impact through the building of Shiksha schools across the country that offers quality
education to children in need. Over the last 6 years, your Company has already been
associated with helping bring to life over 100 schools via either building them (near our
plants), supporting them through non-governmental organizations (NGOs), working with
Army Wives Welfare Association schools, or reactivating Government schools through our
work with NGO partner CRY.

Children’s safe drinking water programme

Gillette has set up a water treatment plant which will produce 1 billion litres of clean drinking
water which is being provided to young children to help them have a healthier living to their
lives.


Role of celebrities
Celebrities have always been a central part of the Gillette‘s promotion strategy. The special
focus has been on sportsmen who have had outstanding performances on the field and also
off the field. These include their charitable actions, support of social causes and for their
reputations as icons of true sporting values



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                     Page 26
GILLETTE - BRAND AUDIT REPORT

Some of the major brand endorsers include David Beckham, Thiery Henry, Tiger Woods,
Roger Federer and Rahul Dravid. The imagery created with these sportsmen have been that
of sophisticated gentlemen.

Through these celebrities the brand has tried to communicate that the products offered helps
you prepare for your best.

Promotional campaigns

The two major promotional drives taken up by the brand in India have been

   ‗Women against the lazy stubble ‗campaign – Female celebrities from Bollywood,
    Mugdha Godse, Minisha Lamba and Neha Dhupia were taken as the face of the
    campaign to urge women to take charge and take responsibility of grooming their men.
    The campaign involved online surveys, mall promotional activities.

   Shave india movement to increase market size – The promotional drive saw the likes of
    Dino Morea

The brand‘s image has had to suffer because of the controversies related to the sportsmen that
they have used.

Gillette had to change the advertising where Thiery Henry was holding a ball in his hand
because of the controversy of him intentionally touching the ball to prevent a goal in a world
cup qualifier match against Ireland in 2009.

Roger Federer losing temper on the court of the US open in 2009 brought the brand bad
name.

The controversies related to Tiger Woods cheating on his wife with several women made the
brand stop the advertisements having him.

Threats to equity

1. Products becoming star in themselves.

    In a survey internationally almost 40% of respondents used names Mach3 and Fusion
    without using brand name Gillette. Although this would prove to be a differentiating
    factor, this would also make products stand against each other as rivals and lessen
    Gillette‘s name and equity. Also competing products would leave a window open for the
    rivals to grab in a share of market


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 27
GILLETTE - BRAND AUDIT REPORT

2. Over reliance on celebrities

   Gillette has been too much reliant on celebrity superstars for promotion and image
   creation in minds of customers. But, as shown by recent issues with Tiger Woods,
   celebrities are prone to behaving the way companies don‘t want them to behave. This
   tarnishes the image of company as well as results in lost revenue as company is unable to
   use adverts featuring the tarnished celebrity.




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                Page 28
GILLETTE - BRAND AUDIT REPORT


                                    Annexure
   Questionnaire


   Name *


   Gender *

              Male

              Female


   Age * (Years)

              <20

              20 to 30

              30 to 40

              > 40


   When you think about Men‘s grooming products which brand immediately comes to
   mind? *


   Who famous personality does Gillette remind you of? *


   Which among the following products do you think Gillette has in its portfolio? *

              Razors

              Shaving creams and foams

              Deodrants

              Aftershave

              Other:


   In the shaving razor range which is your preferred brand?


FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                  Page 29
GILLETTE - BRAND AUDIT REPORT

              Gillette

              Wilkinson Sword

              Other:


   In the shaving cream range which is your preferred brand?

              Gillette

              Park Avenue

              Dettol

              Axe

              Palmolive

              Other:


   In the after-shave range which is your preferred brand?

              Old Spice

              Axe

              Gillette

              Palmolive

              Other:


   In the deodorant range which is your preferred brand

              Axe

              Gillette

             Park Avenue

             Zatak

             Other:


   How do you rate Gillette on following parameters? * 1-lowest,5-highest



FORE SCHOOL OF MANAGEMENT, NEW DELHI                                        Page 30
GILLETTE - BRAND AUDIT REPORT

                                  1        2         3          4          5

    Price

    Comfort during
    usage

    Reliability

    Quality and
    durability

    Stylishness



   Do you know the Gillette tag line? *

                  Yes

                  No


   Do you know the colours in Gillette‘s logo? *

                  Yes

                  No


   Do you recall any recent ad of Gillette? *

                  Yes

                  No


   Which among following attributes do you think can be used to describe Gillette brand? *
   Can choose more than one

                  Rugged, Tough

                  Smooth

                  Masculine

                  Feminine

FORE SCHOOL OF MANAGEMENT, NEW DELHI                                               Page 31
GILLETTE - BRAND AUDIT REPORT

              Western

              Reliable

              Upper class

              Successful

              Trendy

              Leader

              Confident

              Young

              Imaginative, Unique

              Technical

              Other:


   Do you know about Gillette‘s ―Women Against Lazy Stubble‖ campaign? *

              Yes

              No


   Are you satisfied with Gillette products? *

              Highly satisfied

              Moderately satisfied

              Moderately dissatisfied

              Highly dissatisfied



    Submit




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                       Page 32
GILLETTE - BRAND AUDIT REPORT


