Nowadays, many businesses face a number of problems and/or challenges that are to be managed in order to become sustainable within both the market segment and the industry as a whole. One of such challenges is the problem of dealing with the aspects of business merging and/or the economic worldwide changes.
The most important changes were the Global Financial Crisis and its effect on the business operations of global companies all over the world. In particular, the research will cover the aspects of merging and the effect of financial crises on the example of the Gillette Company, which is now owned by Procter & Gamble Inc.
The work on Gillette addresses the analysis of the global events that have taken place with the Gillette Company during the Global Crisis and afterwards. In particular, the analysis adheres to the marketing problems that led to the merging of the Gillette Company with Procter & Gamble Inc. before the global financial crises, as well as addresses the issues that have taken place after the crises, such as the cost of the Gillette products along with the expensive maintenance of the Gillette brand.
At the same time, the analysis reveals the innovations and new marketing strategies that helped Gillette to cope with the marketing problems on its target market. In particular, the situation addresses the aspects of solutions Gillette has taken to improve its position towards the customers worldwide.
The paper also emphasizes the current situation of the Gillette Company on the global market. A special attention is given to the approaches the company has taken to position itself towards the modern customers. At the same time, the research analyzes the market in terms of the challenges and concerns that could be perceived as a threat for the company’s image and overall reputation.
The evidence is offered through the SWOT analysis and marketing assessment that helps to envision various perspectives, as well as the possible outcomes of the Gillette’s marketing strategy. In addition, the research covers the changes that the Gillette Company has made in order to remain sustainable and continue its leadership within the industry.
Finally, the research emphasizes the importance of innovations that were made in order to face the competitive companies on the Gillette’s market. In conclusion, the report offers the array of learned lessons that the company gained during its creating until today. Such lessons can also serve as a means of recommendations for the future strategy of the Gillette Company on its market and within the whole industry.
Business Climate in the Gillette Company
The business climate in the Gillette Company was rather successful from the position of economic environments, attitudes of employees, governmental recognition, business activities, etc. For example, the economic environment was supportive in terms of the business system policies, trading life cycle, economic resources, and the level of income, distribution channels, and overall wealth of the Gillette brand.
The position of employees was favorable enough as the people were willing to work for the future progress; they had a deep respect towards the company and the value it brought to the public. At the same time, there were favorable relations between the management teams and the personnel as a whole (Case Reports, 2011).
The government recognition of the Gillette Company was proven through the years of being a leader in the industry and the market of both men and women. There were some governmental concerns in relation to the business activities of Gillette while it was competing with Schick (Dyer, Dalzell & Olegario, 2004).
Because of such public actions, the Gillette Company lost its reputation for a while and had to strive to get a good name back in the eyes of its loyal customers. Business activities also have a strong impact on the business climate within the Gillette Company for the reason that it addressed all the processes with the diligent attention to details.
Such a result could be explained by a number of a few factors that the Gillette Company put a particular focus on, such as corporate governance and strategic management, operational processes, manufacturing, advertising, sales and marketing, accounting, recruitment, and other supporting operations (Carroll & Calabrese, 2009).
The Concerns of Gillette
The concerns address the problems Gillette had before and after the Global Financial Crisis. In particular, Procter & Gamble publicized an acquisition of Gillette at the beginning of 2005. Such a marketing strategy was thought to be the best way for Gillette to remain on the market in the same way of customer attractiveness as it used to be since its creation (Kinnunen, 2005).
In fact, the merging of these global companies has put Procter & Gamble in the better position compared to its competitors such as Unilever. According to the words of the CEO of the Gillette Company, the merging is an opportunity to become one of the most successful companies in the history of the consumer products industry.
The concerns are that such a giant would not have that many benefits in the future compared to what could be reached through the merging with Procter & Gamble. In such a way, the combination of these two giants of the industry helped to project the further success of both companies in the future (De Castro, 2011).
