A Situational Analysis
Strengths * Market leader in shaving products * Few competitors * Huge marketing and advertising budgets and campaigns * Huge brand recognition | Weaknesses * Profit based solely on performance of goods| Opportunities * Launch more environmentally friendly products * Entry into new markets (eg. Grey market) * Growth in female market section| Threats * Imitations of Gillette’s products * Outward migration of target market * Downturn in the Irish market|
1. Market leader in shaving products
Gillette is currently the Irish market leader. The shaving market currently makes up roughly 28% of the male grooming market in Ireland. This market is worth approximately €105 million. In 2006 Gillette led the market of razors with approximately 71% of the market share and also 61% of the shaving preparations market.
2. Few competitors
With Such a large percentage of the market share in their favour it is a hard market to break into and find success in Ireland. This has resulted in a lack of competitors. The two main competitors in terms of the razors are BIC and Wilkinson sword.
3. Huge marketing and advertising budgets and campaigns
As Gillette is a huge multinational company, it has a large budget for advertising and marketing campaigns. This is evident with the television advertisements shown on Irish television which include celebrity endorsements with sports icons such as Roger Federer and Tiger Woods. This massive campaign sets them apart from their competitors.
4. Huge Brand Recognition
As a result of their huge marketing campaign and multinational status, Gillette has managed to create incredible and vast brand awareness. This was further increased due to their use of celebrities to endorse their products in their recent advertisements.
1. Profit based solely on performance of goods
Due to the nature of the goods, i.e. disposable razors, the profit made by Gillette is solely based on the performance in the market and quality of the goods. They do not offer a uniquely different product from other competitors and they also don’t offer much in the way of price differentiation, and therefore they rely heavily on the quality of their goods. This is a weakness as if the quality levels drop or are not maintained throughout the various products involved with the brand, the levels of profit will decrease. They also rely very heavily on their razor sales. If the market for this is to take a downturn this will have a large impact on the company.
1. Launch more environmentally friendly products
Gillette’s currently best selling product would be disposable razors which can be thrown away. There would be an opportunity in the market to launch a possible biodegradable razor which would be more environmentally friendly. There is also an opportunity to be more environmentally friendly by using non aerosol cans of shaving foam. This would increase brand reputation and improve the brand image. The packaging of Gillette products could definitely be improved, as they currently have an exterior consisting completely of plastic.
2. Promotion over non shave based products.
While Gillette’s main product range is shaving based products it also has a range of skincare products and deodorants. They have a large opportunity to promote these products using their current brand name in shaving products.
3. The Grey Market
Gillette has primarily focused their marketing campaigns on the 15-34 age bracket of males. Although men in older sections of the population have more traditional methods of grooming, there is still a definite opportunity to market new products to the greying population.
1. Imitations of Gillette products
Gillette’s previously unique 3 blade Mach3 and Mach3 Turbo products are being imitated by many companies now so they...