analysis

1

A Case Analysis

Gillette

Your name here

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Situation Analysis

Introduction

Since 1901, Gillette has served as the forefront in personal hygiene technology

throughout the United States. With over 600 million men using their products daily, Gillette still

stands as one of the country’s leaders in the industry (Cengage, 2014). However, this does not

come without serious pitfalls such as high prices, lack of women-oriented products, production

costs, and a significant increase in competition.

SWOT Analysis --need a citation for each item

Strengths (Internal)

• Brand recognition (Author last name, year)

• Technological resources

• Product line width and depth

• Large market share

• Financial resources

Weaknesses (Internal)

• High prices

• Lack of penetration in the female market

• High production costs

• High marketing costs

Opportunities (External)

• Increasing interest in female grooming

• Military hygiene requirements

• Rise in female dollar value

Threats (External)

• Other brands have lower prices

• Increase in non-shaving hair removal practices

• Intensive competitions

Suggestions

Target Market

The target market for the Gillett is broken down by geography and demographics,

including age, gender, and income. Additionally, it will also be psychographically segmented by

lifestyle. Gillette will target middle-class income women between the ages of 18 and 34

(millennials) primarily in warmer climates within the United States.

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Product Strategy

In order to reach the target market, the company should take into consideration widening

its product mix and increasing the depth of product lines. Since Gillette has barely tapped into

the female market, the company will add new product lines (increasing product mix breadth) as

well as add to the very few existing ones (increasing the depth). Gillette’s new product lines

should identify as an individual brand. The purpose of this strategy is to increase consumer

attention as being solely a propriety of Gillette’s new products.

Price Strategy

First, for the new female products, Gillette will consider price penetration and status quo

pricing which meet the price level of competing brands’ and will charge similarly to these

competitors. This is important to do because it makes the product appealing to the target market

at an affordable price. Another most advantageous strategy for Gillette to use on the target

market would be value-based pricing. Gillette will set a price level while considering the target

customer, women. Value-based pricing is beneficial because it considers the customer’s

perception of value and the price set by competitors when making a price. In addition, Gillette

will implement a cumulative quantity discount in order to promote customer loyalty. This

discount rewards customers for buying a certain number of products in a given time. This

discount strategy is more beneficial than a cash discount to encourage customer loyalty.

Place/Distribution Strategy

It would be best to use multiple channels because there is a steady increase in online

shopping. For example, multiple channels would include two or more websites that customers

would be able to purchase the product from. Because Gillette will want to target millennials, they

should incorporate digital channels such as social media and email into their marketing strategy.

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Digital channels make it easier for consumers to purchase products right from their smartphones,

computers, or tablets. This is beneficial because it will allow a consumer who may not be located

near a store that sells a specific Gillette product to receive the product they want. E-mail blasts

would also be effective because customers would be receiving information about the new

products directly to their smartphones, tablets, etc. Also, they must use intensive distribution.

Intensive distribution ensures that customers will be able to purchase these products at many

different retailers.

Promotion Strategy

Gillette will use many forms of advertising as part of their promotional strategy for the

new products. Institutional advertising will improve the company's overall image and focus on a

female target market. Gillette will promote qualities such as active life position, authentic

femininity, divine beauty, and elegance, showing that women who use Gillette are women who

love themselves and believe they deserve the best product. Gillette will advertise in women's

fashion magazines such as Cosmopolitan, Bazaar, and Vogue. Radio advertisements will

showcase new slogan, “The Best Anyone Can Have”. Television commercials will feature new

products. Gillette will update their website to include the new logo, slogan, and products.

Billboards, mini billboards in malls, signs in sports arenas will advertise new product line for

women.

Gillette will use public relations to boost its corporate and brand image. Gillette will

sponsor famous sports personalities as well as the games itself. They will sponsor charities that

are female oriented such as breast cancer walks and marathons. For new product publicity,

Gillette will send a press release to media and push for product placement in movies and

television shows.

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To promote the new products, Gillette will implement loyalty marketing programs with

its monthly subscription. Frequent buyer program will reward loyal customers for making

multiple purchases. Social media will be employed to increase its presence on social networking

sites like Facebook, Twitter, Snapchat and LinkedIn. Specifically, YouTube will be used to show

promotional videos of product benefits and advertisements.

References

Carnoy, J. (2016, December 18). Why Millennial Women Crave Authenticity. Retrieved

September 30, 2016, from http://www.huffingtonpost.com/juliet-carnoy/why-millennial-

women-crav_b_8832614.html

Gillette: Product and Marketing Innovation. (2010). Cengage Learning.

https://mkstrat.files.wordpress.com/2013/01/gillette-case.pdf

Holland, Stephanie. "Marketing To Women Quick Facts." She-conomy. N.p., 15 Sept. 2016.

Web. 28 Sept. 2016. http://she-conomy.com/facts-on-women

Newman, Andrew Adam. "Embracing Women’s Inner Goddess." The New York Times. The New

York Times, 2008. Web. 28 Sept. 2016.

Picker, R. (2010). Gillette’s Strange History With the Razor and Blade Strategy. Harvard

Business Review. https://hbr.org/2010/09/gillettes-strange-history-with

Roose, K. (2014). Gillette's New Razor Is Everything That's Wrong With American Innovation.

http://nymag.com/daily/intelligencer/2014/04/gillettes-razor-everything-wrong-with

america.html

Wahba, P. (2015). Gillette says it’s fighting back in the shaving club wars. Retrieved September

25, 2016, from http://fortune.com/2015/10/23/gillette-shaving-club-wars