MARKETING STRATEGY

Submitted by:
1901183 Ajenkiya Singh
1901186 Aneesha Kondoju
1901187 Arpita Pritam Mishra
1901210 Nalin Haldwani
1901213 Prachi Mhatre
1901217 Rahul Chatterjee

1
 APPENDIX

1. Introduction 2
2. Situational Analysis
i. PESTEL Analysis 3
ii. SWOT Analysis 4
3. Segmentation, Targeting and Positioning
i. Segmentation 5
ii. Targeting 5
iii. Positioning 6
4. Marketing Mix
i. Product 6
ii. Pricing 7
iii. Placement 8
i. Promotion 8
5. References 12

2
INTRODUCTION - About Gillette India
Based in Boston, Gillette is the flagship brand of Procter & Gamble which got merged in it in the year 2005.
For more than 100 years Gillette has been known for Men’s grooming with its innovative razors and shaving
blade. The brand has been the pioneer in providing efficient health-related and skin care solution for
enhancing the Men’s look with the wide range of grooming and oral care products like Gillette and Oral-B.
In 1984 Gillette entered the Indian market and in 2004 launched its three blade razor technology, in the
Mach 3, other features included long lasting diamond-like coating blades, 'PowerGlide' smoothness,
ergonomic handles, pivoting precision heads - and premium price, which was 10 times more than its two-
blade competitors.

Mission: “To give men the very best and for help them to them to look, feel and be their best every day”
Tagline: “The best a Man Can Get”

SITUATIONAL ANALYSIS
PESTEL analysis of the Grooming market in India

Political factors:
Even though our economy is growing at a fast rate, our FMCG sector is facing many challenges. Last two
years, we have seen major disruption in our tax regime because of GST and there has been an upheaval in
the market owing to demonetization. Government is also taking measures to increase the awareness of e-

3
commerce in FMCG sector; this is causing increase in competitive rivalry. There has also been a constant
push towards supporting the "Make in India" initiative which has led to the rise of a lot of local competitors.
This has also led to a major impact on the pricing strategy and consumer perceptions. Governmental rules
and policies regarding imports and exports are affecting Gillette majorly.

Economic factors:
In India, Gillette has penetrated most of market and has acquired a major share. It has being successful in
tapping the rural market with the launch of this razor. Also, the fact that India is finally seen as an almost
developed nation showcases the potential of the market.

Social factors:
Men are giving more preference to grooming today, more than 40 percent of male skincare products are
purchased by men, which was not a scenario a few years back. Also, the Advent of new age feminine
products in this market segment can be an opening for Gillette to introduce differentiated products for a
completely new target segment. Apart from this, the new consumer is more socially aware and hence is
more willing to respond to Marketing promotions targeting social stigmas and social issues.

Technological factors:
Giving high priority to safety, Gillette has always used the best technology such as Fusion-5 ProGlide with
FlexBall technology which has better interaction between skin and razor. But on the technology front,
Gillette has an indirect competitor that is laser technology. Today more people are opting for permanent hair
removal by laser.
Environmental factors:
In the disposable razor segment, Gillette has moved from metal razors to recyclable plastic razors. In India,
the drive against plastic products has started on a war scale. Announcements by the Prime Minister and
Chief Secretary show that the FMCG sector would have to find out innovative ways to be environment
friendly while keeping the costs lower. Failure to do so might end up being really costly.

Legal factors:
Major legal issues would arise from the new laws that would govern anti pollution practices. Recycling
practices of the company along with the practices followed by the suppliers and distributors would also
come under the purview of the legal framework. Some new laws with regards to CSR contribution may also
need to be taken into consideration going into the future.

