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Case Study on Consumer Behavior: Gillette

When most people hear “GILLETTE”, one thing comes to mind–Razors. That’s to be expected, since safety razors were invented by King C. Gillette in 1903, and the product in various forms has been the core of the company’s business ever since. Few firms have dominated an industry   so completely and for so long. Wet-razor shaving (as distinct from electric razors) is a $900 million market. Gillette’s share is 62 percent, with the remainder divided among SCHICK–15 percent, BIC–11 percent, WILKINSON sword–2 percent, and a number of private brands.

Gillette would like to achieve a similar position in the men’s toiletries with a new line of products called the GILLETTE Series. However, its record that market is spotty at best.

One Gillette success, Right Guard Deodorant, was market leader in the 1960’s. Right Guard was one of the first Aerosols, and it became a family product which was used both by men and women. However, the product has not changed although the deodorant market has become fragmented with the introduction of antiperspirants, various product forms and applicators, and many different scents. As a result, Gillette slipped to third position in deodorant sales behind P & G and Colgate–Palmolive.

An even more embarrassing situation is Gillette’s foamy shaving cream, a natural fit with the razor business. S. C Johnson and Sons Edge Gel have supplanted that brand as the leading seller. These experiences created frustration at Gillette. Despite its preeminence in razors and blades, the company has been unable to sustain a leading position across the full range of toiletries.

Gillette is using its most recent success, the sensor razor, as a springboard for its new toiletries. The Sensor story provides the background necessary to understand the marketing of the Gillette Series, and also offers some insight into Gillette’s marketing prowess.

Sensor- a high technology cartridge razor- was a gamble for Gillette because it ran counter to consumers’ buying preferences. Disposable razors, which were produced by the French firm BIC in 1974, had gained control in nearly 80 % of the razor market by 1990. Gillette’s analysis showed that disposables provide a worse shave than a cartridge blade, cost more to make than a blade and are sold at a lower profit margin. Despite its disdain for the product, competitive pressure forced Gillette to introduce its own disposable, Good News.

As concern about the squeeze that disposables were putting on profit margins grew, Gillette began looking for a way to displace them. The company spent $ 300 million to develop a technology to significantly improve on the three attributes desired in shaving- closeness, comfort and safety. They came up with the Sensor, a razor with independently moving twin blades. The Sensor produces a superior shave, but it is also more expensive to produce than a disposable. So Gillette’s gamble was that a better shave would be enough to justify a premium price, and in the process, displace the successful but not a very comfortable disposable razor. In addition to the R & D investment, Gillette spent $ 110 in the first year to advertise Sensor. The strategy paid off. Estimated 1992 sales for the brand was $ 390 million, and equally important, the share of the market held by the disposables has gone down to 42%.

Gillette then moved to capitalize on the success of Sensor. The company had a line of toiletries in development, and the decision was made to tie them closely to sensor. The line consists of 14 items:

• two shaving gels for sensitive and regular skin
• two shaving creams
• two concentrated shaving gels
• a clear gel anti- perspirant
• a clear gel deodorant
• an anti- perspirant stick
• a deodorant stick
• An after- shave gel
• An after-shave lotion
• An anti- perspirant aerosol and a deodorant body spray available only in Europe.

The products in the Gillette series were developed over a three year period at a cost of $ 75 million. They were tested on 70000 consumers. An indication of their newness is the fact that Gillette has 20 patents pending with them. Consideration had been given to introducing the line in 1992, but the introduction was cancelled by Gillette’s CEO, Alfred Zeien. He insisted that the line not be launched until consumer tests showed that each of the 14 products was preferred to the best- performing brand in its category.

All the products have a common fragrance that Gillette calls Cool Wave. They come in silver and blue packages like the Sensor, and the black lines on the packages match the grooved sides of the Sensor Razor handle.

The items retail at $ 2.69 each, 10- 20 % higher than the prices of major competing items. As was the case with Sensor, Gillette hopes that the products’ innovation will convince men to switch brands and pay the higher prices.

