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Gillette: Implement a new Gillette deodorant on the French Market

Old Spice: Implement an existent foreign deodorant on the French

market

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Consumer Influences Organizational Influences

DisposingConsumingObtainingPlace of consumptionA daily productPurchasing

Level of self-confidenceLife Style

AgeWeather

TV advertising

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• Cosmetic legislation of the European Union

• Tax reduction

• Import restrictions

• Tensions between government and exporters

• Government taxation

POLITICAL

• Deodorant market turnover in 2013: + 2,1%

• Deodorant sales (in volume) in 2013: + 1,6%

• Roll-ons are expected to see the best performance

ECONOMIC

• 7 Frenchmen out of 10 use deodorants

SOCIAL

• Less gas in each spray

• New campaigns of publicity

• Digital Communication

• New designs of deodorant bottles

TECHNOLOGICAL

• A consumer demand:

• Ethically & sustainable products are increasingly demanded

• Popular demand for natural deodorants

ENVIRONMENTAL

• Health and safety

• Equal opportunities

• Advertising standards

• Consumer rights and laws

• Product labelling and product safety

LEGAL

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Buyer Power

Degree of rivalry

New EntrantsSubstitutes

Supplier Power

Two major companies:Unilever & Laboratoire LaScad

Natural deodorant

Strong position in the supply chain & Favorable contracts

Less power in negotiation & Limited choices between large companies

Difficult to penetrate the market for small companiesFor P&G: Entering the market will be an advantage of a multi-brand strategy

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Human

•129,000 employees in 70 countries.

•2,700 employees in France

•Effective policy of talents improvement

Financial

•More than 1 milliard generate by 24 brands.

•Big amounts of capital

•Importance of innovation

Physical

•Genève: strategic key center

•180 countries where P&G products are available

•3 factories in France

Technological

•Innovation hubs/facilities

•“Connect + develop” program: innovation through external partnerships.

•Put the stress on technological equipment

Resources Evaluation Availability: Easily to mobilize Quantity & Quality: Large / reliable Extent of employment / Use: Widely exploited

Corporate Values

Integrity

Leadership

OwnershipPassion for

Winning

TrustPrinciples• Respect for All Individuals• Strategically Focused in Work• Innovation Is the Cornerstone of Success• Valuation of Personal Mastery• Seeking to Be the Best• Externally Focused• Mutual Interdependency • Sustainable development

Consumer understanding

Architecture: Multi-disciplinary

teams

•Reducing unnecessary repetition & greater responsiveness

Innovation: Innovation leader

Brand-Building: leading brands &

value creation potential

Go-to-Market Capabilities

•Ranked as a preferred supplier

•Brands most important to retailers

•Strong business fundamentals and innovative marketing programs

Scale

•Share knowledge

•Transfer technologies

•Optimize resources

•Serve consumers and continuously improve efficiency and productivity.

Core CompetencesP&G has a culture of competitiveness

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- Increasing demand of deodorant on the French Market- Roll-on market growth (eco-friendly)- E-commerce platform- Demand of non-negative effects and long-last product- Aesthetic fatigue for traditional deodorant

External Analysis

S

O T

W

Internal Analysis

- Effective & impressive ads- Well-diversified products- Powerful R&D for innovation- Strong corporate image

- Low brand popularity in France- Old Spice is unknown & Gillette is associated to shaving- No different type of product in deodorant market - Target market is limited

- Intensive competition on the French market- Substitutions due to safety problems (natural deodorant non-negative effect on body)- High buyers bargaining Power because of a saturated deodorant market- Household budget for hygiene isdecreasing

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- Develop no side-effects on customers' bodies and long-lasting product.- Distribute products on websites and focus on promotion through Internet social media - Design an extremely professional sport deodorant

E

X

T

E

R

N

A

L

WO

WT

S

O

T

W

I

N

T

E

R

N

A

L

SO

ST

- Increase brand image in deodorant providing better product- Use differentiation rather than price advantage, focus on sportive men and build brand image and enlarge scope of aimed customers when brand is well-known- Apply online sales to reduce costsfor the real shops operations and offer free-trial deodorant tied up with other P&G products

- Use a different way of distribution seeking for other big distributors (Decathlon)differentiate in package and price - Research on natural deodorant capturing the first step advantage - Strengthen cooperation with sports brand

- Strengthen cooperation with hotels sponsor sports events to build a premium brand image- Promote new product with other P&G products in the

supermarket (tied in sales)- Build professional image in sport shops (cooperation with decathlon)

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Performance Seeker

Strong Performance & Quality Scent

Strong Scent Seeker

Simple & Basic

Our choice

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Masculinity & Confidence

Skin Protection

Protection/are trustable

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•Gender: male

•Age: 15-55 years old

• Life Cycle: Pre Adolescence, Adolescence, teens transition to adulthood, young adult, adult

•Climate differences (will determine the use of spray or stick)

•10 representative big cities

•Product usage: frequency/volume (regular users, extend to non-user), loyalty

•Benefit: feel clean, fresh, good, smell

•Shopping: Where? (super/hyper Market), How?

