...Gillette Taking it on the chin Apr 16th 1998 | BOSTON From The Economist print edition The launch of a new razor will test whether Gillette deserves to be so admired by management gurus HOW many ways can there be to remove the 15,000 bristles that sprout so relentlessly on the male chin? Gillette, saved from humiliation eight years ago by the launch of the Sensor range, with not one but two blades, this week unveiled an even more revolutionary advance in shaving: the Mach3 (see article). Gillette’s future may not exactly be on a razor’s edge—it has 71% of the North American and European market for razors and blades—but it needs those bristles. The company, whose consumer brands include Duracell batteries, Oral-B toothbrushes and Parker and Waterman pens, is beloved by management consultants. But investors have begun to fret about slowing growth, lacklustre sales and an imminent change in top management. Growth has slowed in the hugely profitable razors division, partly because Schick, its smaller rival, has recently launched a new razor of its own. Last August, the mildest of profit warnings was enough to send the shares tumbling nearly 20%, although they have since recovered. The Mach3 is the company’s biggest and most important new product since the Sensor, and the company hopes it will have a similar effect. Eight years ago, Gillette was losing its grip on the razor market to cheap throwaways and facing the fourth in a succession of hostile takeover bids. Sensor...
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...Gillette Mission Statement: “Our mission is to achieve or enhance clear leadership, worldwide, in the existing or new core consumer product categories in which we choose to compete”. SWOT ANALYSIS: Strengths: * They are undisputed market leader as they have the greatest market share all over the world. * They have been performing for more than hundred years so they have very sound goodwill in the market. * They have a very big distribution system. Their products are sold all over the world and people purchase their products by asking the name of Gillette. * Their research and development centers are very efficient and effective. They are very innovative. All the time they are introducing new differentiated products with high quality and more customer satisfaction. * Their adve0rtising campaigns are very attractive and customer attention seeking. * They are very much concerned about their customers. * They have diversified business with 85 product categories that reduces risk and increases profitability. * Good displays and presentation of their products in Retail Stores make them prominent among their competitors. * They upgrade their products according to the changing environment keeping in view their customer’s need. For example, they launched shaving foams, dry shaving systems which are time efficient and easy to use. * They take maximum social responsibilities for environment and society. In this way, they contribute a lot to...
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...Case Preparation For Discussion (Gillette) 1. Central problem/issue in case: The main problem is that, since its acquisition, Duracell has become a drain on the financial performance of Gillette. The board needs to decide what should be done to turn Duracell around and restore Gillette to a dependable financial performer. 2. How is the battery industry (you can use five forces analysis to answer this question)? Has it been changing? If yes, how? Overall, the industry is very attractive. New entrants realize the potential of snagging a piece of a highly profitable industry that produced $5.2 billion in revenue and $807 million operating margin. Threat of new entrants is low, as the capital requirements and technology development needed to stay relevant in the market proves to be a daunting barrier to entry. Also, in order to realize a significant profit, economies of scale must be realized to produce a massive amount of batteries while keeping costs low. This would be harder for smaller entrants to achieve. Threat of substitute products is low, as no replacement good has been introduced that may provide the consumer with the same benefits as using a battery. This makes the industry attractive. However, if a company produced a good that could replace the need for a battery, this would detrimentally alter the battery industry, making threat of substitute products a major factor of the industry. The bargaining power of suppliers is low because there is little differentiation...
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...Energizer vs. Duracell 1 Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon...
