Gillette Indonesia Case Study

* Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market

A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry

Gillette ads have focused on men in all the different ways a man will have to use their product. They have also used heroes from all the different sports played like, Hank Aaron, Mickey Mantle, and Honus Wagner for baseball, also Soccer star Park Ji-Sung, motorcycle champion Kenan Sofuoglu, cricketer Rahul Dravid, and Victor Cruz are just a few of the endorsement. The brand’s natural fit with baseball and tradition has helped the company connect emotionally and literally with its core audience. Taps into a key passion for men and strengthening the connection with

For example, if someone such as Bradley wiggins recommends that we should wear a cycle helmet, we are much more likely to imitate this behaviour as we are closer to being like this admired model. But, if someone we look down on recommends that we do the same, we are much less likely to do so as we do not want to be perceived as the person we look down on. Certain attributes of a person determine whether the behaviour is more likely to be imitated, these attributes include; gender, similarity to ourselves, status, prestige, competence and fame.

As I was reading The Beauty Bias, by Deborah L. Rhodes, I came across a statistic that perplexed me, saying the total “annual global investment in grooming” comes to $115 billion (Rhodes, pg. 32). This shocking fact provokes a worrisome question: Why do we, humans, spend so much time, money, and thought on our appearance? As a complex question, there are several equally complex answers. However, the simple answer is that everyone else invests their time and thought into your outer shell, eliciting effort from you to improve what they study - your external image. The concern placed on one’s fashion choice or natural features by society takes away from larger, more pressing issues such as the declining economy, or feeding third-world countries.

As far as the third phase is concerned, it is a little risky. Gillette’s history has showed that during the time the company had a broader product portfolio (from

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.

* Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before.

For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by

The Indonesian economy has constantly grown within the last 20 years. However, the shaving market is still underdeveloped compared with Western markets. Hence, Gillette should provide more information to spread widely concept of shaving. Moreover, it should introduce new products to facilitate the introduction of shaving products to non-shavers and increase the frequency of shaving in current shavers.

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.

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.

Gillette is one of the well-known razor brand targeted at men. The razor has received popularity and accepted by men who entrust their faces and skin to Gillette. The technological innovation and commitment for quality and continues improvement geared towards the unique needs of men, which helps them to feel and look their best after each use.

What is Proctor & Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G?

Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.