                                References
  1. Keller, Kevin Lane; Strategic Brand Management, Third Edition; Pearson

  2. Gillette‘s global website : http://www.gillette.com/

  3. P & G‘s Gillette specific pages : http://www.pg-india.com/gillette2/profile.html

  4. Gillette‘s Posting on Wikipedia : http://en.wikipedia.org/wiki/Gillette_(brand)

  5. Competitive     Edge     in    Cutthroat    market     by   Slaven     Marinovich       :
     http://www.brandchannel.com/features_effect.asp?pf_id=290

  6. 5 Reasons Gillette Is The Best A Brand Can Get by Derrick Daye :
     http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-
     brand-can-get.html

  7. A close shave for Tiger blunts Gillette‘s cutting edge claim : http://www.marketing-
     comms.com/blog/?p=10




FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                   Page 33

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Gillette Brand Audit Report: Factors Contributing to its Global Success

  • 1. ‘GILLETTE’ BRAND AUDIT REPORT Submitted to: Ms. JAYASHREE SUNDAR Prof. FREDA J. SWAMINATHAN FORE School of Management, New Delhi Submitted by: ASHUTOSH KUMAR JHA [91011] NISHANT SINGH [91039] STUTI GUPTA [91056] SUDHIR MAKKAR [91057]
  • 2. GILLETTE - BRAND AUDIT REPORT Table of Contents Acknowledgement ................................................................................. 3 Executive Summary............................................................................... 4 Introduction ........................................................................................... 5 History - Gillette India .......................................................................... 5 Gillette Products in India ...................................................................... 6 Gillette’s Strategy ................................................................................... 7 Competitor analysis ............................................................................... 9 Brand portfolio .....................................................................................11 Segmentation, Targeting and Positioning ..........................................11 Marketing Mix ..................................................................................... 12 SWOT Analysis .................................................................................... 14 POP & POD ........................................................................................ 15 Brand Elements ................................................................................... 16 Brand Equity ....................................................................................... 20 Philanthropy ........................................................................................ 26 Role of celebrities ................................................................................ 26 Threats to equity ................................................................................. 27 Annexure .............................................................................................. 29 References ........................................................................................... 33 FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 2
  • 3. GILLETTE - BRAND AUDIT REPORT Acknowledgement We would like to express our heartfelt gratitude towards Ms. Jayshree Sundar and Prof. Freda J. Swaminathan, our faculty at FORE School of Management for teaching us the various aspects of brand management in theory as well as application, all of which have helped us compile this report. This is a comprehensive brand audit report with focus on all the elements of brand management and the learning and knowledge imbibed from Ms. Sundar and Prof. Swaminathan have gone a long way into helping us in preparing this report. We appreciate your help and thank you for this guidance and support. Date: 20th December, 2010 Place: FORE School of Management, New Delhi FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 3
  • 4. GILLETTE - BRAND AUDIT REPORT Executive Summary Gillette has been the leading brand in men‘s grooming industry across the globe. With its wide range of products caters to the premium segment of the men‘s grooming market. It faces intense competition in the toiletries market whereas the competition in the razor market is not that intense. This report aims to study the brand equity of Gillette and factors contributing to it. Gillette is a universally present brand which has emerged as most admired brand by customers in almost every country. In an era of globalization, almost 70% market share globally is unheard of. Studying the factors that have given Gillette ‗the best a brand can get‘ advantage would help us understand what is needed for a brand to rise above the clutter and make itself synonymous with industry itself. For studying these we looked at factors that actually contribute to the brand equity like Brand Image, Brand Personality, Brand Recognition, etc. This involved understanding what are the things/ personalitiesWe also studied how and how much product features and innovation contributes to the brand equity. Gillette has universally used celebrities as the face of their brand. We have also looked at how having a celebrity face promoting your brand helps in increasing the brand equity. We also looked at what are the risks involved with relying on celebrities. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 4
  • 5. GILLETTE - BRAND AUDIT REPORT Introduction The Gillette Company is the world leader in the men's grooming product category as well as in certain women's grooming products. Although more than half of company profits are still derived from shaving equipment—the area in which the company started—Gillette has also attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman brands) and correction products (Liquid Paper), toothbrushes and other oral care products (Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its products are sold in more than 200 countries and territories, with more than 60 percent of sales occurring outside the United States. History - 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. In 1998, company decided that it would use Gillette as its pre-eminent brand placing it ahead of the 7O'Clock brand. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 5
