Gillette Brand Strategy Analysis

MG602: Brand Strategy CW1: Context analysis Dec 5th 2011 Simon Lubin 20804980

The Best A Brand Can Get?

Brand Strategy Context Analysis

Contents Page What the report will be discussing

Introduction:

1 2-6

The Brand Identity: -

Brand Vision, Purpose, Values Brand Essence Brand Resources (Architecture) Brand Integration/BrandSphere

Brand Evaluation:

7-8

- Assessing alignment - Conclusion - Recommendations References:

20804980

9

Appendixes:

10 -

- Figure 3.7: The Process of Building and Sustaining brands - Ashridge Business Model - Ansoffs matrix - Shell Directional Policy Matrix - Consumers Buying Processes - Organizational Structure - Brand Architecture - SWOT - Competitors Analysis - KSF - Ad Strategy - Brands Communicators - Web Page Screenshots - P&G Email

Brand Strategy Context Analysis

Introduction What is a brand?

Emotional Value

1

Functional Value

Unique Personality Figure 9.8: Values Driven Relationships. Source De Chernatony (2010) pg 323

‘Brands are valuable assets’, De Chernatony (2010) pg 3, this is why in this era of relationship marketing, brands today are increasingly becoming less about what we buy, and more about the emotional attachments to what they represent to the consumer, ‘if you can establish an emotional connection, it is harder for the consumer to switch brands’, Warc (2011).

It is an obvious conception that ‘there is nothing stronger than a brand that people ask for by name’, Edge & Milligan (2009) pg 4, this is where most brands want to be, at the forefront of their consumers minds, especially now, with the ever accumulating amount of choice given to the consumer, ‘customers are now spoilt for choice with an overall increase in competition’, Lenderman (2009) pg 112. So the creation of a good brand image endorses a positive relationship between the company and the consumer they are trying to attract, ‘they make it easy for people to find you, recommend you, be loyal to you’, Edge & Milligan (2009).

A brand can is seen as ‘Clusters of functional and emotional values that enable promises to be made about unique and welcomed experiences’, De Chernatony (2010), this is also regarded as the most important intangible asset, as it coincides with not just the functional aspect but the emotional value as shown in figure 9.8 above. Branding has always been associated traditionally with work that has been implemented by the organisations marketing department. The advertisements, packaging, logo, colours and tag line essentially made up the branding strategy. But now, in the era of ‘the ever developing consumer’, Lenderman (2009) brands have now got to try harder to attract and maintain public demand. Which begs the question, does the whole idea of a brand, incorporate more than just an external view placed in front of the public? Or is it also internal? And what implications might this new way of branding effect the current brands in this ever developing world, where the sending and retrieval of news and information is easily accessible to the public, placing brands in constant speculation, ‘increase in technology, such as social media has given an audience to normal people’, Mintel (2011).

This report will critically evaluate using aspects of ‘figure 5.0: The Process of Building and Sustaining Brands’, De Chernatony (2010) pg 158, to aid in establishing the elements and purpose behind the key concepts of branding in a live context, reviewing the brand ‘Gillette’. It will scrutinise the effectiveness of the brand strategy in the achievement of the company’s overall business objectives whilst addressing the integrated marketing communications used by the brand. This report will succinctly highlight issues and challenges associated with this particular company’s brand strategy. By doing so, will establish the purpose of branding and it’s importance in the world that consumers live in today.

20804980

Brand Strategy Context Analysis

The Brand Identity Vision, Purpose & Values Because of the complexity of consumer markets, brands have moved from:

Product

2

Image

Brand Source: Edge & Milligan (2009) pg 15

To:

Essence

Expression

Experience

Brand

Source: Edge & Milligan (2009) pg 16

By doing so, there underlines an obvious acceptance by brands that branding is more than just to do with tangible assets, instead the overall consumer consumption and how well you represent yourself. This is why ‘there needs to be focus on the values of a brand’, De Chernatony (2010). How they act and the whole customer experience is put into consideration. In order to do this there must be a look into the brands identity.