Demographic Geographic

PsychologicalBehavioral• Personality: Self-

Confidence, sportive, ecofriendly

• Attitudes about environment, society

• Lifestyle will affect the performance required from deodorant

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Opportunity for competitive advantage

•New Innovation

•People are more sensitive to natural products

Firm and competitor capabilities

•1 milliard generated by 24 brands

•Present in 80 countries

•Innovation hubs, worldwide R&D, 5500 patents

Attractiveness of the industry

•Threats of substitutes due to safety problems (natural deodorants)

•High buyers bargaining power

•But low power of suppliers

•And not many new entrants on the market (rivals known: Unilever & LaboratoireLaScad)

Consumer needs and behavior

•Strong performance and quality scent

•To feel confident all day: A need which is unsatisfied

•To Feel fresh, clean

Market Segment Size & Growth Rate

•7,3M men employees (except workers)

•Sales of roll on & sales of spray: 243.2 & 375.6 in 2014

•Growth of the market: 0,5 % in 2012-2013

Macro trends

•Evolution of deodorant sales in 2013: +1,6%

•Increasing number of users: 7 consumers out of 10 use a it

•Consumers demand more ethically and natural products

•Product labelling and safety are more demanding

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14

15

42

17

15

8

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7What brand so you usually use as deodorant?

Nivea

Dove

Adidas

Mennen

Sanex

Ushuiai

Interpretation:

• There is an unmet/unexplored need: to use and re-use a deodorant on a clean skin

• People think Gillette is trustable and can launchits deodorant in France

• Communication Gap: people don’t believe in a24h or 48h long-lasting deodorant

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Complete

The Whole MarketUnique Mix

Mix 3

Mix 2

Mix 1 Masculinity & Confidence

Protection/are trustable

Skin Protection

Specific Mix Protection/are trustable

se

gm

en

tati

on

No

Differentiated marketing

Undifferentiated marketing

Concentrated marketing

CustomizationA unique productGillette DuoPro

For the 7,3 Million of Urban Workers

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Quality/Technical

InnovationProfessional

Positioning Concept

FUNCTIONAL

Positioning Statement

“Among cosmetics, Gillette is the brand of deodorant, that keep your fresh, clean

and male because it’ a reliable quality brand, long

lasting.”

For the BrandAnd also in consumers’ mind

Perceptual Mapping

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Pure Tangible good

Product level

Mix of Convenience &

ShoppingProduct

Regularly used but not immediately used upLow priceMany purchase locationsCompare for effectiveness/Quality/PriceSuccess depends on distribution networks & advertising but also on personal selling

Core Benefit

• To deodorize

• To stop perspiration (for all the day)

• To smell good

Physical Elements

• Bottle

• Packaging

• Bottom

• Spray/roll-on

• Product itself

Augmented Product –Our idea

• Double effect

• To feel clean and fresh

• No harmful effects on body

• Permit an re-use properly

Razors BladesFoam & Gel

Our Proposi

tionDeodor

ant

ProGlide(7)

Body(2) Body(1)DuoPro

(1)

Fusion(3) Fusion(6)FusionProGlid

e(3)

Mach 3(3)Fusion

ProGlide(4)Fusion

(2)

Body(1) Mach 3 (8)Series(12)

Sensor (2)Classic(

4)

WIDTH

LEN

GTH

(D

EPTH

)

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*First: use the cleansing spray to clean and fresh your skinNext: use the roll-on side as an usual deodorant

A totally new concept : the double-head and the cleansing spray for armpits

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Clean & Fresh

Protect & Smell good

Information

50mlgel

100mlLiquid of cleansing spray

Natural ingredients, gentle to skin

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Name

Gillette

LogoSpecific Design

Technological, reflects

innovation

Signature

“Gillette, la perfection au

masculine”

Brand human faces

Famous actors, sportsmen for big advertising

campaign

Colors

Blue, white & silver

Advantages

Diversification of Gillette’s products

Reach an unexplored need

Booster of sales

Novelty technological research

How to take advantage of this?

Create packs

Be the hygiene reference for elegance, efficiency and cleanliness

Inconveniences

Dilution of the brand image of Gillette: less clearness (“cosmetics”)

Increased communication fees and fix costs investment

Impact on others Gillette’s product sells?

Cross effect? No real substitution risk with the main products.

Solutions:

Present the deodorant as a complement

Make masculine beauty packs: productsare complementary

Effective core communication to avoidthe risk of dilution

Brand Extension?

