Gillette Marketing Plan

1878 Words Oct 31st, 2010 8 Pages
THE GILLETTE COMPANY MARKETING PLAN
Second year of Mach3 in the market.

1. Executive Summary * The major goal is to meet the sales volume (unit and US$14400 MM) as well as estimated profits US$ 2880 MM which represents 24% of sales. * Consolidate Mach3 as a successful launch, with the objective of recovering the investment in 2 years. * Minimize the effect the higher price of Mach3 might have in foreign markets. * Make consistent efforts in all countries to continue sales growth of other consumer brands: Duracell (batteries), Oral-B (toothbrushes), Parker and Waterman (pens). In China special effort on Duracell due to high potential because of consumer preference for gadgets such as
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Few companies were as good at combining new products with new ways of making them. It gave a huge advantage over the competition. 75% of the US$ 1 billion spent on the Mach 3 was dedicated to production machinery, tripling the current speed of production. The estimate was that the investment would pay for itself within 2 years.
The fact the company spent more on new production equipment than on new products was one reason why Gillette regularly hit its target of reducing manufacturing costs by 4% a year.
Another difference between Gillette and most other consumer-product companies was it did not tailor its products to local tastes. That gave it vast economies of scale in manufacturing
On the distribution side it usually broke into new markets with razors and then pumped its batteries, pens and toiletries through the established sales channels.
The impact on margins was dramatic: the company´s operating margin, currently a fat 23 % was rising by 1% a year.
Gillette is a global leader, in 1997, 70% of the company´s sales were outside America. More than 1.2 billion people used at least one of its products every day, compared with 800 MM in 1990. The company had sliced into developing markets: it had 91% of the market for blades in Latin America and blades and 69% in India, measured by value. The chinese market was not very attractive for blades and razors, they “don´t need to shave”. Buts offer great potential for
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