The Intel  (R) Pentium (R) IIIProcessor

Search
The Indian Express

The Financial Express

Latest News

Screen

Express Computer
Feedback
Expresswheels

Travel

Matrimonials

Careers

Lifestyle

Astrology

E-Cards

Columnists

Graffiti

Crossword

Letters

Environment

Jewellery
Info-tech

Power

Steel

Global Tenders

Filmtvindia

In association with Amazon.com

Books Music

Enter keywords


FINANCIAL EXPRESS FRONT PAGE

Corporate

Economy

Expressions

Markets

Leisure

 

Thursday, May 27, 1999

Gillette sharpens three-edged blade 

Mukta Magazine  
New Delhi, May 26: The Rs 200-crore Indian Shaving Products Ltd (ISPL), a 51 per cent subsidiary of Gillette Company USA, is trying to lather up the market with a concerted drive to take its Gillette brand deeper and wider and certainly much beyond the top one per cent consumer, where it enjoys the inherent advantage of being a recognised name. Says Prakash Nedungadi, vice president, marketing, ISPL: ``We are looking at broadening our market with a larger range of products, deepening reach by targeting more segments and tapping new channels.''

Positioning the brand as `the best a man can get,' the company is trying to get across the concept of value, encouraging people to try, experience, and (hopefully) make repeat purchases. To do this it has launched a range of new initiatives:

  • Singles: In May, ISPL introduced single packs of twin-track systems, as an easy access pack, to reach a larger audience. This was done after consumer studies revealed that consumers usually used one cartridge a month. Theearlier packs had five cartridges.

  • Sampling exercise: In March-April 1999, it offered a 50 per cent discount on SensorExcel razors.

  • Cross sampling: It pushed its new shaving gel with a 50 per cent discount on each pack, to its current consumers.

    Says Nedungadi: ``For the cross-sampling offer, we were inundated with calls for more stocks than we could provide.'' To woo a wider range of customers from smaller towns, it is also restructuring its product mix and planning special promos for its flagship brand SensorExcel, besides its shaving preparations. These include introducing: smaller packs of foams and gels; and lower cash range options.

    With twin-track shaving systems growing at just five per cent over the last few years, targeting the traditional double-edge blade users to switch to its Readyshavers brand is a task in hand. Globally the price gap between the two segments is 2.5 times, while in India it works out to over nine times, making the transition that much moredifficult.

    However, the company claims there has been a positive change in perception. Says Nedungadi, ``In the last six months, we have seen an uptrend, a better market sentiment for our range of Readyshavers and Gillette Series line of products, with even smaller retailers in smaller towns willing to stock our products as consumer buying is picking up. There is definitely a better buoyancy in the market than last year.''

    The three-track blade ISPL has followed a three-track strategy in introducing its Gillette portfolio in India: its flagship brand SensorExcel, was introduced in 1996; shaving preparations, like foams, gels, after shave, splashes, debuted in September 1998; and the Series range of personal care products and the Women's Satin Care line of Readyshavers and shaving preps were launched in January-February 1999.

    Another area of concern is how to reach out to a larger section in smaller towns and give them products they aspire for -- in other words the issue of creating distribution push andadvertising pull. That there is a market in these towns is clear: Gillette has already tasted success in places like Hyderabad and Gujarat, where small outlets have also begun to stock its shaving preparations like the shaving gel (priced at Rs 185 for 200 ml) and foam (Rs 155 for 250 ml).

    ``Even some interior towns in Gujarat, thanks to the growth in industry in these areas, are seeing a mushrooming demand for our products,'' says Nedungadi. A better distribution, a changing countryside profile with a greater urban style of living, and the influence of metro culture is helping it find a potential market.

    The company has also set in place a strong distribution network extending deep into smaller cities. It has 1,800 stockists and 350,000 outlets nationally. In a bid to widen its reach, Gillette is also concentrating on in-store activity, better display and mechandising, besides tapping new avenues of advertising.

    It has recently begun to advertise on Rediff-on-the-Net, where people can either buyproducts at a 10 per cent discount (including delivery costs) or buy/gift items on a credit card, with delivery guaranteed within 72 hours.``With this, we are targeting a large audience in the 20-35 age group, which is our target audience. With over 750,000 users of the Rediff site, it makes sense to reach out through this segment,'' says the company.

    Already, ISPL has seen its domestic sales increase marginally to Rs 30.91 crore in the first quarter (Jan-March '99) as compared to Rs 30.71 crore in the corresponding period last year.

    Gillette claims approximately 30 per cent of the Rs 450-crore Indian razors/blades in marketshare.

    Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


    Top


  •  

    Click here for a printer-friendly page Printer-friendly page

    One of India's Leading Banks



    EXPRESSindia.com
    News   Business    Sports   Entertainment
    The Indian Express | The Financial Express | Latest News | Screen | Express Computers
    Travel | MatrimonialsCareersLifestyle | Astrology
    E-Cards | Graffiti | Environment | Jewellery | Info-tech | Power