During the Gillette Series first year, the company spent $ 60 million on a joint advertising campaign with Sensor. Just like Sensor, the line was to introduce in January with ads on the Super Bowl. The campaign uses the same theme as Sensor. “The Best a man can get”. Initial TV commercials were one minute in length. They started with 15 seconds on shaving gels, and cream, followed by 30 seconds on Sensor and 15 seconds on aftershaves. The deodorants are advertised separately.

The Gillette series faces two major problems:

• Convincing consumers that the line is actually better and the higher price justified will be more difficult than with SENSOR. With the razor, Gillette had name recognition as the dominant firm in the industry. In addition, the design differences the sensor were visible, and a consumer can directly enjoy a closer shave. With the toiletries, Gillette does not have a strong position in the consumers’ minds, nor are the benefits provided by the products obvious. Furthermore, the men’s toiletries market is extremely competitive . Powerful firms with proven marketing skills have taken a greater interest un this category. P & G has acquired Old Spice and Noxzema; Colgate owns Mennen, and Unilever purchased Brut. It’s unlikely the rest of the firms in the market will sit back and ignore Gillette’s activity.
• Gillette is tying, the new product line to the Sensor but using a different brand name. If consumers do not associate the Gillette Series with the innovativeness and success of Sensor, the new line may just be another brand in an already cluttered market.

According to a Gillette Vice President, one of the most compelling aspects of the Gillette series is its synergy with the company’s core business—razors. If the new line is successful, Gillette anticipates adding other men’s grooming products such as hair sprays and shampoos. The firm’s CEO, Zeien says, “ we’re already the worldwide leader in blades, Will we be the world leader in other (toiletries) or not? That’s our goal.”

• How is the Gillette Series being positioned with respect to (a) competitors, (b) the target market, (c) the product class, (d) price and quality? What other positioning possibilities are there?
• Is Gillette making the best use of the brand equity that has been created with Sensor?
• What strategies do you propose to Gillette? Address the entire marketing mix.

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Gillette’s Total Quality Management System Case Study

Introduction, gillette gets employees to take on the new system, involving teams in the tqm process, the working culture.

Gillette began its global operations in 1905 when it opened a manufacturing plant in Germany. This global strategy and success saw the firm extending its operation to Latin America. Argentina was a potential market after tariffs and business policies were revised. Having operated under unfavorable regime, the firm perceived future competition and decided to create competitive advantages.

Key figures in the firm such as Carlos Rotundo and Jorge Micozzi suggested better quality as the solution to the market issues. The management had to change the organizational culture which was not strategic for the future market circumstances. Rotundo had already began creating a new organizational culture when Micozzin came up with the idea of total quality management (TQM) that made Gillette Argentina the most successful affiliate in Latin America.

Due to the great success of Gillette’s TQM system, this research was commenced to do a case study on “quality at Gillette Argentina”. The paper begins by evaluating the ways in which the firm got its employees to take on the new TQM system. It proceeds to discuss the importance of getting the teams involved in TQM process as well as identifying the ways in which the teams improved the process.

The paper also explains the meaning of the phrase “Beyond the hanging fruits, the most important outcome of this effort was a different way of working with sales” and highlights how Gillette changed the way it looks at its customers. Finally, there is a description of the working culture before and after the implementation of TQM as well as the economic benefits of the system.

In a firm where decision making is solely the responsibility of leaders such that the employees have to act as the subjects to them, it is likely that the employees would not readily accept the adoption of total quality management (TQM). This is because TQM requires them to take elevated roles, become self-dependent and consider themselves as the owners of the firm.

It is apparent that Gillette had earlier managed its activities in a manner that left the managerial roles such as decision making and steering initiatives exclusively to the leaders. Therefore, the effort to adopt TQM compelled leaders to take measures that would prepare the employees better for the change. These measures involved several initiatives especially triggered by several key figures in the firm.

The very first initiative Gillette took was to hire the Organizational Dynamics Inc (ODI) as a consulting and training firm. The firm became the key source of information and motivation for the Gillette Latin America management. It can be argued that the source of a successful organizational change begins with leaders who in turn transfer it to employees.

