MBA 514 - Assignment 1
Marketing promotional tools Gillette used in 2007 compare to the ones they used in 2012.
Submitted to: Dr. Mark Robinson
Submitted by: Zukhrab Karimov
GILLETTE
"The Best a Man Can Get", when we hear this tagline one thing that comes to our mind is definitely Gillette trademark for whom it isn’t just a tagline, it’s a brand promise. Founded by King Camp Gillette in 1901, he devised and marketed the first safety razor in 1901. In a short space of time, Gillette converted his idea into a highly successful, marketable product. On October 1, 2005, Procter & Gamble finalized its merger with the Gillette Company. As a result of this merger, the Gillette Company no longer exists. The merger created the
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Strengthening its leadership positioning this past year, P&G has been testing (in the US only) the “Guy Aisle”; a dedicated in-store area designed to help men select their grooming products. As a result shipments of Gillette products have increased double-digit this year (Interbrand Gillette, 2012).
Event sponsorships
Gillette have always sponsored events especially those that involved men and sports. Then and now the Gillette name adorns the New England Patriots’ football stadium and the company sponsors numerous Nascar drivers’ cars, soccer teams and concerts. Once they merged with Procter & Gamble the event sponsorship has become even bigger, now they sponsor world events as well. In 2012, building on its sponsorship of the London Olympics, P&G has announced a 10-year agreement with the International Olympic Committee, which will link the Gillette brand with top male athletes. In March, Gillette continued rolling out its Olympic Games campaign, featuring tie-ins with top athletes as basketball player Rudy Fernandez in Spain, swimmer Eamon Sullivan in Australia and New Zealand, soccer star Shinji Kagawa in Japan, and tennis great Roger Federer as spokesperson for the Gillette MACH3 razor in Korea, Singapore and India (Lucy Hodgson, 2012).
Product placement in films and television shows
Gillette encouraged by Procter & Gamble designed branded entertainment programs. Today’s market
Tobacco ads have stood out to me from a young age, I was used to seeing cigarette ads in every magazine and street corner. When I was 11 I joined a tobacco advocacy group, I wanted to inform young people my age about the dangers of tobacco but mostly I joined because they paid me. I found these two ads and I remembered sitting in an empty classroom analyzing tobacco ads and discussing how they appeal to us. I found two ads, both from the most recent issue of a popular celebrity gossip magazine. The first major difference one notices is that of the ads is catered to a completely different audience. Blu E-cigarettes cater to the new age of tobacco consumers. While Newport menthol cigarettes are tried and tested, a classic. The major differences in this ad make it difficult to pick which one is most effective at getting more buyers of their product. Newport’s ad is
1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge?
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
3) Capitalize on the renewed strength on the brand name by extending it to other mens’ grooming products.
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
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
* Will cassette accessories needed to be marketed alongside the cassettes themselves in an effort “to demonstrate to wholesales, retailers, and consumers that Gillette is serious about getting into this business?”
Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.
The Gillette Company has effectively entered the razor blade market in the main parts of Indonesia. Even though there is still a lot of potential for growth, it faces stiff competition, as well
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.
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?
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.