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The Essence of Clean

(Gillette). The Essence of Clean. By: Jozsef Alex Racz , Charlie Chan, Justin Martin, Stanislav Petrov , Alexey Petrov , Len Racioppo. (Gillette). Current Situation/ Recommendation. Main Problem/ Issue. Decrease in market share. Gillette looses it’s market share

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The Essence of Clean

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  1. (Gillette) The Essence of Clean By: Jozsef Alex Racz, Charlie Chan, Justin Martin, StanislavPetrov, Alexey Petrov, Len Racioppo

  2. (Gillette) Current Situation/ Recommendation Main Problem/ Issue • Decrease in market share • Gillette looses it’s market share • IMC Campaign to target Gen-Y men & men who don’t shave • $100 million budget • Obtain $1.2 billion in Revenue for F.Y 2015 • Sell over 350,000 units of the ProGlideStyler in Canada • Obtain 85% market share for disposable razor market Executive Summary/ Introduction

  3. (Gillette) • Within 10 weeks of being launched, Gillette had sold 2.5 million Fusion ProGlide razors; exceeding sales achieved by Gillette Fusion in 2006 and becoming the world's best selling razor. • With research showing that 65% of males still experience shaving discomfort, Gillette decided to extend its Fusion shaving range with the introduction of the ProGlide razor. • (“Gillette Fusion ProGlide Case Study: Using Consumer-Focused Marketing to Instill Brand Confidence.” 3) • Though P&G stock recently broke out of a five-year trading range to near $70 a share, it's up less than 25% since the company bought Gillette. • (Neff, Jack.) • Gillette's share of the $820 million replacement-blades market slipped 2.2 points last year, to 80.8%. • ("Gillette Shaves Prices as It's Nicked by Rivals Both New and Old.”) Gillette History

  4. (Gillette) Fig 1. Gillette Enlists Kate Upton, Hannah Simone to Promote Manscaping from: Alan Farnham. (Gillette) What does Kate Upton say about Grooming?

  5. (Gillette) What is the Problem? What are the symptoms? Maturing market Changing consumer preferences If men and women don’t shave, Gillette loses a large portion of market share and profit Competition from Shick Increasing competition from cheap razor companies such as Dollar Shave Club • Decrease in market share Identification of Problem

  6. (Gillette) Strengths Weaknesses Cannibalism inside product line Product lifecycle has entered maturity High price of products • Global Market leader • Commanding local and worldwide market share • Excellent quality and strong brand image • Innovative Products • Marketing resources S.W.O.T. Analysis

  7. (Gillette) Opportunities Threats Growth in substitutes Price sensitive market Increasing competition Economic downturn Limited shaving technology advancements Rising cost of raw materials Increased competition • Untapped markets • New Distribution Channels • Consumer brand preference • Rising importance of personal hygiene and grooming in developing countries • Increasing demand for technologically advanced products S.W.O.T. Analysis Cont.

  8. (Gillette) Strengths Weaknesses High price of the products Maturity lifecycle of products • Global Market leader • Excellent quality and strong brand image Opportunities Threats • Untapped markets • Rising importance of personal hygiene and grooming • Price sensitive market • Limited shaving technology advancements S.W.O.T Matrix

  9. (Gillette) • Increase the market share of Disposable razor market to 85% globally • Increase revenue by 1.2 billion dollars • Launch the advertising campaign of Fusion ProGlideStyler in Canada • Sell 4 million units of the ProGlideStyler in Canada • ("Gillette Shaves Prices as It's Nicked by Rivals Both New and Old.”) Organizational Objectives F.Y2015

  10. (Gillette) Alternative #1 • Launch a massive advertising campaign through social and traditional media using female celebrity endorsements promoting Gillette products to target Gen-Y men (15-30 years old) and men who do not shave • Local North American market Analysis of Alternatives

  11. (Gillette) Strengths Weaknesses The amount of capital to be spent on advertising is $100 million Risk of failure Celebrity disapproval by consumers • Social Media can attract a large amount of consumers at low cost • Female Celebrities are adored by Gen-Y • Social Media allows interaction with consumers Alternative #1: Strengths and Weaknesses

  12. (Gillette) Alternative #2 • Extend current product line to include other consumer goods such as : • Other personal hygiene products (shampoos , perfumes etc.) • Underwear & Sleepwear (T-shirts, underwear, pyjamas) Analysis of Alternatives Cont.