4
SWOT ANALYSIS
Strengths • Association with trusted Procter & Gamble. P&G has been dealing with consumer goods
since a long time and it is strongly research oriented.
• Process of continuous innovation in features of its products.
• Gillette is one P&G’s flagship brands when it comes to razors and this business is highly
profitable with operating profit margins being approximately 30%.
• Has noticeable presence across all major social media platforms like Facebook,
Instagram, Twitter and LinkedIn and it is known for running social awareness ad
campaigns(“Best a man can be” campaign).
Weaknesses • Products are usually in the higher price range. The company had followed the pricing
strategy similar to the one that had used in the US, but in India people are not very
willing to buy razors for high prices.
• Higher assembling cost, due to more parts in the product.
• Gillette has a wide range of products to suit consumer needs but it hasn’t been able to
create customer-awareness of these products, especially in the Indian rural market.
Opportunities • Consumer preferences, lifestyle and shopping habits are constantly changing. People are
becoming highly conscious about their appearance and they look for solutions to their
problems through products. Clear opportunity for the company to differentiate its
products based on consumer needs.
• The e-commerce industry is booming and it has changed the way that companies
communicate with their customers. There is an increase in the number of internet users
who are use social media in the rural as well as the urban market and this is an
opportunity for Gillette to target such users to advertise their products.
• There has been an increase in the rural consumption when it comes to products like
razors. The company can use this as an opportunity to spread customer awareness
regarding its other range of products and thus increase their sales in the rural markets.
Threats • Due to the changing spending patterns of the consumers, FMCG companies are finding it
difficult to develop sustainable business models.
• There is a threat of substitute products that are now available in the market. As
mentioned earlier, Gillette’s core product is its razors and there are now substitutes to
razors available in the market like trimmers which are becoming increasingly popular.
• The competition within the FMCG industry is increasing with respect to razors and
grooming products. Brand like Spruce Shave Club, Dorco, Zlade, LetsShave are the
major competitors with respect to razors and Godrej, Old Spice and Park Avenue are the
major competitors with respect to shaving creams and other grooming products like
aftershaves and skincare products.

5
SEGMENTATION, TARGETING AND POSITIONING

Segmentation
Market segmentation involves dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviour and who might need separate marketing strategies. Here we have made an
attempt to segregate the Indian grooming market into smaller segments.
The Indian grooming products market is a part of the FMCG market, which can be broadly classified into
organized and unorganized categories. The unorganised market comprises mostly of local grocery and kirana
stores who cater to the needs of the people from rural areas, whereas bigger departmental stores cater to the
needs of people living in tier 1 and 2 cities. The distribution channels of these two are vastly different and to
ramp up sales in the rural market which comprises of 40% of India’s FMCG market its imperative that our
product reaches the remotest part economically.
Based on Geography: The Indian grooming market can be broadly segregated into the rural and the urban
market (tier 1 and tier 2 cities) based on geography.
Based on Demographics: Grooming products are used by
• People of all age groups.
• Both males and females
• Based on income level, the standard of products used varies.
• Today’s generation people are intrigued by technology intensive products, whereas the older
generation relied more on brand name.
Based on Behaviour: Based on the behaviour of the consumer, they can be segregated as heavy, moderate,
light users of the products.

Targeting
Gillette has two broad types of products, one which is tech intensive and is
equipped with the latest technology like the FlexBall technology and the
modern blade coating. Over $ 1 billion worth of investment had to be made
for the development of the Flex razor series. These products are
scientifically proven to provide better results and hence it is justifiable to
sell them at premium prices. But not all markets in India are open to such
products, so Gillette pushes most of its premium products in the urban
market, where the purchasing power of the buyers is more, and where
people are ready to experiment with new products.
Whereas the same cannot be said about the rural market, where the consumers are price sensitive and are not
willing to experiment with the advanced products Gillette has to offer. The men’s grooming sector has not
been able to penetrate here and people are content with basic products which serve their minimum needs.

6
Low cost razors like Gillette Vector and Guard which come with basic features such as a single blade and
blade cover and minimal packaging have done really well in this market. These are the two broad markets
we are targeting as of now.

Positioning
Gillette razors have been positioned as the razors which offer the
best shave to men around the world. This has been made possible
through its investments in Research. Consumers perceive Gillette
razors as highly technology intensive with several features which
are not there in conventional razors. The advertisements of Gillette
mostly show the benefits of using razors with three or more blades
which can morph according to the contours of the users face, and
causes zero cuts. Gillette mostly deals with disposable razors which
form a major part of the razor market.

Perception map

Generally Gillette products have been perceived to be expensive, since its technology intensive. But to reach
out to more customers Gillette has introduced razors in the mid-price segment which are affordable and
retains the premium quality which Gillette has to offer.

High Price High Price

GILLETTE

High Quality High Quality

GILLETTE

Current Perceptual Mapping Future Perceptual Mapping

7
MARKETING MIX

Product:
Core Value - Core value is the most basic level of a product. Core
value addresses the basic question: What is the customer actually
buying? Or what problems do the particular product solves? Gillette
promises smooth shave and high quality of lubrication. As the tag line
goes ‘The best a man can get’, Gillette thrives to provide the best
possible shaving through its product lines.

Actual - Actual product is at the second level of product and it delivers

the core value of a product offering the required features, quality
level. The actual product needs packaging, design and a brand name.
Actual products of Gillette are Face razors, Body razors, High lubricating shaving gel, and shaving foam.
Usually, Gillette products are in the premium sector. But there are some existing products of Gillette for e.g.
Gillette vector, Gillette Guard which are designed to cater to the needs of the Indian low-income customer
groups.
Augmented - Augmented product is built around the actual product by offering additional value to the
consumer. Gillette has Superior technology of products and reliability of the brand. Gillette has been
offering twin blade technology, triple-blade technology, and flex roller technology.

