Buy Less: How Some Companies Profit By Asking You To Spend Less Abhishek Sharma
Pranyudh John Meesa
Professor Suzanne Ross
March 19, 2013
Table of Contents
I. Market Analysis
II. Target Market
III. Competitive Analysis
1. Customer-Focused Value Proposition
2. Perceptual Map
3. Brand Mantra
1. Brief description of the product line
2. Market Share of Tide
3. Market Opportunities and Recommendation
Market analysis of a product/brand focuses on market size, market trend, market growth rate and other key success factors.
Gillette, known as a men’s brand has strong market presence capturing about 80% of the market share and has a vast range of product choice, but lacks technological advancements as most of its products are manual. The company is facing stiff competition from other brands which is giving rise to pricing competition among the companies and Gillette being the costliest is losing its ground since 2010, some of the reports show that they have lost three share points, due to the economy. There are other abundant replaceable products from other brands present in the market at comparatively lower prices.
STRENGTHS * STRONG BRAND NAME * HIGH MARKET SHARE * INNOVATION * PRODUCT CHOICES * INTERNATIONAL APPEAL AND PRESENCE * ENDORSEMENT BY CELEBS| WEAKNESSESS * MALE PRODUCTS ONLY * HIGH COST | OPPORTUNITIES * PRODUCTS FOR FEMALES * MORE OF MANUAL PRODUCTS AVAILABLE-SCOPE OF TECHNOLOGICAL ADVANCEMENTS| THREATS * COMPETITION FROM OTHER SMALL BRANDS PROVIDING SAME PRODUCTS IN LESS PRICE * AVAILABILITY OF CHEAPER PRODUCTS * USE AND THROW PRODUCTS WITH SIGNIFICANTLY LOW PRICE * TO MAINTAIN CUSTOMER BASE|
There are 2, 615, 060 people living in Toronto. Thousands of non-residents come to study and to work to the capital of Canada. We expect Gillette’s regular customers will be about 1, 00, 0000 individuals of the population, 10, 000 would come from nearest regions and 15, 000 from all over Canada. Approximately 30, 000 foreign tourists would use the brand.
The company serves the clients 24 hours per day, 7 days per week without holidays and breaks. The demand is bigger than the proposal that is why the management is expecting the growth of the market every year. But it is not the only reason for the company’s success.
The people benefiting from the product are mostly men and women over the age of 25 to 65. Both male and female come from families with an average or high income. They are educated and pay attention towards their appearance and hygiene. One fifth are students, one third is professional or work at home and the rest is retired population. The target market enjoys fast paced environment, advanced technology, challenge. They are eager to learn about the world, the others, open for suggestions and know what they want. They value their time and money. People around remain significant.
The company has a deep understanding of the target customers’ needs. Gillette is focused the marketing effort on the audience desire to have a qualitative product, which lasts longer. For example professionals travel a lot and do not have time to go shopping every two weeks. Retired customers are simplifying their lifestyle and students are saving. The reason for every individual to stay with the Company is its ability to hear and react towards the people’s needs.
Gillette faces 2 types of competition. Direct competition is from the already established low priced blades available from other companies and indirect from the traditional methods of shaving. Gillette faced direct competition from local brands, Bic, and Schick. In the double-edged blades Gillette faced competition from imported,...