Final Project on Gillette

History--Gillette & Shaving

through ought history, depending upon the fashion of the day, man has been presented with a daily challenge- the concept of the beard. At the turn of the century, a shaver either attached the problem at home with a straight – edge razor or subjected himself to the skills of the neighborhood barber.

a straight-edge razor required frequent honing and stropping, an inconvenience that frustrated King C Gillette, a forty year old traveling sales man living in Brook Line, Massachusetts. Gillette was an author and social reformer who had lofty goals for the betterment of mankind. a persistent thinker and a mature investor, he also had a personal dream, to invent a product that would bring back satisfied customers again and again.

One morning while shaving, the concept of the safety razor with disposable blades came to him " in a flash of inspiration". He begins working on a model razor that same day. Gillette was beset with financial and technical problems for several years, but his dream finally became reality. In 1901, he founded the Gillette company, and in 1903 the Gillette safety razor was launched. Gillette's invention was said to have changed the face of a nation and revolutionized the shaving habits of mankind.

Although the first year, sales of the safety razor amounted to only 51 razors and 168 blades, the self-shave concept was beginning to take hold. by the end of the following year, over 90,000 razor were in the hands of American shavers. the growing firm, now called the Gillette safety razor company, established a factory in south Boston in 1905.the company quickly grew internationally as well. By the end of the decade, Gillette has established a factory in Paris to meet European demand and had sale office in London, Paris and Berlin. Before the outbreak of World War 1, total blades sales had risen to over 40 million units annually.

From there, the company continued to grow, and by the time Gillette celebrated its twenty fifth anniversary in 1926, King C Gillette's face and trademark were recognized throughout the world. Even at the stage, the Gillette Company was considered an innovative marketer of new shaving products of consistently better quality.

The company has grown tremendously since then expanding its business into toiletries, personal care products, cosmetics, oral care, household and personal care appliances, stationary products and alkaline batteries. Today the Gillette company employees more than 44000 people with sales of $10 billion, and distribution in more than 200 countries. But now, just as at the beginning of this century, the core of the company continues to be its worldwide leadership in blades and razors.

History

Gillette has pioneered virtually every important advance in the art of shaving. Double edge blades and coated blades, twin blades, pivoting cartridges, lubricating strips, individually spring mounted blades. The first razor designed specifically for the unique shaving needs of women, and micro fins. Major introduction includes.

1903:  Gillette Safety Razor

1932:  Gillette Blue Blade

1938:  Gillette Thin Blade

1939:  Gillette Three-piece Razor

1960:  Super Blue Blade

1963:  Coated Stainless Steel Blade

1965:  Super Stainless Blade

1969:  Platinum Plus

1971:  Tracll / Gll-First Twin Blade Shaving System

1977:  Altra / Contour-First Pivoting Head Shaving System

1985:  Altra Plus / Contour Plus- First Lubricant Strip

1990:  Sensor- First Spring-Mounted Blades, Shell Bearing Pivot

1992:  Sensor for Women-ergonomic Handle, Designed for women's shaving needs

1993:  Sensor Excel- Soft Flexible micro fins, elastomeric handle

1996:  Sensor Excel for women-microfins, elastomeric handle designed for women

Directors

The Product

Overview

Gillette Mach3 truly is the next generation in shaving. Mach3 sets a new standard in shaving performance. It incorporates a no. of major new technological innovations that combine to deliver an extraordinary level of shaving closeness, comfort and safety. And Mach3 has a design that makes it look and feel like nothing else in the shaving category.

The research, development and capital investment required to create this revolutionary new shaving system are unprecedented in Gillette and wet shaving history. In all, the creation of Mach3 has involved more than a decade of research and development. The involvement of hundreds of Gillette scientists, engineers, and a financial investment of over $700mm.

And any of the new technologies, manufacturing process and designs developed to create Mach3 are highly proprietary. The result will be an extensive array of Mach3, related patents. While much of the art is still in the application stage, the eventual portfolio is expected to total application 35% covering various Mach3 features, process and designs.