This means that the employees would rarely have accepted an initiative that their leaders did not support appropriately. The consulting firm played a central role in preaching the benefits of TQM to the leaders. Indeed, the firm reinforced the idea Rotundo had already started to instill in Argentina. Organizational Dynamics Inc. developed the quality initiative and recommended the creation of a quality structure.

Secondly, Gillette offered training to the employees as a way of preparing them for TQM system. One of the landmark training was FADE that prepared employees for quality action teams. The specialized training involved four phases of problem solving: focus, analyze, develop and execute.

The focus phase was concerned with the development of a problem statement; the analyze phase dealt with the use of data to understand the magnitude of the problem; the develop phase involved the determination of a solution and implementation plan; and the execute phase was about implementing the plan and measuring its impact. In addition to FADE training, the employees received training in seven basic quality tools as well as brainstorming, force field analysis and cost benefit analysis.

Furthermore, training was extended to management and leadership levels. The Argentine directors, managers and other officials were trained by ODI as trainers of the rest of the organization. The teams were allocated facilitators who received training on leadership development.

Team leaders were trained in areas relating to group dynamics, effective meetings, leadership skills and group conflicts (Donnellon & Engelkemeyer, 1999). As a matter of fact, training was the backbone of the TQM process. Most of the members who got training became experts in their respective areas and eventually steered the process towards success.

Another way that Gillette used to prepared employees for the TQM process was through workshops. Through the leadership of Walker, workshops were conducted with all employees to inform them about the changes that would take place. The staff got information about the new working style and culture to be attained through TQM.

Team sponsors were identified and their roles explained to the staff. They were to support the teams in any way needed including helping them to attain their objectives with recognition of their empowerment. Other workshops that Walker would offer involved problem-solving and statistical analysis, and at the same time inspiring everyone.

Finally, Gillette endeavored to meet the challenges of quality that the employees faced. Initially, Rotundo responded quickly to the employee complaints about the contract approach by delegating responsibility to investigate them to Victor Walker. The newly hired quality manager emerged to be a successful preparer of the team members and organizer of TQM process.

Through his stewardship, teams were guided in their TQM process by sponsors and ODI methodology. In addition, a steering committee was formed in an effort to respond to quality challenges.

The council systematically supported the employees towards TQM process and formed the backbone in the creation of a new working culture. Through such support, the employees were assured of the leaders’ commitment to the process and ultimately embarked on the mission whole-heartedly.

Team involvement was paramount for the success of Gillette TQM process. The initiative was adopted by the firm in an effort to enhance overall performance and position better in the Argentine market. As Jorge Micozzi observed, the market was opening and thus the firm perceived the entry of new competitors from United States and Europe (Donnellon & Engelkemeyer, 1999).

In that respect, team involvement was important to create a competitive advantage. This would allow for creativity and emergence of new ideas as the team members presented diverse suggestions. There was need to improve decisions and processes ahead of competition trough team work. Therefore, the new competitive advantage was to assist Gillette to compete and keep their market share.

Team involvement was important in consolidating individual interests with the interest of the company as a whole. Before the implementation of TQM, the employees pursued their interests with no chance for a broader perspective on the organizational goals and objectives. This working culture was not particularly strategic for the creation of customer value through quality services. Therefore, team involvement was a way of changing this individualistic culture as well as the focus of the workforce towards goal attainment.

Organizational Dynamics Inc which was hired to develop the quality initiative recommended the creation of teams. With the success history of the firm in Mexico, it was very important for Gillette to abide with this recommendation.

Team involvement was the only way to achieve the quality structure suggested by ODI. In addition, the basis of TQM being total participation, customer focus, systematic support and continuous improvement relied completely on team involvement for success.

Team involvement was important in enriching business ideas within Gillette. It can be argued that when employees are offered the chance to contribute to decision-making process, more and better ideas are achieved. Indeed, individuals are challenged to bring new ideas and suggestions when they are members of a team.

The individualistic working culture which existed prior to implementation of TQM process was a huge obstacle to the generation of new ideas. Decisions were entirely made by the top leaders who had little knowledge about the challenges at the operation level. Therefore, team involvement as Walker observed was a way of creating a conduit through which ideas would flow up and down the hierarchical structure.

