Essentials of Gillette's Marketing Company - Report Example

Lecturer: presented: Executive Summary Establishing product recognition amongst consumers by companies producing consumer products is usually a difficult task. Informing consumers in regard to a company’s products is significant in the competitive advantage of the business. They should be sufficiently informed regarding the advantages of purchasing the products of the company. Market research is important in ensuring that the appropriate market strategy is developed in order to boost the competitiveness of the business in a particular market segment. Decision making should be well thought out in the process of developing the market strategy. The marketing mix to be used should reflect the desires of the consumers which should be derived from the company’s understanding on their preferences regarding its products. Satisfied customers usually develop a great extent of loyalty in a company’s brand which in turn acquires a large market share compared to its competitors. Gillette is one of the companies which have dominated the market for safety razors amongst other sanitary products through the use of a superior marketing strategy. Methodology Information was gathered from existing literature on marketing published in journal articles, books on marketing and publications available in the Company archives. An analysis of the information gathered was done while relating the company success to the theoretical models. Accomplishments of the company in regard to these models were analyzed while comparing it to the strategies of competitors. Introduction In this report, there is useful information in regard to development of an appropriate marketing strategy for a company that wishes to boost its competitive advantage. It highlights the significance of marketing to organizations as well as the various theoretical marketing models which can be adopted in marketing by organizations. It discusses a range of marketing aspects in detail, definition and the history of modern marketing. These include marketing strategy, marketing mix (the 4Ps), market segmenting, targeting and positioning (STP). These have been discussed with respect to the Gillette Company, a largely successful shaving company that enjoys an enormous global market share. The company’s marketing strategy has been discussed extensively, indicating the importance of marketing in the prosperity of companies. To conclude, the usefulness of marketing is highlighted, followed by recommendations that a company can adopt in order to cope with the rising competition in the global market. Marketing According to Costa, J.A. and Barmossy, G. (1995 p. 67), “The process of marketing involves production of goods and services, providing information to consumers, as well as distribution”. It is the process through which products are exchanged between the producers and the consumers with the goal of satisfying consumers’ needs and making profits. In order to earn profits, the producer has to ensure that the products offered in the market satisfy consumer desires. Marketing enables a company to establish a market for its products. In this process, it is able to satisfy consumer demands, who also get a chance to acquire useful information in regard to the company and its products, the utility of the products and the most convenient way to acquire them. Through marketing, the company is able to instill confidence in the consumers of its products thereby making feel the value of their money. According to Gabriel, Y. and Lang, T. (1995 p. 76), “Modern marketing is a complex interconnection between several processes, which depend on some other business functions”. The functioning of the modern marketing system can be enhanced through the use of an array of techniques. Gillette Company is one of the companies which have thrived in business through successful use of modern product marketing. Its marketing strategies have enabled it to attract the attention of consumers through satisfying particular needs (Assael, H. 1995 pp. 34-36). The company’s marketing strategy enabled it to dominate the market, commanding 70% of the global market segments with more than 30 brands for both men and women. The products are recognized world wide. The Gillette razor is one of the renowned products worldwide amongst others such as; Gillette fusion, Gillette mach 3 e. t. c. which are produced in various subsidiaries in countries such as Brazil, Poland, Germany, Korea and many others. The company takes advantage of the strength of being the recognized for the production of shaving products globally. It has been able to dominate the market globally for safety razors as well as other sanitation products. This is because consumers have been instilled with confidence through marketing. The most important aspect of marketing in the company is its effective marketing strategy (Belk, R. W., Ger, G., & Askegaard, S. 2003 pp.78-81). Marketing Strategy Marketing strategy enables a company to concentrate resources allocation towards exploitation of the available opportunities. Its competitiveness in the market largely depends on marketing which is essential in the improvement of its profitability. The greater the consumer satisfaction, the more the business becomes competitive in the market. This is