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...1.0 INTRODUCTION Global Gillette is a subsidiary of Procter and Gamble and it deals with the business of manufacturing toiletries and shaving equipments. Its business is divided into five segments which are blades, razors, batteries, electricrazors, oral care products and personal care products that include shaving and skincare products and deodorants. Some of the well known brands that come under Braun, Duracell, Mach3 and oral-b. History and Growth The company was founded by King C. Gillette and William Makerson 1901.It was first named American safety razor company which was later changed to Gillette Safety Razor company in 1902 and then Gillette company in 1952.The company’s first product a disposal razor was introduced to the market in 1903for which he also acquired a patent. It started the first overseas operations in London in 1905 and then established operations in Canada, Germany, Denmark, Belgium and Italy. After its first invention, the company decided to maintain its innovative pace. It therefore introduced the idea of self shaving by selling shaving kits during the first world war, Later an electric shaver in 1938 and foamy shaving cream in 1953.It also introduced right guard deodorants cricket disposable lighter and eraser mate pens in 1960’s. The most significant products launched 90’s were Mach3 razors with three blade ion one razor and ulktra alkaline batteries. Though Gillette has gone through various criticisms like inefficiency and slowness of its receivable...
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...Taylor Adams Dr. E. Montgomery BUS 508 Contemporary Business 02/14/2014 Mergers and Acquisitions When Proctor and Gamble acquired Gillette Products in 2005, Warren Buffet stated “This was a dream deal, this acquisition would create the greatest consumer products company in the world”. (Englishe, 2011) This is one reason why P&G chose to take on the major brand. Other than being known for their razors, Gillette’s products include Duracell batteries, Oral-B, and Braun. This acquisition meant Proctor and Gamble would take much control over the grocery market shelves. Control was everything to P&G at the time of this acquisition. P&G opened a huge door for Gillette, a door that looked inviting to shareholders. Gillette would now be invited into new markets such as China and Japan. China and Japan were two fast growing grocer markets. While this was a great end of the deal for Gillette, P&G would benefit greatly as well. Gillette housed products that were selling and evolving in the market faster than the brand itself. These were the type of acquisitions P&G needed to remain at the top of the product chain, and open the eyes of its competitors. (Englishe, 2011) Proctor and Gamble, the “signed partnership agreement” that formed in 1837 between William Proctor and James Gamble, was making money from the very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory...
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...Introduction Procter & Gamble is one of the world’s largest producers of consumer goods and it was founded in 1837. Recently, Procter & Gamble is operating in 50 countries and serving nearly five billion customers with a series of brands across beauty, healthcare and food industry which generate which create more than 1 billion revenue annually. The purpose of this essay is to discuss how the diversification strategy changed Procter & Gamble in Singapore over the last ten years. The main position in this essay is that diversification can be considered as one of the main strategies used to assist Procter & Gamble build up business competitive advantage. This essay will use theoretical evidence from literature review to analysis the impact of diversification on Procter & Gamble in different time period. The analyses of Procter & Gamble will be carried out in 3 perspectives: the operation of business, the performance of business and the brand of business. Literature Review & analyses of organization Diversification can be defined as a strategy used to increase the range of products or markets of organization. (Johnson, Scholes & Whittington, 2008) There is a range of reasons result the diversification of organization such as spreading the business risk and increasing the business expectation of stakeholder. (Johnson, Scholes & Whittington, 2008) But the result of research from Aisjah and Subroto (2011) indicated that there are two main...
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...Gillette: Why Innovation May Not Be Enough Successful & Innovated Products -Trac II Razor (1971) -Atra Razor (1977) - GOOD NEWS! Disposable Razor (1976) The strength of these 3 products Gillette sales rose to $2 billion Marketing Strategies Market shares through the years “Offer consumers high-quality shaving products that would satisfy basic grooming needs at a fair price.” "Reigned as a virtual monopoly until 1962" Competition- Wilkinson Sword Company When they introduced the stainless steel blade, Gillettes marketshares dropped to an all time low of 49% Through the years, the market share has been 70% or higher Since bought by P&G, Gillette has held 69% of the razor and blade market & 80% if the highly profitable replacement blade market Brief Overview -The Gillette company was founded in 1901 by king Camp Gillette -New Idea: "A razor with a safe, inexpensive, disposable blade" -With the help of William Nickerson the Gillette Company was born -2005 Procter & Gamble bought Gillette for $57 billion Successful & Innovated Products -Sensor (1990) -Sensor Excel (1993) -Mach 3 (razor wars, 3 blades) (1993) -Fusion (razor wars, 5(+1)blades) (2006) -Fusion ProGlide Shaving systems (2010) Gillette is a brand operated under the ownership of Procter & Gamble. The Gillette company was founded by King C. Gillette in 1901 as a safety razor manufacturer. It is a company categorized in the personal care sector that holds commanding worldwide...