Having brand identity is essential in a world where we are all inquisitive consumers. It is ‘the combination of tangible communication assets normally protected by the owner’, Edge & Milligan (2009). P&G is a House Of Brands and Gillette is a Individual product brand under the corporate brand, inclusive of the sub brands in the beauty and grooming sector. P&G act in the role of a parent brand which, ‘supports allied products/services by sharing its brand identity’, De Chernatony (2010). Because of this there is an enforced assumption of an overall corporate association inflicted on the brand identity. P&G cleverly aligns their core values, ‘leadership, ownership, integrity and trust’, P&G (2011) to these sub brands in order to demonstrate a continuous standard in the cooperate brands architecture. Clearly shown in Gillette's core values, as shown in the Ashridge Model (appendix figure 2), ‘achievement, integrity and collaboration’, Gillette (2011) this reinforces the main purpose of the corporate brand. They do this but still do not consist of an dominating ‘sign of ownership’, De Chernatony pg 332.

Despite this alignment of following the same business model to shows competence, in the eyes of the consumer, there needs to be more focus and attention on Gillette as an individual brand to enhance their own brand identity, this in turn ‘indentifies subtle difference in consumers needs and how to meet theses different segments’, De Chernatony (2010) pg 332.

Assessing corporate values to the brands values: Leadership – this value is aligned as P&G is the leader in the market for FMCG products P&G (2011) and Gillette is the leader in men's grooming market, Mintel (2009), Mintel (2011)

Ownership – P&G (2011) does state that they act as owners to the brand and are accountable for anything to do with the brandsphere. Online and offline.

Integrity – Honesty is a big core value inherited in P&G and since P&G directly handle any complaints made on the Gillette web page or by consumer letter etc, there is a conception that the business is very open.

Trust – an open company is usually perceived as one that a customer can trust ‘we realise that we need our consumers to believe in not only us but our individual products’, P&G (2011), this is portrayed through the consistency of spread corporate in the other sub-brands also.

20804980

Brand Strategy

The Brand Identity

Context Analysis

Vision, Purpose & Values This is the Gillette Mission Statement

3

“Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. We are committed to building shareholder value through sustained profitable growth“ Notice the repeat of the word ‘personal’, this gives a clear and concise method to include the consumer in their mission, which does make the brand themselves seem also more personal, using the emotive attraction to endorse the brand, which makes sense as ‘this is the era of relationship marketing’, Neumeier (2010).

The only criticism is that the statement also includes the corporate goal ‘sustain profitable growth’ and looks towards extension of shareholders needs. The needs of the shareholders will not be the same as the needs of the consumer and by trying to address all of the stakeholders does show conflict of interest. There needs to be a clear and obvious orientation of the brand either customer orientated or profit orientated to ensure the brands identity and openness to the consumer.

Using figure 1.1 , listed below are the values of the Gillette brand taken from Gillette (2011).

To ensure that the products we sell match our consumers needs, in order for repeat purchase.

Trust, and comfort with the brand and the knowledge of good repeated performance.

To be the cutting edge in technology when it comes to shaving products.

The consumer should feel that there is nothing better than what the product offers them in a functional purpose.

The promise is true which shows clear alignment with the consumers buying process as shown in appendix figure 5. Gillette is a product that has limited problem solving when it comes the purchasing decision. This a brand in the razor market, which is ideal with repeat purchase products (disposable razors), justifying the reason why they are market leaders, it seems in this segment they match their users basic needs ‘convenience’, as demonstrated in figure 9 in the Appendix which then links to the functional value.

The emotional values, if we look at the integrated marketing communications strategy of incorporating celebrities to endorse the brand, does seem to be matching. By using celebrities, summons familiarity with trust success and being sport stars (men's) leads people to associate ‘good repeated performance’ of the celebrities with the brand. The element of trust is also established through the brands already established brand name and history of services. The recent use of Jenifer Lopez does seem like an extension of this strategy into the female market as though adapting a socialisation brand aspect to a generic sustenance brand, playing on the emotion aspect of aspiration values.

When it comes to functionality, the product delivers on the consumers expectation which matches the brand promise. All in all showing a good management of incorporating these aspects of the brand in delivering the brand values, showing consistency. But function is not the only driver in this sector. (See competitive analysis)

20804980

Brand Strategy Context Analysis

The Brand Identity Vision, Purpose & Values

4

‘If a brand is to survive, it is helpful for the team to have a stretching vision about the future environment they will like to bring about’, De Chernatony (2010) pg 124. this is why the brand has to build on an envisioned future to establish where they are going and what their purpose will be. The model, figure 4.1: the three components of a brands vision below taken from De Chernatony (2011). Neumeier, M (2010) also declares that ‘the purpose of a brand is not what the company dictates but but what the consumer takes in’, so it is vital that it is clear what the main purpose is for continuation of the brands activities.

‘Gillette is just one of the good examples of a brand that is perfectly aligned and consists of a good structure which relates back to the corporate brand’, Strategy+Business (2008). But figure 4.1 looks away from corporate and relies just on the individual brand. Looking at this brand there does seem to be a loss of purpose.

Future Environment

The future for shavers according to Mintel (2011) is heading towards the electrical market. Gillette already have a share in this as they own Braun, so there needs to be more emphasis on product development in this sector. The brand name is not apparent and the Braun brand is not directly associated with the Gillette brand.

This may confuse the consumer. Once again highlighting the problem when it comes to enforcing this brands identity, because of its own separate brand portfolio.

Brands Vision

These are shown in their use of IMC. There drive for leadership and is made obvious to the consumer through past usage of celebrity personality and the more recent consumer focused ads, in both the female and male sector, showing alignment.

20804980

Values

Purpose

The brand vision as depicted on their website and in the email in the appendix is: ‘total Brand Value by innovating to deliver consumer value and leadership faster, better and more completely than our competition. Through Organizational Excellence and Core Values.’, Gillette (2011). This shows clear focus on the consumer and the functional purpose of the products, aligning with corporate values, focusing on the basic consumer needs but once again disregarding the emotive purpose. Saying that, they have been becoming more social responsible.

Warc (2010)

The purpose here remains functional and this may be a problem for the brand as the market gets more saturated with more new entrants and substitutes all taking away market share. If Gillette was to go tomorrow, there are plenty brands that can take their place. So here there is not much emphasis on differentiation in emotional values which could extend the purpose of the brand.

Brand Strategy

The Brand Identity

Context Analysis

Brand Resources (Architecture) Quote brand architecture The brands architecture is included in the individual brand essence as it labels the entire portfolio to showcase the span of control and relevance to focus of separate attention to those that are not aligned with an overall purpose.

5

With reference to Appendix figure 7, there is clear account that there is now more attention placed on the female part of the market, this makes sense as this is where there is less market share and more competition.

The amount of products excels the men's even though the brand Gillette itself is supposedly male orientated Mintel (2011). If we look at Figure 7 in the appendix we can see that there is ‘brand consolidation’, Edge & Milligan (2009) with the merge of two sub brands Venus and Olay benefits of this under the same parent brand maintains control and reinforces brand values within the brands product portfolio.

They have a completely different website for the female product Venus, this deliberate attempt of customer segmentation enables Gillette to incorporate a different approach to a different consumer, catering to the different gender needs. Much more focus on the female website when it comes to colours and interactivity in the format and structure of the website (see appendix figure 13) “2. Why do you have products that compete with one another?

Our intention is to market products which provide genuine consumer satisfaction. However, not all consumers have the same preferences, and because of this, different brands have been developed with different performance characteristics. In this way, our brands are expected to stand on their own feet and compete against other P&G brands as well as those made by other companies.” P&G (2011) Current strategy is to ensure that there is attention to the development of existing brands and products, this is one of P&G’s values once again showing alignment to the corporate brand. The parent brand does this by incorporate openly through the Gillette brand showcasing good points and bad points of their own products in a comparative fashion shown in their online presence and ad strategy. There is competition to showcase the relevance of consumers moving from one of their own products to a better product in the same range (Mach 3 to Fusion). This perpetually disregards the brands competition by placing the brand in competition with itself. Even as a substitute the sub brand of Gillette ‘Braun’ electric shavers is placed in competition with their razor segment. Urging consumers to subsidise own products with another more expensive substitute which does play into the objectives of ‘staying market leader’, P&G (2011). Edge & Milligan (2009) labels this behaviour as ‘brand reinforcement forming brand retention’, more associated with the mobile phone market used to retain customers and build on brand loyalty by offering to an extent an ‘upgrade’. Razors currently have wider economies of scale, giving back a better return on expenditure, but recent trends on Mintel (2009) show an increase of users heading towards the electric market, so maybe Gillette need to focus on developing the brand identity towards Braun more it so it can adapt to the changes in the market in the near future.