because consumers have the capacity to determine the competitiveness of the company through acceptance of its products. The effectiveness of a company’s capability of attracting and retaining customers is enhanced by a well developed marketing strategy. Futility in the efforts of a company to be competitive arises when a company undertakes strategies which are not well organized in the process of marketing. Such organizations fail even having established a strong command earlier in the market. Gillette has been effective in ensuring that its products meet customer expectations. The company has been successful in developing a lasting relationship with consumers. Its marketing strategy is generally flexible, allowing the company to be quick to respond to the varying needs of consumers. Establishment of subsidiaries in many foreign companies was as a result of this flexibility. It has also achieved its targets through successfully informing consumers on the benefits of purchasing the company’s products compared to those from other companies (Clarke, D.B. 2003 pp. 36-41). Its marketing strategy demonstrates the awareness that customers are divided in to market segments or groups depending on their needs, and their purchasing power. It recognizes the uniqueness of the groups which facilitates its ability to deal with each segment separately. Each group has characteristics that are unique to it and therefore it was an important decision to consider the ability to compete with others in the market. The use of market research helped the company to discover the various gaps that have been left by other competitors. In order to improve its profitability, it strived to fill these gaps and in so doing, it was able to attract more customers. This was made possible by the realization that the link between it and the customers is the amount of consumer satisfaction. A marketing strategy which capitalizes on the producers strengths to satisfy the consumer’s needs is the best for effective marketing. This is a marketing strategy which can be used by other organizations in order to boost their competitiveness in the market (Batra, S. K., & Kazmi, S. H. H. 2004 pp.28-36). The marketing mix The significance of marketing mix in ensuring that the products satisfy the consumer desires can not be ignored. It makes them affordable and therefore the constant willingness to buy more. The use of marketing mix depends on the choice of the marketers and the kind of product that they intend to offer in the market. It is mainly used to create a difference between a company’s products with those of competitors. It helps a business to be successful through ensuring that all elements are right and balanced. The 4ps include; product, place, price and promotion. These are significant in improving the competitiveness of a business (Slater, D. 1997 pp. 66-73) The quality of the product is significant in customers’ satisfaction in order for them to continue purchasing the product for the business to make profits in turn. It is important to ensure that the value of the product is what the customers need. Eye-catching appearance is one way of attracting the attention of consumers. This can be done through attractive packaging of the product. The quality of the product should be satisfactory to consumers. It should be able to provide the desired benefits that are usually the driving force towards purchasing a particular product. The Gillette Company has professionals engaged in market research. They inform the management on the changes in customer desires as well as their reactions towards competing brands (Chisnall, P. M. 2001 pp 67-74). Delivering the products at the right place at the right time is significant since the movement of the product from the manufacturer to the consumer determines the availability of the product. In order for a business to be profitable, it has to ensure the efficient supply of its commodities to consumers. The channels of distribution are significant in ensuring that the customers get the commodity at the desired place at the right time. In order to satisfy consumers’ desires about place, the producer can make use of intermediaries such as; wholesalers, sales agents, distributors as well as the internet (Dayman, C.et al. 2002 pp.54-61). Price determination is essential since the price of a good determines the ability of the consumers to purchase. The producer should be aware of the purchasing capability of the consumers. In order to be effective in pricing, the producers can do market research and compare their prices with those of competitors. The pricing strategy is important in order to ensure that the business does not make a loss due to inappropriate prices. Pricing should be designed such that minimum charges on goods will allow the consumers to afford purchasing them, while on the other hand production cost is reduced in order to maximize profits (Churchill, G. A. 2005 pp.69-75). Gillette products are usually sold at prices which are affordable to the consumers. The company’s marketing strategy is designed to suit a wide range of market segments. Promotion has been used extensively and distinctly in the company’s marketing activities. Consumers are usually given an equal chance of participating in the products promotion. It comes in many different ways. Many involve