  • 6. GILLETTE - BRAND AUDIT REPORT Gillette Products in India 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. It was incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited. 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. 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 tooth brushes under a well known international brand name Oral-B as per distribution arrangement, further strengthened the Brand name. In the year 1996-97, the company launched the latest Gillette Sensor Excel shaving systems which met excellent consumer response. In the year 1997, the company launched World renounced Gillette Sensor Excel for Women shaving system. It also launched Gillette Shave foam. 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 pronounced its perception as the premier male grooming company. In the First month of 2000, the company launched Gillette Mach 3. In the year 2000 Gillette launched Geep Laserlite, a Sport flashlight. Company also successfully consolidated Duracell and Wilkinson business to leverage distribution strengths with mega displays and sales promotion. In the year 2001, Gillette undertook a series of very successful consumer promotions across product lines. It also launched the Gillette Series Satin Care for Women Wild Berry Line. In the year 2002, this was the year of turnaround for the company. In the year 2003, Company successfully relaunched Gillette Foam. Towards the End of 2003, Company launched Gillette Vector Plus. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 6
  • 7. GILLETTE - BRAND AUDIT REPORT 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 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. Besides the above mentioned product launches, company kept introducing new variants of their existing products from time to time in market. These not only made product portfolio of Gillette large but also proved its commitment to Indian market. Gillette’s Strategy The company has always been known for the strength of its brands, and continues to penetrate deeper into the hearts of Indian Consumers. When Gillette entered Indian shaving products market, it was 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 had 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 - 7O'Clock, Sensor and Mach III, ISPL offers a continuing upgrade path for users. Gillette has always created heroes out of their products and individual products have created a name for themselves in market and are differentiated from each other easily. Mach 3, Sensor Excel, Presto, etc are recognised names by themselves in market. And this has been achieved by astute promotion campaigns and astute product launch campaigns of each single product. Years of product innovation and heavy investment in marketing and advertising has allowed Gillette to occupy most dominant position of any of the major global consumer goods brands with an estimated 70% share of the global razor blade category. Gillette instead of relaxing FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 7
  • 8. GILLETTE - BRAND AUDIT REPORT and being satisfied with its large market share, Gillette has made efforts to improve much beyond that level of market share Gillette has always priced its newly launched products at a high premium and relied on its loyal follower base to keep coming back. Gillette launched its five-bladed Fusion line in 2006 with a 40% price premium over Mach3, its previous three-bladed offering. To reduce threat from competitors, Gillette even when launching new products keeps old product lines alive. This strategy has made Gillette‘s second best selling product its best selling products best competitors and increased market share in process. Despite the fact that Fusion and Mach 3 lines generating significant profits, with such a huge share of the shaving market it makes more sense for Gillette to focus its marketing resources on switching its own customers from Mach 3 to the more profitable Fusion line than trying to win any more share from competitors. Also Gillette‘s products are known to have a huge margin. Accusations have been made that despite a retail price of £9.72 for a pack of four Fusion razor blades in UK, the actual manufacturing and packaging costs for this product is less than 30p. (Source: http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-brand-can- get.html) Gillette has supported its products with huge promotional blitzes. High and sustained advertising has created a huge recognition factor for the brand. They have been universally associated with some of the best known sportsperson at their peak. Besides they have also sponsored sports events like golf, racing, etc as well as video gaming championships. Structure Post Gillette P&G merger, Gillette has adopted the organisation structure of P&G 2006onwards and effective July 1‘ 2006 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 FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 8
  • 9. GILLETTE - BRAND AUDIT REPORT Competitor analysis Colgate- Palmolive Colgate-Palmolive is one of the largest companies in the FMCG sector. The Company had launched 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. Colgate-Palmolive has shaving products under the brand name Palmolive shaving cream. It has three variants in the shaving cream/gel/foam category. Proctor & Gamble Before buyout of Gillette, in the shaving cream/gel/foam category it had a very strong brand in the market, Old Spice. Old Spice has products in each of the cream, gel and foam category. Since the acquisition, P & G has gone easy on Old Spice brand and promoted Gillette more Wilkinson Sword Wilkinson Sword is one of the only two brands which competes with Gillette across all the product ranges from razors (both twin blades as well as ready shavers), shaving creams/ gel/ foams and aftershave range. Wilkinson Sword has been in Indian market for almost as long as Gillette but, as in global market, has not been able to break Gillette‘s stranglehold on ready shaver or shaving accessory market. SuperMax SuperMax is only other company with presence across all whole product range of shaving. Recently SuperMax‘s head of India operation claimed to have 60% of twin-blade Indian market by volume. Both these firms have almost negligible promotional campaigns. But, SuperMax has gained advantage from the fact that Gillette, with its focus on ready shavers, has cut on the promotion campaigns for the twin-blades sold under name 7o‘Clock. HLL With this massive distribution network in place, HLL enjoys commanding position in many FMCG products in Indian market. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 9
