Gillette Marketing Plan - 1878 Words

THE GILLETTE COMPANY MARKETING PLAN Second year of Mach3 in the market. 1. Executive Summary * The major goal is to meet the sales volume (unit and US$14400 MM) as well as estimated profits US$ 2880 MM which represents 24% of sales. * Consolidate Mach3 as a successful launch, with the objective of recovering the investment in 2 years. * Minimize the effect the higher price of Mach3 might have in foreign markets. * Make consistent efforts in all countries to continue sales growth of other consumer brands: Duracell (batteries), Oral-B (toothbrushes), Parker and Waterman (pens). In China special effort on Duracell due to high potential because of consumer preference for gadgets such as†¦show more content†¦Few companies were as good at combining new products with new ways of making them. It gave a huge advantage over the competition. 75% of the US$ 1 billion spent on the Mach 3 was dedicated to production machinery, tripling the current speed of production. The estimate was that the investment would pay for itself within 2 years. The fact the company spent more on new production equipment than on new products was one reason why Gillette regularly hit its target of reducing manufacturing costs by 4% a year. Another difference between Gillette and most other consumer-product companies was it did not tailor its products to local tastes. That gave it vast economies of scale in manufacturing On the distribution side it usually broke into new markets with razors and then pumped its batteries, pens and toiletries through the established sales channels. The impact on margins was dramatic: the company ´s operating margin, currently a fat 23 % was rising by 1% a year. Gillette is a global leader, in 1997, 70% of the company ´s sales were outside America. More than 1.2 billion people used at least one of its products every day, compared with 800 MM in 1990. The company had sliced into developing markets: it had 91% of the market for blades in Latin America and blades and 69% in India, measured by value. The chinese market was not very attractive for blades and razors, they â€Å"don ´t need to shave†. Buts offer great potential forShow MoreRelatedGillette Marketing Plan687 Words   |  3 PagesManagerial Marketing Marketing Plan Questions for Discussion 1. Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain. While evaluating the product innovation at Gillette throughout its history, it is easy to relate to the companies ups and downs, as well as its struggles. Especially in the younger developmental years, we see the resilience of the company andRead More Gillette Marketing Plan Essay989 Words   |  4 PagesGillette Marketing Plan Gillettes $9.2 billion global business began on September, 1901 by the name of American Safety Razor Company. In 1902 it was names Gillette Safety Razor Company. The Gillette Company today is the global market leader in nearly a dozen major consumer products categories, principally in the grooming, alkaline battery and oral care businesses. It is the largest known company for producing razors and other shaving products. The five different business units Gillette focusesRead MoreAnalysis of Gillette Case1083 Words   |  5 PagesMARKETING ASSIGNMENT: GILLETTE CASE 1. Analyze Gillette’s planning and control systems These two management tools provide the company with the necessary information to run the different SBU’s from a marketing point of view. 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The way that Gillette can accomplish this is by utilizing some of it’s biggest and strongest assets to overcome what the consultants believe are the three major problems in the industry:Read MoreGillette Case Analysis1125 Words   |  5 PagesGillette Case Analysis Key Marketing Issue/Challenge The key marketing challenge for Gillette is the company’s ever expanding product line. In the past few years, the Gillette brand has grown considerably. The company has released many new high-performance grooming products for men. The challenge in introducing a large number of new products in a short period of time is being able to properly market each one. It is difficult to release and market one new product, but if manyRead MoreThe Gillette s Vice Of The Disposable Crown Cork Bottle Cap987 Words   |  4 Pages King Camp Gillette was born in Fond du Lac, Wisconsin in 1855. 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With time, whenRead MoreGillette Case - Launch of Sensor814 Words   |  4 PagesMarketing Strategy and Plan – Session 6 Gillette’s Launch of Sensor The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale. Gillette’s top management had to make very important decisions regarding the launch of its Sensor line. They are questioning, on which markets to focus their launch, how aggressiveRead MoreRazor and Gillette1020 Words   |  5 PagesANALYSIS I. Statement of the Problem How can Gillette Company maintain and improve its profitability? II. Objective 1. To reinvigorate the blade-and-razor system market while keeping the lead in the disposable razor market. 2. To develop strategies that will continue to sustain and increase the market share. 3. To maximize the profitability of the company. III. 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