In fact, this was a business deal that was worth $57 billion. The issue was that Gillette did not see such opportunities in case the company would operate oneself on the market. However, due to the combination of two forces, both companies could succeed. One of the main reasons why the CEO of Gillette agreed on the merging is to achieve the goal of becoming the best consumer product company in the world.
Therefore, such actions of two great companies would negatively result on the job cuts of about 6,000 positions, as well as the closing of the headquarters of Gillette in Boston. The issue was even more challenged with the fact that such a case of merging acquired the investigation of reasons by the Massachusetts secretary of state (Kivi, 2010).
The concerns related to the fact that Kilts would have about $153 million after the merger, including $117 million in Gillette stock option gains and on stock rights. In the message that Jim Kilts offered to its employees he explains the merging with the core reasons and the data on Securities and Exchange Commission (Dey, 2009).
The company has achieved extraordinary success; however, the future struggles are not imaginable without a significant change in the marketing strategy. At the same time, Procter & Gamble also struggles with its challenges on the market to be the leader in the industry.
However, the merging of two companies can gain extraordinary opportunities for both companies. In fact, Gillette Company will remain to be a separate and independent subsidiary of Procter & Gamble, but it will put both companies in the position to become the world’s top merged brand in the whole industry (Damon, 2010.
Our outstanding writers are mostly educated to MA and PhD level
Since the merging of the Gillette Company with Procter & Gamble, their business and overall working performance on the market was good but based on the words of Marc Pritchard, the P &G Global Brand-Building Officer, they wish for the great. Thus, the investors say that since the merging in 2005, the position of Procter & Gamble in terms of stocks is not that high (Kinnunen, 2005).
It has reached the trading range of about $70 per share, which 25% less since the company purchased Gillette. In comparison, the position of the Colgate-Palmolive Company, which passed on Gillette, is about 118% for a share during the same period. From the position of Wall Street, the trading model of Gillette is no longer efficient to remain on the market McNamee & Stewart, 1999-2001).
In fact, the challenging issues are those that the marketing strategy could be better and there is a problem about the pricing alternatives towards the quality of the products. In fact, the company is striving to reach the best price-quality ratio, but the marketing promotions are not that convenient any more (McKibben, 1998).
Background Information
The Gillette Company is a global brand of safety razors and personal care products that are aimed mostly at the men segment of the market. Today, Procter & Gamble own it. The Gillette Company was started by King C. Gillette as a safety razor manufacturer in 1901 and now is known as an independent subsidiary of Procter & Gamble (Case Reports, 2011).
As a result, the merging of two giants created a giant company for personal care products, as well as the world’s largest household products. The partner brands are Braun, Duracell, and Oral-B. The merging further incorporated towards two divisions, such as Procter & Gamble Beauty and Procter & Gamble Household Care products. In particular, the product lines of Gillette were split up between these two product categories accordingly.
The key facts about the Gillette Company adhere to its position towards its customers worldwide. They recognize the company as a brand that manufactures the grooming products, such as razors, gel and foam. Its image represents a high awareness of the innovative technologies that were used to manufacture the products (Carroll & Calabrese, 2009).
The breakthrough in dealing with the customers is represented in the enhanced shaving experience that helped people all over the world to emit the micro pulses in order to facilitate the razor glide. In fact, customer loyalty could be explained with its long presence on the market place.
There are several tendencies of the company towards the habits that projected location aspects and various customer personal needs. The company is famous due to the demand for Gillette in supermarkets, groceries, and stores, such as Wal-Mart. The buying habits generate more need for razor blades, including before and after shaving products.
Gillette products already maintained their leading position in razors and blade replacements. In fact, the Net worth of the Gillette brand before the acquisition was about $16 billion. This company is the one that managed to cope with the negative outcomes of the Global Economic Crises due to its marketing strategies (De Castro, 2011).
The global awareness of the company tends to be so for the reason that the company offers its products as “the best a man can get”. In fact, the Procter & Gamble Company has taken advantage of selling its products to the existing customers of the Gillette brand. In parallel, the Procter and Gamble started in 1837 as a candle and soap maker (Case Reports, 2011).
