Gillette India Ltd

(Indian Shaving Products Limited

ISPL)

Anupam Mishra 27NMP 06

Manush Maken 27NMP 19
Swati Gupta 27NMP 32
Komal Tagra 27 NMP 51

Indian Shaving Blade Market

Scenario
2.4

billion blades in a year , Rs 250

crores in value at retail price
15 to 20 crores of Indian shaving
male population
Carbon steel blades making the bulk
of the market
Stainless steel blades present only in
urban market
Less than 2% market in twin Blade
Segment

Formation of ISPL, Product and

Distribution Strategy
Gillette

entered Indian Market through JV with

House of Poddars
Launched Brands like 7 O'clock Ejtek, Super
Stainless, Super Platinum priced over 50 % than
the closest competitors.
Considered as natural fit with synergies for both
parties, Distribution shared with Lipton Tea @ 5
% commission
7% margin for Stockists on ISPL products
Well established sales network of lipton with
intensive distribution reach targeting customers
segments ranging from premium to mass market

Close Competitors
House of Malhotras

80-90% Market share with brands like Panama, Topaz,

Laser etc

Distribution network consists of Very Large

Wholesalers to Semi- Wholesalers and Retailers

Time to Time Promotions for the trade and stock push

to dominate the market

Wiltech

Value-wise Market Leader in twin blade segment with

50 % share

Strong Brands under names Wilman 1 and Wilman II

Issues and findings after 2 years

of launch
Less

than 3 % of total market share. Market share got in

double digits in bigger towns and cities

Accumulated

losses of Rs. 7.24 crores by the end of

financial year 1995

Studies

and Customer Surveys indicated that there are

no serious flaws in ISPLs products, pricing or
positioning.

Channel
VP

Flow system doesnt seem to be very robust.

Sales and Marketing has Doubts on the retail

coverage with reliable data not available and is in
pursuit of Channel Redesign.

What VP Marketing Should

do?
For New Distribution
Studying

and Benchmarking the existing channel strategy of the similar

product.
Understanding the needs and requirement of target markets with
regards to service output
Estimating the overall cost of distribution at various levels in terms of
cost of performing an activity and remuneration part
Devising a Robust channel flow mechanism .
Setting Standards for measuring the channel performance and
monitoring mechanisms
Channel Members Appointment Criterion
Sticking With Lipton
To understand whether the Target Market of current channel (Lipton)shares
any commonalties.
Be Selective in Choosing Distributors by targeting geographies
Devising Better channel flow mechanism especially in terms of information
sharing and promotions
Defining roles and responsibilites of channel constituents.

Using Market Analysis Framework

Market
Geography
Creating a marketing channel
that helps Gillette to
distribute to the right target
geography of Urban upper
end Market

Market Density
Targeting Highly
concentrated Markets so
that Distribution becomes
cost effective especially in
urban areas

Market Size
Given the market size of
target market geography,
we need to ascertain the
cost of serving a customer
through Bucklins Model

Market Behavior
Where-Convenient location
How- Active Promotions
When- May be Starting of the
Month in assortments
Who- Male
-Physical PurchaseMale/Female

Service output requirement of

customer from the channel
Bulk

Breaking- Customer may need very

small quantities to be made available at
the retailer level.
Assortment- Customers can make
purchases in assortments during their
regular buying cycle.
Waiting time-Order Could be lost if
waiting is high in an FMCG product
Spatial Convenience- Convenient
Product availability if premium on
product needs to be paid

Recommendation
The

Target market of Lipton distribution is

from Premium to mass whereas Gillette can
cater to upper end only as of now.
Intensive distribution will not help Gillette as
it is already facing a big competition from
malhotras in that space
Focus on Gillette products by lipton
distribution system would always be a
question mark.
Gillette Needs should build its own
distribution network which will also give
platform to future products in Indian market.