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Case 2. Strategy Analysis for Gillette

Gillette and the Men's Wet-Shaving Market

Vikram Jethwani and Arjun S. Bhati

Strategic Marketing

vkram.jethwani@gmail.com
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Gillette and the Men's Wet-Shaving Market– A Case Study

• The history of shaving is traced back to 7,000 yrs ago in Egypt
• Copper Razors & bronze blades, crescent shaped knife blades, meat cleavers in
prevalence
• Shaving was looked as a cumbersome and time consuming act
• Only affluent class could afford shaving on a daily basis due to higher costs &
time consumption.
• King C. Gillette – Introduced a safety razor in the year 1895.
• Gillette invented a permanent razor “blade” with two sharpened edges
producing a safe shaving experience.
• Men's Wet -Shaving Market :A Cheap plastic handled razor & blade systems (11-
14 Shaves).Market Share raised from 22% to 41.5%. Permanent razors and
blades systems.
• Lower profitability (By 1/3rd ) for replaceable blade system as compared t
permanent razors.
• Retailers preferred to sell razors as takes less display areas & higher sales
margins to retailers for razor systems.
• US retailers allocated Blade & Razors stock to disposable razors (55%),Systems
(40%) & double edge razors (5%).
• Gillette having wet shaving market share(60%) of worldwide & US (61.9%).
• Gillette leveraged cartoons ads, radio shows, musical slogans, theme songs with
quizzes and contests.
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Marketing Strategy Analysis | Sustained profitable

growth
• Gillette was marketing 800 products in 200 countries. They applied Fist regionally then Globally.
• Gillette is famous for its innovative approach with the launch of First Safety Razor (1895), Blue Blades
(1932), Thin Blades (1938), Silicon coated blade (1959) and Super Blue Blade (1961) with Market Share of
61% & double edge blades 90%. Trac II system : “Hysteresis”- a double blade cut process.
• To speed up growth through inorganic channel, it acquired Toni Company -Women's grooming aid market;
Paper mate -A writing instruments co; and Sterilon Co.-Disposable Hospital supplier
• Launched Good News! – A contain & switch strategy which did not succeed, A disposable razor delivered
lower profit margins than razors & blades. As it was marketed on Price & convenience not performance.
• Gillette faced competition from SCHICK, BIC Corp. and Wilkinson Sword.
• In order to avoid the takeover attempt by Coniston, Gillette increased debt by $2billion.
• Gillette South Boston Plant- Employed 2K-3K for testing shaving products.
• Introspected reasons for lower profits : Higher sales of low prize razors, low marketing spending.
• Gillette advertising being Product Based (90%) and Image Based (10%).
• Created different brand images for Gillette – By Men over 40 (Athletes & Sports) & younger generations
(Twin Blades, Blue & plastics) .

Suggested strategy: Initial Framework
Phase 1
Global Segmentation Strategy Framework
Development
1. Built a framework that:
a. Programmatically aligns customer
segments
b. Generates positioning and media
strategies to target key segments with
specific products
c. Helps local teams communicate to key
channel partners the benefits of sharing
segmentation data
d. Provides a solid, fact-based foundation
on which to discuss joint sales / marketing
strategies with partners
2. Tested / implemented the framework, end to
end, resulting in joint marketing strategy
development with key partners
3. Target strategically not generically
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Phase 2a
Global Framework Roll-Out
1. Develop, plan and implement sales and marketing
activities in test markets based on the framework
2. Train local Sales and Marketing personnel
throughout the world on how to use framework and the
Segmentation Alignment Web-based solution (see
below)
Phase 2b
Global Segmentation Framework
1. Converted and enhanced the Excel-based model to
a web-based version, to provide additional features,
improved usability and reduced complexity, increased
user volumes, global accessibility, maintainability,
version control and security
2. Implemented two key modules for the web solution:
a. Segmentation Alignment: automatically aligns
customer segments to those of an operator /
retailer, as well as identifies sales opportunities
for these segments
b. Product Positioning: identifies the target
segment(s) for a specific product, provides
consumers’ perceptions of a product’s features
and design elements, and identifies consumers’
media preferences
More focused and minute market research required on at least one dimension from
each dimension – demographics, lifestyle, attitudes and perceptions

A Macro Level Plan

Demographics Razor Usage

Age Interest in Advanced Experience / Features

Gender
Use of Specific Features
Education
Usability / Ease of Use
Occupation
Reliability / Quality / Durability
Life Stage
Design
Income Level
Lifestyle / Other Attitudes
Brand Loyalty
Social Activity
Esteem/ Need
Brand Consciousness (General)
Fashion
Price Sensitivity
Media Usage
Average monthly expenditure on shaving
Technology / Electronics Attitudes Why Gillette
Use of Electric Shavers Comparative and Leverageable advantages
Technology Adoption Knowledge about the Market
Interest in Specific Technology Type
Interest in Portability

Thanks!