A discussion on three-consumer behaviour influences and their affect on Gillette and its Fusion Power Razor
Contents
1 Introduction to Gillette
1.1 History
1.2 Current global status and market share
2 Scope of Assignment
3 How Motivation may have influenced Gillette’s marketing activities
3.1 Motivation
-The best a man can get
-Celebrity Endorsement
3.2 Evaluation of the marketing activities
4 How Values may have influenced Gillette’s marketing activities
4.1 Values
-Terminology
4.2 Evaluation of the marketing activities
5 How Attitude may have influenced Gillette’s marketing activities
5.1 Attitude
-Sex appeal
5.2 Evaluation of the marketing activities
6 How Culture may have influenced Gillette’s marketing activities
6.1 Culture
-Modern day metro sexual
6.2 Evaluation of the marketing activities
7 Recommendation and Conclusion
8 References
1 Introduction to Gillette
This report will examine three consumer behaviour aspects and analysis them in relation to the marketing activities of the Dominant shaving brand ‘Gillette.’ By utilising a range of published articles, textbooks, Internet sites and journals both on Gillette and the three consumer behaviour aspects, finishing with recommendations and evaluation.
The report consists of four main parts; background and introduction to Gillette; The three consumer behaviour aspects Motivation and value, Culture and Attitude; how these consumer behaviour aspects affected Gillette’s marketing activities and finally recommendations.
1.1 History of Gillette
Gillette has built leading global brand dominance in men’s grooming. It faces strong competition in the shaving preparation market compared to the razor market, which is not as intense. Ever since 1895 when Gillette first realized the concept of a disposable razor they have been an innovative market leader in men s grooming (See Appendix Item 1: Gillette Timeline.)
Currently Gillette, based in Boston, is a subsidiary of Proctor and Gamble that merged in October 2005. Currently Gillette’s Fusion Razor, a five blade shaving system and one side burn trimming blade with vitamin-E and aloe enhanced lubricating strips. Proved to be one of the biggest Product launches in the US and UK promoted through an enormous multimedia campaign. Following from its predecessor, the ‘Mach 3’ which also was one of the biggest campaigns at its launch, accumulating high sales (Pro-Quest. In-Store, New Analysis 2006. pp 11).
1.2 Current Global Status and Market Share
Over three quarters of the UK shaving market 17.3 million are recorded to use wet shave products. 70% use Gillette razors (Mintel. Shaving Products 2007. NCS Data 2005.) Currently estimated at 276million in the UK in 2006, (ProQuest, IN-Store. London 2006. pp 11) Along with UK the USA are also seeing high involvement with consumers using razors. “The growth rate of this market for the last three years has been extremely healthy averaging 10% a year. A shift in consumer behaviour towards shaving is driving this growth” (Bawanha B. 2006. Gillette powers up the regions male grooming; http://www.mywire.com/a/allbawaba/gillette-powers-up-the-regions-male-grooming, 09/11/2009, 21:32)
Gillette relies on its blades and razors to produce 2/3rds of the company’s profits (Hammonds K H. 1989. ProQuest, Buissness Week, At Gillette, Disposable is a dirty word, May 29, 1989.) Wilkinson Sword is currently Gillette’s top rival in the razor market, with both investing heavily in mutli-blade technology and product development (Mintel Shaving Products 2007.) To further analyze Gillette’s presence in the market a SWOT analysis was conducted and can be seen in figurer 1.2.1 in the appendix;
As stated above Gillette’s portfolio is impressive and there seems to be no sign of Gillette’s market Dominance to end. It can be seen in figure 1.2.2 that from 2002 they have had a strong advantage over other manufactures with the highest increase in profits per year.
(Figure 1.2.2 Shares of Razors and blades market, Mintel Shaving Products 2007 http://academic.mintel.com/sinatra/oxygen_academic/display/id=220155/display/id=289786?select_section=289787 )
Gillette has expanded its range of products into other market sectors, but razors maintain its strongest portfolio asset. Figure 1.2.2 shows Gillette’s Structure
(Figure 1.2.2 Gillette’s world wide organizational structure Anand A. A Tiwari. N Jalan. N P Easwarian. V B Talsila. W Rizvi. 2007 Gillette India Ltd Mak 2 Project; http://www.scribd.com/doc/6139381/GIllette-Marketing-Report; date accessed 03/ 11/2009)
2 Scope of Assignment
This assignment will focus upon Gillette’s razor and blade marketing aspects and how consumer behavior affects them, in particular the launch of the Gillette Fusion. It will focus on a male target audience of 18 – 35 within the UK.