The other importance of involving teams was to eliminate departmental barriers that the previous system had created. As a manufacturing firm, Gillette had denied employees the necessary interaction between departments. Rarely could the design team interact with the production team or the assembly team which gave in to low quality products and wastage of materials.

As much as the implementation of TQM process was to succeeds, so was the effort to involve teams. This involvement of diverse teams gave the need to understand what other departments did and how they were related to each other. Therefore, for the success of the TQM processes, interaction and coordination among departments was very crucial.

Team involvement in the TQM process was also important in improving customer satisfaction. Although it was more relevant to the sales team, it permeated through all other teams. The sales team had the direct contact with the customer and when involved in the TQM process could offer the needed feedbacks to the rest.

The other teams chipped in when responding to these feedbacks especially those which related to product offered. The involvement of these teams enabled Gillette to meet customer expectations and ultimately increase their satisfaction. Moreover, the increased strength and commitment of the sales team made the customers to feel more satisfied when transacting with the team members.

The TQM process at Gillette was greatly improved by teamwork. It enabled the management to identify and meet challenges of quality. Team involvement increased employee participation in which they launched their complaints. For instance, the assignment of Victor Walker who emerged to be the cornerstone in the processes was triggered by complaints from the employees (Donnellon & Engelkemeyer, 1999). In addition, team involvement allowed the steering committee to turn to TQM problems that barred the success of such programs.

Team involvement also allowed for the creation of the necessary working culture. As the team members increased their participation, new ideas emerged and departmental coordination became a reality. The roles of team leaders and members were defined and the members focused more on the organizational goals and objectives. Autonomy and efficiency increased such that each employee became a significant contributor to the success of the process.

Team involvement in the TQM actually speeded up the implementation. The firm was able to make quick, but effective decisions on how to go about implementing the components of the process. The process that had earlier faced challenges picked up as the teams increased their participation. Micozzi offers the success example of the administrative building (Donnellon & Engelkemeyer, 1999).

The building was designed and built in ten months by nine teams. Therefore, it can be argued that team involvement was the key factor that contributed to the success of TQM process within such a short time.

“Beyond the hanging fruits, the most important outcome of this effort was a different way of working with sales”

This statement was coined by Rotundo when he moved to interface sales with cross-functional teams after succeeding in managing inventories. According to him, customer focus was more important than anything in Gillette. After all, the manufacturing operations undertaken by the firm were determined by its capacity to make sustainable sales.

He likened other achievements of the effort to hanging fruits pointing sales focus as the most important attainment. The sales focus Rotundo had in mind was that of changing the way Gillette looked at its customers. This change was that which responded to the needs of the customers despite their nature or demands. It was a change that the firm could make while looking at things from the perspective of a customer and responding to customer demands without question.

Actually, the quality effort had to be focused on the enhancement of customer satisfaction. According to Daft, Murphy and Willmott (2010), customer is the most crucial stakeholder of an organization as he defines the reason for its existence and eventual success. Other achievements could be important, but lie far below the capacity to drive sales (hanging fruits).

As Rotundo highlights, this driving force could only be achieved by changing the way the firm worked with sales. The fact that customer needs could be clearly understood, the quality management program necessary would automatically be defined. The changed perspective about the customer would actually allow the customer needs to act as the roadmap towards continuous improvement of the quality management practices. Therefore, in spite of the achievement made by quality effort, the influence it could have on sales was paramount.

In response to the call made by Rotundo, Gillette completely changed the way it looked at its customers. First, customer satisfaction became the main purpose of TQM process as Micozzi noted (Donnellon & Engelkemeyer, 1999).

The teams were encouraged to align their goals with the corporate goals in order to drive sales. Starting from the design department to production department to sales department, all teams were involved in TQM process with a focus on their contribution towards customer satisfaction. In fact, the continuous improvement component of the TQM process involved responses to the changing needs of the customers. This is confirmed in the various team projects undertaken in the implementation of the process.

