Gillette Final

STRATEGY & MARKETING MANAGEMENT “ GILLETTE IS THE GLOBAL LEADER IN MALE TOILETRIES PRODUCTS” Data Monitor Research, Oct. 1999 19 th December 2001 Course Tutors : Professor Patrick McNamee Doctor Kate Stewart

PRESENTATION SUMMARY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

THE GILLETTE COMPANY 100 YEARS 1901-2001 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

NORTH AMERICA SOUTH AMERICA UK EUROPE AFRICA ASIA AUSTRALIA GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES

ORGANISATIONAL CHART Oral Care (Oral B Brand) Braun (Electrical Appliances) Portable Power (Duracell) Grooming (Blades & Razors) Global Business Management Latin America North America Asia Pacific Africa Middle East Eastern Europe Western Europe Eastern Hemisphere Commercial Operations Gillette Company Western Hemisphere

PRODUCT MARKET PORTFOLIO RMS MARKET GROWTH (%) 1.0 Oral-B Toiletries Blades & Razors Duracell Braun

GLOBAL STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

THE GILLETTE STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

MERGER & ACQUISITION STRATEGY ,[object Object],[object Object],[object Object],[object Object]

GILLETTE MARKET STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

SALES BY PRODUCT ,[object Object],[object Object],[object Object],[object Object]

GILLETTE'S PROFIT BY PRODUCT ,[object Object],[object Object],[object Object],[object Object],Gillette Profits by Product 0 500 1000 1500 2000 2500 y2000 y1999 y1998 Year Profit $Millions Braun Products Oral-B Products Duracell Products Toiletries Blades & Razors

COMPANY SWOT ANALYSIS Strengths Threats Weaknesses Opportunities Market Leader Strong Brand Image Global Presence Aggressive Advertising Quality & Innovation Portfolio Range (Mach 3 etc) Long Development Cycles Relatively Static Market Growth Heavy Dependence on High Street Retail Outlets Expensive Brand Maintenance Demographic Changes Changing Societal Attitudes Consumer Brand Preference Demand for High Quality Use of JIT and ICT (e-com) New Production Technology Increased Grooming Sophistication New Competitors Cloning of Successful brands Increasing Buyer Power (Inventory De-stocking) Growth in Substitutes Own Label Fits Economic Downturn

BLADES & RAZORS SEGMENT Disposable Razors Shaving Systems Replacement Blades Blades & Razors Electric Shavers Shaving Products Pre-Shave Post-Shave Deodorants Toiletries Grooming Male & Female

TOTAL UK BLADES & RAZORS MARKET Replacement Blades Disposables Systems ,[object Object],[object Object],[object Object],[object Object],Source: Mintel Report, 1998

WET SHAVING PRODUCTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

BiC Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Wilkinson Sword Products ,[object Object],[object Object],[object Object],[object Object],[object Object],COMPETITOR SHAVING PRODUCTS

UK MARKET SHARE FOR BLADES & RAZOR (1998) 55% 25% 9% 11% Gillette Wilkinson Sword BiC Own Label Source: Mintel Report, 1998

MARKET POSITIONING Price Quality Wilkinson Gillette BiC Own Labels

BLADES & RAZORS STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],RAZOR WARS v

UK BLADES & RAZORS Source: Mintel Report, 1998

SALES / PROFITABILITY RAZORS & BLADES ,[object Object],[object Object],[object Object],[object Object],[object Object]

PORTERS FIVE FORCES MODEL Blades & Razors Industry Competitors Strong image, Brand Loyalty, and Innovative R&D. Potential Entrants Barrier to entry - customer loyalty, high set-up costs. Buyers Retailers power increasing. Substitutes Electric razors - Gillette already competitive (Braun). Clever marketing - not socially acceptable not to shave. Suppliers Global economies of scale keep suppliers prices low. Source: Porter, 1978

MACH3 TURBO “ As the undisputed leader in men’s grooming, Gillette is committed to innovation and to developing products which will provide men with a superior shaving performance. MACH3Turbo and the new Gillette Series fulfil that promise” Peter K. Hoffman, President,Gillette Grooming Products 30 October 2001

FUTURE GILLETTE STRATEGIES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

CONCLUSIONS ,[object Object],[object Object],[object Object],[object Object],[object Object]

STRATEGY & MARKETING MANAGEMENT GILLETTE STILL THE GLOBAL LEADER IN MALE TOILETRIES PRODUCTS

Gillette Final

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Gillette Final