a situation where customers fill in raffle tickets after purchasing the company’s products. They are then selected randomly and given prizes depending on the raffle tickets which are usually different depending on the value of the purchase. Due to its uniquely large market share and hence huge capital, the company is able to offer high value prizes compared to competitors. Trade shows are also commonly used where consumers gather at a common place to meet with the company’s marketing team. Consumers participate in various activities organized by the marketers such as The Company also employs a variety of promotional activities such as sponsoring major events such as soccer and athletics. It helps in awareness creation and ensuring that customers understand the advantages of using a particular product. It encourages customers to purchase products from the organization. It also helps to build confidence amongst existing consumers as well as attracting new ones (Bauber, M. 2004 pp. 87-93). The producer should acquire information regarding the consumers such as their purchasing power, shopping habits as well as the probable questions that consumers are likely to ask in regard to the product. The producer learns the issues surrounding the product marketing while consumers get answers to most of the questions that they have always wanted to ask. They also air their views and inform the producer on their preferred quality, and the changes that they would like to be effected on the product. The style of promotion largely affects the outcome of the promotion. It should be timely so as to get the best outcome. Promotion raises the competitiveness of the company through the incentives that the customers receive. In a promotion event, customers can purchase goods at a lower price which encourages them to continue purchasing the products. In the case of a new brand from the company, it presents the marketing team with a chance to attract new customers who may end up becoming loyal to the other company’s brands. Most of the customers are compelled to purchase the available products in an unplanned manner. Since retailers usually sell a combination of products from different companies, it is necessary to boost their confidence through promotion in order for them to feel that the producer still commands loyalty amongst consumers. It makes them stock more of the product when they understand that its consumers are many. Excitement is usually created in regard to the product through promotion. The events of the promotion exercises usually compel the consumers to purchase especially if they are not sure of a repeat of the occasion (Churchill, G. A. 2005 pp.97-102). Segmenting, Targeting and Positioning (STP) Gillette has been successful in producing a variety of products to a variety of markets. Market segmentation involves diversification of the market in order to satisfy the diverse desires of customers. These differences necessitate the use of a variety of marketing strategies. These strategies are usually defined for every market segment that arises. Target marketing is the careful selection of the most appropriate segments for the business. These are usually the ones that it has the capacity of servicing. Targeting is significant in the marketing process since it helps the managers in the identification of the potential consumers. There are several types of target marketing. These include; Segmentation marketing, Niche marketing and Micro-marketing. They help a company to be focused in the production of goods depending on consumer desires, hence improving consumer satisfaction (Agrawal, A. et al. 2004 101-121). Differentiation involves creation of a difference in the appearance of a company’s products in order for them to acquire unique characteristics different from those of competitors. It is usually meant to make the goods more appealing to customers. It also generates an aspect of value in the products, thereby increasing the competitive advantage of a company. Gillette is one of the multinational companies which have adopted differentiation as a way of maintaining the company’s competitive advantage. It has achieved the desired loyalty for its brands in the market. In order to achieve product differentiation, it employs several methods including; branding, advertising, attractive packaging and promotion (Aaker, D.A. 1995 pp. 56-61). Product differentiation is has been beneficial to the company in many ways. These include; Maintenance of its consumer base through the use of branding which has protected the identity of the products from imitation by competitors. Product identification in the retail shops and supermarkets is made easy since the customer asks for a particular product of a certain amount which costs a specific price. The consumers’ expectations are met through branding since they usually attach a certain quality to the brand. This instills confidence and a feeling of safety in them. Due to the brand acquiring the loyalty of consumers, the prices of the products are not challenged by competitors who sell their products at a lower price. This brand insistence has largely contributed to the company’s profits (Bauber, M. 2004 pp. 77-85). While advertising, consumers usually recognize the characteristic trademark which is the company’s brand name. They are