Through the years of customer loyalty, the Procter and Gamble Company has become the multinational brand with acquisitions known as Crest, Folgers, Crisco, Charmin, and Pantene. However, due to the strategic matters, the company sold its brands of food and left the industry in 2012 (Dyer, Dalzell & Olegario, 2004).
In addition, as of the 2012, the Procter and Gamble Company is the sponsor of the Olympics as a featured advertising campaign with a special focus at the Gillette’s supplemental shaving products. Special products addressed an improvement of the marketing strategy that projects innovative shave gels by offering men the best and most comfortable experience of shaving (Damon, 2010).
In addition, the company has taken advantage of the complex formulas with the inclination to decrease irritation for different types of skin. Thus, the experience of men has become more powerful for the reason that it provided a sensitive care with the use of original and innovative foams and shaving lines of fresh flavors.
Strategies Described
One of the core strategies were aimed at the improvements of the blades and razors for the Gillette products. In fact, the marketing decision towards such improvements was based on the percentage of sales. In particular, this single segment of the product offered 40% of sales and 70% of the company’s profits (Kivi, 2010).
The core aspects of the strategies were aimed at the focus of the technological advantages that put the Gillette products into a superior position among its competitors. For example, the globally known brands, such as Sensor, Sensor Excel, and Mach 3, served as a great example of the improved business strategy (Dey, 2009).
At the same time, the company invested in the research and development segment of Gillette products. At the same time, the brands were aimed at the attraction of the particular group of teenage customers. The number of blade razors helped to improve the awareness of the Gillette solutions for the younger generation since the conversion from single to twin blade razors (Damon, 2010).
The personal care product strategy was aimed at the focus on the grooming products such as deodorants, before and after shave foams and gels, various cosmetics for men, including the hair products segment. As a result, the Gillette Company managed to increase the focus of the masses after the implementation of such marketing strategy.
The Duracell market segment also holds 40% of the world market cap in terms of batteries. The aim of the Gillette company was to add one more brand in order to provide even more sophisticated level of services, as well as another touch of their customers. In other words, this was to “add one more ‘leg’ in portfolio” of the company (Case Reports, 2011).
At the same time, it is important to acknowledge that there is a great potential of this marketing segment and such a strategy was aimed at the new launch of the Duracell Ultra batteries as a premium segment. The overall strategy was to monopolize the market through the improvements of the research and development solutions for the customers worldwide.
Besides, the Gillette Company predicted the global expansion opportunities for its products based on the existing demand. The strategy was to monopolize the markets of China, India and Russia. The oral care product strategy was aimed at the technological improvements and innovations of the products, for example, Oral B Cross Action Toothbrush (Carroll & Calabrese, 2009).
The strategy was aimed at the advantage in the combination of products and geographic expansion. In particular, the oral care position took 20% of the market share in manual and 70% market cap in power assisted brushes. In addition, the superior advertising and promotions throughout the industry supported the strategy (De Castro, 2011).
The strategy for the Braun was changed due to the constant struggles for the profit and, as a result, the focus on the value for the customer was lost. The only products that remained in demand are the shaving products, oral care and hair removal devices. The other segments of the market, such as the appliances for the kitchen and health care products, were sold out.
The results of the marketing strategies were to position the former Gillette brands, as well as the Procter and Gamble products, as a leader in its industry and the market as a whole. The purpose was to respond to the customers and their needs in the diversified product lines and different categories of the accompanying goods (Case Reports, 2011).
The idea was to maximize the effectiveness of distribution channels, as well as the engagement of the target customer, into the business operations of the giant company. Since the Global Crisis, the marketing strategies were to improve the product lines and make unique and additional innovations towards the Sensor Excel for men and for women.
At the same time, the company wanted to improve its position due to additional product lines, as well as the enhancements of the existing ones, such as Mach 3, Mach 3 Power Nitro, and Mach 3 Turbo. In parallel, there were changes in the Gillette series for women, such as Gillette Venus, Venus Vibrance, Venus Divine and Venus Disposable. Finally, the company represented another product in the line of Fusion products (Damon, 2010).
