Transcript New belgium brewery case

TAMEKA BROWN
ADELARIN YEMI-SOFUMADE
FION LAU
ERIC PALMER
ANDREW HALLORAN
TIM POE
MKTG 8030:
Team 2
COMPANY OVERVIEW
• King Camp Gillette was inspired by a fellow inventor with the paradigm
“the most successful invention is one that can be purchased over and
over again by satisfied customers.”
• The Gillette safety razor company was established in 1901 with the
successful production of a mass produced safety razor and blade.
• Maintained marked dominance until 1962 when Wilkinson Sword
introduced their stainless steel razor blade.
• Today, Gillette still maintains a dominant market share in the U.S. and
across the globe under ownership of Proctor & Gamble.
~MOST RECENT OFFER IS THE 5 BLADED GILLETTE FUSION
SITUATION ANALYSIS
• Gillette enjoyed years of success pioneering the disposable razor
and introduced new razors with added technology.
• Gillette Mach 3
• Gillette Fusion
• Innovation in razors and blades is stymied by a lack of new
technology and increasing customer reluctance to pay for the
latest and greatest in shaving technology.
• Gillette brand is well known.
• Historically, the branding and advertising campaign has been
male centered and very successful at integrating marketing
campaigns into sports, entertainment and traditional media.
PROBLEM STATEMENT
How can Gillette maintain competitive
advantage in a mature market
without creating trivial innovation?
ASSUMPTIONS
•
Gillette cannot lower prices
•
Still in recession (2009)
SWOT ANALYSIS
Strengths
•
Innovation
•
Dominant market share
•
Strong branding and successful
marketing strategy
•
Proctor and Gamble’s resources
•
Complimentary products
•
Weaknesses
•
New products without substantial
technological improvements
•
Primary product is in the maturity
stage of its product life cycle
•
High price points
•
Narrow segment focus
Rise in market demand for personal
•
Schick Company
care products
•
Critics and Consumer Reports
•
Emerging Global Market
•
Depressed economy
•
Female market segment
•
Competition’s price strategy
•
Underserved minor market
•
Consumer safety groups and
segments
Opportunities
regulations
Threats
PORTER’S 5 FORCES
IN THE
PERSONAL GROOMING MARKET
High barriers
for potential
competitors to
enter the
market on a
large scale
Gillette is a
large supplier
with influence
on retailers for
price and
placement
Rivalry
Intense Rivalry in
Personal Grooming
Large buyers have bargaining
power in this space:
Wal-mart, Target, etc
Customers have other cost
effective substitutes. Easy
to switch to competitors.
MARKETING ALTERNATIVES CONSIDERED
Marketing Alternatives
Razor Innovation – “Lazer Razor”
Subscription Service - “Personal care clubs”
Market to new target segments
Partnerships with the travel industry
Continued expansion of personal grooming products
DECISION CRITERIA
Evaluation Criteria
Weight Description
Increase US market
share
30%
Primary source of revenue
Increase global
expansion
30%
Greatest opportunity for growth
Increase brand equity
20%
Leverages our brand name to increase
competitive advantage
Low investment cost
10%
Cost is a secondary factor
Low competitive threat
10%
High entrance barrier for new competitors
to replicate and hard to duplicate by our
main competitor
DECISION ANALYSIS MATRIX
Marketing Alternatives
Criteria
Razor
Innovation
Subscription
Service
Market to
new target
segments
Partnerships
with travel
industry
Continued
expansion of
personal
grooming
products
Weight
Increase US
market share
30%
4
3
5
2
4
Increase Global
expansion
30%
3
1
4
2
3
Increase Brand
equity
20%
4
3
5
4
4
Low investment
cost
10%
1
2
2
3
2
Low competitive
threat
10%
5
1
1
1
1
3.5
2.1
4.0
2.4
3.2
Total Score
Rating Scale: 5 = highest impact; 3 = moderate impact, 1 = least impact
RECOMMENDATIONS
Primary Recommendation: Market to new target segments
Steps:
1) Initiate a study to determine most profitable market segment.
2) Assemble a cross functional marketing team (Customer
Marketing, Marketing Communications, Ad Agency) to
define the strategy to reach the target audience
3) Implement the strategy and measure the results.
This recommendation broadens the customer base to be a more
inclusive brand.
• Revise slogan from “Gillette, the best a man can get” to “Gillette,
the best anyone can get”
RECOMMENDATIONS
Secondary Recommendation: Research and Development of “Lazer
Razor”. Innovation is inherent to Gillette and will help maintain long
term competitive advantage.
QUESTIONS?