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...Marketing Project: Rq: S and W are internal to the company, O and T are external Faire un carre avec SWOT et bullet points a l’interieur du cahier Competitors: -Strong competitors like Energizer, Varta and Cegasa, and Retailer Brands. -Energizer: is the key branded competitor for Duracell, always striving for top place in the branded category segment, very active and the only one working on this front regarding communication and consumer promotions, with a tremendous flexibility to react, has an important stronghold in the rechargeable segments and key do it yourself customers. Continues to have a strong presence in rechargeable however losing to the benefit of Duracell. Energizer’s presence in the market is made through 2 brands: Energizer and Eveready. Energizer volume share of the overall market for the last 12 months has been of 13.2 (decrease of 2.1) with an increase n RCR of 5.9 at 36.7 of total RCR but a decrease in alk at 11.8 (-2.4) Energizer held the strongest market position regarding RCR compared to Duracell and other brands, but are still behind Duracell with respect to overall market share. -Cergasa: Local company in Spain, focus is in-store, with aggressive promotions and increase visibility specially in key customer eroski. - Focus on sept 2012 in the table, and maybe talk about the decreases or increase, focus on rcr and overall share. * Market Position * Market Shares * Strengths- Price, distribution * Weaknesses—Brand loyalty...
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...failed. In my opinion, one of the successful marketing campaigns was the Energizer battery, “Nothing Outlasts the Energizer. It Keeps Going, and Going, and Going…” It was accompanied with the cool bass drum beating pink bunny with shades. It had a great humor attach to it. Usually famous slogans are in a humorous and funny category. The Energizer commercial was produced by D.D.B. Chicago Advertising, originally began as a parody of TV advertisements for rival Duracell. The Energizer Bunny has appeared in many television commercials in U.S. The advertisements and slogan created lots of attraction in U.S. The Energizer Bunny does not appear in Europe or Australia. The Energizer Bunny was created 1989, and the Duracell bunny was created in 1973, “Duracell had a bunny advertising it's batteries in many parts of the world way before Energizer started making their commercials for the US market only. Energizer saw the fact that Duracell never trademarked the bunny to be used in the US, so they moved in.” Here is the link for Duracell commercial: http://www.youtube.com/watch?v=VMVjyfT1srA And here is the link for Energizer commercial:...
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...Duracell: A Marketing Analysis Table of Contents: 1. Intro: A Glimpse Into Duracell 2. The Marketing Plan a. Relationship Marketing b. Current Marketing Enhancement c. The Environmental Approach 3. Summary 4. Conclusions 5. References Intro: A Glimpse Into Duracell Duracell is one of the most recognized, on a global level, battery producing companies. Duracell is also a member of the Gillette Company, and the global market leader, covering over 50% of the U.S. market share. Duracell, however, has often had to rethink its marketing and pricing strategies to stay competitive, especially against low cost competitors which started appearing on the market in the late 1990s. Technology has advanced dramatically lately, and the devices usually powered by Duracell batteries have developed their own rechargeable batteries, or have shrunk in size, become incredibly small and calling for a complete redesign of the concept of battery. Duracell has launched new redesigned lines of batteries often during the last decade, but never revolutionized the concept of battery, for obvious technological reasons. It is important to keep in mind that Duracell, as part of Gillette, follows a centralized marketing and research and development approach which is guided by the Gillette Corp. In order to get an idea of the current state of Duracell, I will offer a quick recap: Duracell currently covers over 50% of the North American (Including U.S.) market, its...