3 How Motivation may have influenced Gillette’s marketing activities
3.1 Motivation
Motivation can be referred to as an active state that is within a person, which can lead to goal directed behavior. Drives, wishes, urges and even desires can lead to the behavior. We aim to achieve homeostasis and satisfy a need.
Figure 3.1.1 The homeostasis see saw, Evans et al 2009, Consumer Behavior, Second Edition, PP 7
Beginning with a stimulus it will lead to recognition of a need, “Need recognition occurs when a perceived discrepancy exists between an actual and a desired state” (Mowen and Minor, 2005.)
Needs can be; innate or learned, never fully satisfied and are affected by feelings and emotions. There are two types of needs, expressive needs where by they involve a desire to achieve social/aesthetic requirements and utilitarian needs, which involve the consumer solveing basic problems (Mowen and Minor, 2005.) General theories of motivation exist such as Maslow’s Hierarchy of needs, Figure 3.1.2;
Figure 3.1.2 Maslows Hierarchy of needs, Evans et al 2009 Consumer Behavior, Second Edition pp12
Maslow stated that needs at one level must be satisfied fully or partially before the needs at the next level will become of importance to the consumer. It is suggested that as a society begins to develop they will in turn move up the hierarchy tackling their most relevant needs first. Consumers can be motivated by different forces and essentials of physiology, which overtime can change what motivates each individual consumer (Evans et al 2009.)
Gillette creates a motivational need to use their ‘Fusion Razor’ with the iconic statement “The best a man can get.” If a man wants to look his best, he wants the best tools to do it with. Gillette has the innovation and Brand awareness to claim such a statement. Further more they use celebrity endorsements of the best iconic men in sport, up until 2007 David Beckham was the face of Gillette Fusion Razor and is regarded as one of the best English football players. People aspire to be like him and look up to him as a role model, Gillette created a connection between the best football player using the best razor, this created a drive for people who want to be, or look as good as David Beckham to use what he uses i.e the Gillette Fusion Razor. Currently Gillette has replaced David Beckham with a trio of celebrities in the form of Roger Federer, Tiger Woods and Thierrry Henry. Expanding the connection amongst iconic superstars and their Razor even further into different sporting categories, with each man being one of the best in their fields.
McCelland developed another theory; he created the theory of learned needs. They consist of the achievement for motivation, which consists of striving for success; affiliation need motivates people to make friends. He stated a need for power and also uniqueness to be different and original (Mowen and Minor, 2005.) The desired end state of a need is called the consumers goal, when a need is aroused it creates a tension which the consumer feels they need to reduce, this degree of arousal is known as the drive.
The needs to maintain life are called biogenic needs, food air, water, etc. Psychogenic needs are acquired over time through culture. Motivational conflicts occur in consumer decision-making, consumers are motivated to seek out and approach the goal through the product that will help them achieve it. Thus consumers can find themselves in situations where different motives, positive and negative, conflict (Solomon 2009).
Figure 3.1.3, Types of motivational conflict, Solomon 2009; Consumer Behavior, buying, having and being. Chapter 2 pp 45
The dimensions of motivational motives can also be segmented into six different category’s; Primary, secondary, Rational motives based on reasoning, emotional motives based on feelings with the brand, conscious motives that consumers are aware of and dormant motives which operate below the conscious level (Blythe 2008).
Figure 3.1.4 Dimensions of motives, Blythe 2008, Consumer Behavior, pp 102
Consumers are lead to buy the Gillette Fusion Razor through rational and emotional motives. Gillette’s Fusion Razor prices are much higher than its competitors which leads consumers to make a rational choice to buy a more expensive razor, which through brand awareness is regarded as innovative and ‘the best a man can get,’ or settle for a cheaper alternative.
3.2 Evaluation of the marketing activities
According to Mintel the highest percentage of men that are single and are most wishing to look good are between the ages of 16 – 34,
Figure 3.2.1 Percentage of men in relationships; Mintel; Men’s Toiletries – UK – March 2008; Internal Market Environment;
From this information men will be seeking to attract women, an emotional need to be sought after or liked. Thus Gillette used celebrities whom for this target audience will be extremely well known and respected. The age range can relate to the attention these celebrities get, not just for their sporting achievements but also because of their female followings. Gillette executed the celebrity choices very well not only seeking out sports stars who are talented but also those who are seen as attractive to the female population and those whose behavioral contexts outside the sport are high.