  • 10. GILLETTE - BRAND AUDIT REPORT 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 its distribution system these brands have a deeper reach to the Indian consumers. 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. 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. One observation is that even the premium shaving cream from Godrej is priced quite below the competitors products of same quantity. Fa Fa has two shaving cream products in the market. Park Avenue Park Avenue has long been player in shaving cream and Aftershave market. It has also been backed by promotional campaigns. Also eponymously named clothing line‘s reputation has worked well for the shaving accessories range too. Local players There were many organised and unorganised local player. Since the early 1990‘s the industry has seen large shift in the consumer perceptions and consumption patterns. Many local players like Topaz and Panama gave way to the larger players in market after failing to compete on the reputation and innovative products fronts. Other Brands Other competitive brands like Dettol, Vicco are also there in the market scene. These are not premium segment brands and were priced accordingly. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 10
  • 11. GILLETTE - BRAND AUDIT REPORT Brand portfolio 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 7O'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) Segmentation, Targeting and Positioning Segmentation The segmentation that Gillette adopts can be classified as a multi segmentation approach. There are different levels to this segmentation starting with a demographic segmentation. Gillette had in 1990‘ s particularly targeted higher income consumers. Thus, we see that income segmentation has been the main factor when Gillette decided to segment the market. Even now the basic segmentation has been on basis of income but with wider portfolio now they target well to do middle class primarily. Gillette understands with lower rate of shaving in India, its products would be successful among segment of population which considers shaving to be a desirable activity. Gillette after seeing the success of the Mach 3 Turbo, decided to offer a similar product for women-Venus Power. So, Gillette has also used gender segmentation. Gillette has also been using lifestyle segmentation. It has always targeted professionals with active professional life which requires them to be well-groomed and smart. Its usage of sportsperson heavily in its campaigns has been to highlight this main point. All the celebrities FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 11
  • 12. GILLETTE - BRAND AUDIT REPORT endorsing Gillette have image of well-grromed and cultured within their profession as well as outside the playing field. With growth of India, the target segment of Gillette has also greatly increased. The aspiring middle-class has proven to be the sitting market waiting for Gillette to come and tap it. Targeting Gillette has targeted the affluent and growing middle class and upper class segment through marketing promotion to create a associative and aspirational connect. It has used TV commercials in sports telecasts like Formula1 racing, FIFA World Cups, Cricket matches, etc. Bigger the event, like football world cup, more intensive is Gillette‘s promotional efforts. Besides TVC, Gillette has relied on adverts in print media. Gillette has traditionally published its adverts in lifestyle magazines and publications. They also has in-shop branding in larger shops to reach their target audience. Positioning Based on the lifestyle segmentation, Gillette has selected ambitious and well-groomed professionals as its target segment. Traditionally it has positioned itself as a premier product in shaving and grooming range with premium pricing. Ever since 1920s, even in face of competition, Gillette has maintained its premium pricing and relied sustained customer loyalty to maintain its leadership position. It also positions itself cut above its competitors through launch of new and innovative products every few years with perceived benefits and advantages over its already available products. Marketing Mix Product: Gillette‘s global product portfolio includes products in shaving razors (twin-blades, ready shavers, use-n-throw ready shavers), Razors for females, shaving lather (creams, gels and foams), After shave lotions (alcohol based and non-alcohol based), deodorants and anti- perspirants, hair-care (shampoos and conditioners), hair creams and gels. These products are directly under Gillette brand. In India, Gillette has actively promoted only razors, shaving lathers, aftershaves and deodorants. There are multiple variants within these product lines to suit individual skins and requirements. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 12
  • 13. GILLETTE - BRAND AUDIT REPORT Gillette has introduced innovative products like Sensor Excel, Mach3, Duracell alkaline batteries, disposable razors, twin/triple edge cartridges to the Indian consumers. It has captured a market share of more than 88 per cent in the premium shaving systems segment. Price: As already mentioned Gillette has traditionally priced its products at a premium to an extent where some market analysts believe it to be fleecing customers relying on customer loyalty. Some products are said to carry as high as 3000% mark-up price over the manufacturing cost. Place: Gillette is one of the most widely distributed brand across globe. 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. The distribution chain is known to be smooth and without any problems regarding handling and acquiring stocks. On an average, a retail unit stocks the maximum number of Prestos, in relation to Vector Plus and Mach 3. Also as compared to Presto being available almost at every grocery store, Mach 3 and sensor Excels are stocked at shops of certain size only which are also able to provide prominent display space. Promotion: Gillette relies heavily on promotional campaign with celebrity endorsement, targeted specially towards young men. Gillette India benefits from its parent‘s spending, strategy on advertisement and brand promotion. Gillette has a long history of promotions for its products, especially towards young men. Current promotions include sponsorship of sports events such as the Rugby League Tri-nations and shipping their then-flagship product (currently the Fusion) to males in the United States around the time of their 18th birthday. Athletes such as Roger Federer, Tiger Woods, Shoaib Malik, Derek Jeter, Thierry Henry, Kenan Sofuoglu, Park Ji-Sung, Rahul Dravid, and Michael Clarke are sponsored by the company. Marketing experts have highlighted "the curse of Gillette", given the mishaps that happen to sports stars associated with the brand. 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 FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 13
