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pukhtoonyar81@yahoo.com
A REPORT ON GILLETTE COMPANY

THE RAZOR WAR CONTINUES


Submitted by : Sahibzada Tayyab Jan
MBA 1.5 Years
1
st
Semester
Section (C)
Class ID : 130
Submitted To : Sir Shaheer Alam



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THE RAZOR WAR CONTINUES
A BRIEF HISTORY OF SHAVING: .......................................................................................................... 2
INTRODUCTION OF GILLETTE COMPANY ............................................................................................. 7
GILLETTE AT A GLANCE: .................................................................................................................. 15
GILLETTES VISION: ......................................................................................................................... 18
BUSINESS MISSION STATEMENT:...................................................................................................... 19
GILLETTES CORPORATE STRATEGIES: ............................................................................................ 20
GILLETTE IN A VIEW OF B.C.G. MATRIX: ............................................................................................ 23
STRATEGIES FOR PRICING AND PRODUCT DIFFERENTIATION: ........................................................... 24
GILLETTES CONTRIBUTION TOWARDS SOCIETY: .............................................................................. 33
GILLETTES PRODUCTS:................................................................................................................... 36
SWOT Analysis------------------------------------------------------------------------------------------------------38
Conclusion & Suggestion--------------------------------------------------------------------------------------44
References----------------------------------------------------------------------------------------------------------47


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A BRIEF HISTORY OF SHAVING:
Since the first man arrived on the earth, a decision has had to be made -
whether to allow a beard to grow or to remove it. Cave painting have shown
that, contrary to popular opinion, early man went about his work clean-
shaven, making good use of pieces of sharpened flint. With the Bronze Age
and primitive metalworking came razors made from iron, bronze and even
gold. The civilizations of Rome and Greece used iron blades with a long
handle and developed the shape of the 'open' or 'cut-throat' razor, which was
the only practical razor until the 19th century. With improvements in steel
manufacture came blades that were really sharp and capable of re-
sharpening.
Advances in razor technology changed shaving habits in the 20th century. In
1900, most men were either shaved by the local barber (your trusted
confidante, wielding a cut-throat razor), or periodically at home when
required, rather than regularly. The barber's better-off customers would have
personal sets of seven razors, labeled 'Sunday' to 'Saturday'. Today, nearly
all men shave everyday in their own homes, using a wide variety of
equipment.
Development of the 'Safety' Razor:
The first 'safety' razor, a razor where the skin is protected from all but the
very edge of the blade, was invented by a Frenchman, Jean-Jacques Perret,
who was inspired by the joiner's plane. An expert on the subject, he also
wrote a book called 'Pogonotomy or the Art of Learning to Shave Oneself'.
In the late 1820s, a similar razor was made in Sheffield and from the 1870s,
a single-edge blade, mounted on a hoe-shaped handle was available in
Britain and Germany.
The idea of a use-once, disposable blade (which didn't need re-sharpening)
came from an American, King Camp Gillette in 1895. It was suggested to
him that the ideal way to make money was to sell a product part of which
would need replacing at frequent intervals, an early example of built-in
obsolescence. However, producing a paper-thin piece of steel with a
sharpened edge strong enough to remove a beard was a near technical
impossibility at that time. Although patents were filed in 1901, it was not
until 1903 that Gillette could go into business, with the assistance of his
technical adviser, William Nickerson, and the necessary financial backing.
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He produced a grand total of 51 razors and 168 blades in that year. To
generate interest, many razors were given away to his friends.
By 1905, the year the Gillette razor came to Britain, 90,000 razors and 2.5
million blades were produced, rising to 0.3 million razors and 14 million
blades in 1908. In 1920, the Gillette razor was introduced as standard issue
to the British Army, replacing the old cut-throat. Gillette's early models had
a separate handle and clamp unit for the blade, but in the 1930s, he
introduced a single-piece version which had opening 'wings' in the top for
inserting the blade. Other razor manufacturers, such as Wilkinson, Ever-
Ready and Valet, produced similar safety razors but with resharpenable
blades. These used a new version of the old leather strop or a stropping
machine which through the blade was passed. Tiny safety razors for women,
using the Gillette system, appeared in the 1920s.
The increasing popularity of the rival electric razor prompted further
technical development in the late 1950s and 1960s onwards: long-life
stainless steel blades were introduced by Wilkinson Sword in 1956 and twin-
blade safety razors came in the 1960s, along with the completely disposable,
one-piece plastic razor introduced by Bic.
The first electric razors:
The concept of a powered razor was unknown until the 1930s. There were
some early experiments with clockwork and friction motors, but these
coincided with the increasing availability of electricity, and the invention of
the electrically-powered razor, both battery and main, eclipsed both of these.
The technology of the first electric razors was not new; the innovation was
in the housing of tiny electrical components safely inside a smooth, hand-
held casing. The electric razor was invented by a Canadian, Jacob Schick in
the 1920s. Schick was obsessed by shaving and believed that a man could
extend his years to 120 by correct, everyday shaving. He had already
invented a system of injecting blades automatically into a razor without
having to touch them. His first patent electric razor of 1923 consisted of a
large, hand-held, universal motor driving a remote cutting head via a flexible
shaft. This was clearly unmarketable without further development and, like
Gillette waiting for the perfection of his wafer-thin disposable razor blade
twenty years earlier, Schick had to wait until an electric motor had been
developed that was small enough to fit into a hand-held device, yet powerful
enough to cut through a beard.
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In 1931, he sold his first electric razor in New York for $25 and managed to
sell another 3,000 that year. This greatly refined product consisted of an
oscillating induction motor (the most powerful in the world at that time for
its size) driving a sliding cutter inside a slotted shearing head. The motor had
to be 'kick-started' into life with an exposed turnwheel. All the components
were housed in a sleek, black Bakelite shell that could be held comfortably
in one hand. Schick's gadget caught the public's imagination and by 1937,
1.5 million were in use and the market for the new 'dry razor' was worth $20
million. Many competitors joined the field and a 'gold-rush' mentality
quickly developed with many patent infringements and lawsuits. Even the
well-established Gillette was forced to develop his own electric razor as it
was argued that the amount a man spent on blades, creams and lotions in a
lifetime, more than outweighed the initial high cost of the electric razor.
The Remington 'Close Shaver' and the Sunbeam 'Shavemaster' were
launched in 1937, the latter using a larger universal brush motor with a foil
shearing head, rather than the Schick's induction motor and slotted cutter.
The Philips razor or 'Philishave', launched in 1939 in the Netherlands, used
an alternative method of a rotating blade behind a circular shearing head.
The cutting area of these early electric razors was very small, typically only
one quarter of the size of those on modern razors.
The pioneer Schick razor came to Britain in the mid-1930s, followed closely
by similar, British-made examples. These included the Rolls-Razor 'Viceroy'
(of which there was also a non-electric, hand-cranked version), the
'Clipshave', the 'Kwik-Shave' the 'Smoothmaster', the 'Minute Man', the
'Zenith' and the 'Aristocrat'. These names conjure up the notion that in the
late-1930s, an electric razor was the most up-to-the-minute gadget that the
smart modern man could equip himself with. However, it was not until the
arrival of American servicemen during the war that the electric razor became
a more familiar item, although even then, their use was not permitted in
British army quarters.
Battery-operated electric razors:
Cordless, battery-powered razors arrived in the late-1940s, having a separate
power unit. These became totally self-contained in the early 1950s with the
perfection of a powerful motor that could be run from a large D-size 1.5-volt
battery included in the casing. Later, the development of smaller A-size
batteries allowed for a greater diversity in battery razor design. The first
cordless, rechargeable electric razor was produced by Remington in 1960,
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followed by a model two years later that could be run either cordless or from
the mains.
Electric razor development after 1950:
After 1950 the progress of plastics technology allowed more stylized shapes
and brighter colours, although the simplicity and neatness of the pioneer
razors was replaced by bulkier casings and more features to increase sales.
More powerful motors enabled razors to have larger or multiple cutting
heads. Another change was in the way that electric razors were sold: pre-war
models had been sold on the benefits to the user of speed, safety and
convenience, with the new appliance clearly shown. By the late-1950s,
however, the public were familiar with the electric razor and the common
image of a smoothly shaven man with his adoring woman (and not a razor in
sight) spoke for itself. Throughout the 1050s, the razor continued to be
identified as a gadget for the modern man - top Hollywood actors used them
in big 1950s films such as The Long Wait (Anthony Quinn), Rear Window
(James Stewart) and Sabrina Fair (Humphrey Bogart).
Electric razors for women:
Electric razors specifically designed for women did not appear as a separate
product until the late 1940s, although the earliest razors were illustrated
being used by women in their accompanying leaflets. In 1947, Remington
re-marketed their original 1937 model as the 'Lady Shaver', taking advantage
of the fact that their new, late 1940s models were bigger, heavier and more
'masculine'. This started the trend whereby colour and styling was used to
differentiate mens' razors from womens': by the late-1950s, Remington
were offering the 'Princess' in pink plastic and Sunbeam sold the 'Lady
Sunbeam Shavemaster', a circular design resembling a compact in jade green
with gold trim.

