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Gillette

By Megan Lawrence,2014-03-20 02:51
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Before launching a new product Gillette undertakes market research. Discuss with students how Gillette might do this, how might it gather information

Gillette Lesson Plan from The Times 100 website: www.tt100.biz

    Gillette

Segmentation

Link to case study here

    Overview: Gillette is a leading player in the shaving market. This case study examines its strategy to success focused on developing new products and getting them to the market quickly.

Learning objectives

    ; to understand the different segments in the shaving market

    ; to analyse the market research Gillette might undertake before launching a new product ; to analyse Gillette’s vision.

Introduction (10 minutes)

    Introduce the lesson: you will examine the strategy of Gillette and its approach to new product development. You will consider the segments within the market and the way Gillette serves these markets. Finally, you will look at Gillette’s vision and how this affects its strategy.

    Mr King C Gillette devised and marketed the first safety razor in 1901. Since then Gillette has launched a large number of razors and has always been quick to get a new product to the market. See section 2

    for a list of the products where it was the first in the market, Gillette continues to recognise the importance of “being ahead in the field”.

    Student task: Students to produce a diagram showing the different product markets in which Gillette operates using section 5. Why might Gillette have chosen these markets to compete in? (e.g. fit with strengths, ability to compete in these markets, ability to generate a high rate of return)

Market research (10 minutes)

    Before launching a new product Gillette undertakes market research. Discuss with students how Gillette might do this, how might it gather information? What type of information might it gather? Gather ideas on the board and distinguish between qualitative (working with focus groups) and quantitative research (using a questionnaire with a large representative sample) (could also distinguish between primary/first hand data and secondary research- that uses information already collected). What factors might determine which type of market research the company uses? (e.g. budget, nature of information required, time available, need for accuracy).

    How does qualitative market research enable Gillette to create more benefits for its targeted segments?

Why might psychographic segmentation be more relevant to Gillette?

Competitive markets and innovation (10 minutes)

    In markets as competitive as the ones Gillette operates in innovation is essential. Student task: Using section 3: Students to answer: why is product improvement through concept and design so essential to success in Gillette’s markets? (e.g. level of competition, need to add value, need to prevent the decline stage of the product life cycle).

Segmentation (18 minutes)

    In 2002 more than 1.7 billion men over 15 years old removed hair daily with over 80% using a blade and a razor.

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

Gillette Lesson Plan from The Times 100 website: www.tt100.biz

    What are the main consumer requirements that Gillette have identified through market research that have helped the company to produce an effective marketing mix for its’ shaving products.

    What are the three main segments that Gillette have identified in the male shaving market?

    How might consumer requirements vary between the different types of segments that Gillette have identified?

    Why is it likely that Gillette will continue to develop new products for the premium segment of the market?

Vision (11 minutes)

    A company’s vision should reflect its values and approach helping to ensure all the firm’s activities are in line. Explain the strategy of a company is guided by its vision, Gillette’s vision is “To build total

    brand value by innovating to deliver customers value and customer leadership faster, better and more completely than our competitors”. Discuss with students the significance of this, why are these phrases and words chosen? What do they mean in terms of Gillette’s strategy? Put ideas on the board. Highlight that the statement has been carefully crafted so that each term reflects something believe to be important to the firm.

Student task: using section 4z write out Gillette’s vision and explain the significance of each element of

    this vision. Discuss the factors that might determine whether Gillette’s strategy is successful.

Review (1 minute)

    Gillette is a market leader in the shaving market. It targets different segments of the market and adopts a global strategy. It is able to develop products quickly and by innovating remains a market leader.

Homework

    1. Complete the worksheet on this case study.

    2. Consider the possible reasons for the failure of so many new products.

     (e.g. high level of new product development, increasing customer expectations, too much

    choice ?, poor marketing, badly timed or badly managed launches).

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

Gillette Lesson Plan from The Times 100 website: www.tt100.biz

    Gillette

Segmentation

Questions and Answers

    How does qualitative market research enable Gillette to create more benefits for its targeted segments?

    Qualitative market research involves detailed work with focus groups of shavers who typify particular segments of the market. Discussion involves the nature of the benefits that they are seeking and their perception of different types of product offering. This enables Gillette to find out in detail about the requirements of each segment, and improvements that customers would like to see in the products. It also enables Gillette to get the market mix right for each segment.

Why might psychographic segmentation be more relevant to Gillette?

    Psychographic segmentation is concerned with identifying personality traits and distinguishing characteristics in groups of the population. Examples are young and outgoing (for the sale of new forms of music) or grey and conservative (for classical and 60s music). Pyschographic segmentation is clearly relevant to shaving patterns and behaviours. For example, busy well groomed people are likely to go for an upmarket shaving system.

    What are the main consumer requirements that Gillette have identified through market research that have helped the company to produce an effective marketing mix for its’ shaving products.

    Consumer requirements include speed, comfort, no irritation, value for money, safety, and effectiveness.

    What are the three main segments that Gillette have identified in the male shaving market?

    The 3 segments are premium shaving systems, super premium disposable, and premium disposable.

    How might consumer requirements vary between the different types of segments that Gillette have identified?

    Consumers in different segments will make different trade offs between the sorts of benefits that they are seeking. For example, in the premium disposable market value for money may refer to relatively low cost prices. In contrast, in the premium shaving system market consumers see value for money, as including a higher price but a greater range of benefits. Other aspects such as perception of comfort and no irritation will depend on the trade off that a consumer is prepared to make with elements such as price.

    Why is it likely that Gillette will continue to develop new products for the premium segment of the market?

    The premium segment of the market is made up of demanding customers who are continually seeking a wider selection of benefits. As a customer focused company, Gillette is able to identify these requirements through market research, and then create the products and the marketing mix to satisfy these customers. Gillette has always been an innovator and will continue to create new products.

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

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