  • 14. GILLETTE - BRAND AUDIT REPORT countries , only making changes in the language, colours etc. For the lower segment razors like vector plus & presto it retains the global theme but adapts it to local market needs. Print– This medium is mainly used by Gillette to spread awareness of their percents-off 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 the company can develop as an additional promotional tool. SWOT Analysis STRENGTH WEAKNESS  Strong brand equity  Profitability highly dependent on core  Market Leadership  Over-reliance on high-street retail outlets for premium products  Well Diversified portfolio  Technological Innovation  Wide distribution network  Loyal customer base OPPORTUNITY THREATS  New product launches  Imitations / disposables are a threat to the Gillette’s offering  Price increases in premium shaving segments  Pressure on pricing power  Changing Demographics and Societal  Competitive environment Attitudes  Low Shaving frequency FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 14
  • 15. GILLETTE - BRAND AUDIT REPORT POP & POD Points of Parity 1) Gillette has traditionally differentiated its razors from those of its competitors by claiming to provide a closer, more comfortable shave. 2) The quality of products is very good in terms of durability, accuracy, design and ease of use. Also much diversified product portfolio. 3) Strong promotion strategies and advertisements including famous personalities from very fields like media, sports etc.. 4) A brand having multiple offering under its umbrella should be having same value experienced by the buyer. Organizations need to be offering same values under a Brand. A change in values across the product line turns the consumer into a confused buyer. Gillette is successfully executing vice-versa effect for decades. Points of Difference 1) Strongest distribution network thought the world in its product category 2) Gillette also enjoys leader position in shave preparation market. Gillette's share of the shave preparations category stands at 60% of market, distinctly ahead of other major players including Palmolive So follows premium pricing strategies. 3) Gillette is ripe to reposition itself from the tag "innovation" and let Fusion drive the innovation wheel. Fusion looks to be a serious effort as Gillette has launched HydraGel shave gel and HydraCool after shave products under Fusion sub-brand. 4) Gillette ensures that the Investors and Community sections have all of the detail necessary to underpin the brand‘s credibility. Anyone wishing to invest in Gillette can find everything from live stock quotes and charts to annual reports and webcasts, as well as the ability to buy the company‘s shares online. 5) Gillette has put up a lot of effort on building their homepage which is very popular. It looks cool and has a nice pale-blue shade which reflects the real power under it. On the cause-related front, Gillette uses the site to promote a number of initiatives on a national and international level that help enhance brand value by bringing some much FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 15
  • 16. GILLETTE - BRAND AUDIT REPORT needed support to not just disadvantaged communities, but also to key causes such as women‘s cancer programs. Brand Elements Brand elements are those trademarked devices that serve to identify and differentiate the brand. These are also sometimes known as brand identities. Items like brand name, logo, mnemonics, characters, spokespersons, slogans and jingles are some items that can be characterized as brand elements. All or most of them are trademarked and registered by the parent company of the brand and these are what appear in front of the consumer in the brand‘s communication and help increase recall of the brand as these are things that the consumers remember a brand by. According to theory, there are some specific criteria which need to be kept in mind while deciding on the brand elements. These are points which when satisfied help in serving the full purpose of having brand elements. Some of these criteria are: 1. Memorable – These elements should be easily recognized and can be easily recalled. 2. Meaningful – If not all then most of the brand elements should have a meaning and should associated in some or the other way with the culture and values of the brand. 3. Likeable – In simple terms brand elements should be fun, interesting or may be aesthetically pleasing so that the consumers like it and attach positive connotations with these elements. 4. Transferable – Brand elements need to be the same for different markets and geographies, for different product or service categories. So transferability across these boundaries is critical. 5. Adaptable – They must be flexible and the company should be able to update them as and when required. 6. Protectable – They should be legally protected from counterfeiting and copyrights violation. Now keeping these criteria in mind, let us have a look at the brand elements associated with Gillette and according to the consumers, how well do these elements stand up to the criteria defined above. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 16
  • 17. GILLETTE - BRAND AUDIT REPORT 1. Brand Name – Gillette Gillette is one of the best known names across globe in FMCG sector. Gillette has over 800 products in almost 180 countries across globe. Gillette company was named after the founder of company, King C. Gillette. Gillette name sounds modern and has no negative connotation in any of the languages in any of the markets it has operated in. It being a foreign brand attracts consumers who feel proud to be associated with a big international brand. It is easy in terms of memorability and having a long history attached to it along with the geographies it is now operating in; it has proved its adaptability and transferability. Internationally Gillette changed its founding name, Gillette Safety Razor Company, to Gillette Company in 1950s when it started diversifying into other varied products. In India, Company was established with name ‗Indian Shaving Pvt. Ltd.‘ but later changed to Gillette India Ltd. There are different strategies which can be adopted when choosing brand names. Gillette adopts a ‗dualithic‘ brand name strategy for many of its products. Ina survey when asked to name Gillette products, 7 out of 10 respondents considered ‗Mach 3‘ and ‗Fusion‘ to be individual brand names and didn‘t precede these names with ‗Gillette‘. This strategy can be used in order to ensure differentiation between the products; as if all products just fell under the ‗Gillette‘ brand name, it would be difficult to achieve a perceived difference. The suggestiveness of the brand names can be a contributing part of a brands identity and can help build positive associations with the brand and create positive brand attitudes. The brand name ‗Mach3‘ for instance, is a term linked to the speed in which certain jets can travel and may be associated with: • Very fast speed • Precision • The ‗3‘ blade system 2. Brand Logo Gillette logo has evolved over last century. It is uniform across globe upholding the impression of globally reliable brand locally FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 17