The next marketing strategy steps were to move the wet shaving market towards saturation. As a business strategy, such a step could mean the expansion of the current market, innovations, research and development optimization due to the marketing mix elements. Overall, the strategy was positioned towards the global leadership among the products for men’s shaving experiences.
In parallel, there was a specialized marketing strategy to face the competitors such as Schick. Overall, it looked like the “Blade Wars” compared with Colla Wars. The strategy of Gillete was to improve the sensitivity of the blades, and they implemented a two-bladed action in the Gillette Sensor, as well as added the twin blades to the micro-fins at the Gillette Sensor Excel, and finally, three blades in Gillette Mach 3 (Kivi, 2010).
The strategy of Gillette pushed Schick to become off the record for the customers in the industry. However, such a strategy of Gillette resulted in the counter strategy that added the three flexible blades in the Schick Xtreme 3. Meanwhile, Gillette was working on the improvements towards the Gillette Mach 3 Turbo with three blades, ten micro-fins and improved lubrication.
The answer to such a strategy was that Schick created the Quattro four blades leaving Gillette behind. The next step of the Gillette’s strategy was to add the battery power to their theree blades and make it the Gillette MP3 Power. The answer to such a strategy of Gillette was the improvements of the existing four blades with the power batarries (Kivi, 2010).
Finally, the strategy continued towards the Gillette Fusion with five blades to beat the strategy of Schick and also added the power batteries to their five blades Gillette Fusion. The outcomes of such a battle was that the monopoly of Gillete was influenced by the Schick brand, as well as it has increased its share to 17%. There were numerous law suits against each other. Gillete claim on the patent infringemnts and Schick sued Gillete for the false advertisements (Dey, 2009).
As a result of such a strategy, Gillette had a financial loss due to the legal issues, including the loss in revenues as the funding was given to the innovations that were not needed. The Gillette Company also lost its reputation and image brand after the unethic practice, which resulted in the future problems of new product positioning on the market and in the industry as a whole.
Approaches Taken
The overall approaches of the Gillette Company were to improve the strategies and programs that the company had on the market. In particular, the branding features that were aimed at the sports personality. In addition, the company improved the branding design, as well as added entertainment programs for its loyal customers (Damon, 2010).
The core approaches were to entrance another marketing segment such as sports. It was planned to empower the product life cycle, as well as launch another Gillette shaving cream. It was projected that such approaches to the market would help the company to take advantage of its improvements in terms of sales and marketing, as well as the knowledge gained by Gillette on its marketing segment. In addition, the company was willing to create the interaction center to promote the marketing strategy towards the purpose of developing new product categories (Case Reports, 2011).
Another approach was to engage the company with the means of strategic thrust. For the company, it meant to convert the existing customers from using a single blade to the twin blades by the brand lines such as Sensor, Sensor Excel and Mach 3. It also aimed to contrinue expanding globally and use an aggressive approach towards the lauch of the Gillette Fusion razor (Carroll & Calabrese, 2009).
One more approach was aimed at the competition with the Schick brand. The overall idea was to use the brand vision for Gillette and create an aggregate brand value through the approach to innovations. At the same time, another approach of the company was to take advantage of the Gillette Netowrk for the reason that for the last decade it remained in a strong shape to promote the future marketing campaigns of Gillette on the market.
As a result, the company produced another extensive Gillette promotion towards the new markting campaign called Gillette Champions and Gillette Stadium. In addition to the approach of razor promotions, they advertised the shaving creams, gels and foams as complementary products (De Castro, 2011).
Thus, the market of Gillette revealed a broaden range of product lines as well as the genuine understanding of its customers with the additional and paired shaving items. The company learned that such challenges could result in the future decesion making process improvements along with the appropriate changes in the marketing strategies. In all, the actions of the company were to generate a powerful marketing commitment in order to obtain a great portion of the maket share in the whole industry.
