Gillette Marketing Plan
THE GILLETTE COMPANY MARKETING PLAN
Second year of Mach3 in the market.
1. Executive Summary * The major goal is to meet the sales volume (unit and US$14400 MM) as well as estimated profits US$ 2880 MM which represents 24% of sales. * Consolidate Mach3 as a successful launch, with the objective of recovering the investment in 2 years. * Minimize the effect the higher price of Mach3 might have in foreign markets. * Make consistent efforts in all countries to continue sales growth of other consumer brands: Duracell (batteries), Oral-B (toothbrushes), Parker and Waterman (pens). In China special effort on Duracell due to high potential because of consumer preference for gadgets such as pagers.
Make a smooth transition from Mr. Zeien to Mr. Hawley as the new chairman. It is important not to loose focus, “few world leading products” and continue the market capitalization growth obtained in the last 12 years (from $ 3 billion to $ 66.1 billion this means 22 times).
2. Current Market Situation
Mach 3 and blades and razors
In April 1998, Gillette unveiled a revolutionary advance in shaving: the Mach 3.
Gillette had spent 15 years and 750 MM developing the Mach 3.
It was the company´s biggest and most important new product since Sensor. The company hoped Mach 3 had a similar successful effect as Sensor. With Sensor Gillette´s market capitalization jumped from US$ 3 billion to US$ 66.1, locating Gillette among America´s 30 biggest companies.
Gillette was concerned about the higher price tag of the Mach 3, a 35% premium to Sensor Excel, currently the priciest razor on the market, and the impact it might have in its foreign markets.
Gillette´s future might not exactly be on a razor´s edge –because these were mature markets, it had 71% of the North American and European market for razors and blades.
Growth had slowed in the hugely profitable razors division, partly because Schick, its smaller rival, had recently
Second year of Mach3 in the market.
1. Executive Summary * The major goal is to meet the sales volume (unit and US$14400 MM) as well as estimated profits US$ 2880 MM which represents 24% of sales. * Consolidate Mach3 as a successful launch, with the objective of recovering the investment in 2 years. * Minimize the effect the higher price of Mach3 might have in foreign markets. * Make consistent efforts in all countries to continue sales growth of other consumer brands: Duracell (batteries), Oral-B (toothbrushes), Parker and Waterman (pens). In China special effort on Duracell due to high potential because of consumer preference for gadgets such as pagers.
Make a smooth transition from Mr. Zeien to Mr. Hawley as the new chairman. It is important not to loose focus, “few world leading products” and continue the market capitalization growth obtained in the last 12 years (from $ 3 billion to $ 66.1 billion this means 22 times).
2. Current Market Situation
Mach 3 and blades and razors
In April 1998, Gillette unveiled a revolutionary advance in shaving: the Mach 3.
Gillette had spent 15 years and 750 MM developing the Mach 3.
It was the company´s biggest and most important new product since Sensor. The company hoped Mach 3 had a similar successful effect as Sensor. With Sensor Gillette´s market capitalization jumped from US$ 3 billion to US$ 66.1, locating Gillette among America´s 30 biggest companies.
Gillette was concerned about the higher price tag of the Mach 3, a 35% premium to Sensor Excel, currently the priciest razor on the market, and the impact it might have in its foreign markets.
Gillette´s future might not exactly be on a razor´s edge –because these were mature markets, it had 71% of the North American and European market for razors and blades.
Growth had slowed in the hugely profitable razors division, partly because Schick, its smaller rival, had recently