  • 18. GILLETTE - BRAND AUDIT REPORT available. Logo exudes the characters brand stands for-stylish, clean and modern. Logo has always been written either in blue or black or in white with blue/black prominently in the background. Blue colour represents the clean and smooth side of the brand while black lends the smart and sophisticated look to the brand logo. Words are written in clean and legible font which is easily readable. A shining point in the images (like one over ‗G‘ in the represented image) reminds of the sharp edged blades Gillette has so much come to be associated with. 3. URL (Uniform Resource Locator) The website link or URL for the global website is http://www.gillette.com. Within this website there are company specific links. Country specific sites majorly display the range of products available and give out very little other details. Main global link has major details about the company. Besides this link Gillette also has other assorted websites linked to its sponsored events and organised events, like http://www.gillettechampions.com/. It is easy to remember and use, hence making it an effective brand element. With Changing times Gillette has also made its presence felt on new age trends like social networking websites. http://www.facebook.com/#!/gillette Campaigns such as ‗Women against Lazy Stubble‘ have their own link such as http://www.shaveindia.com/pressrelease.php. 4. Slogan Gillette‘s slogan ‗THE BEST A MAN CAN GET‘ has been used for past few years and is universally accepted as a very apt slogan for the brand. Going by the meaning of the tagline, it can be interpreted in two ways i. Best shaving product a man can get ii. Best condition a man can get into is only after using Gillette product Although two meanings can render a slogan ambiguous and confusing, in this case both the meanings are complimentary and add value to the brand in consumer‘s mind. Slogan is easy to remember and catchy. It also makes the target segment of the products very clear. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 18
  • 19. GILLETTE - BRAND AUDIT REPORT Statement also comes out as a strong and confident statement which would assure customers of putting their faith in hands of a brand which has confidence of saying it is best in the market. This slogan has also greatly assisted Gillette in becoming one of the most trusted brand in market. 5. Packaging The packaging of a product has been described as the ‗silent salesman. In Packaging important aspects are:  Who your customers are  Should be both aethetical as well as functional  Suitable for your distribution selling style  Physically Safe and environmentally neutral  Economical Gillette's packaging fulfils the entire above criterion. Packages are in company's colours and hence very easily recognisable. These have been designed keeping in mind the razors they are supposed to contain. Packages are mostly of treated plastic which is physically safe and easy to handle as well as economical. Transparent coverings on the front make for a good display on the shop windows and one of the visual appeals. Colour of packs has been kept blue/ black keeping in general product coloration tone. But for female centric products colours have been kept soft and feminine. Cartridges come in various sizes of 4,6 and 8 for different price range. Inner hard plastic case keeps blades safe from damage as well as causing damage to other goods during transit and stocking. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 19
  • 20. GILLETTE - BRAND AUDIT REPORT Brand Equity Customer Based Brand Equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favourable and unique brand associations in memory. The two primary sources of building brand equity are as follows. 1. Brand awareness Awareness about the brand consists of two dimensions, brand recognition and brand recall. Let us see the steps taken by Gillette to build awareness among consumers about the brand and also how Gillette performs on these parameters. (i) Brand Recognition – If a brand cue is given, how accurately a consumer can confirm the band prior to actual exposure is termed as brand recognition. The brand recognition comes out to be very strong for Gillette. Any exposure to ready shavers or aerosol based shaving lathers instantly leads to association with Gillette. This high level of association has been formed because of Gillette‘s presence in these markets devoid of any strong competition. Gillette‘s name has been so deeply associated with razors and shaving that even mention of shaving brings out name of Gillette out of consumer. (ii) Brand Recall – Brand recall is the consumer‘s ability to retrieve the brand from his memory when he asked about the product or service category, the needs fulfilled by the category or other such details. Gillette scores strongly on this front also and has, according to the consumers, the maximum brand recall. In the survey conducted to study company‘s brand equity it was found that when asked about men‘s grooming FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 20
  • 21. GILLETTE - BRAND AUDIT REPORT products, first company 85% people thought of was Gillette. Brand recall in case of razors and Shaving lathers is even higher. Having strong brand awareness certainly helps as it helps the brand become a part of the consideration set and increase consumer‘s purchase motivation. The awareness also increases knowledge about the offerings and helps the consumer make intelligent choices about what he wants, hence increasing his purchase ability. 2. Brand Image Creating strong and positive brand image requires communication and marketing programs which can link certain favorable terms and connotations with the brands in the minds of the consumer. These brand associations can be built not only through advertising but also through direct exposure and information from other sources. Public relations and good service levels are critical to building a good brand image for the brand. Brand image is boosted if product matches or exceeds consumer expectation and suffers otherwise. In case of Gillette, Brand image has been formed through company‘s products and communication. Gillette has made its name as best that a man can get in his attempt to become smart and well-groomed. Gillette‘s long association with successful athletes has given it an image of competition and success, as well as its international appeal. Gillette is also seen as an innovative company always coming up with something new and markedly better than anything presently available in market. 3. Mental Map A mental map is generally a visual depiction of the core brand associations and can be useful in defining the brand mantra. Many of these core brand associations come from the brand‘s positioning and communication strategies. These are points which in essence define the brand‘s identity and representation. Based on the consumer survey some of the brand associations that can be mapped onto a mental map for Vodafone are depicted below. Then from this mental map, we will be able to define the brand mantra for Vodafone. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 21