The result of this tremendous development effort in a product that sets an entirely new standards in shaving, a standard worthy of the Next Generation shaving system from Gillette. Gillette Mach3 breaking the performance barrier.

key features & benefits

Mach3 represents the convergence of an unprecedented number of new technological innovations that combined, deliver an exceptionally superior shave. Below in a listing of the key Mach3 innovations, in appropriate order of importance.

Features

·                     Three blades.

·                     Blades in progressive alignments.

·                     DLC^TM blade edge technology.

·                     Forward pivot.

·                     Single point cartridge docking.

·                     Indicator^TM Lubricating strip vitamin E.

·                     Open cartridge architecture.

·                     Ergonomic handle design.

·                     Organizer with window.

Benefit

·                     Closer, more comfortable shave.

·                     Safer, more comfortable shave.

·                     Cut hair with less resistance for less drag & pull.

·                     Easy leading.

·                     Skin benefits; usage indication.

·                     Easy rinsing.

·                     Improved handling.

·                     Easy storage. Display of blades at retail.

Product Positioning

Overview

In developing the next generation Gillette shaving product, there were (appropriately) three major criteria for launch.

·                     Unprecedented shaving performance.

·                     Strong consumer appeal.

·                     Significant proprietorship.

The product and product performance sections have addressed the many ways which mach3 achieves the criteria of unprecedented shaving performance and significant proprietorship. This section addresses the criterion of strong consumer appeal, which Mach3 alsoacheives at a level equal to or surprising sensor.

At the heart of the Mach3 consumer appeal are three key items.

·                     The core proposition.

·                     The concept statement and

·                     The Mach3 name itself.

The development of each of these involved extensive creative and research efforts to ensure that Mach3 would have widespread consumer appeal. in turn. the core proposition, the concept statement, and the Mach3 name are the starting point for the development of all Mach3 consumers.

Communication-advertising, public relations, packaging copy and graphics, point-of-sale (POS) materials and direct marketing.

Additionally, Mach3 premium pricing also invites discussion. at the conclusion of this section is a rational for this price positioning.

core proposition.

"The closest shave ever in fewer strokes-with less irritation."

This core proposition represents Mach3 central promise to consumer. in extensive market research, this promise been found to be highly motivating to the consumers. A shaving product that can deliver on this promise and the cut results decisional prove that Mach3 does has strong widespread approval to men. The appeal of this core proposition is that it addresses both men's most important shaving benefit ****and their most important shaving problem-irritation simultaneously.

Concept statement

While the core proposition is the central product promise. The concept statement represents the entire product positioning including the problem recognition. the core proposition, a product description, and supporting reasons explaining how the product delivers against the core proposition-in a concise, consumer friendly set of words.

The Mach3 concept statement has been carefully developed to maximize consumer communication, product uniqueness and credibility, while minimizing confusion and skepticism.

In extensive consumer testing, this concept statement has consistently proven to be clear, credible, and highly motivating to consumers. As such, it has become the starting point for all Mach3 consumer communications.

Gillette brings you a whole new shaving technology-a razor that looks and shaves like nothing you've ever used before.

Gillette Mach3 is remarkable new triple blade system that gives you the closest shave ever in fewer strokes-with less irritation.

You know the more you have to go over the same area, the greater the chance for irritation especially in the sensitive neck area. That’s why Gillette developed this revolutionary new shaving system with three independently – suspended blades.

The three blades are specially positioned to enter gradually closer to your beard. This allows the blades to shave you progressively closer in a single stroke. So close, there is less need to reshave. And its blades have patented DLC^TM comfort edges, so they glide across your face effort lessly and comfortability.

The result is the closest shaver ever in even fewer strokes-with less irritation.

Brand name

The final key component to the Mach3 consumer proposition is the brand name itself. The development of the Mach3 name required an extensive process, involving Business Management, Marketing Research, Legal, BBDO, and an international name-generation consulting firm. Candidate names were evaluated against a demanding set of criteria.

·                     High impact-distinctive and memorable.

·                     Conveying product attributes advantages, and personality.

·                     Effective and understandable on a global basis.

·                     Easily pronounceable worldwide.

·                     Ownable by Gillette.

The Mach3 name meets all of these criteria. it has proven to be an astonishingly strong name, rich with positive association that relate closely to the product. the name has become the centerpiece for all of the brand's imagery and personality, and the Mach3 name will become a tremendous asset for the Gillette company for decades to come.

Literally, Mach3 represents a speed three times the speed of sound. The item "Mach"(named after the German physicist Ernst Mach) is used worldwide as the measure of super sonic speed. As such, it is closely associated with speed, advanced technology, jets and rockets, and the striving to break performance barrier.

This last association of breaking the performance barrier- is an important and highly leverage able one for Gillette. Church Yeager, the first person to achieve Mach speeds, later wrote of the experience.

" After all the anxiety, breaking the sound barrier turned out to be a perfectly paced speedway."

This imagery is both vivid and allusive* to the Mach3 shaving experience- of a revolutionary product that delivers a break through level of performance with an incredible sensation of effortless glide.

Pricing

Overall guidelines

On a GNA basis, the target pricing for both razor and cartridges is at a 35% premium (on a net sales             basis) VS Sensor excel razors and cartridges.

• For cartridges, the target premium is on a pre-edge basis (premium is considerably lower on a pack basis due to the smaller pack counts*)
• In 1998, the price premium will be approximately 40% until the 1999 price increases on existing blades and razors goes into effect.

Price premiums in specific geographies will vary due to harmonization efforts.

• Europe: single net selling price across Europe.
• North America: higher premium in Canada to reduce discount VS US pricing.

Rationale

In developing pricing, two objectives were balanced.

• The business imperative to increase the value of the category to both the retails trade and Gillette.
• The need to generate the broadest possible trial and retention for the new system.

For perspective, the 35% price premium on cartridges is only slightly higher then the average premium sensor commanded over contour plus / altra plus. In some market, sensor was launched at premiums of more than 35%.

Furthermore, the decision to package in 4's and 8's (driven also by the need to fit existing retail peg* space despite the larger size of the cartridges) has a significant benefit of reducing the per package, or consumer transaction price, premium VS sensor excel.

At the GNA target of 35% per edge premium, the per-package premium is only 8% VS a sensor excel cartridge pack.

• Accordingly the price point of blade refill packages is roughly comparable to existing premium system product.
• Additionally, the smaller pack sizes will yield incremental retail turns (and thus, higher annual per user revenues), despite anticipated per-user consumption declines VS other blade products.
• The price premium also recognizes the significant added value provides-the closest shave ever in fewer strokes with less irritation.
• This break through in shaving performance is driven by a number of new and proprietary technologies, including three blades exclusive DLC^TM bald edges, progressive blade, alignment, a forward pivot incorporated into the cartridge, single-point docking, an enhanced indicator^TM lubricating strip and an advanced ergonomic handle.
• All of these technologies combine to deliver superior performance but at added product cost.
• With all of this added innovation, product is significantly more expensive to manufacturer then other Gillette products.
• Finally ample evidence demonstrates that large number of men will pay a significant premium for a clearly superior shaving product.
• Sensor history: quickly the number one product in all markets despite price premium similar to Mach3.
• Consumer research: in consumer use testing, purchases interest in Mach3, which was already extremely strong with no price shown, actually increased when the expected retail pricing was shown to consumer. Additionally, a price elasticity study indicated that Mach3 pricing was in an acceptable zone.

Advertising creative

Objective

Advertising is the most important component of the Mach3 consumer communication program. Form a creative standard print, the advertisement will:

• Announce the arrival of the Gillette’s next generation made shaving system. “Surround the consumer” at launch.
• Communicate the magnitude of the product innovation.
• Establish the magnitude of the performance enhancement.
• Translate the product innovations into the meaningful consumer benefits.
• Firmly establish the Mach3 name and brand imagery.

Major Themes

Aerodynamics

• The advertisement capability on the brand name and the product’s sleek, aerodynamic appearance to build a brand image that resoles around  the high performance, aerodynamic flight.
• Creative elements supporting this theme includes jet, test pilots, scene of the sky and space, and even the razor itself in the flight.
• This imaginary is central to the brand identity and will be heavily emphasized through all creative executions.

 Breaking the performance barriers

• While the purchase itself will not be heavily featured in the advertisement creative. There will be the strong imagery around this theme to emphasize the breakthrough in shaving performance that Mach3 represents.
• Elements emphasizing this theme will include explosion (sonic booms) and images of the razor breaking through a horizon.

 Advertisement that is loud

• Mach3 advertismentcreative will make extensive use of sound as a part of the brand’s imagery.
• Sound element include sonic booms and jet plane like “whoo shos” to symbolize speed and high performance technology.

Findings

The ad successfully communicate the key message.

• 3 blade is registered at almost universal levels.
• Fewer stroke also comes through at good levels.
• The ad clearly announce that it is a new product.

The ad acheieves an extremely high persuasion score in all countries, double the normal.

The ad perform very strongly in its ability to grab attention in all countries, it is significantly above norm in terms of being interesting, involving and unique.

The ad’s ability to generate branded awareness on air for Gillette Mach3 is above any across all four countries.

Advertisement Media

Print

While print lacks the motion and sound elements of TV, it offers the advertisement of high resolution visual imagery and no time constraints. As such, print creative will feature dramatic beauty shots of razor, help build the visual brand imagery, and provide more information about the product.

Print will contribute the “Surround the consumer” effort during and following the launch, adding both reach and frequency plans. Following the launch explosion, print creative will build awareness of the major product features that are the key to achieving Mach3’s incredible performance superiority and that will separate Mach3 from any imitators to come.

Radio

Radio creative will complement TV advertisement in building the Mach3 brand personality and message while capitalizing on the audio power of super sonic flight. Radio creative will make extensive use around creative elements, such as sonic booms and jet plane hoises. radio will quite literally contribute to the “Loudness” of the Mach3 launch.

Because of its cost effectiveness, radio can significantly contribute to the “Surround the consumer” effort by adding incremental frequency at rationally low cost. Radio is also an effective media for positive – ins  with major retail accounts. Execution have been developed for use during all phases of the MY1 plan – pre launch, launch explosion and post – launch franchise building.

Newspapers

News paper advertisement will play a secondary, supportive role in the Mach3 launch. News paper creative will be developed for the two uses.

As a part of the launch explosion, day 1 newspaper creative will portray the Mach3 razor in unexpected settings, such as bursting out of the financial pages. These day 1 executions will play a high impact role in kicking off the “Surround the consumer” campaign, with the intention of generating immediate brand awareness and word – of – mouth “buzz”.

For market with limited vehicles for male – oriented print advertisement, newspapers variation of the print execution will be available.

Out door

 Out door advertisement like newspapers will play a secondary, supportive role in the Mach3 launch. Out door provide an effective support medium to supplement the pre-launch explosions phases of the introductory advertisement. As with newspaper creative, final execution for out door have not yet been developed.

Internet

As part of the “surround the consumer” launch effort, Mach3 will burst onto the internet at the time of the April press conference among the product. The internet provides a new opportunity for highly interested audiences (including the media, the investment community, and the trade, as well as motivated consumer) to learn more about the revolutionary new product. For these audiences, a comprehensive website is being developed. In addition to creating an extensive Mach3 website GNAG, Interactive team in working with an Internet, specific agency to evaluate the potential for using the internet for awareness – building advertisement medium.

Marketing Support Plan

Overview

To fully capitalize on the opportunity, a next generation male shaving system represents for the Gillette company. We will orchestrate a multi – faceted communications “explosion” to create immediate awareness and excitement for Mach3. this “explosion” will feature a combination of advertising, public relationing, point – of – sale and pach communicate all coordinated into a single program designed to literally “surround through consumer” at launch.

The goal of this communication exploision is to maximize and accelerate trial, capturing a broad base of new users and rapidly trying up men already in the Gillette franchise. 

To support this effort, we will spend aggressively to achieve an impact compareable to the sensor launch. Advertisement GRP levels for sensor during its marketing year 1, PR activities will be carefully coordinated to maximize press coverage and word – of – mouth and in store display and promotional activities will place Mach3 more prominently in front of the consumer then ever before in the wet shaving category.

Media Top Line

Advertisement will be the most important element of the Mach3 consumer communication program. Across GNA, media spending will be increased substaintly to levels required to achieve an impact that meets or exceeds sensor launch.

The MY1 media plan consist of three phases

Pre – Launch:- build anticipation (in conjunction with PR) introduce brand name and imagery; separate the Mach3 launch from other consumer product launches and signal its unique importance.

Launch:- centerpiece of “explosion” efforts, announcing and revealing the Mach3 product, key technologies and benefits, and brand imagery.

Franchise building:- continue awareness  building to generate trial among non – early adopter; establish Mach3 as the leading brand in the wet shaving category, highlight technology and benefits.

As part of the “surround the consumer” objective, advertisement will be multimedia. While TV will be the primary advertisement medium other media including print, radio, newspaper, outdoor and the Internet, will play important roles that MY1.

Public Relation (PR)

An aggressive PR program will ensure two “explosion” of editorial coverage across the North Atlantic region.

First, when Mach3 announced and later, when the product appear on shelf, PR initiatives will be carefully coordinated with other elements of the market. Support plan particularly advertisement and point – of – sale to maximize their collective impact.

The underlying power of PR is the implicit 3^rd party endorsement of Mach3 and its unique benefits through editorial coverage of the product. The first wave of editorial endorsement will come with the April 14^th news conference introducing Mach3 to the business, consumers, and trade media across the North Atlantic. The focus here will be building awareness of the product, signaling a new era in shaving, with emphasis on the underlying technology, as well as the marketing push behind it.

A 2^nd wave of editorial endorsement will occur as  the product arises on  shelf. The focus of this wave will be announcing the product’s availability and on how product features translate into specific benefits for the consumer. This coverage will complement launch advertising and point – of – sale materials to effectively drive trial and ultimately new users, to the franchise.

Point – of – Sale

A crucial requirement to truly “sound to consumer” is to generate tremendous presence for Mach3 at retail.

Product Display

Off shelf activity

Consumer Needs

{Performance Attributes – Gap Analysis}

from the media segmentation study (conducted in 1996 among more than 3000 men), the most important features of an ideal razor were identified. Men were also asked how satisfied they were with their current razor on each of these features. From this, large gaps were identified between what men were looking for in the ideal razor and the degree of satisfaction they had with their current razor.

In a consumer user test (conducted in 1997 among 300 male wet shavers, was significantly preferred to Sensor Excel, currently the best razor on the market, on each of these important features.

Five most important features  of ideal razor

Consumer Use Test Results

In a consumer use test, Mach3 was significantly preferred to Sensor Excel on these five most important features.

Business Objective

Mach3 is being introduced with the aggressive business objective.

1. Repeat the extraordinary level of success generated by sensor faster.
2. Become the no. 1 shaving system in all the markets where it is introduced.
3. Grow the size of the Gillette user franchise.
4. Increase the value and profitability of the wet shaving category.
5. Increase Gillette share and profitability.
6. Reaffirm Gillette technological and market leadership in the wet shaving category.

Launch Criteria

To achieve its aggressive business goals, Mach3 had to meet three demanding criteria before being launched. These criteria were the same criteria Sensor Excel had met.

Unprecedented shaving performance

            Superiority across all

Departments

Sales Department

Finance Department

Human Resource Department

Marketing Department

IT Department

Products Categories

Blades & Razors

Personal Care/ Toiletries

Dura Cell

Oral B

Braun (Home Appliances)