INTRODUCTION OF GILLETTE COMPANY
Every day, more than one billion people around the world use one or more Gillette
products. From blades and razors to toothbrushes, from alkaline batteries to oral
care appliances, Gillette is the worldwide leader in nearly a dozen major consumer
product categories.
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And they are constantly challenging themselves to develop new products. An
example is Venus, their new shaving system for women. Gillette for Women
Venus combines breakthrough design with easy storage to redefine womens
shaving. In recent years, Gillette has introduced more than 20 new products
annually. Among these new products were the Gillette Mach3 shaving system, the
Duracell Ultra line of premium-performing alkaline batteries, the Braun Oral-B 3D
power toothbrush and the premium Oral-B CrossAction manual toothbrush.
Their portfolio of world-class brands is organized into three core businesses
grooming, portable power and oral care.
The Gillette Company, a Delaware corporation incorporated in 1917, was founded
in 1901 by King C. Gillette, the inventor of the safety razor. Gillette manufactures
and sells a wide variety of consumer products throughout the world. The following
are Gillettes primary businesses: The Chairman of Gillette James M. Kilts gives
his views about the company in his shareholders, letter as, There are few
companies with more powerful global brands than Gillette, and there are even
fewer companies that have so successfully used innovation to increase the market
strength and consumer appeal of their brands.
Grooming, including male and female, wet and dry, shaving products and
related toiletries.
Portable power, which includes alkaline and specialty batteries and cells.
Oral Care, including toothbrushes and power plaque removers.
Gillette also manufactures and sells small household appliances. Gillette
has manufacturing operations at 38 facilities in 19 countries and distributes
products in over 200 countries and territories.
Grooming:
Gillette is the global leader in the Blade and Razor segment of its grooming
business. Its shaving systems include the Mach3, SensorExcel, Sensor, Atra
and Trac II brands, as well as disposable razor brands such as Custom Plus
and Good News. The company is also the world leader in the womens wet
shaving market. Gillettes female shaving products include the SensorExcel
for Women, Sensor for Women, Agility and new Gillette for Women Venus
brands.
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The Company sells electric shavers and electric hair epilators as part of the
Braun Products segment. These products include the worlds number one
foil electric shaver for men and electric hair epilator for women. The
Toiletries segment includes shave preparations, after-shave products,
deodorants and antiperspirants, including the Gillette Series, Satin Care,
Right Guard, Soft & Dri and Dry idea brands.
Portable Power:
Within the Duracell segment, the Company is the global leader in alkaline
batteries, including premium-performing Duracell ultra batteries, as well as
Duracell Copper & Black batteries, the best-selling brand of alkaline
batteries in the world. Duracell also markets primary lithium and zinc air
batteries, as well as rechargeable nickel-metal hydride batteries.
Oral Care:
The Company holds the global leadership positions in toothbrushes, under
the Oral-B brand, and in power plaque removers, with its Braun Oral-B
plaque removers, which are part of the Braun Products segment. The
company manufactures and sells other oral care products under the Oral-B
brand.
Other Products:
The company also produces, markets and sells small household, hair care
and personal diagnostic appliances within the Braun Products segment.
Distribution:
Gillette has 38 manufacturing facilities in 19 countries and their products are
distributed in more than 200 countries and territories around the world. In
major geographic markets, Gillette products are sold directly to retailers and
to wholesalers for resale through retail stores. Braun personal diagnostic
appliances are sold to retailers and wholesalers, as well as to health care
professionals. Oral-b products are sold to retailers and wholesalers and
directly to dental professionals for distribution to patients. In some small
geographic markets, products are distributed through local distributors and
sales agents.
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Patents:
Certain of the Companys patents and licenses in the Blade and Razor
segment are of substantial value and importance when considered in the
aggregate. Additionally, the Company holds significant patents in its
Toiletries, Duracell, Braun and Oral-B businesses. No patent or license held
by the Company is material to the Companys total business. Gillette has
licensed many of its blade and razor patents to other manufacturers. In all of
these categories, Gillette competitors also have significant patent positions.
The patents and licenses held by the Company are of varying remaining
durations.
Trademarks:
In general, the companys principal trademarks have been registered in the
United States and throughout the world where the Companys products are
sold. Gillette products are marketed outside the United States under various
trademarks, many of which are the same as those used in the United States.
The trademark Gillette is of principal importance to the Company. In
addition, a number of other trademarks owned by the Company and its
subsidiaries have significant importance within their industries. The
Companys rights in these trademarks endure for as long as they are used or
registered.
Competition:
All of the Companys markets are highly competitive. Many of the
Companys competitors are larger and have greater resources than the
Company. The grooming products business is marked by competition in new
technology, as well as in price, marketing, advertising and promotion to
retail outlets and to consumers. The Companys major competitors
worldwide in blades and razors include Pfizer Inc., with its Schick product
line, and, in North America and Europe, its Wilkinson Sword product line;
and Societe Bic S.A. Toiletries is highly competitive in terms of price,
product innovation and market positioning, with frequent introduction of
new brands and marketing concepts, especially for products sold through
retail outlets, and with product life cycles typically shorter than in the
Companys other businesses. The portable power products business is highly
competitive in terms of product performance, innovation and price, and in
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marketing, advertising and promotion, Competition in oral care products is
focused on product performance, price and professional endorsement.
Competition in small household appliance products is based primarily on
product performance, innovation and price, with numerous competitors.
Employees:
At year-end, Gillette employed approximately 35,200 persons, about 70% of
them outside the United States.
Research and Development:
In 2000, research and development expenditures were $179 million,
compared with $201 million in 1999 and $190 million in 1998.
Raw Materials:
The raw materials used by Gillette to manufacture its products are purchased
from a number of suppliers, and substantially all such materials are readily
available.
Description of Property:
The Company owns and leases manufacturing facilities and other real estate
properties in the United States and a number of foreign countries. The
companys executive offices are located in the Prudential Center, Boston,
Massachusetts, where it holds a long-term lease.

The Technological Edge:
There is a difference between a good company and great company. A good
company tries to make its way to the top and sometimes succeeds. A great
company strides ahead of the rest, and then refuses to rest on its laurels. The
nearly 1,000 members of our international scientific and engineering team
continually strive to expand the companys knowledge of the technologies in
which our products are based. Often complex in theory, yet simple in their
ultimate use in the hands of a consumer, Gillette products reflect a blend of
scientific understanding, sound engineering principle and peerless
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manufacturing skill. At Gillette, we have the drive to find a better way, of
trying to make the satisfied consumer even more satisfied. For instance, how
can you make a great shave even greater? Or improve upon a toothbrush that
dentists all over the world swear by? The company has built its position as a
world leader in the consumer products industry by endlessly searching for
answers to the kinds of questions that many others may not ask. Because
part of being a great company is knowing that being good simply is not good
enough. You have to get better everyday.

GILLETTE AT A GLANCE:
In 1926, the year of the Company's 25th anniversary, King C. Gillette wrote
of the companys flagship product, the safety razor, "There is no other article
for individual use so universally known or widely distributed. In my travels,
I have found it in the most northern town in Norway and in the heart of the
Sahara Desert".
These words could just as easily be written today not just about our
razors, but about the wide range of top-selling Gillette products.
From Boston to Bangkok, Johannesburg to Mexico City to Berlin, the
modern traveler encounters a Gillette product portfolio far broader, and a
worldwide presence far stronger, than any envisioned by the Company's
founder. The Gillette Company today is the global market leader in nearly a
dozen major consumer products categories, principally in the grooming,
portable power and oral care businesses.
In the 100 years since the Company was founded, Gillette has gained, held
and strengthened leadership positions through the Company's strategy of
managing its business with a long-term, global perspective.
This demonstrated ability to generate long-term, profitable growth in a
changing global marketplace rests on several fundamental strengths. These
include a constantly increasing accumulation of scientific knowledge in core
businesses, innovative products that embody meaningful technological
advances and an immense manufacturing capability that produces billions of
flawless products every year reliably, efficiently and cost-effectively.
Transforming innovative ideas into useful daily products sold at a fair price
engenders another fundamental Gillette strength strong and enduring
consumer brand loyalty around the world.
Skillful marketing of superior technology to achieve worldwide leadership is
the goal of The Gillette Company. It is a goal pursued in global businesses
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that are large and healthy, with tremendous potential derived from normal
market development, as well as from growth stimulated by new products.
Nowhere are these qualities more evident than in the Company's powerful
grooming, portable power and oral care franchises.
As its exceptional performance throughout the twentieth century has shown,
Gillette is without peer in the grooming business. The Company has the
scientific knowledge to create, and the technical ability to develop and
produce, hair removal products that deliver a superior shave, whether wet or
dry, whether for men or women. An array of premium quality shaving
preparations and after-shaves complements the shaving process and rounds
out the Gillette grooming franchise. Additional market presence and support
is provided by the Company's well-established deodorant/antiperspirant
brands.
Portable power is another thriving worldwide business in which the
Company competes successfully. Duracell, the most popular brand of
alkaline batteries in the world, has expanded its clear global leadership in the
rapidly growing alkaline battery market.
Today, consumers around the world are embracing a growing number of
portable digital electronic devices. Enhancing its growth prospects, Duracell
offers strategic power-consulting services to leading device manufacturers to
further the inclusion of alkaline batteries as a power source in these
increasingly popular consumer devices.
Another large global business offering sizable growth opportunities for the
Company is oral care. It has been Gillette's fastest-growing business in
recent years.
The Company's Oral-B and Braun brands hold the global leadership
positions in manual and power toothbrushes, respectively.
Within its powerhouse businesses of grooming, portable power and oral
care, the Company has a formidable portfolio of global brands. These seem
poised for growth as Gillette products across a spectrum of product
performance and price points are being used by new consumers all the time.
In the grooming business, for example, the great majority of male Gillette
shavers in developing markets use double-edge blades. The first step up the
performance/price ladder for these consumers is to advance to Gillette twin-
blade shaving systems or disposable razors. In more developed markets, the
movement may be entirely within the systems category, as consumers trade
up from twin-blade to triple-blade shaving.
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Similarly, more than 75% of the world's consumers of portable power use
less costly zinc carbon batteries, rather than better performing alkaline. Once
converted to Duracell alkaline batteries, these consumers can then trade up
to the advanced technologies and premium performance of the Duracell
brand.
Oral care offers a comparable opportunity as consumers trade up from
regular Oral-B manual toothbrushes to the premium-priced CrossAction
manual toothbrush, and then move on to power-assisted Braun Oral-B
plaque removerswhich generate a highly profitable refill brush-head
business.
These leading global brands are the strength of The Gillette Company. They
demonstrate their global commitment to growth through innovation, growth
that will assure the Company's long-term competitive success as a world
leader in the consumer products marketplace.
To market and sell their portfolio of products, Gillette is organized into two
groups:
Global Business Management:
Global Business Management has worldwide responsibility for all research
and development, manufacturing and strategic marketing for all Gillette
product lines.
Commercial Operations:

Commercial Operations is responsible for all trade marketing and sales for
all of the Company's product lines worldwide.

