Gillette Case Study

Gillette Case Study

The following paper is based on internal and external market environment analysis of Gillette Company. It will analyse and examine the SWOT and PESTLE analysis which are also known as effective marketing tools. The SWOT analysis will assist to evaluate the strength, weakness, threats and opportunities of the business firm. Gillette is one of the leading firms within the industry and has retained its position.

However, the PESTLE analysis is used to examine and understand the external factors of the organisation which are political, economic, social, technological, legal and environmental attributes which affect the organisation. It is an organisation that manufactures and produces personal care products and razor along with shaving supplies.

Therefore, PESTLE and SWOT analysis will assist to understand the external and internal components that impact Gillette.

Gillette Company Background

Gillette is an American brand of personal care, safety razor and other related products such shaving supplies owned by the national corporation Procter and Gamble (P&G). The company is owned by P&G and is based in Boston, Massachusetts, United States since 1901. The vision of the company is to build total brand value by incorporating creativity and innovation in order to deliver consumer value and customer leadership better, faster and more complete than the rival market.

The Gillette firm and trademark date back to the late 19th century, when marketer and inventor King Camp Gillette came up with the idea of a detachable blade safety razor. At the time, security razors were simply short sections of a straight razor attached to a holder. A thermal facial scrub, a face cleanser, a lotion and a moisturize with sunscreen were all part of Gillette's Fusion ProSeries skincare collection, which debuted in 2010.

In 2015, the firm established Gillette Shave Club, a membership service, and then sued Dollar Shave Club for copyright violations. In 2019, the company teamed up with TerraCycle to launch a blade, razor, and package disposal programme in the United States.

Gillette SWOT Analysis

• Strength

Gillette established a powerful brand for itself as the first brand in history to launch replaceable razor blades as a shaving option and is also the industry leader in this area. The organization has a well-developed distribution system. Gillette products may be found on six continents and in over 180 countries.

Secondly, the strength can be analysed in its branding and promotion initiatives are important. Sports and newsprints are typically the subject of advertisements. The New England Revolution of soccer, the NCAA Men's Lacrosse Championship in 2008, the FIFA Women's World Cup and other football, soccer and lacrosse events are among them.

Some marketing initiatives on newsprints and telecommunications, such as Gay Times and blogs were also promoted. On the other hand, the success of the company's renowned name of Gillette which can be related to its brand equity.

In 2003, Gillette's blade and razor repertoire captured a record 72% of global market. In just three years, the Venus female shaving brand has created over $1 billion in retail sales and has a 32% share of the global women shaving business.

• Weakness

The company's products are somewhat expensive and as new identical brand it becomes difficult for the customer of lower income to purchase the brand. The corporation has a record of creating risky purchases, notably during the 1960s when CEO Vincent Ziegler was overaggressive and restless, believing that diversity was the key to increased costs and values.

As a result, four of the seven purchases made by Gillette proved out to be costly for the company. Despite possessing roughly 72.5% of the worldwide blades and razor market, it had problems understanding its organizational components into attractive prospects.

• Opportunity

The company has succeeded in the shaving business, but producing shampoos, shower gels and other skin care products would be more profitable. Gillette launched the Fusion razor blade, a five-blade razor that is the result of the company's very inventive strategy.

P&G stated that sales of the Fusion product are projected to surpass $1 billion by next year. There is a strong, substantial, and potential core audience shaving is also common in Western nations such as Canada, the United Kingdom and other European countries.

• Threat

The presence of a potential entrant is the company's biggest threat. It is no mystery that the corporation has never faced competition and has always been the dominant player. Furthermore, a positive and empowering competitor would present a severe danger to Gillette. Many experts, on the other hand, advise against shaving because it can have adverse implications.

On the other hand, shaving is costly and these experts advise individuals to use other, more powerful and long-lasting techniques than shaving, such as laser hair removal. As a result, most individuals would cease buying Gillette razors, posing a major issue for the business.

Gillette PESTLE Analysis

• Political

The United States has a stable and favourable business climate with anticipated market growth tendencies characterized by its high political stability. Gillette operations in a number of nations, each with its own set of political difficulties. The administration is following by all of the World Trade and organization's regulations and laws.

Both the development of policies and their application are identical. The democratic institutions must be improved even further in order for enterprises like Gillette's to flourish in an open, competitive and stable political context. Strengthening government governance will increase accountability and lower corruption levels in the country.

• Economic

The demand for Gillette's product may be affected by the rate of inflation. Increased inflation may force Gillette's to pay tariffs in lockstep with inflation, leading to reduced brand loyalty and continuous cost-cutting efforts. Companies have suffered losses as a result of forex risk in recent years. Before entering the market, Gillette's should review the reality of forex risk.

Many US corporations have reported setbacks in Mexico as a result of the region's recurring capital flows. If the unemployment rate is high, it will have two effects on Gillette's techniques: first, it will provide adequate clients for Gillette's products and secondly, it will make Gillett's products more expensive to hire talented and skilful employees.

• Social

Gillette needs to research established cultural norms in order to harmonise its marketing communication methods. With cultures with reduced gender stereotypes, commercial and people management strategies will diverge from those in standard, properly specified gender roles.

Customers have been motivated to purchase online as a result of the introduction of social media and e-commerce. It must comprehend online purchase intention while taking into account demographic variances, as younger clients are more likely to shop online than later generation. When establishing marketing strategies, keep in mind the expanding use of smart phones and social media sites.

• Technological

Such technological advancements have the opportunity to alter the sector and rewrite the success conditions for players in the market. It is also crucial to measure the concept of technological progress and expertise in the target market.

By focusing on upcoming technology advancements and entering markets where technological improvement has not yet matured where Gillette can expand market share. In a world where creativity is being interrupted, research and development efforts are important. In such a situation, Gillette should invest in technological innovations to maximise revenues and re-invest the profits in disruptive innovations.

• Legal

To protect going into major legal difficulty, a thorough knowledge of legal concerns is important. Some nations have severe rules to protect labour safety where Gillette must adhere to company health and safety laws. Gillette has an ethical and moral responsibility to provide a safe working environment for its employees.

When implementing human resource policies, anti-discrimination legislation such as equal opportunity must be carefully considered, as discriminating lawsuits against employers tarnish the company's effectiveness and affect its opportunity to hire talent.

• Environmental

Before starting a business, Gillette's must determine what the business laws are and how they different from those in its retail marketplace. It is critical for Gillette to establish efficient waste management techniques in business structures that are positioned in or near metropolitan areas.

Many countries have enacted severe waste management legislation in order to safeguard their urban centres. Gillette must research the country's specific environmental laws to determine which resources such as water, energy, and many others are regarded scarce or threatened, and whose over utilization could cause problems for the company.

Conclusion

Hence, it can be concluded that the market analysis of Gillette caters to be a successful brand which had led to increase the trust of customers and had gained brand loyalty over the time. From the case study analysis of Gillette, it can be analysed that the supply chain and distribution system is efficient and optimised that leads to meet the demands of market effortlessly.

According to the case study of Gillette, the difficulties new competitors are not being communicated properly by the company, resulting in a decline in profitability and client base. A SWOT analysis of the organization needs an interactive relationship including coordination among all of the firm's sectors, which include strategic planning, finance, marketing, operations, human resource, logistics and management information systems.

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