Gillette Argentina also changed the way it looked at the customers by having a special focus on the sales department. The sales teams were encouraged to be more proficient in working together and increase their efficiency to make customers more satisfied. The emphasis on customer needs was real and made the sales team more compelling.

As the local sales manager observed, the emphasis on sales department made people to like working with the team as they learned about the entire firm, gaining a global perspective (Donnellon & Engelkemeyer, 1999). Nonetheless, Gillette conducted continuous survey on customer satisfaction to ensure that the teams were delivering the expected results.

Immediately the teams were formed, the firm conducted customer surveys and customer critiques were assigned to each group. The success was clear-cut in these surveys suggesting the complete change of the firm’s way of looking at the customer.

Initially, Gillette’s organizational culture was characterized by individualism in which there were leaders and subjects to lead. Apparently, the employees got orders from above and had to act upon them without question. Decisions were solely made by the management without any input from the lower ranks.

Each department was assigned to specifically defined roles that were only approved by the management. There were few linkages to other departments with no interaction between departmental employees. Coordination between the departments was the role of managers whereby they advised rather than discussing on the work-related issues.

The employees focused on completing tasks rather than meeting goals and objectives. It can be argued that customer focus was not a crucial factor when working in the company. Workers pursued their interest and the interest of the company had little relevance when performing the assigned tasks.

Even before the implementation of TQM process, Carlos Rotundo had attempted to change the existing working culture. He introduced a quality-focused culture that supported team work with special emphasis on sales. The culture assigned many of the responsibilities to team leaders, but did not give individual employees much autonomy. Clearly, leaders made many of the decisions without any contribution coming from team members.

Each team pursued a specific task that was defined by the customer’s critique identified in the customer survey. Also, the management was responsible for most of the decisions that were beyond teams’ jurisdiction. Departmental interaction was not supported by this culture which ended prematurely after the introduction of TQM process.

The working culture that emerged from the adoption of TQM process was characterized by team work. Each activity that was accomplished in the firm including product design, development, production and offering was the cumulative efforts of individual teams. The team formation involved both the employees and the management. As a result, decision-making at department level as well as corporate level involved all team members.

The culture allowed each employee to contribute to any undertaking of the firm regardless of the source department. The ultimate goal in the new culture was customer satisfaction and all teams endeavored to achieve this goal.

Therefore, working to achieve this goal was the “sign post” of teams’ activities and leaders were not there to give orders but to discuss issues with members. In fact, Rotundo acknowledged that the new culture did not allow for orders, but consensus whereby the management listened to others’ problems and worked jointly to solve them.

The new culture was a supportive culture where tasks were shared among teams as well as team members. Individual employees became more responsible and industrious as they perceived assistance from other members. There was new confidence in their decisions and satisfaction in the tasks completed, especially when they were acknowledged with gifts.

The support formed a platform for knowledge creation and acquisition by the employees due to the focus on identifying problems and solving them. The cooperative working culture gave way to efficiency in the services offered to customers. Employees were willing more than ever to launch their complaints which allowed the managing team to act upon them on time. Thus, the working culture gave room for continuous improvement of the TQM process and eventually improvement on services offered to customers.

The TQM process implemented by Gillette had great tangible and intangible benefits. Perhaps, the economic benefits that came about due to improved performance and wastage elimination are most important. The high performance resulted from increased customer satisfaction which by 1994, the firm topped the list with 8 on a ten-point scale.

The higher economic performance could also have stemmed from the creativity and innovativeness of the firm as the team members acquired new knowledge and ideas. It can be argued that the larger part of the firm’s performance revolved around the capacity to bring new products to the market. The creative culture established by TQM process was clearly described in the rapid growth of financial determinants.

Some of the economic benefits include growth in sales, higher profits, POE decrease, inventory turns increase, and ROA increase. Between 1993 and 1998, sales grew by 19 percent while average profits increased by 22 percent. Period operating expense (POE) decreased by 40 percent while inventory turns increased from 4.8 to 8.7 in that period.

Return on assets (ROA) rose by 60 percent between the years. Profitability attributed to TQM was forecasted at $17.8 million by the turn of the millennium. Another economic benefit directly related to TQM was the expansion of the firm’s facilities. Clearly, the development of the new professional and administrative building was an outcome of the TQM process. The firm was also able to decrease material wastage and increase employee output per unit cost of the labor input.