GILLETTES VISION:
The Gillette Companys 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 their activities:
Organizational Excellence and Core Values.
Organizational excellence:
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Attaining their Vision requires superior and continually improving
performance in every area and at every level of the organization.
Their 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 they work toward their Vision, three core Values define the way they
operate:

BUSINESS MISSION STATEMENT:
The Mission Statement of Gillette Company is:
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.
Achievements:
They are dedicated to the highest standards of achievement in all areas of
their business. They strive to consistently exceed the expectations of both
external and internal customers.
Integrity:
Mutual respect and ethical behavior are the basis for their relationships with
colleagues, customers and the community. Fair practice is the hallmark of
the Company.
Collaboration:
They work closely together as one global team to improve the way they do
business every day. They communicate openly and establish clear
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accountability for making decisions, identifying issues and solutions, and
maximizing business opportunities.

GILLETTES CORPORATE STRATEGIES:
People oriented:
They will attract, motivate, and retain high-performing people in all areas of their business. They
are committed to competitive, performance-based compensation, benefits, training and personal
growth based on equal career opportunity and merit. They expect integrity, civility, openness,
support for others and commitment to the highest standards of achievement. They value
innovation, employee involvement, change, organizational flexibility and personal mobility. They
recognize value and are committed to the benefits found in the diversity of people, ideas and
cultures.
Customer Focus:
They will invest in and master the key technologies vital to category success. They will offer
consumers products of the highest levels of performance for value. They will provide quality
service to their customers, both internal and external, by t4reating them as partners, by listening,
understanding their needs, responding fairly and living up to their commitments. They will be a
valued customer to their suppliers, treating them fairly and with respect. They will provide these
quality values while improving their productivity.
Good Citizenship:
They will comply with applicable laws and regulations at all government levels wherever they do
business. They will contribute to the communities in which they operate and address social issues
responsibly their products will be safe to make and to use. They will conserve natural resources,
and they will continue to invest in a better environment.
They believe that commitment to this mission and to these values will enable the Company to
provide a superior return to their shareholders.
Diversifying Business:
Gillette is not stagnated on manufacturing male and female grooming products but also going to
conglomerate diversification as they are manufacturing alkaline batteries and cells, oral care
products including toothbrushes, household appliances including coffee makers and food
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preparation products. In this way, they are highly diversified in concentric and conglomerate
categories.
Going Downstream:
After acquiring core manufacturing capabilities, they have gone downstream, towards the
customer end to tap into valuable economic activity that occurs throughout the entire product life
cycle. They believe on forward integration system as they offer set of blades cartridges for their
safety razors in shaving market and they also provide maintenance facility for their household
appliances. In this way, they sell safety razors in order to open the door for capturing series of
earnings by selling cartridges of safety razors.
They are building customer allegiance. Their goal is not necessarily to gain the largest share of
customers but to gain the strongest relationship with the most profitable customers. This also
helps to gain customer loyalty.
Close Relationship with Customers:
They make direct contact to the customers. In their view, the customer is the most important and
they consider their customer as a king. They have particular strategies to make close relationship
with their customer. The Management visits Retail Stores randomly every month in order to
inquire the feedback from the Retail Stores about their customers. They hire unanimous
marketing research agencies who have activities to record customers views about product
performance and quality.
Focus On Differentiation:
They do not stick on a single product for longer period of time because they
believe on shorter product life cycle period as they consistently introduce
more and more new advanced technological products. They have very
efficient and effective research and development centers all over the world
where they continuously do research through their expertise and come up
with new innovative and more beneficial products for their customers.

GILLETTE IN A VIEW OF B.C.G. MATRIX:
If we analyze they Gillettes products according to the BCG matrix and
evaluate selection of strategies which should be followed by the company in
concern with the products we may indicate finally as:
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1. Star:
According to the BCG matrix Mach 3 is the star of Gillette world
wide because it has more market share and more market growth
opportunity as compared with its other products.
2. Cash cow
Blue stick razor is the cash cow of Gillette company because its
market share is high but now its market growth is low as Gillette has
launched its new products.
3. Problem child
The problem child of Gillette company is double edged blade because
it has low market share but it has market growth especially for the
markets of under developed and developing countries.
4. Dog
The Gillette company do not contain any dog brand currently but in
recent past they came with stationery products those products were
not profitable for the company and became a dog so the company used
divest strategy and closed their stationery products.



Industrial/CompetitiveAnalysis:

Based upon information from early 2005, Gillette dominated the razor and blades
industry with more than 70 percent of the global market-share, while Schick had about
20 percent. During this period, Pfizers Schicks shaving products had a growth rate of
15.04 percent, leaving Gillette with a negative change in net sales. At the same time,
Colgate Palmolive, another competitor of Gillette, increased its sales of toiletries and
oral care by 38 percent due to the introduction of new products over a five year period -
19 of the new products were introduced into the United States market alone. Energizer
was Gillettes major competitor in the area of portable power products; however, in 2005
Energizers experienced a decrease in net sales of 2.58 percent
Gillettes status changed towards the end of 2005 after it was acquired by Procter &
Gamble (P&G). This acquisition provided P&G with a market position in male grooming,
selected female grooming products, alkaline batteries, and in manual/power
toothbrushes. After the acquisition, razors accounted for nearly half of Gillettes $2.8
billion net sales; approximately 72% primarily behind the MACH3, Fusion, and Venus

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Competitive Forces Model:
Michael Porters Competitive Forces Model describes the factors contributing to the
firms in an international industry and associated with a specific country or region. If a
country has both advanced and specialized production factors it is likely to have strong
domestic competitors that can also be successful global competitors (Hitt, Ireland, &
Hoskisson, 2005, p. 240-241).
Force 1: The intensity of rivalry, which is the most obvious of the five forces in an
industry; helps determine the extent to which the value created by an industry will be
dissipated through head-to-head competition. The most valuable contribution of Porter's
five forces framework in this issue may be its suggestion that rivalry, while important,
is only one of several forces that determine industry attractiveness. It is most likely to be
high in those industries where there is a threat of substitute products; and existing
power of suppliers and buyers in the market.
Force 2: The second dimension in Porters model, demand conditions, is characterized
by the nature and size of buyers needs in the home market for the industrys goods or
services. The sheer size of a market segment can produce the demand necessary to
create scale-efficient facilities. Both potential and existing competitors influence average
industry profitability. The threat of new entrants is usually based on the market entry
barriers. They can take diverse forms and are used to prevent an influx of firms into an
industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast,
entry barriers exist whenever it is difficult or not economically feasible for an outsider to
replicate the incumbents position. The most common forms of entry barriers, except
intrinsic physical or legal obstacles, are as follows: economies of scale, such as benefits
associated with bulk purchasing; cost of entry: for example, investment into technology;
distribution channels: for example, ease of access for competitors; cost advantages not
related to the size of the company: for example, contacts and expertise; government
legislations, such as the introduction of new laws might weaken companys competitive
position; and differentiation, such as a certain brand that cannot be copied by another
company.
Force 3: Related and supporting industries are the third dimension in Porters model.
The threat that substitute products pose to an industry's profitability depends on the
relative price-to-performance ratios of the different types of products or services to
which customers can turn to satisfy the same basic need. The threat of substitution is
also affected by switching costs in areas, such as retraining, retooling, and redesigning
that are incurred when a customer switches to a different type of product or service. It
also involves: product-for-product substitution is based on the substitution of need;
generic substitution; and substitution that relates to something that people can do
without.
19 | P a g e

Force 4: Buyer power is one of the two horizontal forces that influence the appropriation
of the value created by an industry. The most important determinants of buyer power
are the size and the concentration of customers. Other factors are the extent to which
the buyers are informed and the concentration or differentiation of the competitors. This
force is relatively high where there a few, large players in the market, and present
where there are a large number of undifferentiated, small suppliers, and there is a low
cost of switching between suppliers.
Force 5: Firm strategy, structure, and rivalry make up the final country dimension and
also foster the growth of certain industries. The dimension of strategy, structure, and
rivalry among firms varies greatly from nation to nation. Supplier power is a mirror
image of the buyer power. As a result, the analysis of supplier power typically focuses
first on the relative size and concentration of suppliers relative to industry participants
and second on the degree of differentiation in the inputs supplied. The ability to charge
customers different prices in line with differences in the value created for each of those
buyers usually indicates that the market is characterized by high supplier power and at
the same time by low buyer power. Bargaining power of suppliers exists in the following
situations: where the switching costs are high, high power of brands, possibility of
forward integration of suppliers, and fragmentation of customers with a limited
bargaining power.
For this assignment, I researched the blade and razor industry, and to detail the
major environmental trends that affect Gillette, which is one of the main firms within that
industry. Part of working on this assignment involved evaluating the technology,
demographics, economic trends, as well as the political/legal, socio-cultural, and global
environment factors that affect Gillettes business strategy formulation.