SWOT Analysis
For many years, there havee been different indicators of the Gillette Company towards the strengths, weaknesses, opportunities and threats. The details of the SWOT indicators were changed in parallel with the business strategies that the Gillette Company has chosen to penetrate the market with a great number of different new products (Case Reports, 2011).
Strengths
The strong points of the Gillette Company were the added number of blade razors, including the safe cutting technologies, aggressive advertising, high quality of products and numerous innovations. In the recent years, the strengths of the Gillette Company are customer recognition of the brand name, high quality Gillette products that are in demand, series of contemporary innovations, and the broader market share (Kivi, 2010).
The Gillette Company has proven itself as a market leader with a great range of portfolio. At the same time, the image of the Gillette Company was supported with the celebrity testimonials. In fact, Gillette has a high profit margin, the global market share of about 70%. The overall strategy differs as it strives to attract its loyal customers to use the products more often compared to attracting new customers. Finally, the overall brand has a strong support from the position of wide range of supporting brands (Kivi, 2010).
Weaknesses
The weak points of the Gillette Company address its high prices for the daily products, which leads to the lower market share due to the new similar products on the market. In fact, such products were mainly available in the big stores for the first time. With this, the maintenance of the brand was rather expensive (Kivi, 2010).
The development cycles of the products took a long time. The growth of the market cap was rather slow. There is also a huge propaganda of the brand usage. The Gillette Company sells mostly the products for men. In addition, the Gillette Company does not depend on the High Street Retail Outlets (Kivi, 2010).
Opportunities
The opportunities are also different; in particular, the customers prefer to use Gillette products more often. There is an increase in the sophisticated products for men as well as the growing demand for the high quality products due to the new technologies. The most contemporary details are the importance of the personal hygiene along with the fashion look of different people. At the same time, the people are encouraged to use electric razors by means to promote a better shaving experience in addition to the line of creams, gels and foams before and after the shaving (Kivi, 2010).
Threats
The threats are usually the same for the vast majority of companies in the same sector. In particular, there is a growing industry along with the number of substitute products by the other brands. The products on the market are quite sensitive to the prices among the competitive companies (Kivi, 2010).
At the same time, there are new competitors, increasing purchasing power, improved technologies of electric shaving, and economic fluctuation. In addition, the existing market has many competitors for Gillette due to the lower prices on the equal products. In fact, the weak economy has a strong impact on the premium segment of the Gillette products as well as it put the company in the position to lose a share of alternative products (Kivi, 2010).
Challenges, Concerns that Emerged
The most important and, at the same time, influential and challenging concerns that emerged during the growth of the Gillette Company were the means of brand recognition. The key challenge is to remain the number one on the market, create a powerful brand and sustain the image of the company by satisfying the common needs of both existing and potential customers (Gillette Official Website, 2013).
Because of such operations, the Gillette brand was aiming to become global by leveraging the brand as a whole. The other challenges of the company addressed its portfolio. The concerns were about the usage of safe razors, as well as the global expansion, to promote the significance of the Gillette’s quality of products (Gillette Official Website, 2013).
At the same time, the company was willing to continue its participation in different segments of the market. Special attention was paid towards the range of grooming that emphasized the needs of the most sophisticated customers. Besides, the company focused on the changes in the pricing strategy in order to promote a new line of the sensitive products (P&G, 2013).
Finally, the Gillette Company managed to incorporate a great number of grooming solutions for the male segment of the market. The company also managed to become the leading controller of the market share in terms of guiding the male populations towards the new systems for shaving that guarantee a better look by all men (Gillette Official Website, 2013).
Another challenge and concern was aimed at the market penetration of the Gillette brand. Its existence on the market along with the innovative product lines for men also improved the presence of the brand in the whole industry. In fact, the number of continued innovations led to the fact that the company created a great tool for the management of products in the marketplace (P&G, 2013).
The other concern was aimed at the shift of the shaving habits of men in relation to their attitude of the overall process of grooming. Various promotions of the brand encouraged men to treat themselves more thoroughly. In particular, the company used the approach to sports as a strategy to help people change their appearance and become more influential in both business and life (Gillette Official Website, 2013).