As competition threat continued to intensify in the Argentine market, Gillette embarked on a TQM system to counter the competition. The challenge the firm faced of getting the employees to take on the system was solved by extensive training, workshops, consultation and proper response to the quality challenges perceived.

Teams were formed and involved in the process for various significances including: to create competitive advantage, to consolidate individual interests with the interest of the company, to act on the recommendations made by ODI, to enrich business ideas within firm, to eliminate departmental barriers, and to improve customer satisfaction.

This involvement allowed for the creation of the necessary working culture and speeded up the implementation of TQM. A different way of working sales that Rotundo had suggested led to the firm changing the way it looked at its customer by having a special focus on the sales, making customer satisfaction the main purpose of TQM process and conducting continuous survey on customer satisfaction. The working culture which changed from individualistic culture to team-working culture benefited the firm economically.

Daft, R., Murphy, J. & Willmott, H. (2010). Organization Theory and Design . Florence, KY: Cengage Learning EMEA.

Donnellon, A. & Engelkemeyer, S. (1999). Quality at Gillette Argentina . Web.

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Gillette Company Harvard Case Solution & Analysis

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Gillette Company Case Solution

Introduction.

This case discusses the creativity problems being faced while introducing a new brand of dry antiperspirant. The brand was introduced in 1978. Currently, creativity is important in consumer products because it increases the brand attractiveness and sales. Currently, the company is getting advertisement services from branding agency called BBDO, after continuous struggle. In 1981, the company’s market share of the company was declined because the advertisements were not effective to attract consumers. The competition in the industry has increased and there are major player in the industry. So it was a high time for company to realize these issues and bring changes in advertisement techniques to attract consumers and develop brand.

Company Background

The Gillette Company has been in business for more than a century. In the late 1960s, the company pursued an acquisition strategy, acquiring the Hydroponic Chemical Company for $1.8 billion. The acquisition failed due to shrinking margins. It did, however, increase the company's market share and revenues. Since then, it has maintained its position as one of the most admired brands in the world. While the first Gillette razor was introduced in 1879, it was a flop. As a result, the company had to change its formula and launch a new one. In the late 1960s, the Gillette razor was facing competition from the double-edged blade. In 1962, Wilkinson Sword Company began exporting stainless steel blades to the United States. The company was able to develop polymer coatings for the razor blades that increased their lifespan and allowed the consumers to shave longer.

Despite its reputation as a world-class brand, Gillette has struggled to keep up with its competitors. Its under performance during the 1990s was largely due to currency-exchange differences. Profits were lowest in its toiletries and stationery businesses, and the company's profits were lowest. During this period, the managing board of Gillette fired CEO Michael Hawley, and hired James M. Kilts, a former Nabisco CEO, to lead the restructuring effort. The company also lost market share in the battery business to cheaper alternatives.

The Gillette Company is a global consumer products marketer. It aims to create competitive advantage in personal care products through innovation and superior design. The company is committed to building shareholder value through profitable growth. And, it's worth remembering that it is a global company. But it has had a turbulent history. It has had a few owners over the years, and has survived a few scandals. Some people may even consider it a success story of its competitors. In the late 1960s, Gillette pursued an acquisition strategy, acquiring the Hydroponic Chemical Compa            ny, which manufactured plant food. The acquisition failed, because  the company's profit margins dwindled. During this period, the Gillette Company had a negative cash flow and a negative profitability ratio. In the following years, the company is still on its way to achieving its strategic goals. Although its business has suffered, the new management team is still committed to improving the lives of millions of men and women, worldwide.

In 1871, the Gillette family moved to Chicago. In 1871, the family's hardware supply business was destroyed by the Great Fire. At age seventeen, Gillette became a traveling salesman and improved his wares. By 1890, the Gillette Company had four patents. By then, the business had found its niche in the disposable goods market. By this time, the company had more than 3.5 million customers in the United States.