Gillette is ranked 18 among the top 100 global brands; this ranking is based upon two
guidelines: that the brand is available for purchase on a global level, deriving 20% or
more of sales from outside the home country, and that the companys financial
information is readily available for public viewing (Maynard, 2003, p.2). Gillette qualifies
on both levels - it has sales in 200 countries, serving some 1.2 billion consumers, and
it is publicly owned corporation

By entering into new global markets, Gillette was able to increase its profit margin, for
example it sold 10% more razors and blades, with a robust rollout of the new Fusion
line in Europe and Japan last year (MSN, 2006). According to the course textbook, the
result of globalization on companies like Gillette is that global efficiency is increasing as
more industries begin to experience global competition (Hitt, Ireland, & Hoskisson,
2005, p. 256). Global efficiency, in turn, is dependent on a countrys ability to market its
products to other countries, which is mainly based upon the type of government
regulations established for trading with other countries.

20 | P a g e

All countries enforce some level of regulation on trade to protect their businesses and
citizens from being exploited by other businesses; however, the level of government
involvement in trade depends on the political/legal, socio-cultural environment of a
particular country and of the surrounding countries. Foreign firms that invest in another
country may have concerns about the stability of the national government and what
might happen to their investments or assets because of unrest and government
instability

Trade regulations especially those dealing with importing resources from other countries
tend to be the strictest, rather than regulations involving the export of items. Those
countries that have more flexible regulations and/or standardization across country
borders are usually the easiest to work with from an exporters viewpoint. When a
country does not have standardization of trade regulations or lacks experience with
trading with foreigners, large corporations, such as Gillette, employ a multi-domestic
strategy with certain product lines and a global strategy with others.

Most corporations require this type of product flexibility if they are to
be strategically competitive, in part due to the socio-cultural trends that change over
time. The purchase or sale of global goods and services often requires some sort of
customization to meet government regulations within particular countries or to fit
customer tastes and preferences across country markets to hold down costs (Hitt,
Ireland, & Hoskisson, 2005, p. 246). For example, in countries where waxing or other
forms of hair removal are popular, such as in European countries, it might be hard for
Gillette to sell razors and razor blades to that market.

Overall, there are many different factors that need to be considered when a company
such as Gillette tries to enter new global markets, such as the socio-political and
economic trends, along with the socio-cultural aspects. Understanding global
environmental trends should be a major part of any business strategy formulation.










21 | P a g e

STRATEGIES FOR PRICING AND PRODUCT DIFFERENTIATION:
Price and product quality has close relationship the Gillette company has
adopted the following strategies for setting prices and product quality
L - indicates low
M - indicates medium
H - indicates high
1. Low Price And Low Quality
2. Medium Price And Medium Quality
3. Low Price And High Quality
4. Medium Price And High Quality
5. High Price And High Quality
6. High Price And Medium Quality
7. High Price And Low Quality
8. Medium Price And Low Quality
9. Gillette company has adopted number 2 ,4,5 strategies because non of
its product is of low price and low quality.
10. Gillette Company has done following differentiation to make their
products unique.
Gillette MACH3Turbo:
Gillette MACH3Turbo is the best performing shaving system ever - even
better than MACH3. It delivers the closest and most comfortable shave with
less irritation, even when shaving against the grain.
Protected by 35 patents, MACH3Turbo combines several innovations,
including new Anti-Friction blades, an ultra-soft protective skinguard, a
new patented lubrication system and an improved razor handle.
Differentiated Features Of Mach3 Turbo:
Three Anti-Friction blades glide through beard hair with less
resistance than any other blades, for the closest, most comfortable
shave.
The ultra-soft skinguard consists of ten thinner and more flexible
microfins that precede the blades and smooth out the skin, gently lifting
even stubborn hairs before the first blade cuts them.
The Indicator lubricating strip with Vitamin E features a new patented
lubrication system, which releases even more lubrication over a greater
22 | P a g e

number of shaves, improving razor glide and adding to shaving comfort.
The green stripe fades with use to signal when men are no longer
getting the optimal MACH3Turbo shave.
The MACH3Turbo handle features knurled elastomeric crescents and
metal grooves that provide better handling and control when shaving,
and a sleek, modern design with a titanium-like finish.
Superior forward-pivoting action, housed in the cartridge itself instead of
the blade handle, allows the three blades to glide effortlessly along the
surface of the skin while maintaining their progressive alignment.
Open cartridge architecture makes rinsing and cleaning the
MACH3Turbo blades easier than ever; the single-point docking system-
loading the cartridge at one point instead of two-makes it virtually
impossible for consumers to accidentally load a cartridge upside down.
Independently moving spring-mounted blades sense and adjust to every
contour of the face, adding to the closeness and comfort of the shave.
The shaving organizer holds both the razor and extra cartridges, stands
on end for convenient storage and packs easily for travel.
New Gile Seriestm Shave Gels And Foams :
New Gillette Series Shave Gels and Foams are premium, technologically
advanced products that have been designed specifically for the individual
skin care and protection needs of men.
New Gillette Series Shave Gels and Foams moisturize and soften beard hair;
create a protective layer of lubrication to maximize razor glide during
shaving; and feature skin comfort ingredients to provide the protection and
comfort needed for healthy looking skin.
Differentiated Features:
The new Gillette Series Shave Gels have been enhanced with anti-
friction lubricants for ultra smooth razor glide. New Gillette Series Shave
Gel and Foam for Sensitive Skin has added Aloe to gently soothe skin.
New Gillette Seriestm After-Shave Gels, Lotions And Splashes:
New Gillette Series After-Shave Gels, Lotions and Splashes are premium,
technologically advanced products that have been designed specifically for the
individual skin care and protection needs of men.
23 | P a g e

New Gillette Series After-Shave Gels, Lotions and Splashes provide
advanced comfort and protection, which helps restore skin to a healthy
balance after shaving. New Gillette Series After-Shave Cooling Gel has
been reformulated to provide a long-lasting skin cooling sensation, to
calm irritation and to help restore the skin to a natural balance.
New Gillette Series After-Shave Moisturizing Lotion has been
reformulated with soothing humectants for a comfortable feel and
smooth look.
New Gillette Series After-Shave Splash has been reformulated to
incorporate a combination of unique skin hydrating ingredients, with
masculine fragrances including Cool Wave, Wild Rain, Pacific Light and
Arctic Ice/Peak.
New Gillette Series After-Shave Gels and Lotions are available in Sensitive
Skin, Normal-Dry Skin, Conditioning and Protection Formulas in the following
fragrances: Cool Wave, Wild Rain, Pacific Light and Arctic Ice / Peak.
New Gillette Series After-Shave Gels, Lotions and Splashes feature
distinctive, ergonomically designed side grips to maximize product
identification and appeal.
Translucent bottles with easy flip caps have been developed to
differentiate the After-Shave Cooling Gel from the After-Shave
Moisturizing Lotion.
A new premium glass bottle has been developed for the After-Shave Splash
New Gillette Series Anti-Perspirant & Deodorant:
New Gillette Series Anti-perspirants and Deodorants are premium,
technologically advanced products that deliver long-lasting odor and
wetness protection in a variety of forms that meet the specific application
needs of men.
The Anti-perspirants and Deodorants are available in new Power Stripe,
Clear Gel, Clear Stick and Invisible Solid Stick forms.
The New Gillette Series Power Stripe is available in three new fragrances:
Surf, Breeze and Frost. The other Anti-perspirant and Deodorant forms are
available in the traditional Gillette Series fragrances: Cool Wave, Wild Rain,
Pacific Light and Arctic Peak.
24 | P a g e

Differentiated Features:
New Gillette Series Power Stripe features a breakthrough odor control system concentrated in a distinct
blue stripe. Power Stripe delivers strong, long-lasting protection against odor and goes on clear with no
residue. It also features a strong anti-wetness ingredient to keep men's underarms dry.
New Gillette Series Power Stripe Anti-perspirants and Deodorants feature a clear cap that provides
consumers with direct views of the stripe, while light-reflective graphics highlight the products'
benefits.
MACH3
TM
Cool Blue From Gillette:

The new MACH3
TM
Cool Blue shaving system combines Gillettes most
advanced shaving technology from MACH3
TM
with an eye-catching, icy
blue-colored handle. MACH3
TM
provides men with the closest shave in
fewer strokes with less irritation, while the ergonomic handle provides a
secure grip for a fast, safe shave.
Differentiated Features:
The ergonomic handle in new "Cool Blue" features three rubberized
crescent-shaped grips, and is easy to hold and maneuver throughout the
entire range of shaving motions.
Three blades positioned in a proprietary progressive configuration give
men a closer shave in fewer strokes with less irritation. During the course
of a single stroke, each blade shaves closer than the one before.
The patented DLC
TM
comfort edges are thinner than any other Gillette
blade edges and glide through beard hairs more easily. With MACH3, the
consumer experiences less drag and pull for an extraordinarily
comfortable shave.
The cartridges superior forward pivoting action allows the three blades to
glide effortlessly along the surface of the skin.
The Indicator

lubricating strip, with Vitamin E, provides skin benefits to

address irritation. blue stripe on the strip fades with use to alert men
when theyre no longer getting the optimal MACH3
TM
shaving
experience.
Open cartridge architecture makes rinsing and cleaning the blades easier
than ever; the single-point docking system (loading the cartridge at one
25 | P a g e

point instead of two) simplifies the loading process and eliminates any
guesswork, since its impossible for consumers to accidentally load a
cartridge upside down.
Independently moving spring-mounted blades sense and adjust to every
contour of the face, adding to the closeness and comfort of the shave.
Gillette Right Guard Xtreme Sport Anti-Perspirants:
New Gillette Right Guard Xtreme Sport anti-perspirants are the latest
additions to the Right Guard brand and are targeted toward active young
men. These performance-driven anti- perspirants provide effective
protection without leaving a white residue and are available in Invisible
Solid, Ultra Gel and Clear Stick formulas in two new, long-lasting
fragrances -- Fresh Blast and Cool Peak. The products are designed to
keep performing even when men push themselves to their limit.
Differentiated Features And Benefits:
Right Guard Xtreme Sport Invisible Solid looks white, but goes on
clear. This stick solid form, which protects against wetness all day long,
is a favorite among young men.
Right Guard Xtreme Sport Ultra Gel features a new and improved gel
formulation with enhanced odor protection and a longer-lasting fragrance
that leaves men feeling cool and fresh. This clear gel incorporates a
powerful wetness- and odor-stopping ingredient, but leaves no white
residue.
Right Guard Xtreme Sport Clear Stick is a transparent stick that leaves
no white residue. The clear, drier formula glides on without any caking or
clumping, and protects against odor and wetness.
Right Guard Xtreme Sport anti- perspirants are available in two new
fragrances based upon the latest prestige scents -- Fresh Blast and Cool
Peak.
Cool Peak is a long-lasting masculine fragrance that leaves men feeling
fresh, clean and ready for action, while Fresh Blast has an appealingly
warmer, woody scent.
Right Guard Xtreme Sport anti-perspirants will be available beginning in
April 2000 in food, drug, and mass merchandise outlets across the U.S.
Gillette Series Arctic Peak Ultra Conditioning Shave Gel:
26 | P a g e

Gillette Series Arctic Peak Ultra Conditioning Shave Gel.
Differentiated Features:
Ultra Conditioning. Arctic Peak Ultra Conditioning Shave Gel contains a
unique blend of advanced lubricants and beard softeners for unsurpassed
razor glide and protection against nicks and cuts.
Extra lubrication. Arctic Peak Ultra Conditioning Shave Gel is specially
formulated with emollients, aloe and soothing moisturizers to help
protect against irritation and provide greater skin comfort.
Rich lather. Arctic Peak Ultra Conditioning Shave Gel foams-up quickly to
produce a rich, long-lasting lather.
Ergonomic dispensing. Arctic Peak Ultra Conditioning Shave Gel features
an ergonomically designed dispensing system that significantly improves
handling and control during use.
Arctic Peak -- the newest of the Gillette Series signature fragrances --
is bold, refreshing and adventurous. It features an oakmoss, warm woods
and musk base note combined with a geranium, cinnamon, sage and
honeyed mahogany middle note that is topped with a unique blend of
apple, bergamot, pineapple and basil. The Arctic Peak fragrance
capitalizes on the appeal of a clean, sporty scent that projects a well-
groomed, modern image.
The Arctic Peak fragrance was created by an advanced fragrance
technology called "head space analysis," used today in many of the
world's finest fragrances. This technology allows perfumers to extract the
aroma of a particular plant or flower while it is a living organism rather
than collecting the essential oil from dying or decaying flora.
Dry Shaving:

Braun Syncro System Factsheet Braun Syncro Shaver.
Differentiated Features:
World's first 4-way moving head: The pivoting and now oscillating head
shaves closer. The oscillation movement dynamically increases the size of
each foil hole, increasing the effective shaving area by 60% to capture even
more hair in fewer strokes, for a longer lasting, closer shave. The movement
27 | P a g e

also reduces friction between shaving foil and skin by 30%, creating even
less irritation.
Improved cutter block speed: The motor speed is increased by 10% to 8,500
R.P.M.
New Long Hair Trimmer: The higher trimmer position and upward pointing
angle gives better visibility of the trimmer contour in the mirror.
New interactive display: Provides information on charge status, cleaning,
warning and key part numbers. The display is always upright, it flips
automatically when the shaver is place head first into the Braun Clean &
Charge.
New central switch with integrated lock: Prevents accidental switching on e.g.
in a suitcase.
New appealing ergonomic design Combining perfect function and top design
quality.
Accessories included: Travel case, cleaning brush, 12-volt cord, and a wall
mount (selected models only).
Introducing Mach3
tm
Cool Blue From Gillette:
Boston, January 8, 2001 -- The Gillette Company today introduced
MACH3
TM
Cool Blue, a new razor that combines the advanced shaving
technology of MACH3
TM
with an eye-catching, icy blue-colored handle and
organizer. The new razors color, which capitalizes on recent design trends,
was selected for its global appeal, particularly among young men.
"Our research has shown again and again that color -- when combined with
superior performance -- can play an important role in a mans choice of
razor," said Elena Fernandez-Bollo, Vice President, Grooming Products, The
Gillette Company. "With blue as the current color of choice for cutting edge
products from skiwear to personal computers and wristwatches, our choice
for a re-colored MACH3
TM
became an easy one."
MACH3
TM
provides men with the closest shave in fewer strokes with less
irritation, while the ergonomic handle provides a secure grip. The handle --
now available in "Cool Blue"-- features three rubberized crescent-shaped
28 | P a g e

grips and is easy to hold and maneuver throughout the entire range of
shaving motions.
The introduction of MACH3
TM
Cool Blue follows the Companys highly
successful introduction of MACH3
TM
in 1998, sales of which have reached
$1 billion. Today, Gillette holds more than two-thirds the dollar share of the
global razor market.
MACH3
TM
Cool Blue will be supported by a print and broadcast advertising
campaign with the tagline, "Move to the Cool Blue World of MACH3." The
razor will be available in North America and Europe beginning in February
2001, in food, drug, convenience and mass merchandise stores. The
suggested retail price in the U.S. is $6.49 - $6.99, including razor, organizer
and two cartridges.
Headquartered in Boston, Mass., The Gillette Company is the world leader
in male grooming, a category that includes blades, razors and shaving
preparations. Gillette also holds the number one position worldwide in
selected female grooming products, such as wet shaving products and hair
epilation devices. In addition, the Company is the world leader in alkaline
batteries, toothbrushes and oral care appliances.


GILLETTES PRODUCTS:
Their mission is to achieve or enhance worldwide leadership in the
consumer product categories in which they choose to compete. Their focus
is on placing resources behind Gillettes three core businesses: grooming,
portable power and oral care. Their core businesses account for nearly 80%
of their sales and 90% of their profits. They are in all three the
undisputed global leader.
Each of their core businesses contain power brands that:
Engender strong consumer loyalty.
Are perceived to be the best by consumers.
Command premium pricing due to our technical leadership.
Compete in growing global categories.
29 | P a g e

Have a high profit margin.
Some of their core brands include:
Gillette Mach3 turbo
Gillette Mach3
Gillette for Women Venus
Gillette Series
Gillette Satin Care
Duracell Ultra
Oral-B Toothbrushes
Braun Oral-B Plaque Removers
Braun Electric Shavers

New Gillette Series Shave Gels and Foams:

New Gillette Series Shave Gels and Foams moisturize and soften beard hair;
create a protective layer of lubrication to maximize razor glide during
shaving; and feature skin comfort ingredients to provide the protection and
comfort needed for healthy looking skin.

The new Gillette Series Shave Gels have been enhanced with anti-friction
lubricants for ultra smooth razor glide.
New Gillette Series After-Shave Gels, Lotions and Splashes:

New Gillette Series After-Shave Gels, Lotions and Splashes, designed
specifically for the individual skin care and protection needs of men, provide
30 | P a g e

advanced comfort and protection, which helps restore skin to a healthy
balance after shaving.
New Gillette Series Anti-Perspirant and Deodorant:

New Gillette Series Anti-perspirants and Deodorants are premium,
technologically advanced products that deliver long-lasting odor and
wetness protection in a variety of forms that meet the specific application
needs of men.

The Anti-perspirants and Deodorants are available in new Power Stripe
TM
,
Clear Gel, Clear Stick and Invisible Solid Stick forms.

