Gillette India Ltd

Gillette India Ltd(Indian Shaving Products Limited ISPL)Anupam Mishra 27NMP 06Manush Maken 27NMP 19Swati Gupta 27NMP 32Komal Tagra 27 NMP 51

Indian Shaving Blade Market Scenario2.4 billion blades in a year , Rs 250 crores in value at retail price15 to 20 crores of Indian shaving male populationCarbon steel blades making the bulk of the marketStainless steel blades present only in urban marketLess than 2% market in twin Blade Segment

Formation of ISPL, Product and Distribution StrategyGillette entered Indian Market through JV with House of PoddarsLaunched Brands like 7 O'clock Ejtek, Super Stainless, Super Platinum priced over 50 % than the closest competitors.Considered as natural fit with synergies for both parties, Distribution shared with Lipton Tea @ 5 % commission7% margin for Stockists on ISPL productsWell established sales network of lipton with intensive distribution reach targeting customers segments ranging from premium to mass market

Close CompetitorsHouse of Malhotras 80-90% Market share with brands like Panama, Topaz, Laser etcDistribution network consists of Very Large Wholesalers to Semi- Wholesalers and RetailersTime to Time Promotions for the trade and stock push to dominate the market.WiltechValue-wise Market Leader in twin blade segment with 50 % shareStrong Brands under names Wilman 1 and Wilman IIIssues and findings after 2 years of launchLess than 3 % of total market share. Market share got in double digits in bigger towns and cities

Accumulated losses of Rs. 7.24 crores by the end of financial year 1995

Studies and Customer Surveys indicated that there are no serious flaws in ISPLs products, pricing or positioning.

Channel Flow system doesnt seem to be very robust.

VP Sales and Marketing has Doubts on the retail coverage with reliable data not available and is in pursuit of Channel Redesign.

What VP Marketing Should do?For New Distribution Studying and Benchmarking the existing channel strategy of the similar product.Understanding the needs and requirement of target markets with regards to service outputEstimating the overall cost of distribution at various levels in terms of cost of performing an activity and remuneration partDevising a Robust channel flow mechanism .Setting Standards for measuring the channel performance and monitoring mechanismsChannel Members Appointment CriterionSticking With LiptonTo understand whether the Target Market of current channel (Lipton)shares any commonalties.Be Selective in Choosing Distributors by targeting geographiesDevising Better channel flow mechanism especially in terms of information sharing and promotionsDefining roles and responsibilites of channel constituents.

Using Market Analysis FrameworkMarket Geography

Creating a marketing channel that helps Gillette to distribute to the right target geography of Urban upper end Market

Market Size

Given the market size of target market geography, we need to ascertain the cost of serving a customer through Bucklins Model

Market DensityTargeting Highly concentrated Markets so that Distribution becomes cost effective especially in urban areas

Market BehaviorWhere-Convenient locationHow- Active PromotionsWhen- May be Starting of the Month in assortmentsWho- Male-Physical Purchase- Male/Female

Service output requirement of customer from the channelBulk Breaking- Customer may need very small quantities to be made available at the retailer level.Assortment- Customers can make purchases in assortments during their regular buying cycle.Waiting time-Order Could be lost if waiting is high in an FMCG productSpatial Convenience- Convenient Product availability if premium on product needs to be paidRecommendationThe Target market of Lipton distribution is from Premium to mass whereas Gillette can cater to upper end only as of now.Intensive distribution will not help Gillette as it is already facing a big competition from malhotras in that spaceFocus on Gillette products by lipton distribution system would always be a question mark.Gillette Needs should build its own distribution network which will also give platform to future products in Indian market.