The market promotion was the overall challenge and concern for both men’s and women’s grooming markets. It was of particular importance from the position of women as they are more affected by the state of becoming more mature. Such a challenge was supported with the strong investment power that was mainly aimed at the improved advertising to promote the brand recognition (Gillette Official Website, 2013).
In fact, the Gillette Company managed to improve the recognition rate with the help of different marketing campaigns. For example, the marketing campaign called “The best a man can get” was one of the most successful for the Gillette Company. Indeed, such a strategy had a strong impact on the reliance on the company and its brands (P&G, 2013).
For example, there was a new advertising campaign for every new product offered for the public. The purpose of such a strategy was to emphasize the value that the product can bring to people. It was explained through a series of innovations and innovative technologies. At the same time, the marketing and advertising campaign not only positioned the product, but it also focused on the way it should be used so that people could get the maximum value based on the benefits of the products and the improved performance of using the brand products as a whole (P&G, 2013).
Assess Outcomes
The outcomes are the strategic shifts in the overall organization of work in the Gillette Company. There was professional and organizational development of all the team members within the company. In all, any changes have an impact on the revenues and income of the company so all the strategies thoroughly foresee the perspectives of growth and development in the future (P&G, 2013).
The strategic shift addressed the restructuration of the business processes and operations within the company. The shift was aimed at launching the innovative products that would be superior in comparison to the other products on the market. The idea was to offer the “best a man can get” products throughout the industry (P&G Views, 2012).
The constant changes of the marketing strategies led to the alterations in the overall look and originality, as well as the emotional atmosphere of the marketing and advertising campaigns. The advertising campaigns manipulated with the use of colors, as well as the replacement of the old music, as an accompaniment to the brand new products (P&G, 2013).
Such a strategy added more feelings and emotions to the advertisement and served as the basis for connection between the Gillette Company and its customers worldwide. The advertisement was aimed at the specific characteristics of every product that was promoted in the marketing campaign (P&G Views, 2012).
At the same time, it addressed the use of the modern technologies to fully meet the needs of the customers entirely. For example, the same products for shaving have been advertised with a specific focus on sports. The company even used actors to make the advertisement more powerful and attractive for both existing and potential male customers.
In parallel, the professional, as well as the organizational, development was managed through a number of innovations and emotional atmosphere. Thus, such an approach to the strategy created an individual connection with the customers by means of adhering to the highest values in the Gillette’s product lines (P&G Views, 2012).
At the same time, the outcomes were favorable due to the use of the replicable technologies for the trademarks, such as Mach 3, Gillette Fusion, and M3 Power. As a result, the company gained a strong image and reputation along with the increased brand recognition. In all, such a kind of the advertising strategy has created a basis for further events, including sponsorships and other superior solutions to penetrate the market more effectively.
Therefore, the overall competition and product lines for both men and women could be illustrated based on three brands, such as Gillette, Schick and BIC. The outcomes of the business and marketing strategies were that the line of men’s products was about the same between the Schick and Gillette: Fusion Power and Quattro Power were sold at the price of $11.99 (P&G, 2013).
At the same time, the price level of the other supporting products of Gillette beaten the prices of Schick; BIC was not close to the comparison as the prices of its product lines were two times less than the ones of Gillette, starting from $3.29 and continuing till $5.29. However, the Schick was close to compare the price levels. In particular, the Gillette Fusion was $9.99 and the Quattro Titanium was $ 8.99. The other product called MP3 Power Nitro was at the price of $11.99 compared to the QuattroPower of $8.99 (P&G Views, 2012).
In parallel, the line of women’s products also represented the brands of Schick, Gillette and BIC, where BIC was not a party of comparison as its price level was a bit more than the half of Gillette’s, $5.29. As for the Schick products, this time their price levels were somewhat higher than the ones of Gillette’s. For example, Gillette Venus Vibrance were $8.29 and its corresponding Schick’s product Quattro for women was $8.99; Gillette Venus Disposable was $7.99 and its corresponding one at Schick was $8.49; the other one called Gillette Venus Divine equaled the Schick Intuition Plus with $8.99 (P&G, 2013).
