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Gillette has long dominated the men's wet shaving market. However, its market share and profits have declined in recent years due to increased competition and consumers favoring cheaper disposable razors. Gillette is developing a new global segmentation strategy framework to better target consumer segments and partner with retailers. The framework will align customer segments, identify products for each segment, and provide tools to communicate joint marketing strategies with partners. More focused market research is still needed to fully understand consumers' shaving preferences across demographics, lifestyles, attitudes, and perceptions.
Gillette has long dominated the men's wet shaving market. However, its market share and profits have declined in recent years due to increased competition and consumers favoring cheaper disposable razors. Gillette is developing a new global segmentation strategy framework to better target consumer segments and partner with retailers. The framework will align customer segments, identify products for each segment, and provide tools to communicate joint marketing strategies with partners. More focused market research is still needed to fully understand consumers' shaving preferences across demographics, lifestyles, attitudes, and perceptions.
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Gillette has long dominated the men's wet shaving market. However, its market share and profits have declined in recent years due to increased competition and consumers favoring cheaper disposable razors. Gillette is developing a new global segmentation strategy framework to better target consumer segments and partner with retailers. The framework will align customer segments, identify products for each segment, and provide tools to communicate joint marketing strategies with partners. More focused market research is still needed to fully understand consumers' shaving preferences across demographics, lifestyles, attitudes, and perceptions.
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme PPT, PDF, TXT ou lisez en ligne sur Scribd
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. 3
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) . 4
Suggested strategy: Initial Framework Phase 2a
Global Framework Roll-Out
1. Develop, plan and implement sales and marketing
Phase 1 activities in test markets based on the framework Global Segmentation Strategy Framework Development 2. Train local Sales and Marketing personnel throughout the world on how to use framework and the 1. Built a framework that: Segmentation Alignment Web-based solution (see a. Programmatically aligns customer below) segments Phase 2b b. Generates positioning and media Global Segmentation Framework strategies to target key segments with specific products c. Helps local teams communicate to key 1. Converted and enhanced the Excel-based model to channel partners the benefits of sharing a web-based version, to provide additional features, segmentation data improved usability and reduced complexity, increased d. Provides a solid, fact-based foundation user volumes, global accessibility, maintainability, on which to discuss joint sales / marketing version control and security strategies with partners 2. Implemented two key modules for the web solution: 2. Tested / implemented the framework, end to a. Segmentation Alignment: automatically aligns end, resulting in joint marketing strategy customer segments to those of an operator / development with key partners retailer, as well as identifies sales opportunities for these segments 3. Target strategically not generically 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