Harvard Case - Gillette Personal Care Division: Marketing Planning and Control
"Gillette Personal Care Division: Marketing Planning and Control" Harvard business case study is written by Thomas V. Bonoma, Bruce H. Clark. It deals with the challenges in the field of Marketing. The case study is 21 page(s) long and it was first published on : Feb 2, 1987
At Fern Fort University, we recommend Gillette implement a multi-pronged strategy focused on rejuvenating its brand image, expanding its product portfolio, and embracing digital marketing to regain market share and drive sustainable growth. This strategy will leverage Gillette's strong brand heritage while adapting to the evolving consumer landscape.
2. Background
The case study centers around Gillette, a leading personal care brand facing declining market share due to increased competition from new entrants and changing consumer preferences. The company is struggling to maintain its position in a market characterized by:
- Shifting consumer demographics: Younger generations prioritize natural and sustainable products, challenging Gillette's traditional focus on performance and masculinity.
- Increased competition: New brands are entering the market with innovative products and aggressive marketing strategies, eroding Gillette's market dominance.
- Evolving consumer behavior: Consumers are increasingly influenced by online reviews, social media, and digital marketing channels, necessitating a shift in Gillette's marketing approach.
The case study highlights the challenges faced by Gillette's management team as they grapple with these trends and seek to revitalize the brand.
3. Analysis of the Case Study
To analyze the situation, we employ a combination of frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition, established distribution network, expertise in product development and manufacturing.
- Weaknesses: Outdated brand image, limited innovation in product offerings, reliance on traditional marketing channels.
- Opportunities: Expand into new product categories (e.g., natural and organic grooming products), leverage digital marketing channels, target emerging markets.
- Threats: Increased competition from niche brands, changing consumer preferences, economic fluctuations.
2. PESTEL Analysis:
- Political: Trade policies, regulatory changes impacting manufacturing and marketing.
- Economic: Recessions, inflation, and consumer spending patterns.
- Social: Shifting consumer values, growing awareness of sustainability and ethical sourcing.
- Technological: Advances in manufacturing, digital marketing, and personalized product development.
- Environmental: Sustainability concerns, environmental regulations, and consumer demand for eco-friendly products.
- Legal: Product safety regulations, advertising restrictions, and intellectual property rights.
3. Porter's Five Forces:
- Threat of New Entrants: High, due to low barriers to entry and the emergence of innovative brands.
- Bargaining Power of Buyers: Moderate, as consumers have access to a wide range of alternatives.
- Bargaining Power of Suppliers: Low, as Gillette has established relationships with suppliers and can leverage its scale.
- Threat of Substitute Products: High, as consumers can choose from a variety of alternatives, including natural and organic products.
- Competitive Rivalry: Intense, as the market is highly fragmented and characterized by aggressive competition.
4. Consumer Behavior Analysis:
- Segmentation: Gillette needs to identify and target specific consumer segments based on their needs, values, and preferences. This includes:
- Traditionalists: Loyal to Gillette's legacy and value performance above all else.
- Modernists: Seek innovative products, prioritize natural ingredients, and are influenced by social media.
- Sustainability-conscious: Value eco-friendly products and ethical sourcing.
- Targeting: Gillette should focus its marketing efforts on reaching these segments through tailored messaging and channels.
- Positioning: Gillette needs to reposition its brand to appeal to modern consumers by emphasizing innovation, sustainability, and inclusivity.
5. Competitive Analysis:
- Direct Competitors: Dollar Shave Club, Harry's, and other subscription-based razor brands.
- Indirect Competitors: Natural and organic grooming brands, personal care companies offering a wider range of products.
- Competitive Advantage: Gillette can leverage its brand heritage, manufacturing capabilities, and distribution network to create a competitive advantage.
4. Recommendations
To address Gillette's challenges, we recommend the following:
1. Rejuvenate Brand Image:
- Modernize Branding: Refine the brand's visual identity, messaging, and tone of voice to appeal to a broader audience.