The New Gillette Series Power Stripe is available in three new fragrances:
Surf, Breeze and Frost. The other Anti-perspirant and Deodorant forms are
available in the traditional Gillette Series fragrances: Cool Wave, Wild Rain,
Pacific Light and Arctic Peak.
Gillette MACH3Turbo and Gillette Series will be available to consumers in
North America beginning in April 2002, in food, drug, convenience and
mass merchandise outlets. A global rollout for both products will follow.
Satin Care:

Gillette for Women Satin Care, the first soap-free shaving gel for women,
was introduced in the U.S. in 1995. It is now available in four formulas, and
a nonaerosol version in an innovative soft-touch bottle was introduced in late
1997. As a brand extension, Satin Care deodorants/antiperspirants for
women were introduced in selected international markets in 1998.
Right Guard:

In its original aerosol form, Right Guard deodorant was introduced in 1960
as the first deodorant marketed for the family. Right Guard has been an
important brand, in many forms and variations, for the past 40 years. Right
Guard antiperspirant was added to the line in 1968; first roll-on, in 1975;
first pump, in 1977; Right Guard solid antiperspirant in 1981; and Right
31 | P a g e

Guard clear gel in 1993. Right Guard Xtreme Sports, designed specifically
for active people, was launched in 2000.
Soft & Dri:

Soft & Dri was launched in 1969 as a non-sting aerosol antiperspirant for
women. A roll-on version was introduced in 1975. Soft & Dri solid, with
twist-up dispenser for durability and ease of application, was introduced in
1982, and a clear gel version was launched in 1994.
Dry Idea:

Dry Idea antiperspirant, a specially formulated roll-on containing almost no
water, was launched in 1978. Solid and aerosol forms of Dry Idea were
introduced in 1985, with a clear gel version in 1994.
MACH3 Turbo:
The Gillette Mach3Turbo, Gillette's next generation triple-blade shaving
system, is the most technologically advanced shaving system in the world.
Extensive testing among men has established conclusively that
MACH3Turbo is the best-performing shaving system ever, significantly
outperforming Gillette's own MACH3, the world's leading razor.
MACH3Turbo provides men with the closest and most comfortable shave
with less irritation, even when shaving against the grain.
The Mach3Turbo shaving system provides a number of important design
features and benefits, including:
Protected by 35 patents, MACH3Turbo combines several innovations,
including new Anti-Friction
TM
blades, an ultra-soft protective
skinguard, a new patented lubrication system and an improved razor
handle.
Three Anti-Friction
TM
blades glide through beard hair with less
resistance than any other blades, for the closest, most comfortable
shave.
The ultra-soft skinguard consists of ten thinner and more flexible
microfins that precede the blades and smooth out the skin, gently
lifting even stubborn hairs before the first blade cuts them.
32 | P a g e

The Indicator lubricating strip with Vitamin E features a new
patented lubrication system, which releases even more lubrication
over a greater number of shaves, improving razor glide and adding to
shaving comfort. The green stripe fades with use to signal when men
are no longer getting the optimal MACH3Turbo shave.
The MACH3Turbo handle features knurled elastomeric crescents and
metal grooves that provide better handling and control when shaving,
and a sleek, modern design with a titanium-like finish. Superior
forward-pivoting action, housed in the cartridge itself instead of the
blade handle, allows the three blades to glide effortlessly along the
surface of the skin while maintaining their progressive alignment
Open cartridge architecture makes rinsing and cleaning the
MACH3Turbo blades easier than ever; the single-point docking
system--loading the cartridge at one point instead of two--makes it
virtually impossible for consumers to accidentally load a cartridge
upside down.
Independently moving spring-mounted blades sense and adjust to
every contour of the face, adding to the closeness and comfort of the
shave.
The shaving organizer holds both the razor and extra cartridges, stands
on end for convenient storage and packs easily for travel.
Gillette MACH3Turbo and Gillette Series will be available to consumers in
North America beginning in April 2002, in food, drug, convenience and
mass merchandise outlets. A global rollout for both products will follow.


Gillette Mach3:

The Gillette Mach3, the first triple-blade razor was introduced in 1998 and
has become the world's leading razor.
Three independently suspended blades, each equipped with patented DLC

comfort edges, give you the cleanest and smoothest shave you've ever
experienced. Not only will your shave be more comfortable, you'll also be
able to shave closer in fewer strokes, with less skin irritation especially in
the sensitive neck area.
The Mach3 system provides a number of other important design features and
benefits, including:
33 | P a g e

Forward pivot - for a closer, more comfortable shave.
Single-point cartridge docking - for easy loading.
Indicator lubricating strip - to let you know when you're no longer
experiencing the optimal Mach3 shave.
Open cartridge architecture - for easy rinsing.
Ergonomic handle design - for improved handling.
Comfort Blades:

The Gillette Company recently introduced Gillette Comfort Blades
improved, thinner blades designed to cut hair more easily than traditional
Gillette blades for an extraordinarily comfortable shave.
Branded with a unique new quality seal, Comfort Blades will be featured
throughout the Company's complete line of twin blade male and female
shaving systems and disposable razors. They will be available in the U.S.,
Canada and Europe beginning in early November 2000, with worldwide
distribution completed in early 2001.
Sensor:


After its unveiling in late 1989 to trade and media, the Gillette Sensor
shaving system was introduced in January 1990 in 16 countries, marking the
Company's first pan-Atlantic product launch. The Sensor system has won
many awards (for product innovation, design, advertising excellence) and
has been accepted into several museum collections.
The Sensor system features twin blades that are individually mounted on
highly responsive springs and that automatically adjust to facial contours.
SensorExcel:


Introduced in 1993, the SensorExcel twin blade cartridge incorporates a
revolutionary skin guard composed of five soft, flexible microfins that
deliver at the time unprecedented shaving closeness and comfort. It
debuted in Western Europe, with a U.S. launch in 1994.
34 | P a g e

Atra:


The Atra automatic-adjusting twin blade razor and cartridge were introduced
in the U.S. in 1977 and became the best-selling razor in the country that
year. It features a pivoting, rather than fixed, twin blade cartridge head. The
Atra Plus system-- which is the Atra razor, plus the new Lubrasmooth
lubricating strip-- was introduced in 1985.
Trac II:

The world's first twin blade shaving system, lightweight and easy to handle,
Trac II was introduced in 1971. GII, its international version, was introduced
in Germany, its first overseas market, in 1972.
Custom Plus:

The Custom Plus line of twin blade disposable razors for men and women
was introduced in 1994, featuring an improved lubricating strip and longer
handle for greater control.
Good News:

The Good News twin blade men's disposable razor, introduced in 1976,
became the top-selling disposable razor in the U.S. that year and has
remained number one since then. The line has been improved and broadened
several times, including the 1984 launch of Good News Pivot, which
features a moving cartridge head that automatically adjusts to facial
contours.
Gillette for Women Venus:

The new Gillette for Women Venus shaving system combines breakthrough
design with easy storage to redefine the womens shaving experience.
35 | P a g e

Gillette for Women Sensor:

Introduced in the U.S. midyear 1992, this breakthrough shaving system
became an immediate hit, with sales and market share far surpassing
expectations. By year-end 1992, it was the country's top-selling razor. The
Gillette for Women Sensor system combines the technological innovation of
the Sensor cartridge with a unique razor and lubricating strip specifically
designed to meet women's shaving needs.
Gillette for Women SensorExcel:

Introduced in 1996, the Gillette for Women SensorExcel combines the
innovative design of the Gillette for Women Sensor razor with cartridges
featuring five flexible microfins for a close, comfortable shave.
Gillette for Women Agility:

Introduced in late 1997, this twin blade disposable razor for women features
a lubricating strip and new handle design for greater control and
maneuverability.
Gillette for Women Daisy:

The first version of this disposable razor for women was introduced in 1975.
Daisy Slim was introduced in 1991, featuring a slimmer shaving cartridge
and a Lubrasmooth lubricating strip.
Appliances Household:

Braun offers a wide array of distinctive kitchen appliances, including food
processors, handblenders, coffee makers and grinders, press and spin juicers,
water kettles and steam irons. Braun holds the number one position
worldwide in the large handblender market
HairCare:
36 | P a g e


The Braun hair care appliance business, a leader in Europe, consists of a range of top-selling hair dryers,
as well as hair stylers in both electric and cordless models.
Duracell CopperTop:

Quality that lasts! Duracell's most popular alkaline battery in the world is
now even better. Duracell has incorporated select breakthrough technologies
used in the original DURACELL ULTRA and put them into the new and
improved DURACELL to give it increased performance and dependability-
all at an excellent value.
The CopperTop is best suited when you need reliable, long-lasting life from
your everyday devices like remote controls, toys, personal stereos,
flashlights, radios and pagers.
In tests, the new and improved DURACELL has shown up to a 125%
increase in performance compared to original DURACELL Batteries!
Duracell Ultra:

DURACELL ULTRA with M3 Technology is the most powerful
DURACELL Alkaline Battery ever made especially in high drain devices.
The secret is in the revolutionary M3 Technology:
MORE FUEL Packed with even more active ingredients
MORE EFFICIENCY Reformulated to improve electron flow
MORE POWER Devices run longer and work better
As for performance, you'll get faster flashes from your camera*, brighter
light from your halogen flashlights*, and more music from your super
boombox*. The more features a device has, the more power it requires to
run.
All DURACELL ULTRA Alkaline Batteries come with PowerCheck
TM
,
Duracell's patented battery tester, which lets you know when it's time to buy
more DURACELL Batteries.
Oral-B:
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Recognized worldwide for its outstanding oral care products, Oral-B is the
leader in the fast-growing global toothbrush market.
Oral-B toothbrushes, the foundation and largest category of Oral-B's thriving
oral care business, are the brand used by more dentists and consumers than
any other in the U.S. and many major international markets.
For adults, key brands include the new premium performance Oral-B
CrossAction toothbrush, as well as top-selling Oral-B Advantage Control
Grip toothbrushes. Oral-B is also the market leader in children's
toothbrushes, including Oral-B Stages, Blues Clues, Nickelodeon, Rugrats
and Sesame Street models.