4 How Values may have influenced Gillette’s marketing activities
4.1 Values
A value defined by Rokeach, an early US researcher states “an enduring belief that one mode of conduct or end state of existence is preferable to an opposing mode of conduct or end state of existence.” (Mooij M D. 2004. Consumer Behavior and Culture Consequences for Global Marketing and Advertising. Sage Publications. Pp 55.) The values of consumers are generally defined by their culture thus it is important not to overlook the value concept of culture. A value refers to a very specific kind of belief, comparing to an attitude that refers to several organizational beliefs around a subject. Values have three components, Behavioral, cognitive and affective. People feel emotionally about values; they intervene in a behavioral sense and lead to an action. Rokeeach categorizes two levels of values; terminal and Instrumental, Terminal values are desirable end states where as Instrumental values are desirable modes of conduct. Instrumental values such as ambition lead to terminal values like comfort.
Figure 4.1.1; Rokeach Terminal and instrumental values, Solomon 2009, Consumer Behavior Buying, Having and Being 8th edition pp 46
Values are learnt by children at a very early age implicitly from their parents and social life, they are stable, but differ from culture to culture. (Marieke de mooij 2004.)
Men’s values are still considered conservative towards new forms of grooming, which is unlikely to change in a short space of time, Mintel suggests that if a focus is mainly on back to basics it will recruit men, rather suggesting things such as complex age reduction (Mintel; 2007; Mens grooming habits.)
With launch of the ‘Fusion Razor’ the name it-self speaks of a powerful force, too fuse something together takes strength and precision and is considered a male job. In collaboration with the bold text and strong word ‘power’ (Figure 4.1.2) the ‘Gillette fusion power’ sounds more like a complex, extreme DIY tool, of which a man would be proud to buy. There is no use of the word grooming or hair removing, that evokes a femininity culture, which men generally do not want to be associated with in that way.
Figure 4.1.2; Gillette fusion power; www.gillettefusion.com
A consumer value hierarchy was developed by Vinson and Lamot (1977). They arranged three main values in what a consumer would more centrally hold.
Figure 3.1.3 Source: D. Vinston, J.Scott and L.Lamont ‘The role of personal values in marketing and consumer research’ Journal of marketing 41 (April 1977),pp 45-50.
It can be seen that global values such as states of existence are closely held followed by beliefs, this would encourage marketing communications to integrate with consumers in these areas.
4.2 Evaluation of the marketing activities
Following on from personal values, in the case of the ‘Fusion Razor,’ a desired state of existence for the modern day male professional is to look well groomed and smart. Gillette achieve this with the proposition ‘The worlds most comfortable shave’ marketed along side sport celebrity superstars, the terminology ‘Fusion power ‘along with the world’s most comfortable shave evoke an essence of some wonderfully unique substantial tool that cannot be beaten for comfort, suggesting power but with ease.
5 How Attitude may have influenced Gillette’s marketing activities
5.1 Attitudes
Attitude can be viewed as a general lasting evaluation of advertisements, people or objects. Global attitudes concerns itself with an overall attitude toward a brand, differentiated attitude on the other hand is a combination of evaluations and beliefs.
Attitudes are guided by values and dictate behavior; a model that measures the relationship of the two is the Fishbein hypothesizes “a persons behavioral intentions are determined by an attitudinal or personal component and a normative or social component.” (Mooij M D. 2004. Consumer Behavior and Culture Consequences for Global Marketing and Advertising. Sage Publications. P110.) Attitudes are often held and can be changed through good advertising and marketing, Psychologist Daniel Katz developed the functionality theory of attitudes, which shows how attitudes facilitate behavior;
1) Utilitarian Function: Reward and Punishment
2) Value expressive function: Express consumers self concept
3) Ego defensive function: Formed to protect ourselves from external threats/internal feelings
4) Knowledge function: Need for order
(Solomon 2009)
Blythe (2008) notes an attitude is learned and not instinctive, it is a predisposition (not a behavior) towards a particular behavior, it suggests a relationship between a person or object.
Figure 5.1.1 Dimensions of attitude Blythe 2008, Consumer Behaviour pp 57
Getting a balance of all three leads to a stable attitude towards a brand.