They have a really strong product portfolio, who are leaders in their own market segments such as Duracell batteries. Once again the ‘leadership’ core value is pushed through to even the sub brands of Gillette, increasing the strength of the brand, with clear association of headship.

20804980

Brand Strategy

The Brand Identity

Context Analysis

Brand Integration/ Brand Essence (IMC)

6

‘Gillette have sponsored international rugby league since 2003, and are now the game’s longest serving partner’, gillette4nations.co.uk (2011). The Gillette sponsorship is a clever addition to their brandsphere. The objective behind it is clear and precise to reach and targets a substantial amount of their main target audience; males. They also sponsor the England team, so this further demonstrates clear alignment with the products functional value and connects to the consumer through the emotional values incorporated in the sport. The connotations taken from the sport of rugby can then be adapted by the brand in the mind of the consumer, ‘If a brand is associated with a certain sport, the perception and success of the sport will be reflected on the brand’, Lenderman (2009) . The sport aspect is also shown in their TV ads through the use of sport personalities.

The marketing agency Haygard have recently won brand experience agency of the year at the Grocer Awards 2011 through their work on Gillette's biggest ever product sampling campaign. This campaign was to connect with the consumer and encourage them to use the products (Venus & fusion) more frequently. This makes Gillette appear more connected to their consumers whilst still aiming to achieve their corporate goal of making a profit by encouraging customers to use products more frequently – leads to the increase in demand of the shaver which leads to increase in sale.

Since P&G acquired the brand in 2005 BBC News (2005) the brand has become part of its structure under a branded house. By using the branded house strategy, the firms ability to target specific groups is constrained, so there is a lot of compromises not only of resources but also of specific clarification of the brands identity. The loss of jobs ‘6000’ in total, BBC News (2005) meant that the corporate culture and structure was harshly implemented and could have had a negative impact on the brand, but records show that they haven't as Gillette has sustained market leadership. The corporate brand seems to have made it even stronger when it comes to resources and are interlinked as they already harboured the same sort of culture (leadership and focus on consumer needs). A significant amount of profits and sales can get affected, if the mother brand falters, but this is extremely unlikely to happen, because of P&G’s brand name and brand portfolio.

Since the takeover we can see a shift more towards the consumer in their recent TV adverts, there have moved from depicting sport celebrities to endorse their products, to showing normal men doing sports using the product. they've changed the strategy but maintained the sport aspect associated with the brand. By using customers, promotes a more emotional aspect ‘customers are more likely to be regarded as active co- producers of the brand to empower added value to deliver genuine rather than controlled brand experience’ De Chernatony (2010) through their IMC strategy.

When it comes to brand essence, everything that the brand does is in constant speculation, to have alignment of goals, values and objectives have to be clear and shown through the integrated marketing communications ‘this is how the brand communicates with the consumer’, De Chernatony (2010). The communications are interlinked online and offline which shows consistency, a complete integration of what the brand wants to be represented as, which then shapes the way the brand is portrayed (fun, quick, sporty male orientated) . This is harder to establish on their female side which used to be more emotive and dependent on consumer representation but is now focused on celebrity endorsement (Jennifer Lopez) this difference in strategy could be because of the different needs in the gender segments.

20804980

Brand Strategy Context Analysis

Brand Evaluation Evaluating the Brand Product

7

Brand Personality

Relationship

Figure 9.8: Values Driven Relationship. Source De Chernatony (2010) pg 322

The Values Driven Relationships figure in De Chernatony (2010) interlinks with what brands have now become, discussed earlier in Edge and Milligan (2009) pg 6 – the essence, expression and consumer experience add to the brands personality which then helps to form a relationship. This is the model that Gillette need to adapt in accordance to their market strategy. In a market which is hard to establish differentiation, it is essential that the added value of purchase for the consumer is stressed when compiled with the brands communicators (appendix figure 10) this can be shown in their IMC strategy to embed their core values in this integration to reach a more competitive strategic position.