Oral-B Stages:

Developed by Oral-B with the input of hundreds of pediatric dental
professionals, parents and children, Oral-B Stages recognizes that oral care
needs evolve dramatically as children grow. Differences in the development
of teeth and gums, in motor skills and coordination, and in levels of
motivation and interest inspired Oral-B to design toothbrushes for children
at four key stages: four to 24 months (Stage 1), two to four years (Stage 2),
five to seven years (Stage 3) and eight years and up (Stage 4).
Each Oral-B Stages toothbrush addresses the 3Ds of childrens oral care:
dentition, dexterity and development.
Dentition - The specific characteristics of a child's jaw and teeth. Each
Oral-B Stages toothbrush features a brush head and bristle configuration
that addresses such dental developments as teething, the transition from
baby teeth to permanent teeth and the growth of the jaw and mouth.
Dexterity - A childs ability to effectively reach and clean different areas
of his or her mouth. Handle sizes are designed to suit a childs hands,
while handle configurations and non-slip grips improve dexterity and
reach.
Development - The factors that motivate children to brush. Brush
colors, shapes and designs -- and the exclusive use of beloved Disney
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characters such as Winnie the Pooh, Mickey Mouse, Buzz Lightyear and
the Disney Princesses -- make brushing fun and exciting.
Oral-B CrossAction:

The Oral-B CrossAction premium performance toothbrush is clinically
proven (in one-time brushing studies) to remove more plaque than today's
leading toothbrushes. It makes a bold departure from traditional vertical-
bristle toothbrush design with its unique CrissCross bristles angled in
opposing directions.
More Angles, More Action, More Effective:

Consumers want a toothbrush that does the best cleaning job - one that most
effectively removes plaque, the bacterial film that causes tooth decay and
gum disease. Until the Oral-B CrossAction, no leading toothbrush had
claimed to remove more plaque than other leading toothbrushes. Then Oral-
B developed a breakthrough design giving the CrossAction toothbrush
measurably superior plaque removal capability over today's leading
toothbrushes.
The CrossAction toothbrush combines Oral-B's latest, proprietary advances
with several trademark bristle features. The CrossAction features four types
of specialized bristle tufts:
Raised, thin, green CrissCross bristles, which work in opposing
directions, actively penetrate between teeth and along the gum line to
provide a more effective brush stroke.
Patented Micro-Textured bristles (first introduced by Oral-B in 1996)
are designed for whole-bristle cleaning, to remove plaque with the
sides as well as tips of the bristles.
Patented wear-sensitive blue Indicator bristles (a 1991 Oral-B
innovation) fade to signal the need for toothbrush replacement.
Extended, dense Power Tip bristles reach to clean back teeth.
The Oral-B CrossAction toothbrush is available in four colors: teal, mint
green, sky blue, and azure. Consumers can also choose from three different
brushhead sizes: 35 (compact), 40 (regular), and 60 (full). And between two
levels of bristle stiffness: soft and medium.
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For more information on Oral-B products visit http://www.oralb.com/ or
http://www.oralbkids.com/.

Braun Oral-B 3D:

The Braun Oral-B 3D plaque remover is the first product to combine two
distinct brushing motions high-speed pulsations with ultra-speed
oscillations to create a unique three-dimensional brushing action.
The brushhead pulsates in and out at 20,000 movements per minute to gently
loosen plaque, while the side-to-side oscillations at 7,600 movements per
minute sweep the plaque away. The result is gentle, deep cleaning clinically
proven to be superior to a manual toothbrush in removing plaque and in
reducing gingivitis.
The Braun Oral-B 3D plaque remover comes with numerous features
designed to enhance safety, effectiveness and convenience:
Blue FlexiSoft bristles in the center of the brush utilize a spring-like
ability to give way under pressure. This optimizes brushing action by
cupping around teeth and allowing the interdental tips to reach more
deeply into the areas between teeth.
The brushhead's interdental tips feature Indicator bristles whose color
fades with use, signaling the proper time to replace the brushhead.
A pressure sensor automatically stops the plaque remover's pulsations
when users apply more pressure than necessary for optimal cleaning.
A memory timer memorizes elapsed brushing time - even if briefly
interrupted - and signals after two minutes of actual brushing time, as
recommended by dentists.
Other features include a control grip, a hygienic brushhead storage
compartment, and an environmentally-friendly battery.

BOARD OF DIRECTORS:
Warren E. Buffett,
Chairman and Chief Executive Officer, Berkshire Hathaway Inc.
Edward F. DeGraan,
President and Chief Operating Officer, The Gillette Company
Wilbur H. Gantz,
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Chairman and Chief Executive Officer, PathoGenesis Corporation
Michael B. Gifford,
Former Chief Executive, The Rank Organisation Plc
Carol R. Goldberg,
President, The Avcar Group, Ltd.
Dennis F. Hightower,
Former Chief Executive Officer, Europe Online Networks, S.A.
Herbert H. Jacobi,
Chairman of the Supervisory Board, HSBC Trinkaus & Burkhardt KGaA
James M. Kilts,
Chairman of the Board and Chief Executive Officer, The Gillette Company
Henry R. Kravis,
General Partner, Kohlberg Kravis Roberts & Co., L.P.
Jorge Paulo Lemann,
General Partner, GP Investimentos
Richard R. Pivirotto,
President, Richard R. Pivirotto Co., Inc.
Marjorie M. Yang,
Chairman, Esquel Group of Companies
Chairman of the Board and Chief Executive Officer:
James M. Kilts
President and Chief Operating Officer
Edward F. DeGraan
Senior Vice Presidents
Charles W. Cramb Finance
Edward E. Guillet - Human Resources
Peter Klein - Strategy and Business Development
John F. Manfredi - Corporate Affairs
Richard K. Willard - Legal and General Counsel
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Market Risk:

The Company is subject to currency and interest rate risks that arise from
normal business operations. The Company regularly assesses these risks and
has established business strategies that offset exposures, supplemented by
the use of financial instruments, to protect against the adverse effects of
these and other market risks.
To manage the impact of currency changes on foreign-denominated profits,
the Company primarily uses product sourcing and pricing strategies,
supplemented by purchases of foreign currency options when considered
appropriate.
The Company uses foreign-denominated debt and forward contracts to
hedge the impact of currency changes on its net foreign investments,
normally in currencies with low interest rates.
Most of the Companys transactional exchange exposure is concentrated
through centralized cash management and inter-company invoicing. The
Company hedges net residual transactional exchange exposures primarily
through forward contracts.
The Company uses primarily floating rate debt in order to match interest
costs to the impact of inflation on earnings. The Company manages its mix
of fixed and floating rate debt by entering into interest rate swaps.
More detailed information about the strategies, policies and use of derivative
financial instruments is provided in the financial instruments note. The
Company has established clear policies, procedures and internal controls
governing the use of derivative financial instruments and does not use them
for trading, investment or other speculative purposes. Financial instrument
positions are monitored using a value-at-risk model. Value at risk is
estimated for each instrument based on historical volatility of market rates
and a 95% confidence level.
Based on the Companys overall evaluation of its market risk exposures
from all of its financial instruments at December 31, 2000 and 1999, a near-
term change in market rates would not materially affect the consolidated
financial position, results of operations or cash flows of the Company.




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SWOT ANALYSIS
External Environment of Gillette in 2004

In 2004, Gillette was fighting to maintain its position as one of the major leaders in the wet-razor
industry. Gillette was also the parent company to Duracell, Braun and Oral-B. Within Gillettes
own area of expertise, the wet-shaver industry, the external environment supported
demographics and sociocultural trends, which indicated a positive industry outlook. These
favorable external factors helped Gillette cope with its aggressive competitor, Energizer. Gillette
chose to move cautiously maintaining their position by using tactical strategic moves to improve
their footing in the industry. Their cautious approaches strengthen their core of the company
without adding additional value. It was sticking to their basics - innovation to increase quality.
Demographics in 2004 showed that people were moving to urban centers. By 2007 those people
would account for half of the worlds population. Cities like Tokyo, Mexico City, Mumbai, Sao
Paulo, Delhi, and New York-Newark would be urban agglomeration, each having more than
15 million residents. Gillette knew that 90% of the U.S. male population over the age of 15 years
old removes hair. Of those 94 million men, 68 million of them shave with a blade and razor on
average 5.33 times a week translating which translates into roughly 24 times a month. This
figure did not include the 100 million U.S women that represent the 83% of women over the age
of 13 years old that remove hair. Ninety-four percent, which use a razor and blade. During the
period of 2000 through 2004 shaving products sales increased 24%, which consisted of wet-
shaving equipment, electric shavers, shaving preparations an other hair-removal options such as
depilatory creams. The wet-shaving portion of the market dominated this sector by 50.6% of all
shaving products
The good news for the shaving industries was that the increases in sales were from the
younger markets. Research has shown that women determine their preference in hair removal
method in their teens. (Bainbridge, January 18, 2006, pp. 30-31) Therefore, if young mens usage
is determined similarly to statistics of younger female consumers, Gillettes future depends upon
capturing the younger markets of both sexes.
Worldwide, advertisers were trying to tap the younger male market, coined as metrosexuals.
Mark Simpson described these young men in an article on Salon.com as
young men with money to spend, living in or within easy reach of a metropolis (because
thats where all the best shops, clubs, gyms, and hairdressers are). He might be officially gay,
straight, or bisexual, but this is utterly immaterial because he has dearly taken himself as his own
love object, and pleasures as his sexual preference.

