Brand extension Project on Gillette Shaving cream
With focus mainly on
Overview of the brand extension, the brand and the category
Part :1
Review the brand extension; Review and illustrate the parent brand; Review the manufacturer
Show a few photographs; Illustrate the brand extension; the brand
Review the product category / categories it belongs to
How large is the product category? (How big is the pie?)
How much market share does the brand have? (How much of the pie do we have?)
How much did the category grow during the last 3 years? (Did the pie get bigger or smaller recently?)
How much did the manufacturer / brand grow during the last 3 years? (Did our slice of the pie grow bigger or smaller recently?)
Part 2:
Illustrate the 4 Ps of the brand extension
Part:3
Characterise the market segmentation. What segmentation bases (e.g. behavioural, geographic, demographic) has the firm used?
Characterise the target segment(s)? Describe the target consumer(s); The promotion strategy employed by the firm is usually centred around the target segment(s).
Characterise the competition; Which alternate brands are in the target consumer(s)’ consideration set(s)?
Characterise the competitive frame of reference of the brand extension
Characterise the points of parity
Characterise the point(s) of difference; Isolate the crucial point of difference
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Brand Extension Analysis : Gillette Shaving Cream
1.
2. Proctor & Gamble Portfolio Gillette Portfolio of Shaving Cream
Gillette Portfolio of Razors
Analysing the Brand Positioning Strategy of Brand Extension: Gillette Shaving Cream
3. Men's Grooming in India
Men’s grooming sees value growth of
23% to reach INR46.8 billion in 2013
Leading manufacturers expand their
men’s grooming portfolio in 2013
Premium men's deodorants continues
to record the fastest value growth of
36% in 2013
Average unit price continues to
increase in 2013
Gillette India Ltd(overall) maintains
lead with a value share of 27% in 2013
Men’s grooming is expected to have a
value CAGR of 10% at constant 2013
prices to reach INR75.4 billion by 2018
Men’s shaving cream market is
growing at a rate of 13% CAGR
4. Men's Grooming in India
• As shown in Given
pie chart out of 46.8
million INR business
of Men’s grooming,
Men’s shaving
constitute 51% share.
• Out of 51%, major
portion is of razors
and blades .
Constitute of Men’s
shaving are shown in
below chart
51%49%
Men's Shaving
Men's Toiletries
20%
80%
Men's Pre-Shave
Men's Razors and
Blades
5. Men’s Grooming Industry Growth and Forecast
Men’s shaving industry are growing year
by year. In 2008 it was around 13 million
INR which increase to 24 million INR in
2013
• Manufacturers are likely to focus
on introducing value-added and
innovative products with new
claims to attract consumers,
especially in urban areas. New
launches are likely to be more
prominent in skin care which
started to attract consumer
attention increasingly in 2014.
6. Gillette Shaving cream
• Indian Market is dominated by Gillette, which
constitute of around 51% share, followed by HUL
Sales of the leading men's shaving cream brands in the
United States in 2014 (in million U.S. dollars)
We can easily see in above graph Gillette in Number
one ( Combination of Series, Fusion Hydra and Foamy)
In Indian Market In US Market
7. Last five year growth chart of Gillette
Shaving cream in India
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
2008 2009 2010 2011 2012 2013
Growth Chart of Shaving Cream in Indian Market
Men's Shaving (Razors/Blads and Saving Cream) Men's Pre-Shave (Saving Cream)
All value are in INR
Million
8. P&G Growth Rate ( Shown by Different financial graph)
In the above chats we can see that
company has maintained the
dividend despite continuous
investment in Business
9. Marketing mix
Marketing mix is mainly of two types.
1) Product marketing mix – Comprised of
Product, price, place and promotions. This
marketing mix is mainly used in case of
Tangible goods.
2) Service marketing mix – The service
marketing mix has three further variables
included which are people, physical evidence
and process.