P&G’s approach for driving brand growth by facilitating IMC strategy and planning has made sure that they have complete control. P&G seems to make all the decisions and collaborate these decisions based upon the corporations best interest and the resultant alignment of economic interests.

There is clear alignment from the corporate brand to all the sub brands underneath the brand architecture which appears to be good at first glance. It seems as though the brand had been reshaped (since bought in 2005) to endorse the corporate goals and objectives, devouring the brands own individuality. So having alignment is great when it comes to showing consistency in achieving the overall goals of the corporate brand, but this does mean that there is a clear disconnect to consumers when assessing the Gillette brands own values and purpose.

Being market leaders leaves opportunity for shares to be lost as new entrants (King of Shaves), BIC & Wilkinson's Swords) and threat of substitutes (electric shavers – Phillips and Babyliss) and substitutes such as hair removal creams which give a much better and quicker alternative to the traditional method of shaving.

The increase of new entrants and developed rise in technology with shaving products could affect their envisioned future , and puts more scrutiny on their purpose and functional value if they choose to rely on the position that they are currently in. It is easy to become lazy and comfortable when you are a leader and despite having a strong brand name, the emergence of better alternatives in substitutes (electric shavers and hair removal creams (see appendix 9) can also deter customers from the brand. As consumers grow and technology grows so to must the brand grow and develop with the consumers needs, ‘this is the basis of relationship marketing,’ Lenderman (2009) .

In accordance to further endorsing their brand identity, there needs to be more focus away from the corporate dominating view, it makes the brand seem as though more profit based. Also known as an ‘Image culture gap’, De Chernatony (2010) pg 88. This is restrictive and could constrain the attempt to maintain market leaders as shown in the Shell Model (Appendix 4). They must avoid Marketing myopia – the focus on products rather than the customer as a company solely run on a profit basis, focusing just on product development (which has been their strategy for a very long time now) and a company that has this narrow focus just on an extension of the product ‘..must die for it no longer has a reason for existence’, Collins & Porras (1995) quoted in De Chernatony (2010). It no longer has purpose but to make money for the corporate brand.

20804980

Brand Strategy

Brand Evaluation

Context Analysis

Evaluating the Brand

8

The brand cannot rely on brand communicators even though they partake in aggressive advertising strategy in line with their ‘Leadership’ value, ‘we triple our ad expenditure to that of our competitors’, Gillette (2011) (shown in the swot analysis and ad expenditure). Since there isn't any clear differentiation in this market and where the product is sold is out of their control so there needs to be more emphasis on what the product can offer on an emotive basis by doing so, ‘this brand will always be asked for by name no matter where it is sold or the tangible aspects’, Neumeier (2010) . Key factors that impede or enhance the brands performance is shown in the SWOT and competitor analysis, and these factors must encourage P&G to change strategies as the years progress and the market adapts to ensure that they are keeping in line with their consumers needs, especially since there has been obvious change in strategy in how the brands tries to integrate in society (sponsorship) (social responsibility).

Once again alignment is good within the architecture, especially when it comes to strategy and ensuring there isn't a chance for misrepresentation of the corporate identity. All is aligned, but this extreme focus on alignment does disconnect with the presentation of the individual brand to the consumer, it lacks emphasis on it’s separate identity, which then fails to present that emotional connection and this is what is essential in a market that lacks obvious differentiation. ‘Added value to the consumer is what will help nurture the brands future’, Brand Republic (2011) To finish, with reference to values driving relationships - The product is good but harbours no differentiation so there needs to be less attention on product development and more on building the brands personality (identity) through the brand communicators to help them connect with their consumers and create brand preference. By doing so will establish a beneficial relationship implemented through their core values, which in turn will increase brand equity, ‘positive feelings or associations with a brand’, Edge and Milligan (2009) pg 186.The role of a brand today is to be seen as more than just a product.

