...Case Study #2: Gillette The following notes give a background understanding in the case of Gillette and can be used to make analytical decisions in the best interest of the company. Who: Gillette, a mature razor and blade manufacturer owned by Procter & Gamble, holds a commanding share of the current market. It’s primary competitor is the Schick Company whom Gillette goes head-to-head with in terms of their newest innovation: the Fusion 5-bladed razor. Where: The company is currently facing “a saturated US market” that is mostly unresponsive to their products (unless they are new and innovative). For this reason, Gillette looks to expand its market share globally. What issues did they face: Gillette currently has a commanding market share, however, the company faces issues that potentially hinder more growth: -Acquisitions: Historically, Gillette’s acquisition of smaller companies have lead to their unpreparedness in dealing with new competitors. In the past their share had decreased as much as 20%. -Product Width: One of Gillette’s strategies to counteract their loss in market share, they added more products through the said acquisitions. Because of this, their product width grew too large and therefore they couldn’t keep up with newer more innovative products such as Bic’s disposable lighter. -Schick Quatro: The introduction of the Schick Quatro sparked lawsuits between the two rivals claiming stolen ideas and misleading advertisements. These proceedings...
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...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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...Procter and Gamble | Strategic Management | | Table of Content Introduction 3 Company Overview 4 Mission and Vision 5 External Analysis 5 Industry analysis 7 Internal Analysis 8 Corporate level strategy 10 Critique and Recommendation 12 References 13 INTRODUCTION Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio. Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands and 50 leadership brands that the company owns to serve about 4.8 billion customers. This report will try to provide a strategic analysis of P&G thorough internal analysis of strengths and weaknesses including a financial analysis as well as an external analysis of firm opportunities and threats but also, an industry analysis using Porter’s five forces. Most of references came from the P&G website and information was sought from the Procter & Gamble Company Annual Reports but external references were also used as such article on web from American and French magazine. COMPANY OVERVIEW The company was born in the United States to Cincinnati in 1837. William Procter and James Gamble who were respectively, candle maker and soap maker created it. In 1954, Procter and Gamble establishes...
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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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...University Gillette has successfully convinced the world that “more is better” in terms of number of blades and other razor features. Why has that worked in the past? What next? Gillette is one of the well-known razor brand targeted at men. The razor has received popularity and accepted by men who entrust their faces and skin to Gillette. The technological innovation and commitment for quality and continues improvement geared towards the unique needs of men, which helps them to feel and look their best after each use. Gillette has been successful in convincing the world that more is better, in regards to the number of blades and other features of a razor. To be successful in the business, it is imperative that, a company understand the needs of its customers and ensure that those needs are met and available to customers. Gillette Company understands what men desire in their use of razors for their grooming and also understands and know how to market the Gillette brand to all men around the world. Also the technological innovations and breakthroughs has created the most quality and well soughed razors by men around the word. From the twin blade (Trac II), THE Ara , the introduction of the triple blade shaving system, and the six bladed fusion, Gillette has become the best grooming kits for men who seek fresh feeling, and has become a brand for billion(Kotler & Keller, 2012). Gillette believes in quality and channels its resources into new invention for men. Gillette basically...
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...like to answer in this case study about Gillette is that Gillette has successfully convinced the world that “more is better” in terms of number of blades and other razor features. Why has that worked in the past? What is next? Gillette is solitary of the recognized shaver trademark targeted at man. The shaver has conventional fame and conservative by man who hand over their mug and membrane to Gillette. The technical novelty and promise for excellence and carry on development geared towards the only one of its kind requirements of man, which assist them to sense and give the impression of being their finest subsequent to every use. Gillette has existed victorious in persuasive the globe that supplementary is enhanced, in view to the integer of razor blades and other features of a shaver. To be unbeaten in the industry, it is essential that, a business comprehend the desires of its patrons and make sure that those requirements are gather and existing to clientele. Gillette realizes what man wish in their employ of shaver for their clean up and also appreciate and be acquainted with how to advertise the Gillette trade name to all man around the globe. As well as the scientific novelty and get through has shaped the preponderance excellence and healthy soughed shaver by man approximately the utterance. “From the twin blade (Trac II), the introduction of the triple blade shaving system (Mach 3), and the six bladed (Fusion), Gillette has become the best grooming kits for men...
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...------------------------------------------------- Gillette Indonesia Case Study Analysis October 24, 2015 Sumeet verma EPGP08-116 October 24, 2015 Sumeet verma EPGP08-116 Introduction 1901 – The Gillette Company founded in Boston. 1905 – Opening of London office, 1906 – Established a blade factory in Paris 1971 - Gillette entered the Indonesian market forming a joint venture with a local company 1972 – Established razor blade plant . 1995 – Manufacturing capacity of 150 million blades (46 million exported) 1996 – increase production to 168 million blades (50 million exports) 1996-2001 – Achieve production capacity of 230 million per year. Marketing Mix Products Gillette’s product line includes ; * Double edge razors (Core Product) * Disposables (2 types) * System blades (3 types) 87% of all the blades sold were double-edge (100 million out of 115 million sold) Share of disposables projected to increase to 20% in 1996. Revenue expected to $27.6million in 1996, with a gross margin of 46%. Gillette also expects the revenue from the Sensor system to double. Other product to grow at a smaller margin. Price Gillette’s products are relatively expensive (4 times that of competitions) Place: Distribution is most complex challenge. * Geographical spread across 15K islands. * Regulatory restrictions on foreign companies from directly importing & distributing products . * Poor traffic conditions , no/lack of distribution service...
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...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 sales have been over 2 Billion dollars per year since the early 2000s and currently retains the best relationships in terms of...