Product by involvement (Convenience, Shopping, Specialty, Unsought)

Convenience- Customers tend to buy blades, shaving foams more conveniently and among razor product
lines, Gillette guard is bought frequently, with minimal comparison and buying effort.
Shopping- Premium razors like Gillette Mach3 among others are the ones that are bought after comparison
of quality, price, and style.
Specialty- Gillette’ s Fusion series is a special razor line with Flex Ball technology which enables it to make
maximum contact over contours and it is known for long-lasting performance. It has 5 blades with a
precision trimmer on the back. It is Gillette’s number one razor for sensitive skin.
Unsought- Trimmers of Gillette are the products that a customer generally does not generally consider
buying. Apart from trimmers, aftershave of Gillette also is a unsought product type.
Branding
A brand is a name, term, sign, symbol or design or combination of these that identifies the maker or the
seller of the product. Gillette with its superior technology and affordability has managed to be the number
one brand in when it comes to buying razors or other shaving products. And it has sustained this brand value
for the long term. For e.g. Gillette’s Fusion Series is placed number one in razor line.

8
Packaging
The primary function of any package is to protect the product but recently it has become a major marketing
tool. Gillette has shifted from using plastic packaging to sustainable fiber-based material and it has reduced
plastic use by 79%.

Our Strategy
Gillette guard is the existing product of Gillette which caters to the needs of
rural India. While Gillette guard is available to the rural market at a very
affordable price and it is doing well in the rural market, shaving cream holds an
important aspect of the entire shaving experience. According to various
surveys, it is found out that customers in the rural market are using
unconventional products such as shampoos, fairness creams etc instead of
conventional shaving creams. Leveraging the popularity of Gillette guard and
to fill this gap of inaccessibility of shaving creams in the rural markets, we suggest a strategy to introduce a
bundled product of Gillette guard and a 30ml tube of Gillette shaving cream regular. This way we will create
customer value for the rural customers at affordable prices

Pricing:
Cost-based or value-based : In the cost-based approach, a good product is designed first then the price is
decided. Gillette follows a premium pricing model while in value-based pricing strategy; customer’s needs
are assessed followed by setting a target price. For most of the Gillette products in premium market, Cost
based pricing strategy is used to determine the prices as it operates in premium market. But products like
Gillette guard which are designed for low income or rural customers follow a value based pricing strategy.
Price Elasticity considerations : Price elasticity measures the sensitivity of demand associated with a product
to changes in its price. As a marketer, this value holds a lot of importance in order to understand the
consumer behaviour of a product. Gillette being a premium product has a lot of brand value associated with
it. Gillette has been successful in maintaining its number one position in the market and has the ability to
create the need for such a premium product. Due to these reasons, the demand for Gillette is inelastic as the
demand is not much affected by small changes in prices.
Pricing Strategy : Pricing strategies are used while bringing out a new product in the market and are required
to set the price of a product entering the market. Gillette has used Market-skimming pricing being a
premium product. Revenues generated are from this premium pricing and from the premium customers who
are willing to pay more for a product. While all products of Gillette are in premium, Gillette guard and
Gillette vector used market-penetration strategy as they are affordable products targeting more customers for
profitability.

9
For the suggested bundled product of Gillette guard and Gillette shaving cream regular, pricing should be
high affordability and lost cost as we are targeting rural low-income customers. A Gillette guard costs Rs.45
which contains 5 blades in it. And a shaving cream regular of 30ml costs Rs 35 which gives a total of Rs.70
for the bundled product. As we are using the bundling technique for better sales, we can further reduce the
price by 10% and we can mark the product at Rs.72.

Placement:
Gillette uses indirect marketing channels to deliver products to consumers. Conventional distribution
channels are preferred where the products are directly supplied to the retailers without using any
wholesalers. In every city, a franchised distributor is set up with employees who manage the distribution
system. Gillette uses an intensive distribution system to sell its products. This ensures that Gillette’s
products are available in every corner of the country.
Gillette has its own manufacturing plants in India. The first manufacturing plant that was set up in India was
at Bhiwadi in Rajasthan. The company’s headquarters is currently located in Mumbai. It has more than one
lakh retail outlets across 3600 towns. The company’s products are available at almost all supermarkets,
corner shops, general stores, etc. This process ensures that there is higher market penetration. The company
uses the services of DHL Courier Service to maintain an efficient dispatch system.
Gillette Guard was the main item that was made to suit the needs of the Indian customers. It was first
presented in October 2010. The price of the razor was estimated to be as low as Rs.15 per razor, which made
it easy for the product to be sold in the rural market. Gillette sells its products by strengthening its network
of various local shops known as kirana stores in the rural market.
Gillette also has its own website which lists all of its products. The website is very user-friendly and it is
easy for the customers to purchase products directly from the website.
Our strategy is to continue using the same distribution system. We plan to sell our bundled products through
kirana stores in rural areas.