SWOT Analysis

• The company has its huge market presence, and it is considered as a leader in the industry
• It uses aggressive advertisement strategies and has very strong and positive image in the industry
• It is well-known for its quality and innovation in the industry
• The company has diversified products but it has a long lifecycle for development.
• It has relatively static market growth
• The cost of maintaining the brand image and its quality is very high for the company

Opportunities

• Social needs of consumers are changing.
• E-commerce is an emerging option for the companies to interact with consumers and enhance the consumer services.
• New technology is also an opportunity to reduce the cost.
• Counterfeit products.
• Substitutes are increasing.
• Consumers buying power is increasing.

Further refer to appendix 5

Personal Grooming Industry

Consumers spending depends on their income level, the increasing income level trend. Personal grooming industry consist of major proportion of bath & shower products i.e. 46%,  the skin care industry contribution is 16%, Hair care industry consist of 31%, color cosmetic is 6% and Fragrances 1% refer Appendix 2. Despite being highly competitive and consolidated, the USA antiperspirant market has a high presence of global players. Moreover, increasing awareness among consumers regarding hygiene and sanitation is expected to boost the growth of this category. Various factors such as changing lifestyles and consumer behavior patterns are also contributing to the growth of this industry. Detailed research is essential for identifying market opportunities. Here is a market analysis of the USA antiperspirant market.

The deodorant market is segmented into two types of consumer: men and women. Men, on the other hand, are expected to account for a larger share of the market. The global deodorant ingredients market is predicted to grow at a fast pace, especially among Asia Pacific countries. However, the demand for fragrance products in emerging economies is expected to increase in the coming years. The US antiperspirant industry is expected to grow significantly during the forecast period.

The US antiperspirant market is expected to expand at a steady pace through the forecast period. The e-commerce segment is likely to register the fastest growth, with a growth rate of 13.4% over the forecast period(Taylor Nelson Sofres, 2002). Furthermore, consumers prefer to buy their deodorants and perfumes online rather than visiting a retail outlet. Further, most prominent brands offer significant discounts to lure consumers online. While the US is currently the largest market for antiperspirants, its growth is expected to remain relatively stagnant over the next five years.

In recent years, the US antiperspirant market has grown rapidly. Rising income levels and a growing population are two of the main factors boosting the growth in this market. Moreover, rising disposable income and increasing use of antiperspirants are also driving the growth of this industry. The rising demand for antiperspirants is fueled by new and innovative ingredients and the low price of these products. Besides, environmental concerns are likely to pose a major challenge to the US antiperspirant market...............................

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Step 3 - The P&G Acquisition of Gillette Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of The P&G Acquisition of Gillette

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the The P&G Acquisition of Gillette . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the The P&G Acquisition of Gillette
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of The P&G Acquisition of Gillette HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis The P&G Acquisition of Gillette

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of The P&G Acquisition of Gillette

Another way of understanding the external environment of the firm in The P&G Acquisition of Gillette is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into The P&G Acquisition of Gillette Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome The P&G Acquisition of Gillette case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine The P&G Acquisition of Gillette case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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How Gillette Became The Most Used Razor Blade In India?

Anurag Gade

Gillette is one such brand that you have most definitely heard of, through your parents or in your friend circle. Over the years, Gillette has managed to become a common household name thanks to its popularity across all demographics. I have personally seen my grandfather use the same Gillette brand, which my dad has been fond of too for ages. So Gillette has been a part of this hierarchical journey in my family and is being passed on for three generations and would most probably be in use by the fourth generation soon.

Although Gillette is an American brand that sells personal care products, including shaving supplies, a large sum of customer base and profits comes from India. Gillette has an approximate global brand value of around 7.55 billion U.S. dollars. The Gillette Company was founded in Boston, Massachusetts, United States, by King C. Gillette in 1901 as a safety razor manufacturer. King Camp Gillette was a salesman and investor who came up with the idea of disposable safety razor blades way back in 1895.

