GILLETTE INDIA LTD

(Indian Shaving Products Limited ISPL)

Tamandeep Singh Bajaj 11P172 Tejas Sharma 11P173 Udbhav Mishra 11P174 Gunjan Jain 11P190 Vipin Aggarwal 11P238

MARKET SIZE
2.4 billion blades in a year in 1992 Rs 250 crores at retail price Value term 15 to 20 crores Indian shaving male population Carbon steel blades making the bulk of the market Stainless steel blades present only in urban market Less than 2% market Twin Blade Segment

CURRENT SCENARIO
Distribution shared with Lipton Tea @ 5 % margin Considered as natural fit with synergy for both parties 7% margin for Stockists on ISPL products Price of product about 50 -80 % over prices of Wiltechs product, whose prices are 50% over Malhotras

PROBLEMS
Less than 3 % of total market after 2 years Market share in double digits in cities Doubts on retail coverage No Promotion Flow

Replenishment time different for each product No information flow for Gillette

MALHOTRAS DOMINANCE
80-90% Market share Malhotras with brands like Panama, Topaz, Laser etc 7 manufacturing units the largest being in Calcutta with a capacity of 1500 million blades per annum Distribution network

Special Promotions for the trade and stock push

Market Geography
Urban Markets Rationale

Market Size
2.4 billion blades in 1992 Rs 250 crores in Value 15 -20 crore - Indian shaving man population Less than 2% market Twin Blade Segment Stainless steel blades only used in urban areas

Stainless Steel blades Prices are almost double than Malhotras brands

Market Density
Number of buyers or potential buyers per unit of geographical area is high To achieve a high level of customer access at low cost

Market Behavior

High convenient location FMCG Product Consumer Male First Purchase Decision Male Physical PurchaseMale/Female

PROPOSED DECISION
To Build its own distribution channel Rationale Platform for future Gillette Products Better channel flows (information flow in this case) Focused sales team No margin required to be paid to third party (Lipton) To target shop by shop basis

SERVICE OUTPUTS TO BE DELIVERED BY

CHANNEL MEMBERS Bulk Breaking Assortment Zero waiting time Spatial Convenience

CHANNEL STRUCTURE

Manufacturer

Distributor

Retailers

Customer

Rationale Distributors would have exclusive buying arrangements with the manufacturer and each distributor would cover a certain territory The distributor would supply all retailers in the given area Would facilitate better information flow Distributors will also perform the function of promoting the product among the retailers