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Roger Federer

Message Content

• Informational appeals:inform about the new

product & what are the benefits for them

•Transformational appeals: create a positive emotion through humor

Message Structure & Format

•TV advertising, posters + posters adapted to image

for web media and magazines

Message Sources

•Illusion of expertize; likability

•Anonymous with masculine and self-confident voice; A

commonplace young working boy

Issues 1: To be competitive in our

target segments

•Introduction in PLC

The main goal is to inform

•Target segment: Confidence, Skin Protection & Trust

Issues 2: To Attract New Consumers

•Make a brand switching

•Convince non-users and unsatisfied users

•Working professionals

Issues 3: To attract Gillette Consumers

•Create a complete hygiene line

Use the trustfulness of Gillette

•Based on the values that have already convinced:

professionalism, technology, quality, performance…

Demographic /Psychographic

•15-50 years old men: 16M

•Male: 7,3M of urban working professionals/32M of men in France

Geographic

•10 largest cities in France

•Urban population

•Super & Hyper markets

Behavioral

•Daily usage

•Freshness & Cleanness

•Subtle Scent

Step1: Target Market

Step2: Communication objectives

Step3: The Message

2 sub-targets:15 – 35 years old,

more sensible to humor35 - 55 years old,

more sensible to information

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ATL

•Hoardings, Radio

•Two types of advertisement for two sub-targets: 1-informational TV advertisements after Gillette classic razor advert during winter and autumn; 2 – Humoristic advertisement during spring and summer

BTL

•15 Day Return Policy

•Barcode Scan

•Promo offer: Buy 1 get 50% off on second / package of razor line and the Duo Pro

Web Communication

•Increase direct contact

•FB, Instagram and Twitter

•Online selling

Step4: CommunicationChannels

Step5&6: CommunicationBudget & Mix

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A series of advertising based on humor:

• The brand will invent for the beginning 5 advertising with5 different scenarios where we could see a man in a dailylife situation in which he needs to re-use its deodorant.

• Objectives: without Gillette DuoPro, the man faces aridiculous and humoristic situation; in the same contextwhen he decides to use it, he succeeds.

• Gillette will also propose to the consumers a co-creationvia the social network. Everyone could invent a scenarioinspired by his life when he needed a deodorant asGillette DuoPro.

• The author of the best scenario will receive gifts such asfree products and also a role in the next advertisingcampaign.

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As we aim to launch the product next year in spring, the following are the expectedresults:

• By the end of 2015, we expect to reach more than 3 million households throughadvertising

• Easily reached urban professionals through programmatic advertising, as P&Gplans to invest 70-75% in digital media

• Quick acceptance and popularity of the product as it is in vogue and in-line withthe needs of the urban working professionals, thus there will be a higher repeatpurchase rate

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•Payback the investment in R&D

•Penetrate the Market

Pricing Objectives

•Consumers are sensitive to prices if a product has a lower cost for a superior benefit

•Demand is growing

Demand & Price Elasticity •Labor cost, raw material

and other indirect or direct costs have to be budgeted as 1 product sold can cover 3 product productions

Cost & Volume Relationship

•The lowest rate available at Carrefour for deodorants is 0.49 Euros and the highest is 4.59 Euros

Competitors•Mainly Competitor-oriented method

•But we will take into account and control rigorously the costs

Calculation

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Distribution intensity

•Selective at short term to target more specifically our main target (urban professional workers): Supermarkets & Hypermarkets of 10 biggest cities in France

•Intensive at long term to increase the availability of goods

Channel Structure

•Short: to have a stronger relationship with retailers

Strategy in-store

•Promotional efforts: package of a complete line of Gillette’s Product (Gillette DuoPro + razor, blades and foam)

•Shelf positioning: package in aisle end-caps as well as the product sold individually. On shelves: positioned in the middle (height & width)

DistributionStrategy

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A great opportunity for Gillette to enter the APDO market with the new product Gillette DuoPro:

• An increasing consumer demand for strong efficient and sustainable products• An unmet need: to use and re-use your deodorant on a clean skin whatever the

situation you are facing• A totally new product to meet the demand : innovative & out-of-the box• There is an opportunity in targeting a specific segment: urban workers• A company with strong advantages ready to face competitors• A informational and humoristic communication• Our motto: “Feel Fresh, feel clean and feel good”

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https://www.dolcera.com/wiki/index.php?title=Deodorants_Market_Analysis:_Acquisition_of_Sanex_by_Colgatehttps://www.dolcera.com/wiki/index.php?title=File:Western_value_future_trends.pnghttp://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/co0013http://www.insee.fr/fr/themes/info-rapide.asp?id=14http://www.lsa-conso.fr/des-deodorants-tres-actifs,131186http://www.lsa-conso.fr/un-adolescent-de-15-ans-decede-apres-avoir-inhale-du-deodorant,131316http://www.lefigaro.fr/societes/2014/06/27/20005-20140627ARTFIG00009-unilever-gagne-son-pari-dans-les-deodorants.phphttp://130326093803-rpart-pop-active-fce-mars-2013.pdfhttp://en.wikipedia.org/wiki/Television_in_Francehttp://stakeholders.ofcom.org.uk/binaries/consultations/market_invest_paytv/annexes/annex9.pdfhttp://www.llllitl.fr/2014/03/investissements-publicitaires-marques-annnonceurs-france-2013/http://www.digitalstrategyconsulting.com/intelligence/2014/06/pg_to_shift_70_of_digital_budget_to_programmatic_ads.phphttp://www.cbnews.fr/conseils/apres-80-ans-de-mariage-gillette-quitte-bbdo-pour-grey-a105163https://www.youtube.com/results?search_query=Gillette+France

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