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Gillette Case Study

4845 words - 20 pages

Executive Summary
Gillette has been the leading brand in men’s grooming industry. The competition in the razor industry is becoming more intense since the start of online retailing of razors. With competition heating up Gillette has to find a way to cater to consumers. Gillette merged with P&G in 2005, which instantaneously became a competitive advantage. Gillette uses its aggressive advertising to compete with customers and keep its market share. The company will introduce a new women’s razor to put more emphasizes on women. The company will use aggressive advertising and survival pricing, to target low to moderate income women. The company projects that this product will bring in $20 ...view middle of the document...

, Ray Rice, Denny Hamlin, Matt Ryan, Carlos Gonzalez, Evan Longoria, Ryan Lochte and Kyle Busch (Athlete Promotions, 2016). The firm continues with its strong R&D in order to stay on top of certain trends and utilize the sources it has to continuously innovate. Gillette has been keeping up with the recent trends of online razors, and now has their products readily available for purchase on the website.
Review of current marketing strategy and performance
Gillette maintains 64 manufacturing facilities in 27 countries and its products are sold in more than 200 countries and territories. Working in other countries has been proved to work well for the company, more than 60 percent of sales occurring outside the United States (Rodriguez, Salamie, Shepherd, 2005). Gillette, as of 2015, has a brand value of $20.4 billion. Sales were averaging around $7.4 billion in 2015. (Gillette, 2015). P&G Market share compared to other brands have been declining. The industry, like many other sectors, also has faced new competition such as upstart Dollar Shave Club, while having a beard has become a fashion statement (Cheng, 2014).
Review of current and anticipated organizational resources
The Gillette Company acts as a subsidiary for the Procter and Gamble. P & G was ranked #32 in Fortune 500 in 2014. P & G is the world’s largest maker of consumer packaged goods. (P&G company profile, 2015). Gillette, being a subsidiary of P&G, is provided with many resources. Gillette has experience in the market and this alone is a great resource. Gillette has led the personal care and grooming industry since 1901.
The company’s financial resources have benefited them in their marketing strategies. Gillette uses its financial resources to continuously pay for the sponsorship of the Gillette stadium. The availability of resources leads to the company sponsoring this stadium, which leads to worldwide promotion. If the firm acquires additional research it can put more money into its R&D to determine how to make their products the same, but in a more efficient way, so that customers won’t have to pay such high prices for products. High prices can easily drive customers to substitutes.
Review of current and anticipated cultural and structural issues
Gillette strives to meet customer’s needs. The company focuses on offering consumers high-quality shaving products that satisfy basic grooming needs at a fair price. Gillette’s customer orientation is what led them to their significantly large amount of market share. Gillette is determined to always produce products that are valuable and of high quality.
Today, Gillette has two dedicated R&D centers – in Boston, USA and Reading, UK – where most of its product R&D takes place. Gillette believes that unique and diverse professionals drive with passion and creativity, a culture of learning and technical excellence at Reading and Boston to lead scientific breakthroughs (History, 2016). The company was built on innovation....

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