Production of accessories for hair grooming and hair removal is an ever expanding market that is growing rapidly. Conversion ratio of consumers who prefer modern methods to traditional methods is high. Even though Gillette has a major share in the market, the plan is to expand further to capture the market where it is lacking i.e., low priced economy brand products.
Company
Gillette established in 1901 in the USA gradually expanded its business to other parts of the world and now it is established in almost all countries. Its expansion was facilitated through combination of business and regional operational units. Gillette entered Indonesia in 1972 through a joint venture. Though there has been a very good growth in the Indonesian market by 1995, there is a potential to expand it further in 1996 and beyond.
• In 1995 Gillette’s market share was 48%. In 1996 the market share is expected to be 50%.
• Gillette blade sales increased by 17% from 1994 to 1995
• In 1995 Gillette sold 115 million blades (100million double edged) and the total sales from shaving products were $19.6 million.
• Share of Gillette Indonesia high-margin disposables and systems was projected to increase in 1996 to around 20% of units
• In 1995 sales in five major urban centers Jakarta, Bandung, Surbaya, Semarang and Medan accounted for 60% of Gillette’s.
• Gillette launched women’s razor in 1995
Competition
Gillette faces 2 types of competition. Direct competition is from the already established low priced blades available from other companies and indirect from the traditional methods of shaving.
Gillette faced direct competition from local brands, Bic, and Schick. In the double edged blades Gillette faced competition from imported, low-end blades from Eastern Europe and China (Tatra, Super Nacet, and Tiger). In the disposables section Bic, USA and Bagus, a local brand, were its competitors. But since the sales volumes were low the market was not intense. In the higher end products Gillette faced competition from Schick. Gillette has 90% market share in the high end segment. The prices of Gillette’s products were sometimes four times the competitor prices. In addition Gillette faced indirect competition from substitutes like wet or dry knives.
Apart from the since Indonesia is a growing market there is possibility of other players entering the market in future.
In a competitive market with local brands, Gillette differentiates itself from the competition with better quality and reliability of their products. Also more than half the population surveyed about the shaving incidence, shave 4 times a month at the maximum.
There were ten major competitors in the industry in 1995. Private-label riding mower sales were on the rise. Total industry sales had 65-75 percent coming from private-labels. National retail merchandise chains contributed 24 percent of sales in the retail distribution of OPE.
The following three sections will evaluate the external forces & trends for Dick’s Sporting Goods. The following also will elaborate on external factors from direct competitors that faces Dick’s Sporting Goods. I will conclude on what other threats Dick’s Sporting Goods can expect to see, and how they can place a buffer in between these factors to stay on track towards their mission &
When hard-nosed Harold Geneen drove the growth of ITT during its heyday in the 1960s and '70s, he had a blunt management philosophy: "In business, words are words, explanations are explanations, promises are promises, but only performance is reality." In 2001, when Jim Kilts arrived at Gillette as the first outsider to run the Boston-based company in over 70 years, he found a business with great brands that were losing market share. The company's acquisitions of Duracell and Braun were not delivering, sales and earnings were flat, and the company had missed its earnings estimates for 15 straight quarters. The stock had plummeted, and Wall Street had lost patience. Yet, two-thirds of the top managers were receiving top ratings.
A price skimming strategy is recommended for Genicone for Brazilian market to minimize the payback time investment and to thwart other foreign players from entering the market. Market entry mode for Genicon should be licensing or joint venture rather than exporting. This is because licensing and joint venture provides much more control of the operations which is essential in healthcare equipment industry. A global product strategy should be adopted because international standards are similar for surgical instruments. Marketing strategy should be sales promotion for Genicon because this industry is characterized by push-factors of distribution channel, rather than pull-factors of demand. It is anticipated that Genicon will be able to capture a significant market share in a short period of time by following above mentioned strategies and tactics.
Large players can offer competitive prices if they buy in bulk. Smaller players can differentiate themselves by offering niche products and superior customer delight at a premium price.
Women and men have similar needs when it comes to hygiene, including items such as razors, deodorants, toothbrushes, etc. Recently, the removal of something called the Pink Tax has been gaining a tremendous amount of support in the last few years. The Pink Tax is an increased price on women’s hygienic items that seem incredibly similar to men’s hygienic items. The most compared item is a pack of razors that are essentially the same thing in the men’s and women’s section of the respective aisle. Throughout the history of marketing, men and women have been targeted through the use of certain colors and patterns, but drug stores seem to be putting that marketing to a new extreme and only increasing the price of women’s products. One woman
The traditional way of marketing this product was to have the sexy appeal and DSC took a different route and in a way, made fun of the razor market. DSC first put out a YouTube video that got over twenty million views getting their product known and seen my the mass media. This really got their business going as it was something different that people have never seen before. DSC made it more convenient for the customer as razors go dull quickly but are expensive to buy replaceable razors. Other razor companies are trying to add new features for their products to stand out when DSC is making it cheap and easy for customers to use their business
Overview NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics is growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible. The aim of this paper is to indicate the best country among the GCC to open a new NARS Cosmetic branch by studying every country’s feasibility of a new cosmetic branch. We hope this expansion can please our customers and make better reputation in GCC countries,besides increase our profit.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
...&D capability was not supported by their ability to efficiently produce and market the innovation. Since the R&D is separated from production and sales, it was not market-oriented enough. The limitation of sharing local market knowledge also leads Philips to its inability sell the excellent innovation that R&D has developed. Seeing this as opportunity, Japanese companies able to combine Philips invention with their mass-market production ability and successfully became the leader in the market.
The first step in doing international business, this involves manufacturing and/or purchasing of components in different regions of the world and then putting them together to make the final product. The benefit of producing a product in a different part of the world is it can be done at a lower cost. For example Indonesia boasts among the lowest costs in the world, a big domestic market, and proximity to the rest of Asia. As a result, some companies are not merely sticking around they are expanding. Coca-Cola plans to open a new bottling plant next year. All told, over the past three years, the government has approved $26.2 billion in new foreign investment. Officials say foreign investors, apart from petroleum and financial-services companies, employ 3.5 million Indonesians, or 3.5% of the workforce.
Degree of Rivalry - Very High to Intense – Multiple competitors, high strategic stakes, innovation often easily imitated, and low switching costs for consumers
After studying the cosmetic market we can identify a series of needs in this market:
Unilever has more than 400 brands, 14 of which create sales in additional of 1 billion pounds a year. Almost all those brands have time-honored, strong collective operations, which includes Lifebuoy’s drive to promote hygiene through hand washing with soap, and Dove’s crusade for existent beauty. (Unilever, 2014)
Competitors. Rosewood is competing with corporate branded properties and individually branded properties. Main competitors are: