Strategy at Gillete

Strategy at Gillete

• 1.
  TEAM 8
• 2.
  Agenda • • • • • • • Timeline of planningsystem Control system Qualitative analysis of existing system Problem identification Problem establishment Comparison of marketing strategy Planning and Control
• 3.
  The Planning System Consistsof preparing a Fact book in April through a series of meetings among Brand/sales/market ing managers April Brand managers develop plans based on the brand fact book which is reviewed by the operating committee July Brand Categorizes: Budget Preparations and Strategic business plans were devised Build Hold Harvest Withdraw October January
• 4.
  Control System Daily Sales Report •Division activity for the month through the previous day • Activity that corresponds to the organization of the sales force • Activity by major brand and form of brand Informal Measures “Likability” Monthly Sales Forecast • Actual results for the month w.r.t the estimated sales • Management Action Charts- SAMI • Information figures by brand, region, form and overall Bimonthly Nielsen TwoOutlet Flash Report • Information on sales in food stores and drug stores • Figures by market share, detailed sales information “Trust” “Ask the Non expert” Promotion of goods sold by total goods New forms, brand extensions, packaging and formulation
• 5.
  Qualitative Analysis OfExisting System • Pros: • System provides a powerful historical perspective in the plans that it generated • Reduced Human error • Knowledge database helps as a guideline • • • • Cons: Time Consuming Commitment Issues Some of the brands may suffer due to unfair resource allocation to prioritized brands ‘ You become Slave of the system’
• 6.
  Problem Identification • Ineffectivenessof Gillette’s planning and control system • Why did Right Guard as a brand fail to increase its market share • Strategy of white rain: for the future or a one night stand
• 7.
  Problem Establishment • RightGuard’s Failure • Ineffectiveness of Gillette’s- planning and control P&G • Intense Competition Mennen , Old Spice, system Strategy • Contribution in sales of a brandfuture drivers tonight productsof White Rain: for the main or a one classify stand • it as Brandunclear positioning Weak and Categories • Success of White users • Frequent categorymaleRain may encourageGuard below • Target market i.e. changes ranked Right other brand managers • Lack of documentation Brands, Positioning strategies its competitors skip through the system • • etc. Not a standard procedure Right Guard retained its association with the old Aerosol • May or may not work for all brands • No knowledge sharing central platform image
• 8.
  Comparison Of MarketingStrategy • Planned and well designed through traditional Marketing plan and control • Carried Brand image through aggressive ad campaigns • Perceived the brand as old-fashioned • Lagged behind competitors like P&G and Mennen • Market share of 7.6%, way behind expectations Right Guard V/s • Avoided documentation and lengthy procedures • Minimal advertisement for consumer awareness and floor space • Emerged as a high performer with low expectations • Sauve’s price hike worked for White Rain to exceed expectations in sales • 3% Market share which is very encouraging White Rain
• 9.
  Right Guard: Planning& Control Issues • • • • Burst of CFC scare Difficulty expanding outside aerosol Market share down to 8.5% to 9.9 % PCD could not afford to lose Right guard – it gave quarter of operating profits Planning Restage process • Retracting the old products off the trade shelves • New packaging and product improvements through manufacturing • Low level advertising initially and a sneak peak strategy • Full product line promoted to create impact • Launch worth 12.7 million USSD ad campaign Results Present • • Comparison of restage V/s without restage demand forecast • Difficulty in getting away with the Right Guard’s old aerosol image • • • • Restage benefits over the long term Right guard moved to a “hold brand” Target audience changed to males 12-24 Focus on building image amongst youngsters (Right considered as an old fashioned) More market tests and if successful might allow another restage
• 10.
  White Rain :Planning & Control Issues Planning • • • • Low Price brands were becoming a growing force Most of the brands of Gillette were positioned as premium. An opportunity loss • • • • To roll out in the Southern region By passed CUT to launch the shampoo quickly Came out with 18ounce bottle No advertisement Brand developed special shelf display Results • Actual consumer sales and shipments surpassed the estimated value Present • • • More Resources were given to work with “Build” Status A 3 share is not much
• 11.
  End Of Presentation