therefore capable of identifying it amongst other products. Due to the regular need for the company’s products by consumers who have approved the product quality, branding is useful in order for them to differentiate the product from those of competitors. When the company launches new products, it is usually easy to advertise them with the use of the trademark which is generally recognized by the consumers. Without a particular brand name, consumers usually hesitate to purchase a new product due to the absence of confidence in the producer, no matter whether it is of good quality (Bauber, M. 2004 pp. 57-73). Positioning strategies in marketing are significant in the profitability of the company. Successful positioning of a product in a market segment requires marketers to ensure that they capitalize on the share of consumer options accomplished by the product that they offer so that they can attain effectiveness and hence profitability in the long-run. The addition of characteristics that satisfy customers’ desires as well as strategic advertisement aimed at improving the awareness of consumers are some significant positioning strategies which assist marketers to get the most out of the market share. Emphasizing on quality is an important positioning strategy whereby marketers offer deficiency-free commodities in the market as well as ensuring that design of the product and customer services satisfies the expectations of consumers (Churchill, Gilbert A., and Peter, Paul J. 1995 pp. 23-27). Advertising is also another method that the company uses uniquely to constantly inform the customers about the importance of purchasing the products. Through advertisement, the company informs customers of the unique characteristics of its products such as improved quality, reduced prices e. t. c. It uses creative slogans to impress the consumers, encourage and instill confidence in them in regard to the products. It once used the slogans; “the best man can get”; “look sharp, feel sharp” and many other impressive slogans in its adverts. Gillette’s marketing techniques have constantly been changing to suit the market demand and competition. The more the number of competitors entering the market the more the company intensifies its marketing campaigns. Through this, it is able to counter any competition which may arise in the shaving industry. With the recent advancements in technology, the marketing techniques of the company have changed a great deal in order to utilize the new methods which are more efficient and effective in reaching customers. One such technological advancement is advertising through the internet. This has boosted the company’s marketing due to the wide coverage of the internet. Customers can also ask questions and get answers from the internet. The company is usually flexible in its marketing strategy and therefore there is a possibility of future changes in its marketing techniques in order for them to suit the rising competition and the changing consumer desires. Future technological advancement may also lead to a change in the marketing techniques (Chisnall, P. M. 2001 pp 56-64). Conclusion Through marketing, a company can achieve the objectives of acquiring a large market share. The link between the producers and consumers is enhanced through marketing which is core to the profitability of a business. The market strategy of an organization enables it to utilize the available opportunities thereby facilitating its expansion capabilities. Segmenting, targeting and positioning are significant in ensuring that the company’s competitiveness in the market is enhanced through provision of products and services which correspond to consumer demands. Gillette Company is the most successful company in the safety razors amongst other sanitation products, which could be attributed to the adoption of effective marketing strategies. Companies that adopt a flexible marketing strategy allow the necessary changes which make the business able to adapt to the changing market demands. Bibliography 1. Aaker, D.A. 1995. Marketing Research. Chichester: Wiley. 2. Agrawal, A. et al. 2004. Online Marketing Research, IBM Journal of Research and Development, 48 (5/6) 101-121. 3. Assael, H. 1995. Consumer Behaviour and Marketing Action. Cincinnati, Ohio: South-Western College Publications. 4. Batra, S. K., & Kazmi, S. H. H. 2004. Consumer behaviour. New Dehli: Excel Books. 5. Bauber, M. 2004. Applying Qualitative Methods to Marketing and Management Research. London; Macmillan. 6. Belk, R. W., Ger, G., & Askegaard, S. 2003. The Fire of Desire: A Multisited Inquiry into Consumer Passion. Journal of Consumer Research, 30(3), 78-91. 7. Chisnall, P.M.2001. Marketing Research. London: McGraw-Hill. 8. Churchill, G. A. 2005. Marketing research: Methodological foundations (9th ed.). Mason: Thomson. 9. Clarke, D.B. 2003. Consumer Society and the Postmodern City. London: Routledge 10. Costa, J.A. and Barmossy, G. 1995. Marketing in a Multicultural World. London: Sage 11. Dayman, C.et al. 2002. Qualitative Research Methods in Public Relations and Marketing Communications. London: Routledge. 12. Gabriel, Y. and Lang, T. 1995. The Unmanageable Consumer: Contemporary Consumption and its Fragmentation. London: Sage 13. Slater, D. 1997. Consumer Culture and Modernity. Polity: Cambridge. Read More