- Embrace Inclusivity: Promote diversity and representation in marketing campaigns to resonate with a wider range of consumers.
- Focus on Sustainability: Highlight Gillette's efforts in sustainable sourcing, manufacturing, and packaging to appeal to environmentally conscious consumers.
2. Expand Product Portfolio:
- Develop Innovative Products: Invest in research and development to create new products that meet the needs of modern consumers, including natural and organic options.
- Expand into New Categories: Explore opportunities in complementary product categories, such as skincare, hair care, and body care.
- Leverage Technology: Integrate AI and machine learning into product development to create personalized and customized solutions.
3. Embrace Digital Marketing:
- Invest in Digital Channels: Allocate resources to social media marketing, influencer marketing, search engine optimization (SEO), and content marketing.
- Develop a Strong Online Presence: Create a user-friendly website and mobile app to engage consumers and provide a seamless online experience.
- Utilize Data-Driven Marketing: Leverage analytics and customer data to personalize marketing messages and optimize campaigns.
4. Implement a Customer Relationship Management (CRM) System:
- Collect and Analyze Customer Data: Gather insights into customer preferences, purchase history, and online behavior.
- Personalize Customer Experiences: Tailor marketing messages, product recommendations, and offers based on individual customer preferences.
- Build Customer Loyalty: Implement loyalty programs and reward customers for their continued support.
5. Enhance Product Distribution:
- Expand Online Sales: Increase online sales through e-commerce platforms and partnerships with online retailers.
- Optimize Physical Distribution: Streamline distribution channels to ensure products are readily available to consumers.
- Explore New Distribution Channels: Consider partnerships with subscription services, convenience stores, and other non-traditional retailers.
5. Basis of Recommendations
These recommendations are grounded in the following considerations:
- Core Competencies: Building on Gillette's strengths in product development, manufacturing, and distribution.
- External Customers: Addressing the needs and preferences of modern consumers, including their desire for innovation, sustainability, and inclusivity.
- Internal Clients: Empowering Gillette's employees to embrace change and drive innovation.
- Competitors: Staying ahead of the competition by offering innovative products, embracing digital marketing, and building strong customer relationships.
- Attractiveness: These recommendations are expected to drive increased sales, market share, and profitability.
6. Conclusion
By implementing these recommendations, Gillette can reposition itself as a modern and innovative brand that meets the needs of today's consumers. This strategy will enable Gillette to regain market share, drive sustainable growth, and secure its position as a leader in the personal care industry.
7. Discussion
While the recommended strategy offers a comprehensive approach, it is important to consider alternative options and potential risks:
- Alternative Options: Gillette could consider divesting certain product lines or acquiring smaller, more innovative brands to expand its portfolio.
- Risks: The success of this strategy depends on the company's ability to execute effectively and adapt to changing market conditions. Potential risks include:
- Failure to adapt to changing consumer preferences.
- Insufficient investment in research and development.
- Ineffective implementation of digital marketing strategies.
- Competition from emerging brands.
8. Next Steps
To implement these recommendations, Gillette should:
- Develop a detailed implementation plan: Outline specific actions, timelines, and resource allocation.
- Establish key performance indicators (KPIs): Track progress and measure the success of the strategy.
- Communicate the strategy to all stakeholders: Ensure alignment and support throughout the organization.
- Continuously monitor and adapt: Stay agile and responsive to changes in the market and consumer behavior.
By taking these steps, Gillette can position itself for long-term success in the dynamic and competitive personal care industry.
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Case Description
Bill Ryan, president of the Gillette Co.'s Personal Care Division, is considering changing the division's planning and control system for marketing. White Rain, the division's most recent success, had been launched by taking shortcuts through the system, while other marketing programs the system produced sometimes still faltered. The case examines the components of a planning and control system for marketing, criteria for good systems and good programs, and ways that marketing managers work with a system.
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