  • 22. GILLETTE - BRAND AUDIT REPORT Masculine Image Reliable Upper-Class Confident Performance Sports Value for money Golf Convenient American football Innovative Car racing Customer Oriented Cricket Football People Negatives Masculine Premium Priced Active products Affluent No female brand Well -Groomed Over relying on sports stars Gillette’s Mental Map These associations have been created over the period due to the promotions and celebrities associated with the brand. 4. Brand Mantra Brand Mantra reflects the essential heart and soul of the brand and is a synthesis of many core brand associations. According to most of the communication and corporate social responsibility activities Gillette does all over the world and also in India, a few terms come out quite clearly, making up Gillette‘s brand mantra. Adding to that the mental map that we have managed to create brings out certain core brand associations which can be fine tuned to FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 22
  • 23. GILLETTE - BRAND AUDIT REPORT derive major aspects to form brand mantra. Gillette‘s brand associations point towards a reliable, smooth and successful. Based on these we can project mantra as being a sophisticated brand offering premium products which are reliable and trustworthy. Sophisticated Premium Gillette's Brand Mantra Reliable Trustworthy Gillette’s Brand Mantra 5. Customer Based Brand Equity Analysis According to the formal definition, customer based brand equity is the differentiated effect that brand knowledge has on customer‘s response to the marketing of that brand. A brand is said to have positive customer based brand equity when the customer responds more favourably to a product or service and the way it is marketed when the brand is identified than when it is not. If customer holds a positive view about the brand and is ready to purchase existing product and new launches of brand readily, a positive customer based brand equity is said to exist. Brand equity is reinforced within customer through promotions, sponsorships of events, customer service and CSR activities. But the biggest component still happens to be the satisfaction with the product. There are three dimensions which need to be analyzed to find out the customer based brand equity of a brand which are:  Differential Effect  Brand Knowledge  Consumer response to marketing FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 23
  • 24. GILLETTE - BRAND AUDIT REPORT CBBE pyramid shown below evaluates how Gillette performs on each of the mentioned parameters. This would in turn help us evaluate how strong or weak is the company‘s brand equity and which are spots where Gillette needs to improve. Gillette’s CBBE Model Analysis 1. Brand Salience Brand salience defines and measures the awareness of the brand in the minds of the consumers. It is the identity step of the pyramid and lets us know what the consumer knows about the brand. This relates to customer‘s knowledge about the company and products offered by it. Consumer survey shows that consumers are very much familiar with the company and its range of products on offer. All the products on offer by Gillette are recognised by large percentage of the consumer. This provides Gillette with very strong brand salience. 2. Brand Performance FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 24
  • 25. GILLETTE - BRAND AUDIT REPORT Performance consists of factors like features of products, reliability, product effectiveness, durability and price. Here too Gillette scores high on all parameters. Gillette‘s products have very high functional value for customers, and product performance has been as per consumer‘s expectations. Reliability and durability has also been satisfactory. Even pricing, which industry analyst are slightly higher was deemed to be satisfactory by most consumers. On this parameter also Gillette scores highly. 3. Brand Imagery Imagery relates to the satisfaction of the customer‘s psychological needs, unlike his functional needs which can be related to performance. User experience determines how the imagery is formed in customer‘s mind, what he thinks of the brand, how he perceives it to be. Responses showed that almost all the respondents consider Gillette to be strongly masculine brand with predominantly male oriented products. Gillette has been only associated with male sports stars. Also, Gillette is best known for its shaving range and shaving is predominantly a male thing. Tagline of company says ‗Best a Man can get‘, getting imagery of a masculine brand even more clearer. 4. Consumer Judgments Judgments consist of factors like quality, credibility, superiority and consideration. Gillette is known as company with modern and very reliable products. 95% of the consumers responded with satisfied rating, out of which 65% were highly satisfied rating. 87% of the consumers believed Gillette‘s product were highly reliable and durable. This shows that even on consumer judgement parameter, Gillette scores highly. Its customers are satisfied with the quality and accept its durability and reliability 5. Consumer Feelings This is the response of the consumer in terms of his emotional reactions and responses towards the brand. Responses were positive towards the brand, see the brand as trustworthy and mostly feel loyal to the brand. There were no positive or negative extreme emotion attached with the brand. 6. Consumer - Brand Resonance FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 25