20804980

Brand Strategy

References

Context Analysis

Referenced Within Text

9

BBC News (2005) P&G to acquire Gillette for $57bn [Online] Available: http://news.bbc.co.uk/1/hi/business/4214485.stm Last Accesses 18th November 2011 Brand Republic (2011) Andrew Walmsley on Digital: The future of brainpower [Online] Available: http://www.brandrepublic.com/opinion/1106426/andrew-walmsley-digital-future-brainpower/ Last Accessed: 30th November 2011.

Brassington, F. Pettitt, S. (2007) Essentials Of Marketing. 2ED. Essex: Pearsons Education LTD De Chernatony, L. (2010) From Brand Vision To Brand Evaluation: The Strategic Process of Growing and Strengthening Brands. London: Elsevier Ltd Edge, J. Milligan, A. (2009) Don’t F**k/Mess with the Logo: The Straight-Talkers Bible Of Branding. Harlow: Pearsons Education LTD. Gillette (2011) [Online] Available: http://www.gillette.com/ Last Accessed 26th November 2011 Haygarth (2011) Marketing Agency [Online] Available: http://www.haygarth.co.uk/ Last Accessed 14th November 2011 Lenderman, M. (2009) Brand New World: How Paupers, Pirates, and Oligarchs are Reshaping Business. Canada: HarperCollins.

Millard Brown (2011) Top 100 Most Valuable Brands [Online] Available: http://www.millwardbrown.com/libraries/optimor_brandz_files/2011_brandz_top100_chart.sflb.ashx Last Accessed 9th November 2011 Mintel (2011) Men's Grooming and Shaving Products UK [Online] Available: http://oxygen.mintel.com/sinatra/oxygen/search_results/show&&type=RCItem&sort=relevant&access=inaccessible&arc hive=hide&source=non_snapshot&list=search_results/display/id=545542 Last Accessed 15th November 2011 Mintel (2009) Shaving Products and Depilatories UK [Online] Available: http://oxygen.mintel.com/sinatra/oxygen/search_results/show&&type=RCItem&sort=relevant&access=inaccessible&arc hive=hide&source=non_snapshot&list=search_results/display/id=394671 Last Accessed 18th November 2011 Neumeier, M (2010) @Issue Online Journal, Brand Strategy: Good, Bad and Indifferent [Online] Available: http://www.atissuejournal.com/2010/01/23/brand-strategy-good-bad-and-indifferent-2/ Accessed: 28TH November 2011 P&G (2011) Corporate website [Online] Available: http://www.pg.com/ Last Accessed 8th December 2011 Strategy+Business (2008) P&G’s Innovation Culture *Online+ Available: http://www.strategybusiness.com/article/08304?pg=all Last Accessed 29th November 2011 Warc (2011) EIRIS Research Company: Gillette leads eco charts [Online] Available: http://www.warc.com/Content/News/N27989_Gillette_leads_eco_charts.content?CID=N27989&ID=a3809f29-5b134d85-b5fa-6c78ebab6a1e&q=gillette&qr Last Accessed 18th November 2011

20804980

Brand Strategy

Bibliography

Context Analysis

A Little Extra Insight.

10

4A's (2009) P&G's New Agency Compensation/Brand Agency Leader Model [Online] Available: http://www.aaaa.org/events/webinars/finance/Pages/procter-bal.aspx Last Accessed 3rd December 2011 Chevalier, M. Mazzalovo, G (2008) Luxury Brand Management: A World of Privilege. London: Pearsons Ind, N (2006) Beyond Branding: How the New Values of Transparency and Integrity Are Changing the World of Brands. London: Kogan Page Publishers Slideshare (2010) Good Brand Report [Online] Available:http://www.slideshare.net/PSFK/good-brandsreport-2010 Last Accessed 30th Novemeber 2011 Wheeler, A (2009) Designing Brand Identity: An Essential Guide for the Whole Branding Team. 3ED. London: Wiley

20804980

Brand Strategy Context Analysis

Appendix Referenced Within Text

11

Figure 1: The Process of building and sustaining brands.

