As well with such drastic changes in our strategies and markets we will have Energizer and other competitors thrown way off and have them scrambling for answers.
Customers are also becoming increasingly price sensitive and depending less on the brand name and the features new batteries may obtain. They learned that families often live in huts without electricity and share a bathroom with other huts.
The other option would be, instead of providing this market with the new alkaline technology, to begin manufacturing their own line of wet cell batteries to compete in these markets against the current players. The Guard costs about one third of what it costs to make the Vector.
These improvements would be to stop their product cannibalization, create product uniformity and implement a low cost battery to compete in the discount market. A main source of competition and frustration for Duracell is the recent increase of new entrants into the market.
They do however possess some value through potential business synergies pairing their electronic devices with Duracell batteries. We will lay out all the timelines and specific changes we plan to implement from our alternatives in this next section of our review.
With that knowledge, the Gillette team started making a new razor for the Indian market. Our current campaigns should be completed within a year in which case our new advertising efforts and campaigns would be rolled out.
The company had This strategy involved continuous product and technological upgrades.
With postponing product updates to a more gradual pace Duracell could save a significant amount of money every year. Outside of the competitive environment potential opportunities in large developing economies like India have an untapped market with regard to the alkaline batteries.
Rayovac is relatively new in the industry and has gained a substantial amount of the market share. In using established distribution channels as well as advertising from other established Gillette businesses, the option of pairing products is somewhat valuable. Gillette has sold razors in India for over a decade.
Rayovac has quickly become a major player in the industry and since their initial offering they have had 16 straight quarters of revenue growth. Therefore along with slashing prices immediately we will also halt all product upgrades for the next 18 months.
Finally, the third alternative would be to divest from Duracell and sell it off to one of their competitors. The company declined to give specifics on each prototype for competitive reasons. The timelines give us enough to execute these changes to our liking and still stay very aggressive in the market.
Next, the company had to figure out how to produce the razor at the right price. We will leave the current technological capabilities in the Ultra line as is for the next 18 months. Gillette had stumbled once before with its early version of the Vector in One insight from filming shavers was that Indians grip the razors in many different ways, so the handle is textured to allow for easy gripping.
All the MIT students had running water. But when Gillette launched the razor in India, the reaction was different. Gillette sells the Guard for 15 rupees, or 34 cents, and each razor blade is 5 rupees, or 12 cents. It allows them to remain competitive to a certain extent, as they will continue to improve their current technologies and release new products.
Currently they are continuously bringing up new technologies and constant product improvements, creating somewhat of a technology war between the three companies.
So men shave sitting on their floors with a bowl of water, often without a mirror, in the dark morning hours. The technology in the batteries is already around in the North American markets, Duracell would only be bringing it into untapped markets, and thus it is not inimitable.
In addition to this, the company will have to be sold at a loss, which after just being acquired relatively recently. Secondly we really fell that there is huge potential in the overseas market with alkaline batteries. This niche is becoming saturated with discount store brand batteries, which have been gaining market share steadily in recent years.
This would provide Duracell with two options.
And Indian men strain to not cut themselves.Upon the acquisition of Duracell, Gillette eliminated 4, jobs, closed 14 plants and also replaced Duracell’s advertising agency with that of Gillette.
These changes resulted in savings of $ million and decreases in their operations margins from 30% into 16% in Essay about Gillette in India - Since the case has been printed, Gillette has continued to evolve their product line up.
No longer is Gillette just about razors. The company has tools for all-in-one grooming, shaving creams, deodorants, body wash, and other toiletries (Gillette, ). View Essay - Gillette case study analysis from MGMT at University Of Georgia.
Gillette In order for Gillette Guard to become such a big success in India, the R&D team had lots of things to.
In India Gillette operates through Gillette India Ltd, a company jointly promoted by Gillette Company, US and the House of Poddar Enterprise.
Gillette's Global & Indian Strategy. Gillette follows an overall strategy of having two brands in any country that it operates in.5/5(2). Compare between Gillette in Egypt and Gillette in Indonesia. From all aspects and suggest the best mode of entry for Gillette in Yemen.
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It grew from Rs billion in to Rs billion inaccounting for nearly 3% of the GDP.Download