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...Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2004, Ivey Management Services Version: (A) 2008-08-27 It was February of 2001, and James Kilt, newly elected chief executive officer (CEO) of Gillette, was preparing for his first strategy session with Gillette’s board of directors. Kilt pondered what actions to propose in order to satisfy the board, as well as investors, that he had an effective turnaround plan for Gillette’s Duracell division. Kilt, 52, had been the president and CEO of Nabisco just one week previously and was widely credited with dramatically increasing its performance. Gillette’s board, which included investor Warren Buffett, hired Kilt to take charge of a company that “had gone nowhere for four years.”2 Gillette’s stock price, at $34, had fallen 45 per cent since its high in 1999. Kilt’s biggest challenge in the strategy session, which was just two weeks away, was to lay out a plan for Duracell. Gillette had originally...
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...BIBLIOGRAPHY 8 9. APPENDIX INTRODUCTION: A battery is an equipment or device that accumulates chemical energy and makes it accessible in electrical form. It is an integration of one or more voltaic cells, each of which is composed of two half cells connected in series by the conductive electrolyte. I have chosen to investigate and conduct my research project with two different cells namely-Duracell and Energizer .I have chosen these two because they’re the most popular and recommended cells globally .Duracell works for a maximum of 7 hours 12min and an Energizer cells maximum is 6 hours 42min when inserted into a AAA LED flashlight from Garrity . THE DURABILITY OF DURACELL & ENERGIZER CELLS: Duracell > Duracell battery can be recharged up to 400 times that enable cost reduction and power efficiency per battery. These batteries have greatly...
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...Value Communication – Economic Benefits and Psychological Benefits Reflection How can we communicate our product’s value to customers? This is always a good question to companies. The most common method used by companies nowadays is usually advertisement, especially on TV commercials. Companies have to deliver the benefits that customers could seek from their product by telling the economic and psychological benefits in their advertisement. Economic benefits usually refer to those features that are measurable and can be transferred into quantified value among different brands. For example, profit, productivity, etc from the product. Psychological benefits is different from that of the economic benefits, they usually refer to the feeling you can get from the advertisement or product. For example, feeling of excitement when you watch a car racing advertisement. Reason for choosing this concept: Value communication is a very important and essential concept in a company. It is because customers always ignore the value of a company’s product as they are inexperienced customers and affected by the innovative product or they may not be motivated to calculate the product.Therefore, companies need to deliver the value and benefit of different product to consumers, in order to attract more purchase from consumers. This concept is very important for both consumers and the company side. Consumer side: 1. Consumers can make a better choice Under this concept, in order to attract...
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...dioxide. There are many different manufactures of Double A batteries all claiming that their batteries last longer. Literature Review There are many different uses for Double A batteries and all battery manufactures want their batteries to be the longest lasting. There have been many tests done by the manufacturers of batteries and independent companies. The Power Stream Company tested the discharge rate of different batteries. They used the CBA II Battery Analyzer to test the discharge rate of each battery. The batteries they tested were Radio Shack Enercell Plus, Duracell Coppertop, Energizer Titanium, Energizer Max, Eveready Gold, Energizer Lithium and the Power Stream 2000 mAH Rechargeable. The Radio Shack Enercell and the Duracell Copper top were the two best batteries. The Radio Shack Enercell was best at a high discharge rate and the Duracell Copper Top was best at a very low discharge rate. The Bit Box Company tested over forty different brands of batteries. They used their own engineered constant load testing device. That was connected to a laptop computer which would graph the results of the test. It could test several batteries at one time. They used batteries from name brand manufacturers to discount store brands. The graph below shows the results of the test. Experimental Design Steps Two Double A batteries will be inserted in a Princeton Tech head lamp with a halogen bulb. The head lamp will be turned on and timed until the...
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