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...------------------------------------------------- Gillette Indonesia Case Study Analysis October 24, 2015 Sumeet verma EPGP08-116 October 24, 2015 Sumeet verma EPGP08-116 Introduction 1901 – The Gillette Company founded in Boston. 1905 – Opening of London office, 1906 – Established a blade factory in Paris 1971 - Gillette entered the Indonesian market forming a joint venture with a local company 1972 – Established razor blade plant . 1995 – Manufacturing capacity of 150 million blades (46 million exported) 1996 – increase production to 168 million blades (50 million exports) 1996-2001 – Achieve production capacity of 230 million per year. Marketing Mix Products Gillette’s product line includes ; * Double edge razors (Core Product) * Disposables (2 types) * System blades (3 types) 87% of all the blades sold were double-edge (100 million out of 115 million sold) Share of disposables projected to increase to 20% in 1996. Revenue expected to $27.6million in 1996, with a gross margin of 46%. Gillette also expects the revenue from the Sensor system to double. Other product to grow at a smaller margin. Price Gillette’s products are relatively expensive (4 times that of competitions) Place: Distribution is most complex challenge. * Geographical spread across 15K islands. * Regulatory restrictions on foreign companies from directly importing & distributing products . * Poor traffic conditions , no/lack of distribution service...
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...| Procter & Gamble | GEB 4890 | | Hessum Zangenehpour | Fall 2013 | | Table of Contents Executive Summary ……………………………………………………………………………………………………………… Page 2 The Company………………………………………………………………………………………………………………………… Page 2 History and Evolution……………………………………………………………………………………………….. Page 2 Mission and Major Goals…………………………………………………………………………………………. Page 2 Current Strategies……………………………………………………………………………………………………. Page 7 Competitive Environment…………………………………………………………………………………………………….. Page 14 Industry…………………………………………………………………………………………………………………… Page 15 Forces and Trends…………………………………………………………………………………………………… Page 18 Consolidating Retail Sector…………………………………………………………………………. Page 19 Private Labels…………………………………………………………………………………………….. Page 20 Competition……………………………………………………………………………………………… Page 20 Porter’s Five Forces………………………………………………………………………………………………. Page 21 Ethical Responsibilities and Challenges ……………………………………………………………….. Page 25 Environmental pollution…………………………………………………………………………… Page 26 Energy Consumption………………………………………………………………………………… Page 26 Possible challenges facing Procter and Gamble…………………………………………………….. Page 27 Internal Strengths and Weaknesses…………………………………………………………………………………. Page 28 Recommendations ………………………………………………………………………………………………………….. Page 37,45 Implementation……………………………………………………………………………………………………………….. Page 40,45 Evaluation…………………………………………………………………………………………………………………………...
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...Gillette's (G) Mission Statement As of this writing, Gillette is in the process of being bought out by Proctor & Gamble. The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. We are committed to building shareholder value through sustained profitable growth. VISION The Gillette Company’s Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition. This Vision is supported by two fundamental principles that provide the foundation for all of our activities: Organizational Excellence and Core Values. Attaining our Vision requires superior and continually improving performance in every area and at every level of the organization. Our performance will be guided by a clear and concise strategic statement for each business unit and by an ongoing Quest for Excellence within all operational and staff functions. This Quest for Excellence requires hiring, developing and retaining a diverse workforce of the highest caliber. To support this Quest, each function employs metrics to define, and implements processes to achieve, world-class status. CORE VALUES As we work toward our Vision, three core Values define the way we operate: ACHIEVEMENT We are dedicated to the highest standards of achievement in all areas of our business. We strive to consistently...
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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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...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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...This report outlines the requested Integrated Marketing Communications campaign (IMC) for the Procter & Gamble subsidiary Gillette, specifically for the most recent and advanced female razor: the Venus Embrace. The 2010 Winter Olympics held in Vancouver‐Whistler offer a unique opportunity to promote the Gillette Venus Embrace razor by capitalizing on the Olympic passion and enthusiasm. The female razor industry in Canada is valued at approximately $150,000,000 CDN, with the Venus brand currently controlling 28% of this market. The IMC plan is designed to increase the Venus brand market share by 3.13% to 31.13%. The target audience of the campaign is generation Y females; those aged 16 to 29 years old. There are approximately 2,881,457 Canadian females with our target audience. The IMC is specifically designed to target those with a high propensity for fashion and superior personal hygiene care. The report identifies key stakeholders, analyzes the Gillette company strengths, weaknesses, opportunities, and threats, and breaks down strategic decisions which lead to the communication and marketing objectives of the IMC plan. Additionally, a competitive analysis of the industry has been included. The Venus Embrace is positioned as a super premium razor, with five blades delivering the closest, smoothest shave a woman can get. The current Venus Goddess campaign is in its ninth year, and is in need of a revival, with specific consideration paid to the Olympic opportunity...
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...Those notes can only be sequenced so many times before they are repeated by a new musician and called “original”. Intellectual property has been protected in the courts systems, but has favored personal interest over creativity and borrowing. In the case of Weber vs. Repp for example, Repp was claiming to be the owner of the copied Catholic folk music stolen to create music by Weber. With help from a lawyer, it is proven that Weber wrote a song previous to the music and songs by Repp. It was demonstrated that Weber wrote a song, Repp wrote another song sounding similar, and then Weber wrote the song in question. This showing that Weber borrowed from himself and Repp borrowed from him. The musical notes played in the same sequence were copied by both composers and therefore the courts dismissed the case, musical notes are not owned by any one composer. It does not matter what you copy but how much you choose to take. The idea behind Gladwell’s argument is that borrowing some to be creative is and needs to be acceptable in the eyes of “plagiarism...
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