Gllette Case

EXECUTIVE SUMMARY

The following report contains information that will help Gillette Company to succeed and be a force to be recognized with in the grooming product, portable power, and oral car markets respectively. The report will start of with three major problems that Gillette Company is facing, followed by a detail situation analysis. In our situation analysis there is a comprehensive SWOT analysis, followed by a customer analysis, and an external analysis. Then we will briefly explain our objectives. We will also provide four alternatives with each one of them having three pros and cons in it. Then we will recommend three recommendations for Gillette Company ranked in order of importance and there will be an explanation and rationale for our recommendations. The final part of this report will contain our implementation plan. There will be an immediate action, short-term action, and long-term action.

IDENTIFICATION OF THE Problems

Gillette Company is facing the following problems:

1. Aggressively moving towards diversification by acquiring unprofitable companies.

2. Unable to leverage its core strengths to become dominate in each of its markets.

3. Underestimating their core business and their primary business sectors.

SITUATION ANALYSIS

SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats

- Multinational organization

-Company reputation

- Brand equity

- Brand familiarity

- Aggressively moving towards diversification by acquiring unprofitable companies

- To capitalize on three profitable segments grooming products, portable power and specialty batteries, and toothbrushes and plaque removers

- Competitive rivals such as Bic, Energizer Holdings, and Wilkinson Sword

- Price war with competitors

- Superior customer value

- Superior customer collaboration

- Superior customer brand value

- Gillette cannot leverage its core strengths to become dominate in each of its markets

- Geographic expansion into emerging economies such as China, India, and Russia

- Economic problems in Asia, Brazil, and Russia

- The exchange rate of Euro currency

- Economic of scale and market penetration

- Recognition for excellence in advertising, marketing, public relation, packaging, and new products

- Gillette underestimating their core business

- Over reliance on a single customer

- Profitability highly dependant on core business

- Blades and razors segment is promising as the shaving population increases in Asia, Eastern Europe, and Latin America

- Technologically superior products

- Lawsuits over patent infringement technology

- Increasing competition within the U.S. market

- Well established channels of distribution

- Manufacturing efficiency

- Market oriented

- Lack of top management expertise and accountability for poor acquiring unprofitable companies

- To develop lifelong customers by targeting teen shavers at a young age

- Focusing on technologically driven consumer products

- Social and cultural barriers

- More emphasize on private (dealer) brands rather than on manufacture (nation) brands

CUSTOMER ANALYSIS

Who are GilletteÐŽ¦s Current and Potential Customers?

„» Current customers of Gillette are men and women mostly located in developed countries such as United States, Canada, England, and Germany just to name a few.

„» Potential customers of Gillette are the emerging economies such as China, India, and Russia.

„» Potential customers of Gillette are the teen markets, who are having the need to use more and more of GilletteÐŽ¦s products for their personal hygiene and their electronic gadgets.

What Do Customers Do With Gillette?

„» They it for wet shaving and dry shaving.

„» They use it for personal care.

„» They use it for oral care such as toothbrushes and plaque removers.

„» They use it for portable power such as alkaline and specialty batteries.

Where Do Customers Purchase Gillette?

„» From supermarkets.

„» From drugstores.

„» From convenience stores.

When Do Customers Purchase Gillette?

„» Purchases are made frequently when the customer feels there is a need for it.

„» Customers purchase Gillette more when there are promotional events.

Why