Term marketing mix was first coined by Neil H Borden back in 1964 in his article “The concept of marketing mix”
10. SHAVING
MEN
PERSONAL CARE
DURACELL
BATTERIES
ORAL B
BRAUN
APPLIANCES
BRAUN KITCHEN
APPLIANCES
BRAUN HAIR
CARE EPILATION
BARUN STEAM
IRONS
PERSONAL
DIOGONASTIC
MANUAL
TOOTHBRUSHES
ADVANTAGE
INDICATOR
CROSS ACTION
STAGES
POWER
TOOTHBRUSHES
3D EXCEL
3 D PULSATING
CROSS ACTION
KIDS
FLOSS AND
INTERDENTAL
SATIN floss
ULTRAFLOSS
ESSENTIAL FLOSS
SUPER FLOSS
ORTHODENTIC
TOOTHPASTE AND
MOUTH RINSE
GENARAL USE
BATTERIES
COPPER TOP
ULTRA
PRISMATIC
SPECIALITY
BATTERIES
PHOTO
HEARING AID
CAMCORDER
WATCH
ELECTRONICS
HOME MEDICAL
SHAVING GELS AND
FOAMS
GILLETTE SERISE
SATIN CARE
ANTIPERSPIRANTS
AND DEODRANTS
GILLETTE SERISE
RIGHT GUARD
SOFT & DRI
DRY IDEA
MACH 3
MACH 3 TOURBO
SENSOR
SENSOR EXCEL
VENUS
SENSOR
DAISY
PRODUCT MIX WIDTH
WOMEN
11. CORE BENEFIT
BASIC PRODUCT
EXPECTED PRODUCT
POTENTIAL PRODUCT
LOOK GOOD
SHAVING CREAM
WITH MOISTURISER
GEL BASED
FACE CREAM
PRODUCT HIERARCHY
AUGMENTED PRODUCT
12. Products
WIDTH OF THE EXISTING PRODUCT LINE—5
LENGTH OF THE PRODUCT MIX—50
AVERAGE PRODUCT LINE LENGTH—10
DEPTH OF DIFFERENT LINES - GILLETTE SHAVE GEL-
3VARIENTS
Moisturizing
Tough bread
Conditioning
AFTER SHAVE- GILLETTE SERIES------ 4 VARIENTS
Force
Cool Ice
Cool Wave
Rush
SIZES- 50ML AND 100ML PACK, 200ML PACK
13. Packaging
Focus on aesthetics
Designed with a futuristic
theme
Introduced gels in tubes
Metallic cylinders for foams
Rectangular cylinders for
deodorants
14. Use Of Colour
Logo in black to
symbolize
sophistication
Blue for refreshing
and cool look
Red for highlighting
the variant
White to signify clean
look
16. Pricing techniques
Perceived value pricing. Ex.-
Gillette Mach 3
Penetrative pricing strategy
for vector plus
Bundling-Shaving
creams/gels along with
razors
Foams bundled with a
Gillette sensor excel usually
33% extra on many variants
17. Place
Gillette’s own network in India reaches 1 lakh outlets in 3600
towns
Now Using additional P&G distribution channel
Hub and spoke approach
22 hub cities and spokes are Tier 2 and Tier 3 cities
Advantage of using small number of routes
The small number of routes generally leads to more efficient
use of transportation resources.
Complicated operations, such as package sorting and
accounting, can be carried out at the hub, rather than at
every node.
Spokes are simple, and new ones can be created easily.
Customers may find the network more intuitive. Scheduling is
convenient for them since there are few routes, with
frequent service.
18. PROMOTION
Strong and sustained advertisement all
through out
Gillette brand has high recognition rate
Massive influence, recall and salience—
reminder advertising
Successful MACH3 launch campaigns
Focus on brand values, innovation and
cutting edge technology
AIM- to educate consumer on product
advancements and improved shaving
performance
Tie up with Rediff-on-the-Net e-commerce to market
its product
Tie up with ZAPAK for The India Gaming
Championship 2009
Endorsed by eminent sports personalities
Used sports as a major promotional vehicle
Soccer Saturday sponsorship launched MACH 3,
Turbo and M3 Power successfully
Promotional Activities
22. SEGMENTATION
Demographic segmentation
Middle class and upper segments
Areas – urban and semi urban, rural
(still growing)
Behavioral
User status: regular users (urban),
first time users (rural)
Usage status:
heavy users(urban)
light users (rural)
medium users (semi urban)
23. Target Segment
Primary segment
Children aged 16 – 45 years
Focus mainly on teenager and
youth segment that’s why in
promotion its always show to
be cool image
Probable segment
Young adults
Teenagers
Working segment as for quick
shaving
24. Consideration Set Of Consumer
Dettol shaving cream
Axe shaving cream
Old spice shaving cream
Godrej shaving cream
Palmolive shaving cream
Vi-John shaving cream
Nivea shaving cream
Park avenue shaving cream
Nivea sensitive shaving gel
L'Oréal Paris Men Expert Anti Irritation
Shaving Gel
Natio Smooth Shave Gel for Men
Park Avenue Moisturizing Shaving Foam
L'Oréal Paris Men Expert Hydra Sensitive
Shave Foam
25. Competitive Frame Of Reference
Gillette shaving Gel/Foam in the
market place is vary strong and
secure.