History of Gilette Razor in Indian Market How Gillette Razor Changed The Indian Mindset? Gillete Implementing The Golden Strategy Future of Gillette in India FAQs

History of Gilette Razor in Indian Market

Gillette entered Indian markets in 1984 when it was bought by Procter & Gamble. Gillette had to tackle and overcome various problems if they had to survive in India. The company's main hurdle wasn't any brand or competition. Instead, it was the Indian mindset that had to be changed. Gillette has only started its advertising journey in the late 2000s and has believed solely in providing high-quality, uber premium, and longer-lasting products. Midinstead low-income Indian customers would hesitate to get their hands on any Gillette's premium double-edges shaving system products as they were priced at premium rates and would rather get the same shaving services by any local barber at a nominal price.

Concerns such as it were time-consuming, caused skin irritation, and was an unpleasant experience were the main highlighted reasons which were found after extensive consumer research. Over the years, Gillette evolved and moulded itself to adjust to this weird Indian terrain and tried to educate Indians regarding grooming products. Gillette's top ten competitors are:

• Harry's, 800Razors
• Schick, Edgewell
• Grooming Lounge
• Dollar Shave Club
• Custom Shave

Only a handful of Indians know about these brands, this is the current hold which the brand has over the Indian market.

How Gillette Razor Changed The Indian Mindset?

Gillette usually relies on extensive market research and development in order to cater to a global customer base through a single product. Still, this approach was bound to fail in India, and therefore the company dropped this worldwide strategy and instead focused on India as a whole and soon after saw dramatic growth in market share. Gillette launched various campaigns in India to make people think over specific questions like:- Are clean-shaven men more successful? Did the nation prefer clean-shaven celebrities? And the big one: do women prefer clean-shaven men? It's questions like these that made men think over their choices and consciously make an effort to look better.

Upon research, Gillette came to an understanding that customers want not only affordable products but also safe and easy to use products, and Gillette was able to deliver just that in October 2010 when it launched Gillette Guard, which was the first product created for the Indian market, pricing at just 15rs per razor and 5rs for the refill cartridge.

It had of a kind and unique tagline.

"The best a man can get" is known to most people as it's unique and evokes a feeling of responsibility. It focuses on individuals trying to be the best version of themselves by making the right move and choosing Gillette. Gillette also played around the survey, which suggested that men who groom themselves and take care of their hygiene are looked at as more responsible, attractive and of higher status.

Additionally, getting young Indian celebrities ranging from film actors and actresses to athletes also helped them build a company image and cater to a younger consumer base. The advertising and marketing department of Gillette also did a fabulous job of making ad films, such as the one with an army official talking about his close call during the war and proudly boasting his 7-inch battle scar and gliding his Gillette blade over it without any hesitation. It is because of advertising like this that the brand image and its perception have been absolutely top-notch and unshakeable.

Gillete Implementing The Golden Strategy

Gillette could very well have been one of many international brands which tried and failed to adapt in the Indian market, but what helped Gillett was their open-minded and flexible approach. Gillette's business model in India shows that they dropped the idea and approach of a "one-size-fits-all strategy" wherein they would mass-produce a product and sell it globally.

They took their time and contributed it to research and development for the future of Gillette in India. Gillette spent time, money, and resources in trying to understand the Indian market and customers’ wants and needs. This understanding helped Gillette innovate and develop new and improved products and various unique methods of communication to engage and attract new and existing customers .

Future of Gillette in India

The company is showing no signs of stopping or even slowing down anytime soon with their market share as huge as it is, no other brand is even in close comparison to Gillette. The brand keeps on coming up with new and improved ideas for marketing and advertising , with the recent one including rising young talents of the Indian cricket team. The company's ever-evolving strategy and ability to adapt in any situation helps them keep a clean and smooth track and glide across smoothly. Because of this approach from Gillette, it is not only dominant in India, but it is completely dominating across the world.

Which is the best Gillette razor in India?

Gillette Mach 3 Turbo is the most trusted razor in India.

Who are Gillette competitors?

The top 10 competitors in Gillette's competitive set are:

How did Gillette enter India?

Gillette was launched in February 1993 with the launch of Gillette Shaving Products in India.

What was the firstly launched product of Gillette in India?

Gillette launched its first shaving product in India - Gillette Presto Readyshaver.

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