Lessons Leaned
The most important lesson that was learned is the case of merging of two giant companies, Proctor and Gamble and Gillette, as well as the objectives they stated for the future within the Fast Moving Consumer Goods(FMCG) sector. The lessons that were learned are the advantages that both companies obtained because of merging (Damon, 2010).
At the same time, the lessons address the perspectives of working as a one corporation in terms of the value for both the customers and employees. One of the core examples is the acquisition that was worth $57 billion, including $153 million of the Gillette CEO’s, stock options and stock rights. However, there were negative effects of this merge, such as the fact that the company had to lay off about 6,000 employees from the head office of Gillette (De Castro, 2011).
In addition, it is important to acknowledge the facts that both companies learned during the merging with each other, which also played as a significant lesson for both parties. First, the combination of assets of both companies resulted in $60 billion of annual revenues. This could be perceived as a great strategic lesson (Case Reports, 2011).
One of the other lessons could be that one company can never become a giant until it has passed a certain road of calamities and mishaps on the road to success. For example, initially Procter & Gamble Company was selling soap and candles. Another example is that in order to boost sales, sometimes it is necessary to take extreme actions such as sign a 40 million pounds contract for three years with David Beckham as an international face of the Gillette Company (P&G, 2013).
Another lesson is that no global strategy will work if there is only a national workforce. For example, a number of employees at Procter & Gamble equals more than 100,000 people, and a number of workers at the Gillette Company equals almost 30,000 company members (P&G Views, 2012).
In fact, the global strategy takes time to think, which is impossible to manage while working on the national level. The lessons learned during the process of applying the marketing strategies worth over $140 billion for the Procter & Gamblemarketing capitalization. The lessons learned by the Gillette Company worth $45 billion in the market capitalization after applying the marketing strategies (P&G Views, 2012).
Conclusion
The research analyzed the business climate of Gillette in various perspectives. In addition, it adhered to the background information of the company, as well as it emphasized the global marketing strategies such as innovations, “move fast or lose out”, always take advantage of the substantial promotions and overall advertising. A special attention was given to the extension of the brand name through the differentiation of the product lines within the industry and market as a whole.
The outcomes of the research indicate that the work objectives were met, and all the concerns of the marketing aspects were addressed during the analysis of the Gillette’s activities on the global marketplace. Special attention was addressed to the merging potential of Gillette with Procter & Gamble.
At the same time, the research addressed the marketing problem that the Gillette Company has faced before, during and after the Global Financial Crisis. The problem was analyzed based on the actions of the company towards different situations, including innovations and various marketing strategies.
Therefore, the research data revealed the lessons that were learned towards the successful factors for the Gillette Company. In particular, the company gained many benefits due to the focus on the superior benefits. Hence, the overall idea was to learn how to meet the needs of both existing and potential customers.
In parallel, the research addressed the importance of commitment to both the products and business strategies, including the means of the product improvements. The outcomes also indicated that in order to be successful, the company should pay special attention to the financial support towards the marketing segment of the company.
During the period of the growth and development, the Gillette Company managed to challenge the diversification means by purchasing the companies that did not generate any profit. At the same time, the company faced a number of issues, such as how to leverage its strengths and opportunities and thus take the dominant position in the industry and market segment as a whole.
In addition, it was rather important to position the company and its activities in relation to the satisfaction of various needs of the customers by generating more value in the particular business sector. Finally, the outcomes of the strategies revealed that the highest income was generated because of selling razors compared to other supplementary products.
Therefore, since the Gillette Company is now part of Procter & Gamble, its former Gillette brands should be aimed at the continuation of the existing marketing strategies, as well as various means of innovations and improvements of the business processes. At the same time, it would be valuable to launch products that are no longer in demand in the developed countries in the developing countries.
Moreover, it would have a positive impact if the company could improve the supplementary products, such as shaving creams, foams and gels for the future. However, such innovations should be specific in terms of time and promotion of the products towards the masses in the market.
