Gillette Case Study
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The following document is based on Gillette Company's internal and external market environment analysis. In addition, the Gillette SWOT analysis and PESTLE analysis, also known as effective marketing techniques, will be analyzed and examined.
As a result, PESTLE and SWOT analyses will help Gillette comprehend the external and internal factors that affect the company. In addition, MyAssignmenthelp.com provides Gillette case study help.
What is the company background of Gillette?
The American firm Procter and Gamble owns the Gillette brand of personal care, safety razors, and other products such as shaving equipment (P&G). P&G owns the corporation, which was established in Boston, Massachusetts, in 1901. The company's objective is to create overall brand value by combining creativity and innovation to give consumer value and customer leadership that is better, faster, and more comprehensive than the competition. King Camp Gillette, a marketer and inventor came up with the idea of a detachable blade safety razor in the late 1800s, and the Gillette Company and trademark were born.
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Explain SWOT Analysis of Gillette case study
Strengths in SWOT Analysis:
Strengths are described as a company excels in its many operations, giving it an advantage over Gillette's competitor's analysis. The following are Gillette's advantages:
- Procter & Gamble affiliation: Procter & Gamble is a household name, and the trust that the name inspires in the customer's mind is one of Gillette's strongest benefits.
- Consistent Innovation: Gillette is regarded as one of the most innovative businesses in the world. The brand's thirst for innovation is one of its strongest assets.
- High operational margins: Razors are one of Procter & Gamble's most profitable businesses, with operating margins as high as 30% for Gillette, one of their signature brands.
Weaknesses in the SWOT analysis:
Weaknesses refer to parts of the business or brand that need improvement. The following are some of Gillette's major flaws:
- Expensive products: The Company followed Gillette's branding strategy
- and pricing structure as customers were unwilling to pay a high price for razors.
- Lack of customer awareness: While Gillette has always been committed to innovating and developing new products, the average customer views a razor as a tool for removing undesired hair.
Opportunities in the Gillette SWOT analysis
The term "opportunities" refers to channels in the business's surroundings on which it can capitalize to boost its profits. The following are some of the possibilities:
- Potential for Growth: The middle class has a rising set of wants, which implies more room for innovative products to meet these growing needs.
- The propensity to spend: The middle-income group has greater disposable income, which has led to a rise in impulsive purchasing.
Threats in the SWOT analysis
Threats are environmental elements that have the potential to stifle a company's growth. The following are some of the dangers:
- Unsustainable spending: Consumer spending patterns are shifting, making it challenging for new enterprises to develop customized business models.
- Competitors: Until recently, Gillette was the market leader in the United States, but it has recently faced various challenges from the competition. Unilever, Dollar Shave Club, and others are among the key competitors.
Explain PESTLE Analysis of Gillette case study
The external environment is made up of external forces that may have an impact on an aspect of organizational activity.
Political
- Each country has tax and customs regulations, which might affect a company's pricing policy. In addition, people may black market the company's products due to pricing inconsistencies.
- The increase in VAT from 17.5% to 20% will raise material costs across the industry and in the United Kingdom.
- Industry value continues to rise (£523 million), but 2009 is expected to be a 3% drop.
Economic
- Within this industry, the recession had little impact on buying habits; few consumers cut back on shaving goods. However, due to extensive promotional pricing, sales value has decreased.
- Due to strong demand for premium disposable shaving equipment, prices have risen.
- Brand loyalty is high, yet one out of every ten users is willing to explore new brands and formats.
Social
- People are unable to shave due to cultural and religious concerns. Furthermore, the media's promotion of Movember, a fund-raising event for prostate cancer research.
- Demographic changes, such as aging populations, statistically shave less frequently.
- Social attitudes are shifting. Men are becoming more mindful about their appearance, as seen by an increase in male grooming sales.
Technological
- High-end products last longer, which means they must be changed less frequently, lowering sales.
- A greater price can be charged for a high-quality premium product with additional USPs, such as an indication that alerts clients when blades need to be replaced.
- JIT and ICT can help minimize waste and improve efficiency in the manufacturing industry.
Environmental
- Consumer purchases are becoming increasingly reliant on the theme of social responsibility, which is often overlooked.
- Shaving Systems May Be Threatened by Depilatories.
Legal
- Within the shaving razor market, there is an ongoing legal dispute. The lawsuits concern firm slogans, advertising efforts, design patents for razor heads with additional blades, and trademarks.
- Replacement shaving razor heads have become the most stolen item on the planet.
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Why may innovation not be enough analysis of customers?
Identifying the difficulty affecting Gillette's market performance is critical to designing the essential plans for the company's success. Gillette's innovative nature has positioned the company as a market leader, as explained in Gillette's positioning statement. Nonetheless, since there has been a mixed bag of results, it has been a huge task. The new ones have condemned the old products. The marketing team did the Gillette SWOT analysis and noted the necessity for contemporary technologies and rising user skepticism. As a result, their goals have been to improve existing items, expand parallel products, and improve their goods while implementing Gillette's marketing strategy.
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Most Popular FAQs Searched By Students:
Q.1. Why did Gillette fail in India?
The product failed due to a basic lack of study on the target demographic. In addition, because many Indian men do not have access to running water while shaving, it is impossible to unclog the Vector razor. Sure, it's a bit of a slap in the face for Gillette's marketing team.
Q.2. Why is new product development necessary for Gillette based on the case study?
Gillette has traditionally depended on considerable research and development to establish a single product for global distribution. A marketing concept for the product was that it would be equally beneficial to clients all over the world. In India, however, Gillette abandoned its global strategy and substantially increased its market share.
Q.3. What marketing strategies does Gillette use?
Gillette employs segmentation techniques based on demographic and psychographic data. In addition, the brand employs a differentiated targeting strategy to highlight the unique attributes of its products. Most of the company's commercials emphasize the underlying advantage of utilizing a specific product, so it employs a usage-based positioning strategy.
Q.4. What kind of innovation does Gillette follow?
With the introduction of the Trac II, the first twin-blade razor system, Gillette changed the razor business. Gillette gained the rewards of being a category First Mover; when it wasn't, it produced similar versions, patented quickly, and entered new markets faster than the competition.
Q.5. How is the Gillette Series being positioned with respect to competitors?
In comparison to the competitors, the Gillette line is positioned as premium. They utilize the phrase "The Best a Man Can Get," which appeals to the target market not because it is the most cost-effective but because of the value added to items by capitalizing on the sensor's popularity.