According to Phil Lemperts article, metrosexuals focus on looking good, being hip,
kind, caring, and emotional. By the July of 2004, advertisers saturated consumers with
metrosexual advertising messages, stereotyping the metrosextual images as feminized men.
Popular culture immortalized the metrosextual to the like of make over subjects in episodes of
the television show Queer Eye for the Straight Guy. In that, sense advertisers failed to address
the changing shopping habits of younger men. These were young adults grew-up in the eras of
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the shopping mall culture. Unlike previous generations, these males were sophisticated
consumers more vulnerable to image-consciousness. Young men were expressing their sense of
style and identity by their appearance and attire.
The metrosexual trend accompanied the social health and hygiene trends in regular consumer
demographics. Gillette realized this opportunity and launched a mens grooming line, which
included two cleansers, shave gels, and aftershave soother and moisturizer with SPF 15. In 2004,
some of the top 25 fastest growing HBC Product categories, included deodorants cologne types
which grew 50.6 %; childrens cologne and gift sets which grew 43.1%; protein supplements
which grew 20.1%; cosmetic brushes which grew 19.6 %; non-disposable razors which grew
17.3%; and shampoos-bars, concentrates, & creams which increased 12.3%. (In general,
consumers were buying items that reflected their pursuit of healthier lifestyles and desire to
improve their physical appearance and self-image. Gillette identified this opportunity, but they
missed their target by marketing their grooming products by emphasizing the benefits of the
products instead of reflecting the consumers intent to improve their appearance.

The technology and innovation created the push for smaller, portable cell phones
with cameras, mini cams, and digital cameras. Additionally, the internet offered more venues for
people to advertise themselves and pictorially share their lives with friends family and
acquaintances. Peoples natural response to technology was to want to look better. Surprisingly,
Gillette conservatively addressed the impact of portable visual devices and the usage of the
internet. For possible lack of capital or fear of retaliation from Energizer, Gillette never fully
developed their potential to reach the public effectively through the internet or promotions
though portable devises to develop market share.
Instead, Gillette committed to technology in product identification systems. Gillette started a
RFID chips program to interface the vendors and suppliers. Gillettes favoritism was based on
their own interest in developing this type of technology. Gillette served as one of the founders of
the Massachusetts Institute of Technologys Auto-ID Center that laid the foundation for todays
electronic product code system (EPC). Gillettes focus on RFID was a way to encouraged an
increase communications within their supply chain by sharing vital marketing and sales
information with vendors and suppliers with invisibility. This tracing system would focus on
tracking inventory to prevent loss and to create better information to tract demand, pricing, and
other functions. Trucking companies could use it to verify shipment receipts and deliveries,
vendors could use the technology to increase inventory and sales information with ease, and
Gillette could use the RFID chips to track consumer-buying trends regionally and nationally.
Gillette targeted key retailers, Wal-Mart in the United States and Tesco in the United Kingdom.)
Gillettes usage of RFID technology was also a way of providing time saving inventory tracing
to their partners tied into their system. The implied intension of the RFID program was to share
technology, information, and decrease time spent on verifying inventory and sales information to
comply with Sarbanes- Oxley standards. Gillettes intended to locked into infrastructure,
dependencies, and connections with the venders and suppliers to build relationships, trust, and
product loyalty, the opposite direction from the consumer.
Gillettes biggest challenge in the razor and personal care markets was their competitor,
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Energizer Schick/Wilkinson Sword., Gillette and Wilkinson Sword had battled legal battles
over marketing efforts, trademarks, and patents against each other over the years. Energizer
Holdings owned Wilkinson Sword / Schick brand. This fight between the two companies begain
in 1998 in Germany over a free mailing promotion of Gilletts Sensor Excel shavers. This
promotion was attacked as an improper sample offer suit in Cologne, Germany by Wilkinson
Sword. In August of 2003, Gillette filed a patent infringement suit against Schicks Quattro,
stating it was an infringement on Gillettes patent on the Mach 3 razor. The competitive
retaliation continued between the two companies in the battle of the Mach 3 razor verses
the Quattro razor. Several court proceeding for infringement, misleading advertising, and
undue competitiveness in Germany, the Netherlands, and in the United States continued for
years. The competition between Gillette and Energizer intensified in 2004, as the subsidiary
companies such as Duracell were also dragged into the competition between Gillette and
Energizer in two markets: shavers, and portable power.
In 2004, Gillette was able to increase their global blade market share to 72.5% for 28% of
advertising. This was a combatant strategy to Rayovacs cheap zinc batteries, Energizers
promotions and pending litigation, as well as, the increase in sales of the Schick/ Wilkinsons
Quattro razor. The only economic forgiveness was the foreign exchange rate. Gillette
experiences a 7% boost in profit due to the weakness of the dollar, but it still failed to fulfill the
expectations of the S&P 500s expectation. The S&P 500 anticipated a 30% share increase.
Gillette was only able to achieve a 20% increase in share value.
Gillette believed in sticking to its conservative plan, to advertise to educate its
stakeholder and to focus on technical innovation would keep it steady and safe, that was true to
some extent. The advertising campaign to increase awareness of the disadvantage to buying
cheap zinc batteries from Rayovac did help sway consumers back to their alkaline batteries.
Investment in RFID chips ended-up being an expensive venture for future returns. Gillette
romanced negotiation with Wal-Mart with RFID to create long-term relationships which was an
unlikely match in management. Companies like Wal-Mart, who focus on cost leadership benefit
far more from cheaper prices than from bring quality products to the consumer. Additionally the
type of consumer that would shop at Wal-Mart was interested in price and most likely would not
be loyal to the Gillette or any of its subsidiarys products.
Gillettes innovativeness should have focused more on reflecting consumer trends and
innovation in their products. It would have been better to renovate current technology into trendy
items, using the key components in more metrosexual and health conscience oriented appliances
like motorized toothbrushes, heated eyelash curlers, portable teeth cleaning devices in trendy
colors, and blending Gillettes divisions of Duracell, Braun, and Oral-B and creating new core
competencies between divisions. Gillette did not listen to the consumer and missed the
application of innovativeness in restructuring itself. Innovation in technology and in advertising
should have been Gillettes proverbial club to beat down Energizer.



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T is also for Trends...
- More blades
- Longer lasting batteries
- Rechargable batteries
- Environmentally friendly power sources
- Closer shaves
- Women are looking to more permanent types of hair removal (ex: Lazer)
- Razors - Flashy colors, feminine shape/designs
- Motorized/battery/eletricity powered razors
- Less expensive electric toothbrushes
- Flavored toothpastes and flosses (ex: fruit and spice)

T is for Threats...
-Gillettes arrogance
-Lack of advertisement/marketing of brands
-Lack of creative vision lets add another blade mentality
-Competitors have good relations with large chain retailers threatening Gillettes market share
-Competitors in all core competency areas
-Capabilities of large competitors (Proctor & Gamble, Colgate/Palmolive)
-Buy-out
-New battery legislation disposal laws
-Electricty + water= not a positive outcome, customers hesitant to bring electric razors into the
shower

O is for Opportunities...

-Developing/perfecting products in the oral care industry division (fastest growing division),
developing market should be focused on what are customers looking for?
-Overall marketing drop the arrogance and develop a companywide budget/plan
-As blades are what they do best look at developing specialty industrial and medical blades or
consider purchase/merger with American Safety Razor Company
-Take a look at marketing of the Duracell brand - take on the Energizer bunny
-Ladies razors the Venus is incredibly popular market should be expanded
-Research cutting edge technologies in razors
-US demand for batteries will grow 5.9 percent annually through 2009*

W is for Weaknesses...

- Gillette's advertising spending lags behind most of its competitors
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- Has never had the reputation of a first-rate sales and marketing company
- Lack of a clear and coherent vision for the future and lack of a clear growth strategy resulted in
a decline in the effectiveness of operations and sales
- Failure to effectively utilize Gillette's asset base
- Poor relations with retailers (such as no relationship with Walmart and other globally dominant
chains)
- Poor management of several of Gillette's strong brand names
- Continuous growth through diversification and expanding product lines has resulted in a
decrease in net sales
- 2001 = sales decreased by 1.58% as a result of weakened foreign markets combined with
foreign exchange rate fluctuations
- Low quick ratio of .4 and low current ratio of .8 indicating that the company might have trouble
meeting its financial obligations
- Receivable turnover, inventory turnover, and asset turnover lag behind competitors signifying
that Gillette is inefficient in its operations
S is for Strengths...
- Brand name customers are loyal
- Broad product portfolio of highly recognizable global brands
- Brand names perceived as the best in the world
- As a result of great technology, products command premium prices with high profit margin
- Core businesses (grooming, portable power, and oral care) account for 80% of sales and 90% of
profits
- Owns well known brands - Braun, Gillette, Venus, Oral-B, Duracell...
- Market leader in blade/razor market segment and women's shaving market
- Female saving products are the fastest rowing part of portfolio with a cumulative annual growth
of 21% + Braun electric hair epilator #1 worldwide with over half of market
- Best selling power toothbrush 80% market share
- Oral care is Gillette's fastest growing business in recent years
- Oral B is the best selling power toothbrush brand
- Worldwide presence and broad network for distributing products = sales and distribution in
over 200 countries
- Manufacturing capabilities that produce billions of reliable products each year in a cost-
effective, efficient manner = 51 factories in 38 countries
- Attempting to cut costs by reducing manufacturing costs and increasing eficiency
- High net profit margin of 13.09%
- Positive return on assets of 3.8%
- Return on equity of 20.4%




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SUGGESTIONS:
They have manufacturing units in limited countries but they should have
manufacturing units in other countries also. This may help them in getting
success in the business by reducing transportation cost and getting other
benefits also.
They should introduce low price and medium quality products so that lower
economic community may also enjoy their products.
They should also take into consideration their target market for lower income
people.
They should come up with better promotional programs for the identification
of their products blended with advisory services for their consumers through
electronic media, in which they may give solutions to their health problems
and the remedy by the Gillette products.
They should also consider niche markets and make product for small markets
too.
They should form their own feedback system for getting information from the
customers. For example, through Internet media, it will be quick, easy,
efficient, effective and direct responding.








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REFERENCES