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Gillette - company overview in the form of questions and answers

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Introduction: On Gillette's 25th anniversary, back in 1926 King C. Gillette announced what was to release the companies' flag ship product, the world's first safety razor. "There is no other article for individual use so universally known or widely distributed." This product is still a world leader but has been accompanied by many other Gillette products that have quickly become established as market leaders across every field they enter. "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." In over 100 years of business, Gillette has gained control of the market and constantly strengthened its position, via managing the company with a long term and global perspective. As a result Gillette has generated long-term profitable growth in a changing globalisation; this is due to several strengths within the business. Gillette are constantly collecting huge amounts of scientific knowledge, which enables them to create innovative products which are produced and distributed on a high scale ensuring that many people are constantly exposed to their products day in, day out. They also manage to do this efficiently and cost effectively which can only lead to positive results for the company. Gillette work on creating innovative products to be sold at a fair price, this is yet another of Gillette's strengths, its ability to gain a consumer loyalty to their brand on a world wide stage. Quality marketing strategies when combined with a quality product have driven Gillette towards their goals. "It is a goal pursued in global businesses that are large and healthy, with tremendous potential derived from normal market development, as well as from growth stimulated by new products." Gillette has become the market leader in the grooming industry. "The Company has the scientific knowledge to create, and the technical ability to develop and produce, hair removal products that deliver a superior shave, whether wet or dry, whether for men or women." ...read more.


Brand equity plays a huge part in the consumer's decision to buy. The points below shows what brand equity can do for a company (taken from www.DSSResearch.com) Brand equity can provide strategic advantages to your company in many ways: * Allow you to charge a price premium compared to competitors with less brand equity. * Strong brand names simplify the decision process for nonessential products. * Brand name can give comfort to buyers unsure of their decision by reducing their perceived risk. * Maintain higher awareness of your products. * Use as leverage when introducing new products. * Often interpreted as an indicator of quality. * High brand equity makes sure your products are included in most consumers consideration set. * Your brand can be linked to a quality image that buyers want to be associated with. * Offer a strong defence against new products and new competitors. * Can lead to higher rates of product trial and repeat purchasing due to buyers' awareness of your brand, approval of its image/reputation and trust in its quality. All of these points can be applied and used by Gillette to their advantage over their competitors, especially as they already have such a higher brand equity and are already associated with high quality products. Chris Desrosiers also goes on to state that measuring the success of the on-line campaign was difficult due to it being run simultaneously to TV and ads campaigns. "The results were mixed. We got a good sense of the number of ad exposures a person needed to see to have good brand recall. Overall increase in brand awareness was difficult to gauge because we were running major offline marketing campaigns in parallel to our online efforts. It was difficult to determine whether we were building brand awareness through our online efforts. We also learned that partnerships/sponsorships out performed straight banner advertising." He then goes on to say that the Venus campaign will continue on-line but not necessarily to increase sales. ...read more.


With the advances in technology it has become possible for companies to market their products to potential customers through direct e-mails rather than older more traditional methods of post. Gillette could use this to their advantage and send mail shots, offers and other marketing opportunities via e-mail and direct mailing. Through using new e-mail methods it is reported by What's New In Marketing that a "company can save up to 30 times its cost on post etc whilst also gaining up to 10 times the amount of response in comparison to more traditional mail." This would allow Gillette to save money and time when sending out mail to the consumer. On of the problems with their traditional mailing tactics are that it is often ignored and seen as an irritant. Obviously e-mail does suffer from this problem too but in a quickly adapting world people have began to accept e-mail and do not regard it as annoying. Even if the person does not open the email they will have been exposed to at least the company name or product within the title. One of the problems with direct mail is that the company would have to gain permission from the person to be able to mail them. This could be tied in with the interactive TV as people who were interacting could be asked for their details and for permission. It is stated by Chaffey (2004) that "opt in email is key to successful marketing." If the person has "opted in" to receive mail it is far more likely that they will read and engage with your email. This again would improve response rates. Sending direct mail also has a very quick response time due to the regularity with which people can check their mail. If Gillette were to use direct mail in their marketing strategy they could be virtually guaranteed to cut costs, improve responsiveness and save valuable company time whilst also gaining a higher level of exposure in their campaigns. ...read more.

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