Promotion:
Gillette had entered the Indian market in the year 1984. Since then, with the help of its parent company
P&G, it had spent a lot on advertising and promotion.
• Sales Promotion: In 2002, during the FIFA World Cup, Gillette had introduced a promotion
scheme where it offered its customers an opportunity to win a trip to see the finals live, in
Yokohoma, Japan. Also, the company offered discounts and other promotional offers through its
website.
• Personal Selling: To sell the products directly to the customers, Gillette launched its own
“Gillette Grooming Centres” as well as 50 other salons. The purpose of these centres was mainly

10
 to provide tips for shaving and grooming and ultimately help in promoting the company’s
products.
• Advertising: Gillette also relied a lot on advertisements to promote its products. It tried to create
advertisements that the Indian customers could relate to and tried to incorporate Indian culture
into the advertisements. For example, the advertisements for its product “Vector” were related to
an Indian marriage. The company uses emotional marketing strategy to connect to customers.
Gillette also advertises through TV, newspapers, magazines, social media, billboards, etc.
Gillette had newly launched its product, the Mach3 in the year 2004. For a very long time, the sales were
very low. To understand why, Gillette performed a market research, the results of which showed that Indian
men did not consider shaving to be an important enough activity and thus they did not want to spend a
significant amount of money to purchase razors. Gillette then decided to focus their promotional activities
on changing this attitude among the customers. This was done with the help of creative marketing
campaigns which mainly aimed at creating a narrative around shaving and create an interest in the
company’s products.
Word-of-Mouth Campaigns:
• One of the most innovative campaigns that Gillette had started was the Shave India Movement. It
included promoting through social media, infomercials and stunts like World Record for Shaving.
• In 2009, Gillette publicized a study that said that 77% of the women in in India prefer clean-shaven
men. Following which, it started a campaign called “India votes: To Shave or Not”. This generated
quite the buzz in urban areas.
Buzz Marketing: Gillette formed an association called the Women Against Lazy Stubble (WALS). It
included media polls and short clips in which women condemned the stubble. Bollywood celebrities like
Neha Dhupia and Arjun Rampal were hired to support this campaign. This campaign proved to be effective
and increased the commpany’s sales and market share almost by 38% and 35% respectively.
Gillette also started an initiative called “Gillette Guard ‘Safalta Apni Mutthi Mein’” which was supported
by Amar Ujala. This initiative was a career and grooming workshop which was aimed at teaching students
about career planning, CV writing and preparing for job interviews, etc. A special zone was created in each
college called the “Shave for Success” where college students were encouraged to adopt self-shaving.
Gillette still uses traditional ads and marketing campaigns in order to attract consumers. The company
managed to change consumer’s attitude towards shaving and create considerable demand for its products.
Thus, Gillette shifted from a market-driven approach to a market-driving approach.
Our strategy is to use advertisements in local languages and traditional marketing via radio apps. We also
plan to introduce ads in apps like Tik-Tok which has gained popularity in the rural market. We would also
be advertising through billboards.

11
REFERENCES:

• https://www.pg.com/en_IN/downloads/investor_relations/gillete/annual-report/ANNUAL-REPORT-
2018-GIL.pdf
• https://economictimes.indiatimes.com/industry/cons-products/fmcg/pg-india-finds-a-winning-
formula/articleshow/68589317.cms
• https://economictimes.indiatimes.com/news/company/corporate-trends/can-gillette-tap-into-rural-
market-and-yet-retain-its-value-for-urban-consumers/articleshow/11061644.cms?from=mdr
• https://www.business-standard.com/article/pti-stories/gillette-india-q4-net-profit-up-32-3-pc-at-rs-
45-82-cr-119082201014_1.html
• https://www.businesswireindia.com/gillette-guard-amar-ujala-create-never-before-experience-
personality-d-45693.html
• https://www.ft.com/content/8da786b8-37e7-11e3-8668-00144feab7de
• https://www.businesstoday.in/magazine/lbs-case-study/gillette-innovated-improved-its-market-
share-in-india/story/204517.html

12