  13. (Gillette) Strengths Weaknesses High Cost to develop new products + slotting fees Risk of product failure This may affect the Gillette brand image • Increase revenue by offering a wider range of consumer products • Brand-loyal customers will be likely to purchase new products • Expand to new markets Alternative #2: Strengths and Weaknesses

  14. (Gillette)

  15. (Gillette) Alternative #3 • Target European women and influence them to shave as consistently as American women through aggressive ad campaigns in social media, magazines, billboards, TV, and sponsorship of fashion events. Analysis of Alternatives Cont.

  16. (Gillette) Strengths Weaknesses High cost Risk that European women will not buy into the trend May affect Gillette’s brand image among men • Appeals to trending needs of Modern European women • Expansion into new markets • Increase revenue from sales Alternative #3: Strengths and Weaknesses

  17. (Gillette) Alternative #1 Financial Details $100 million advertising budget Launch the ProGlideStyler for 15 dollars per unit to retailers Sell 350,000 units of the ProGlideStyler to obtain approx. $500 million in revenue The total market share for disposable razors is approx. $820 million Generate a total of $697 million in sales to achieve 85% market share • Launch a massive advertising campaign using female celebrity endorsements to promote Gillette products among Gen-Y men and men who do not shave • Gen-Y is the primary target market as they will be the next generation of the global workforce • 65% of men experience discomfort when they shave (Gillette Case) • 25% of men do not shave at all due various reasons (Gillete Case) • Reaching the target market at a young age (15-18) will help to develop their product tastes and allow Gillette to build a long-term relationship with the customer Recommendation

  18. 1-3 Months 4-6 Months Launch a new television ad with Kate Upton grooming football star Clay Matthews; cost: $10 million Launch new microsite for $8 million Launch new hashtag for Twitter Instagram and Facebook- #Gelfies for men to post pictures of their Gillette shave to win prizes Obtain another contract with a Canadian women celebrity Some names include Kristin Kreauk,Avril Lavigne, Rachel McAdams Develop Canadian distribution website for the 1$ a month subscription for razor blade delivery costing 10 million dollars • Sign $15 million to renew contract with Kate Upton to encourage men to groom themselves • Sign $7 million dollar contract to renew license with the New England Patriots for “Gillette Stadium • Launch a Gillette mail-out brochure and develop Gillette phone app for $5 million dollars Implementation Plan

  19. (Gillette) Kristin Kreuk Rachel McAdams Kate Upton Avril Lavigne Celebrity Endorsements

  20. (Gillette) 7-12+ Months • Sign $10 million dollar contract with Rachel MacAdams, Kristin Kreuk, Avril Lavigne • Develop environmental program to recycle old razor blades for price discount; cost: $10 million • Obtain contract with Toronto F.C for sponsorships of events with BMO field; cost: $20 million dollars • Create a start up program initiative to teach high school students how to shave; cost: $5 million Implementation Plan Cont.

  21. Turn Gen-Y into long-term buying consumers of Gillette • Persuade men who do not shave that women adore men who groom and shave • Proceed into the first steps of a sustainable environmental development program Goals of IMC Plan

  22. (Gillette) Blocking Chart

  23. (Gillette) • Neff, Jack. "Gillette Feels Market Share Is Not the Best That It Can Get." Advertising Age News RSS. Crain Communications, 24 Sept. 2012. Web. 27 Mar. 2014. • “Gillette Fusion ProGlide Case Study: Using Consumer-Focused Marketing to Instill Brand Confidence.” MarketLineMarch 2011: 1-3. MarketLine Advantage. Web. 26 Mar. 2014 • "Gillette Shaves Prices as It's Nicked by Rivals Both New and Old." Advertising Age News RSS. Crain Communications, 9 Apr. 2012. Web. 26 Mar. 2014. • Isidore, Chris. "P&G to Buy Gillette in $57B Stock Deal." CNNMoney. Cable News Network, 28 Jan. 2005. Web. 27 Mar. 2014. • Gillette. “What Women Want: Kate Upton on Grooming|” YouTube. gillette.com/bodystyling: 22 Mar. 2013. Online video. 23 Mar. 2014 • Fig 1. Gillette Enlists Kate Upton, Hannah Simone to Promote Manscaping from: Alan Farnham. “Gillette Enlists Kate Upton, Hannah Simone to Promote Manscaping.” ABC News. 29 March 2013: 22 Web. 23 Mar. 2014 Works Cited

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