Gillette Marketing Strategy

Personal Care Division-PC (toiletries and cosmetics) PC was responsible for Toilette’s U. S. Entries in hair care, skin care, and deodorant [antiperspirants The Brands of Gillette are divided into four rough categories: Build, Hold, Harvest and withdraw. Men and Procter ; Gamble are major competitors for Gillette. Right Guard pioneered deodorants for male users In the united States, with a unit market share of 26% by 1967. But because of fluorocarbon scare burst Right Guard lost its overall market leadership in 1976.

By mid-1982, Right Guard position dropped to number five in the market and its market share was dropped to 8. %. White Rain was a shampoo that was introduced as a low price brand in 1952, but it was phased out in the late assess. PC division of Gillette decided to distribute White rain shampoo and conditioner In May 1985 and also decided to promote all three White Rain products(hall spray, shampoo, and conditioner) leading them to success. Analysis: Toilette’s Marketing Planning and Control System Planning and Control System was time consuming.

The marketing managers developed long-term plans which are not efficient because companies and markets change periodically . So when you use short term plans It Is more efficient. Gillette system was delved Into two subsystems, planning system and control system. Each April the sales planning department and the brand managers organize meeting to discuss changes in marketing plan and prepare fact book. Fact books were the most important documents which cover activities of PC and its competitors. Fact book is based upon sales/marketing meeting, MR., outside market research and brand management.

With the help of fact books , brand managers develop marketing plans over the next three months. A key goal at the marketing Lana stage was to develop an accurate forecast for brand’s annual volumes of sales. The marketing plan goes to Operating Committee for approval. After the marketing plan , marketing managers and Bob Forman creates the strategic business plan where the brands were divided into four rough categories : 1. Build brands- To build market share 3. Harvest brands – To maximize cash flow 4. Withdraw brands – To make painless exit from business.

Once the strategic business plans were approved by the operating Committee, they were reviewed with Dreary Phillips (head Gillette for North America) and Joseph Turkey(company head) Control department was involved in the execution of the marketing plan. Each marketing plan included the brand’s objectives for market share, unit shipments, sales, and net contribution. PC managers relied on a number of regular reports. The Daily sales report and the Monthly Sales Forecast provided information on factory sales.

For consumer information PC relied on both internal reports and reports by outside market research houses. With the help of Nielsen Two-outlet flash report and the Monthly Sales Forecast, MR. produced the Merchandise flow report. MR. also provided managers with internally generated research reports. MR. performs the National Consumer Study(NCSC) which surveys consumer attitudes and awareness for each brand category. MR. also does segmentation studies for individual brands, which provided more information for particular segments of the market.

This helped managers to know whether the brand was on target for its budgeted profit contribution. RIGHT GUARD Right Guard was introduced in 1960. Right Guard pioneered deodorants for male users and by 1967 it was the premier deodorant in the United States, with a unit rake share of 26%. From 1967 to 1982, PC management had watched Right Guard’s position in the deodorant antiperspirant market slip from a leading 26% to fifth-place 8. 5% unit share. This was due to fluorocarbon scare in the mid -asses. In mid-1982, Right Guard lost its 20 -year leadership among males to the Men company.

Still in 1982, Right Guard was PC’s most important brand, providing 15% of sales and 25% of operating profits. So it was difficult brand to lose . At this stage Right Guard needed a massive shot in the arm which led them the idea of radical restate f the brand with new chemical formulation , new fragrance ,new brand packaging and modernizing. The restate was scheduled for three years . In this three-year program, PC assembled new formulations, packaging, advertising, and pricing to restore the brand’s image and reverse its share decline.

Expenditures for the restate were formidable; advertising alone for year one of the program coated $12. 7 million. Results in the first year of the restate, 1983, were mixed. Right Guard missed its unit- share goal by . 5%, achieving a 7. 6% unit share versus the forecast 8. 1%. The market intention increased further more with P;G entry and Men’s new product lady stick. For 1984, the division scaled back the restate and adjusted the share forecasts downward. The pattern of low consumer interest and declining share continued through the mid-asses.