“Men are quietly confident about their appearance, spending time and effort on how they look and making sure they are dressed well” (Mintel; Men’s Toiletries – UK – March 2008; Attitudes towards apperance; http://academic.mintel.com/sinatra/oxygen_academic/display/id=227679/display/id=328865?select_section=328866.) A further 80% of men prefer to pick their grooming products straight from the shop shelf rather than seeing a consultant (Mintel; Men’s Toiletries – UK – March 2008.) Humans like change, innovation and advancement. When the Fusion was launched it focused on the five-blade system and single blade precision trimmer, along with a battery powered vibrating head, the worlds first of its kind. Gillette leaped ahead of competition with new innovation and product development. People’s attitudes towards the five-blade razor were of revolution in the shaving sector with an attitude change of ‘shaving isn’t just a rushed process’ but rather a precise art with the best comfort and tools needed.
5.2 Evaluation of the marketing activities
With the use of terminology and celebrity endorsement the attitude towards Gillette Fusion Razor created a halo effect, the consumer’s salient beliefs influenced their decision making towards the product (Blythe 2009.) Resulting in a positive attitude towards the brand.
6 How Culture may have influenced Gillette’s marketing activities
6.1 Culture
Johnson (1962) comprises culture with cognitive elements and beliefs of what a society knows, its values and norms of how the majority of people within the society should behave and the signs, signals and symbols of a societies language. Evans (2008) states, “As a lens, culture determines how we see our world and as a blueprint, it determines how the world is fashioned by our efforts.” (Evans M. A Jamal. G Foxall. 2009. Consumer Behavior, Second Edition. A John Wiley and sons ltd, publication pp 285).
Overall Culture can be promoted as the glue that binds groups together (Marieke de mooij 2004.) A model of national culture was developed by Hofstede, comprising of power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance and long-term orientation. The model was based on quantitative research and covers such things as; the more powerful and less powerful consumers in a society, looking after family and friends sometimes in exchange for loyalty, dominant traits in a masculine society, threats from uncertainty and finally the acceptance of change formulated by Micheal Bond who refers to it as ‘Confusion Work Dynamism’ (Marieke de mooij 2004).
In the current modern day culture the term metro sexual has been branded as the emergence of urban males that spend a great deal of time and money on their appearance. (Mintel; Shaving Products 2007.) “Facial hair has always represented a hugely important part of males self-expression, and has previously been steeped in traditional values of masculinity… Attention to male grooming has become associated with some devaluing of the machismo” (Mintel 2007; Shaving Products; Internal Market Environment; http://academic.mintel.com/sinatra/oxygen_academic/display/id=220155/display/id=289781.) For this reason Gillette communicates very masculine values to its target audience, when the fusion was launched, Gillette also sponsored an app for phones and computers that allowed men to see what they would look like with various styles of facial hair, similar to the one created for their website called ‘facial styler’ ( Gillette sponsors Iphone app. Mintel. www.clickz.com 22-05-2009) . This move by Gillette showed the brand was not just focused on hair removing, which is primarily what the fusion shaver does a cultural term for femininity, but more so that Gillette embrace all styles of facial hair, stubble, goatee and beards. They aligned themselves as a company that produces facial hair tools not hair removing products, an alignment that is much more in fashion with the current modern day masculine culture.
Meanings, rituals, traditions and norms are what accumulate to culture, beginning with human community and the individuals in it, through to political and social systems.
Figure 6.1.1; The movement of meaning, Solomon 2006 Consumer Behavior A European Perspective, Third Edition, pp 498
It can be seen that cultural values and symbols influence the individual customer and thus influencing the consumer’s decision making. Cultures are not static, they continually evolve and change, however the area of the change happens in; Ecology, adapting to a habitat; Social structure, the way orderly social life is maintained and Ideology, mental characteristics of people. (Solomon 2006)
6.2 Evaluation of the marketing activities
With facial hair art now becoming a popular culture (Mintel 2007 Shaving Products,) and the need for precision shaving becoming more frequent Gillette jumped at this chance with the ‘Fusion Razor.’ The addition of a precision trimmer, specifically designed for smart neat finishing or touch ups created a dual-purpose razor, which could only be bought separately before hand. Along with aligning the brand as an acceptance of facial hair rather than a remover, gave Gillette credibility and trust.
7 Recommendations and Conclusion
With the number of white-collar roles increasing throughout the UK and the need to be well groomed and presentable, this suggests that these genre of full time employees are the most likely to be frequently shaving (Mintel shaving Porducts 2007.) A recommendation would be to align Gillette with this type of consumer’s motivational values i.e to look good, presentable and be an ambassador to their company. If the marketing communication focused more on emotion rather than cognitions and connected with the target audience as being a product that will help mould them into an important business professional then Gillette could gain a competitive market share for this target audience.