  • 26. GILLETTE - BRAND AUDIT REPORT This is the peak of the pyramid and defines and measures the relationship and level of identification of the consumer with the brand. Factors like loyalty, attachment and engagement are associated with this step. Consumers today are willing to spend more for something they perceive to be better and advanced. Adoption of an international brand with internationally successful products seems to them a step of moving ahead or getting best available globally. Gillette has an international pedigree and their promotional ads highlight this through internationally successful sportspersons and western models. Gillette creates a very high connect on this parameter too. Philanthropy Shiksha Our signature CSR program has in its 6th year helped improve the lives of over 150,000 children across 602 communities with a donation of over Rs.5 crores by all the P&G group companies in India. Shiksha moved onto a new vision of creating tangible, visibly long- lasting impact through the building of Shiksha schools across the country that offers quality education to children in need. Over the last 6 years, your Company has already been associated with helping bring to life over 100 schools via either building them (near our plants), supporting them through non-governmental organizations (NGOs), working with Army Wives Welfare Association schools, or reactivating Government schools through our work with NGO partner CRY. Children’s safe drinking water programme Gillette has set up a water treatment plant which will produce 1 billion litres of clean drinking water which is being provided to young children to help them have a healthier living to their lives. Role of celebrities Celebrities have always been a central part of the Gillette‘s promotion strategy. The special focus has been on sportsmen who have had outstanding performances on the field and also off the field. These include their charitable actions, support of social causes and for their reputations as icons of true sporting values FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 26
  • 27. GILLETTE - BRAND AUDIT REPORT Some of the major brand endorsers include David Beckham, Thiery Henry, Tiger Woods, Roger Federer and Rahul Dravid. The imagery created with these sportsmen have been that of sophisticated gentlemen. Through these celebrities the brand has tried to communicate that the products offered helps you prepare for your best. Promotional campaigns The two major promotional drives taken up by the brand in India have been  ‗Women against the lazy stubble ‗campaign – Female celebrities from Bollywood, Mugdha Godse, Minisha Lamba and Neha Dhupia were taken as the face of the campaign to urge women to take charge and take responsibility of grooming their men. The campaign involved online surveys, mall promotional activities.  Shave india movement to increase market size – The promotional drive saw the likes of Dino Morea The brand‘s image has had to suffer because of the controversies related to the sportsmen that they have used. Gillette had to change the advertising where Thiery Henry was holding a ball in his hand because of the controversy of him intentionally touching the ball to prevent a goal in a world cup qualifier match against Ireland in 2009. Roger Federer losing temper on the court of the US open in 2009 brought the brand bad name. The controversies related to Tiger Woods cheating on his wife with several women made the brand stop the advertisements having him. Threats to equity 1. Products becoming star in themselves. In a survey internationally almost 40% of respondents used names Mach3 and Fusion without using brand name Gillette. Although this would prove to be a differentiating factor, this would also make products stand against each other as rivals and lessen Gillette‘s name and equity. Also competing products would leave a window open for the rivals to grab in a share of market FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 27
  • 28. GILLETTE - BRAND AUDIT REPORT 2. Over reliance on celebrities Gillette has been too much reliant on celebrity superstars for promotion and image creation in minds of customers. But, as shown by recent issues with Tiger Woods, celebrities are prone to behaving the way companies don‘t want them to behave. This tarnishes the image of company as well as results in lost revenue as company is unable to use adverts featuring the tarnished celebrity. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 28
  • 29. GILLETTE - BRAND AUDIT REPORT Annexure Questionnaire Name * Gender * Male Female Age * (Years) <20 20 to 30 30 to 40 > 40 When you think about Men‘s grooming products which brand immediately comes to mind? * Who famous personality does Gillette remind you of? * Which among the following products do you think Gillette has in its portfolio? * Razors Shaving creams and foams Deodrants Aftershave Other: In the shaving razor range which is your preferred brand? FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 29
  • 30. GILLETTE - BRAND AUDIT REPORT Gillette Wilkinson Sword Other: In the shaving cream range which is your preferred brand? Gillette Park Avenue Dettol Axe Palmolive Other: In the after-shave range which is your preferred brand? Old Spice Axe Gillette Palmolive Other: In the deodorant range which is your preferred brand Axe Gillette  Park Avenue  Zatak  Other: How do you rate Gillette on following parameters? * 1-lowest,5-highest FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 30
  • 31. GILLETTE - BRAND AUDIT REPORT 1 2 3 4 5 Price Comfort during usage Reliability Quality and durability Stylishness Do you know the Gillette tag line? * Yes No Do you know the colours in Gillette‘s logo? * Yes No Do you recall any recent ad of Gillette? * Yes No Which among following attributes do you think can be used to describe Gillette brand? * Can choose more than one Rugged, Tough Smooth Masculine Feminine FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 31
  • 32. GILLETTE - BRAND AUDIT REPORT Western Reliable Upper class Successful Trendy Leader Confident Young Imaginative, Unique Technical Other: Do you know about Gillette‘s ―Women Against Lazy Stubble‖ campaign? * Yes No Are you satisfied with Gillette products? * Highly satisfied Moderately satisfied Moderately dissatisfied Highly dissatisfied Submit FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 32
  • 33. GILLETTE - BRAND AUDIT REPORT References 1. Keller, Kevin Lane; Strategic Brand Management, Third Edition; Pearson 2. Gillette‘s global website : http://www.gillette.com/ 3. P & G‘s Gillette specific pages : http://www.pg-india.com/gillette2/profile.html 4. Gillette‘s Posting on Wikipedia : http://en.wikipedia.org/wiki/Gillette_(brand) 5. Competitive Edge in Cutthroat market by Slaven Marinovich : http://www.brandchannel.com/features_effect.asp?pf_id=290 6. 5 Reasons Gillette Is The Best A Brand Can Get by Derrick Daye : http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a- brand-can-get.html 7. A close shave for Tiger blunts Gillette‘s cutting edge claim : http://www.marketing- comms.com/blog/?p=10 FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 33