TAMEKA BROWN ADELARIN YEMI-SOFUMADEFION LAU ERIC PALMER ANDREW HALLORAN TIM POE MKTG 8030: Team 2

COMPANY OVERVIEW King Camp Gillette was inspired by a fellow inventor with the paradigm “the most successful invention is one that can be purchased over and over again by satisfied customers.” The Gillette safety razor company was established in 1901 with the successful production of a mass produced safety razor and blade. Maintained marked dominance until 1962 when Wilkinson Sword introduced their stainless steel razor blade. Today, Gillette still maintains a dominant market share in the U.S. and across the globe under ownership of Proctor & Gamble. ~MOST RECENT OFFER IS THE 5 BLADED GILLETTE FUSION

SITUATION ANALYSIS Gillette enjoyed years of success pioneering the disposable razor and introduced new razors with added technology. Gillette Mach 3 Gillette Fusion Innovation in razors and blades is stymied by a lack of new technology and increasing customer reluctance to pay for the latest and greatest in shaving technology. Gillette brand is well known. Historically, the branding and advertising campaign has been male centered and very successful at integrating marketing campaigns into sports, entertainment and traditional media.

PROBLEM STATEMENT How can Gillette maintain competitive advantage in a mature market without creating trivial innovation?

ASSUMPTIONS Gillette cannot lower prices Still in recession (2009)

SWOT ANALYSIS Innovation Dominant market share Strong branding and successful marketing strategy Proctor and Gamble’s resources Complimentary products StrengthsWeaknesses OpportunitiesThreats Rise in market demand for personal care products Emerging Global Market Female market segment Underserved minor market segments Schick Company Critics and Consumer Reports Depressed economy Competition’s price strategy Consumer safety groups and regulations New products without substantial technological improvements Primary product is in the maturity stage of its product life cycle High price points Narrow segment focus

PORTER’S 5 FORCES IN THE PERSONAL GROOMING MARKET Rivalry Intense Rivalry in Personal Grooming Suppliers Barriers Buyers Substitutes Gillette is a large supplier with influence on retailers for price and placement Customers have other cost effective substitutes. Easy to switch to competitors. Large buyers have bargaining power in this space: Wal-mart, Target, etc High barriers for potential competitors to enter the market on a large scale

MARKETING ALTERNATIVES CONSIDERED Marketing Alternatives Razor Innovation – “Lazer Razor” Subscription Service - “Personal care clubs” Market to new target segments Partnerships with the travel industry Continued expansion of personal grooming products

DECISION CRITERIA Evaluation CriteriaWeightDescription Increase US market share 30%Primary source of revenue Increase global expansion 30%Greatest opportunity for growth Increase brand equity20%Leverages our brand name to increase competitive advantage Low investment cost10%Cost is a secondary factor Low competitive threat10%High entrance barrier for new competitors to replicate and hard to duplicate by our main competitor

DECISION ANALYSIS MATRIX CriteriaWeight Marketing Alternatives Razor Innovation Subscription Service Market to new target segments Partnerships with travel industry Continued expansion of personal grooming products Increase US market share 30%43524 Increase Global expansion 30%31423 Increase Brand equity 20%43544 Low investment cost 10%12232 Low competitive threat 10%51111 Total Score Rating Scale: 5 = highest impact; 3 = moderate impact, 1 = least impact

RECOMMENDATIONS Primary Recommendation: Market to new target segments Steps: 1) Initiate a study to determine most profitable market segment. 2) Assemble a cross functional marketing team (Customer Marketing, Marketing Communications, Ad Agency) to define the strategy to reach the target audience 3) Implement the strategy and measure the results. This recommendation broadens the customer base to be a more inclusive brand. Revise slogan from “Gillette, the best a man can get” to “Gillette, the best anyone can get”

RECOMMENDATIONS Secondary Recommendation: Research and Development of “Lazer Razor”. Innovation is inherent to Gillette and will help maintain long term competitive advantage.

QUESTIONS?