Gillette Advertising Marketing Case Study Essay

Examining the consumer behavior for nondisposable razors, we can observe that consumers are focusing on the premium segment. Also, they are becoming more sophisticated and expecting new technologies to smooth the shaving process. Focusing on that, Paramount should invest in the premium products category. Even though that would create cannibalism for the “pro-products” which is already loosing market.

The case points out that Gillette’s competitors were quick to copy new products. The launch of Sensor will be a breakthrough in the market and will introduce a new product category the “cartridge laser cut razor with superior quality”. Therefore it is essential for Gillette to protect their new product by pursuing patent enforcement, as they already have. This way will Gillette retain its competitive advantage and will re-introduce and position itself as a technology leader.

Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.

By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,

The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.

In 1967, the Braun brothers sold the company to an American consumer products giant, Gillette. The Gillette Company, well known for its mass-produced, mass-marketed products like razors, blades, and toiletries, hardly seemed the company to become the parent of an elite-class German firm. But Gillette was no stranger to Europe, having marketed its goods on the continent and in Britain since the turn of the twentieth century. It now saw the Braun acquisition as an opportunity to cover the dry end of the shaving business, as well as to extend its influence upward. Braun, for its part, had by 1967 grown to over 5,700 employees and operated in 144 countries, but it was too small to compete with the multinationals. Its management saw Gillette as a source of funding to enable them to do so. Shortly afterwards, Braun moved its headquarters from Frankfurt to Kronberg, a few kilometers away. For the first several years, Gillette left Braun’s product strategy intact while infusing some of its management expertise into the organization. Very few people knew that this German company par excellence had an American owner. Braun expanded its operations in other countries and began to extend its target markets beyond the opinion leaders it had originally cultivated. Braun’s Spanish operations were a case in point.

The acquisition of Duracell was seen as many as a smart move. Analyst, shareholders, executives, had high expectations with this merger. Unfortunately, this acquisition created several problems for Gillette since their main goal of profit maximization was not being accomplished.

To reinvigorate the blade-and-razor system market while keeping the lead in the disposable razor market.

On October 1, 2005, P&G acquisition of The Gillette Company. Under the purchase agreement, the total purchase was approximately $53.4 billion including common stock, the fair value of vested stock options and acquisition costs. The Gillette oral care, batteries and personal care businesses were subsumed within the Health Care, Fabric Care and Home Care, and Beauty reportable segments, respectively.

Marketing promotional tools Gillette used in 2007 compare to the ones they used in 2012.

Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?

Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.

Because of their similarities, Proctor & Gamble and Gillette are a good strategic fit. Between the two entities they have the ability to combine operations, technology, resources, distribution channels and research costs in efforts to drastically cut spending. With lower costs, and the merger complete, the collaboration of Proctor & Gamble and Gillette should achieve a 1+1=3 effect.

There are many competitors in this product category that will compete with the company’s product by 2050 and may threaten the product’s process and use this technology before the company. One of these competitors is Procter and gamble which has a high market share in Egypt; 67% of Procter and gamble business in Near East markets; Egypt, Lebanon, Jordan and Iraq. They took the 12 original-million-pound investment to the present amount of 1.25 billion Egyptian pounds. The development of Procter and gamble and its production level have been enormous; the company today supervises a portfolio of 14 brands. Procter and gamble have some strengths and weaknesses, the strengths they have is that they have over 300 brands all over the world which are existing in 180 countries, over than 125000 employees in P&G all over the world, it has 24 brands which have sales every year over the billion dollars, due to outstanding marketing and advertising their brands have high recall and finally they participated in important sporting events as sponsors. There are also some weaknesses and one of them is that many false products are on sale under their brand names, also their products have a high competition from international brands. There is also another competitor that will compete with the company on this product which is Marico Egypt and its market share is also high in Egypt; Marico's launched in Egypt in 2006-07, when it obtained the local hair care

Gillette está evaluando un lanzamiento para su último producto que la hará posicionarse de ser una empresa internacional, con una gestión del negocio adaptada a cada uno de los diferentes mercados locales, a convertirse en una empresa global que consiga tener éxito lanzando un producto estandarizado que apuntale su liderazgo y potencie su imagen de marca.