In conclusion from the research it is clear to understand why Gillette are the market leaders owning 1/3 of the market share for razors (Mintel 2007’ Shaving Products.) Their tone of voice, celebrity endorsement and cultural positioning created a motivational need amongst its target audience to desire the best innovational tool to look good. The Gillette Fusion shaver was a new product development to the market, many skeptics did not believe it could improve on the Mach 3, but Gillette’s strong brand presence for innovation and consumer insight into what men wanted and felt about shaving, showed the release of the ‘Fusion Razor’ was the biggest to date.
8 References
Books
Blythe J. 2008. Consumer Behaviour. Thompson Publishers United Kingdom
Evans M. A Jamal. G Foxall. 2009. Consumer Behavior, Second Edition. A John Wiley and sons ltd, publication
Fill C. 2009. Marketing Communications Interactivity, Communities and Content, Fifth Edition. Prentice Hall, Financial Times
Hooley G. N F Piercy. B Nicoulaud. 2008. Marketing Strategy and Competitive Positioning Fourth Edition. Prentice Hall
Mooij M D. 2004. Consumer Behavior and Culture Consequences for Global Marketing and Advertising. Sage Publications
Shimp T A. 2007. Integrated Marketing Communication in Advertising and Promotion. South Western, Cengage Learning
Solomon, M. G Bamossy. S Askegaard. K H, Margaret. 2006. Consumer Behavior A European Perspective, Third Edition. Prentice Hall Europe
Solomon M R. 2009 Consumer Behavior Buying, Having and Being 8th edition. Pearsons Prentice Hall
Blog
Goldstein R. 16th May 2009. 16:14. http://blindtaste.com/2009/05/16/the-gillette-razor-theory-of-consumer-behavior/
Journals and Periodocals
Annonymous 2005. Gillette stock boost. Pro Quest. Global cosmetic industry. New York Nov 2005 Vol 173 iss 11 pp 74
Berk C C. 2006 P and G is stronger with Gillette. Wall street Journal. Pro Quest. New York Oct 11 2006 pp B5F
Creamer M. 2007. Gillette taps 9,000 creative’s online. Advertising Age. Pro Quest. Crain Communications. Sep 17 2007 vol 3 iss 37 pp 1-2
Hammonds K H. 1989. At Gillette disposable is a dirty word. Buissness Week. Pro Quest. New York May 29 1989 iss 3107 pp 52-54
In-Store 2006. New Analysis Blade Runners. Pro Quest. London sep 2006 pp 11
Global Gillette. 2007. Company Profile. 24th April . Data Monitor pp 1-8
Electronic Resources
Men’s Grooming Habits – UK – March 2007. Mintel http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=220155/display/id=289829/display/id=220155/display/id=259589 date accessed 03/11/2009
Men’s Toiletries – UK – March 2008. Mintel. http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227679 date accessed 03/11/2009
Shaving Products. Mintel. 2007. http://academic.mintel.com/sinatra/oxygen_academic/display/id=220155/display/id=289781?select_section=220155. Date accessed 02/11/2009
Websites
Anand A. A Tiwari. N Jalan. N P Easwarian. V B Talsila. W Rizvi. 2007 Gillette India Ltd Mak 2 Project; http://www.scribd.com/doc/6139381/GIllette-Marketing-Report; date accessed 03/ 11/2009
Bawanha B. 2006. Gillette Powers up the regions male grooming market with first powered based shaving system. http://www.mywire.com/a/AlBawaba/GILLETTE-POWERS-UP-REGIONS-MALE/1169229?&pbl=15 date accessed: 02/11/2009
Gillette sponsors Iphone app. Mintel. www.clickz.com 22-05-2009 Date accessed 04/11/2009
Lectures
Mowen J C. MS Minor. 2005 Chapter 5 Consumer Motivation, Consumer Behaviour: A framework www.consumerbehavior.net/powerpoint/Ch%205%20Motivation.ppt date accessed 01/11/2009
Presi C. 2009. Week Three Lecture, Motivation and Value. Leeds University Buissness School LUBS 5402M Semmester 1. 14/10/2009
Presi C. 2009. Week five Lecture, Attitude Formation and Change. Leeds University Business School LUBS 5402M Semester 1. 28/10/2009
9 Appendix
9.1 Gillette Timeline
1895-In the United States, KING CAMP GILLETTE, a salesman for the Baltimore Seal Company, originates the idea for a new disposable razor blade. For the next six years, he will promote and sell this idea to backers and toolmakers in order to make his dream shaver a reality.
