...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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...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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...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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...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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...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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...Think about a marketing campaign for a product/service that you believe what pretty successful in capturing a wide audience that resulted in increased (may be even windfall) revenue for the company. Why do you think they were successful in attracting people across gender, age, ethnicities and even national boundaries? (Examples of such campaign would be Nike's "Just Do It" or "Bo Knows ___" etc.). Conversely, you can also cite examples of campaigns that were spectacularly failures, and tell us why they 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...
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...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 market share. Gillette has long been known for innovation in both product development and marketing strategy. Today, innovation in razors and blades is hindered...
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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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...The New York Times posted an article promoting Duracell, a Proctor and Gamble brand, which is introducing a new line of batteries called Quantum. The article starts off by recognizing how consumers’ choices have evolved with newer technologies. For example, consumers are choosing devices like digital cameras which are powered by built-in rechargeable batteries, and smart phone alarms instead of battery-operated alarm clocks. Market research shows that the battery market declined between 2007 and 2012, with a 10% decrease in revenue. Nonetheless, Duracell is up for the challenge and has introduced Quantum, its most powerful battery which will be sold at a suggested retail price of 20%-30% premium. The new entry will replace Duracell Ultra, another premium battery line which is priced the same as Quantum. Quantum will be marketed with the color red, and will run advertising campaigns featuring firefighters and first responders in action during disasters. Duracell’s strategy to introduce a line of high-end batteries is an opportunity that was stimulated from the environment such as changing consumer’s needs and new means of technologies. The product life cycles for batteries are passed maturity, where it is important for the firm to differentiate it product in order to keep up with external factors such as competition and the environment. Quantum will be differentiated heavily in its marketing mix and offering. For instance, the price will be sold at a 20-30% premium, creating...
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...Lingxiang 2006 World Economics, Faculty of Business Hubei University Jun 12th 2008 This report details analyzing the market situation and marketing mix of Swatch. Possible marketing strategies, and benefits and risks, are explored. Finally, the type "C" Swatch should price under $30, and an exclusive distributorship should be adopted, are concluded. Furthermore, to enlarge Swatch's global market share and to achieve the economies of scale are recommended. The Swatch project was made by ETA, which produced a full range of watch movements and was known as the creator of ultra-thin movements used in expensive watches. This new watch would come in a variety of colored plastic cases and bracelets with an analog face, and ETA had designed an entire production process for Swatch. As the market share of Swiss watches shrunk sharply in the global market, ETA had faced a more and more difficult circumstance. The Swatch project under the code name “Popularius” aimed at rediscovering what the market wanted and then to supply and gain it. While problems were how to gain the potential market and how to adopt different marketing strategies to distribute and promote the new watch. The Swatch project concerned the investigation of Swatch’s potential markets and the feasibility of different marketing mix of Swatch watches and watch movements. The marketing mix of one company generally refers to product, price, promotion and place, which known as the "4Ps". This report would mainly analyze the...
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...Background of two companies Duracell: Duracell was started by a scientist named Samuel Ruben and tungsten filament manufacturer named Philip Rogers Mallory in 1920. In 1950, Kodak introduced a new flash light camera requires a new cell size, which was fulfilled by Samuel Ruben and resulted in the birth of AAA battery. He came up with highly reliable, compact, long lasting and never produced before alkaline manganese batteries. The term “Duracell” was introduced in the year of 1964 giving a simple but very distinctive message to their consumers about their durability as a firm in a battery business. In 1996, Gillette acquired Duracell and has been the second most valuable product after razors and blades. P&G acquired Gillette in 2005 to add up in their consumer product line. Duracell believes that there is a limitless potential of portable power and, as a company they always endeavor to develop the most innovative product in the section of portable power which could result in the powerhouse of someone’s life. They have the long history to provide disposable and rechargeable cells with the latest technology for different kind of appliances needed for day to day basis. They have the series of product such as AAAbatteries, AA batteries, Rechargeable Batteries, Specialty batteries and Chargers. Having the headquarter in Bethel Connecticut,USA;this “Trusted Anywhere” brand has been powering the people for more than 40 years. Duracell is currently the world’s leading producer...
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...personal care items. The company, as of 2004, has 14% market share globally, and 20% market share in Canada. Half of Rayovac’s revenue is due to their “general” battery product line. Unfortunately the company does not hold nearly enough market share as it’s’ competitors. Rayovac does however; enjoy a positive net income and a modest growth rate. The opportunity to enter the rechargeable battery market has been relatively unsuccessful in the past despite endorsers such as Michael Jordan in 1993. This is likely due to consumers being ill-informed about product benefits. Consumers are also unaware that Rayovac has an equal product to that of Duracell and Energizer, yet they offer their batteries at a lower cost. The market for rechargeables is highly fragmented, so Rayovac must alter their approach with respect to their marketing strategy to gain market share. STRATEGIC ISSUES _____________________________________________________________________ Although a large entry into the rechargeable battery market seems rather lucrative, there are several risks. For...
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...Rayovac Rechargeable Battery Case Study Advanced Market Planning Algoma University Student: Ahmad Shokair Prof.: Peter. J. Ostrowski Introduction The following information contains marketing analysis about the commencement of Rayovac Corporation and its modern marketing innovation. In the marketing world basis, manufacturing and producing batteries, in addition considering a strong and profitable entry to the potential market is considered to be a gamble, nonetheless its very complicated and difficult market to obtain. Many potential business owners were aiming for that market, however most of them has failed to satisfy its requirements for many reasons. Rayovac, as a company is specializing in producing such a high-quality, and advanced batteries, such as the rechargeable ones, has drilled its own brand name globally, and in addition, particularly in the North American market. The marketing analysis will be conducted in order to observe and utilize the strength and the weakness of the company to better understand the ideology of their market, and what type of marketing solutions should be implemented in order to enhance improvements. Rayovac’s Current Marketing Situation Rayovac Corporation is considered to be the largest manufacturer and marketer of consumer battery around the world. Its product has reached all type of consumers around the world, and has increased exponentially among household and commercial uses. Moreover, the product line...
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