But in case of shaving cream its rank
7th in India (According to the latest
Nielsen MAT data sourced from
industry officials
LINK:-
Product – Gillette Shaving
cream/Gel/Foam
Comes as a competitor in list of all
Shaving portfolio
Various cream of different
brand
Various gel and foam
Shops- Rural use generally shop
http://goo.gl/JVhJR7
27. Points Of Parity
Easy to shave
Prevent stubble from drying out
Easing the shaving process
Avoiding razor burn
Save time, as shaving become
quicker using it
Points Of Difference
Richest and most lubricating cushion
Very nice smell of Gillette foam
Perfect lather by using only small quantity
Irritation defense
31. Competitor Analysis( in its own portfolio of P&G)
Price of these products with size of the pack
is mentioned below
Proctor & Gamble
Product Quantity Price (Rs.)
Old Spice Foam 200 ml 110
Old Spice Gel 60 gm 50
Old Spice Cream 70 gm 45
33. HLL
Hindustan Lever Limited, which is now
called as Hindustan Unilever Limited, is
a subsidiary of Unilever (USA). It is the
largest FMCG company in India. It is
also reputed to be the largest
exporter of India. It’s distribution
network is very strong. It has over
Price of these products with size of the
pack is mentioned below
Competitor Analysis
Product Weight (gms) Price (Rs.)
Axe Shaving Cream 70 45
Denim Xclusive 70 43
35. 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.
The price of these two is shown in the table
below. One observation is that even the
premium shaving cream from Godrej is
priced quite below (44%) below the
competitors products of same quantity
Competitor Analysis
Product Quantity Price (Rs.)
Godrej Shaving Cream 100 gms 25
Godrej Premium Shaving
Cream 70 gms 25
39. Under the guidance of
Submitted BY:-
Name: Sumit Prakash
Roll No.-PGP/30/120
Sec:- A
Email Id:-
sumitprakash777@gmail.com
LinkedIn:-
https://in.linkedin.com/in/sumitprakash7
40. REFERENCES
Lecture by Prof. Sameer Mathur
Gillette Annual report ( Both Gillette India and Gillette overall) Of 2014,2013
Books:- Brand Management by Keller Sir
http://www.gillette.com/en/in/products/shave-gel-and-foam.aspx
http://www.gillette.com/shavecare/en-IN/series1.shtml
Various data from Euromonitor Database
http://www.wisegeek.com/what-are-the-pros-and-cons-of-shaving-without-cream.htm
http://economictimes.indiatimes.com/magazines/brand-equity/vi-john-a-little-known-desi-brand-emerges-as-a-leader-
with-a-foreign-sounding-
name/articleshow/47972306.cms?utm_source=facebook.com&utm_medium=referral&utm_campaign=ETFBMain
Annual report of P&G and HUL- 2014
http://gillette.com/en-us/products/pre-and-post-shave/shaving-creams-gels-and-
foams#viewtype:gridview/facets:/category:shaving-creams-gels-and-foams/page:1/sortby:reviews-
desc/cwidth:3/pcwidth:/pscroll:
http://www.gentlemansgazette.com/shaving-cream-guide/
www.quora.com
http://reviews.gillette.com/8876/88429A86-1238-49D2-8115-0C18D1007B05/gillette-series-sensitive-skin-shave-foam-
reviews/reviews.htm
http://www.consumeraffairs.com/cosmetics/gillette.html