1901 -GILLETTE teams up with MIT engineer and machinist WILLIAM NICKERSON in Boston, Massachusetts. Together, they modify the safety razor by manufacturing a double-edged blade that is disposable and replaceable; it receives a U.S. patent this same year. This is a T-shaped razor which opens at the top so the user can insert a new blade after tossing out its dull, used predecessor. These blades are cut from a template, rather than forged
1903 – GILLETTE begins his legendary climb to the top as king of the U.S. shaving market, thanks to his shaver‟s high quality, low price affordability, and his keen approach to marketing. In 1903, his total sales were 51 razors and 168 blades.
1904 – GILLETTE’S total sales for the new state-of-the-art safety razor reach 90,000 razors and 123,000 blades.
1905 – GILLETTE opens his first overseas office, headquartered in London, England to market products in Europe
1910 – WILLIS G. SHOCKEY receives a U.S. patent for his WIND-UP SAFETY RAZOR, the forerunner of electric shavers. It has a wind-up-by-hand flywheel that operates for a
limited amount of time.
1914 – 1918: WORLD WAR I – GILLETTE works out a mega deal with the U.S. Armed Forces, which provides his safety razor and blades to every enlisted man or officer on their way to Europe as a regular part of their standard issue gear. This creates tremendous worldwide promotion and publicity opportunities for Gillette‟s company and products.
1960 – GILLETTE safety razors with long lasting stainless steel blades hit the U.S. market. Later, other inexpensive injector-type cartridges and disposable razors become available.
1960s -70s - DISPOSABLE RAZORS, which can neither be sharpened or replaced, hit the market for both men and women. They are to be used 2-3 times, then thrown away. Numerous manufacturers economically design them in simple shapes, which make them inexpensive to produce and sell.
1971 – GILLETTE begins to aggressively market a new twin-blade razor on a wide scale, even though there have been similar razors available since the 1930s.
1984- Gillette entered Indian market through a joint venture as a minority shareholder.
1986- Launched the 7‟o clock brand
1993- Launched the Presto readyshaver brand
2000- Launched the Mach-3 and shaving gel, shaving foam and linen series for women
2002- It gained more shares so that it had three fourth of the shares. During these two decades Gillette followed inorganic growth by acquiring domestic companies in oral care, battery, blades and razors and stationery business.
2004- The company launched the next generation triple blade shaving system, Gillette Mach Turbo, Gillette VectorPlus. Further in personal care segment the company has launched Storm Force after shave splash and New Ultra Comfort Shaving Gel & GilletteSeries Tube Shave Gel Variants, namely Sensitive Skin and Moisturising to suit different skin types.
2005- The company‟s parent company Gillette, USA was acquired by the Procter & Gamble Company, USA worldwide through merger in October 2005. In India, the company while continuing as a separate legal entity, will also, be part of the Procter & Gamble company, USA. The company has started the process of transition from its current distributor structure to the P&G Distributors
(Source: Anand A. A Tiwari. N Jalan. N P Easwarian. V B Talsila. W Rizvi. 2007 Gillette India Ltd Mak 2 Project; http://www.scribd.com/doc/6139381/GIllette-Marketing-Report; date accessed 03/ 11/2009 )
Strengths
Strong Brand Equity
Strong Portfolio containing Brands such as Gillette, Braun, Oral B and Duracell. Introduction of its new products are easy as people are aware of the brand and trust it. Thus the image and quality of the brand allows Gillette to achieve higher margins by selling goods at a higher price.
Market Leadership
Well known brand consisting of quality and market leaders in their current segment.
Diverse Portfolio
Gillette has a strong market and product diversification, allowing the company to avoid the risk of overdependence.
Weakness
Profitability highly depended on core business
Profitability high, depending on the performance of its razors and blades sales. Any downturn in this sector could affect Gillette’s competitive position.
Relies on a single customer
Wallmart stores are Gillette’s major retail customer. If for any reason the partnership seizes the company would be in serious trouble.
Opportunities
Innovate Products
Constant Innovation and new product launch, gives Gillette an advantage over competitors
Price increases
At an average increase of 4% a year over the last ten years the company is constantly gaining profits.
Threats
Disposable razors
As they become ever more widely available, cheaper and close imitations of Gillette’s razors they pose a competitive threat to Gillette.
Competitive environment
The razor market is an intense competitive market, consisting of private labels sold much cheaper.
(Figure 1.2.1 Gillette SWOT analysis) (Anand A 2007) (Data Monitor 2007)
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