De Chernatony (2010) pg100

Brand Vision

Organisational Culture

Brand Objectives

Audit Brandsphere

Brand Essence

Internal Implementation

Brand Resourcing

20804980

Brand Evaluation

Brand Strategy Context Analysis

Appendix Referenced Within Text Figure 2: Ashridge Business Model. (Adapted in accordance to brand) Source for information: Gillette.com (2011) and PG.com (2011)

12

Purpose

Strategy

(Shareholders orientated)

Maintain leadership, generate more consumers in more parts of the world by innovating to improve existing products and creating or entering adjacent categories.

(Customer orientated)

We will provide superior quality and value that improves the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.

‘Act in a professional environment and deliver outstanding results to satisfy consumer needs. Excell in the performance’.

Standards + Behaviour

(Staff Orientated)

‘Reflect the behaviours that shape the tone of how we work with each other and with our partners’. Achievement, Leadership, Trust, Integrity, collaboration.

(Staff orientated)

Figure 3: Ansoffs Matrix Current Products

20804980

Current Market

Market Penetration

New Market

Market Development

Values

New Products

Product Development

Diversification

Brand Strategy Context Analysis

Appendix Referenced Within Text

Figure 4: Shell Matrix

13 Figure 12.6 Shell Directional Policy Matrix .Source: Brassingtons & Pettitt (2007) pg 431

Perceived Brand Differentiation

Figure 5: A Typography of Consumers’ Buying Processes. Source De Chernatony (2010) pg 230

Major

Minor

Tendency to limited Problem Solving

Extended Problem Solving

Limited Problem Solving

Dissonance Reduction

Low

High

Consumer Involvement

20804980

Brand Strategy Context Analysis

Appendix Referenced Within Text

Figure 6:Organizational Structure

14 P&G’s structure has removed many of the traditional overlaps and inefficiencies that exist in many large companies. By doing so there is attention to detail in reiterating the core values in different segments of each market and countries the products are sold in. This way of communication makes it easier for the corporate goals to be re-established throughout each brand in order to reach overall objectives – maximise profitability.

Through segmentation P&G can see where improvements needs to be made and can allocate attention on particular products or areas that need more work on in order to ensure consistent quality and leadership – plays to their values.

Organisation Structure can be found on: http://www.pg.com/en_US/company/global_structure_operations/governance/index.shtml

20804980

Brand Strategy

Appendix Referenced Within Text

Figure 7: Brand Architecture

15

20804980

Context Analysis

Voluntourism Competitive Analysis Portfolio

Appendices Referenced Within Text

Figure 8: SWOT

16 Internal

•Long Development Cycles •Relative Static Market Growth •Saturated Market •Loss of Brand Individual Identity •Dependence on Retail outlets •Expensive Brand Maintenance •Female Market •Emotional Connection Missing

•Market Leader •Strong Brand Image •Global Presence •Corporate Brand (Resources) •Aggressive Advertising •Quality & Innovation • Product Portfolio Range Positive

O T •Demographic Changes •Changing Consumer Attitudes •Consumer Brand Preference •Demand For High Quality •Use Of ICT (E-COM) •New Technology •Increased Grooming •Women Shavers in Growth •Electric Market

•New Competitors •Pace of Technology •Cloning of Brand by Competitors (King of Shaves) •Increasing Buyer Power •Growth In Substitutes •Own Label Brands •Economic Downturn

External

20804980

Negative

S W

Brand Strategy Context Analysis

Appendix Referenced Within Text Figure 9: Comparative table

17 Gillette

Main Purchase Point

20804980

Retail Stores

King Of Shaves (Direct)

Phillips (Electric) (Indirect)

Veet (Cream) (Substitute)

Barbers (Substitute)

2 weeks – 1 year

Online

Retail Stores

Local Area

Range of Products

Large range of choice

Limited Range

Large range of choice

Limited Range

Limited Range

Price Range

£3 - £15

£3 - £20

£35 - £250

£1 - £6

£10 - £30

Main Consumers

Unclear

Male

Male

Females

Males

Type Of Organisation

Profit Driven

Personality Driven

Non Profit

Fun and

Personality Driven

Added Value

Cheap and convenient

New Experience, focus on design

Long lasting product

Quick and extra efficient

Personal Touch

Brand Strategy Context Analysis

Appendix Referenced Within Text Figure 10: Brand Communicators source: De Chernatony (2010) pg 88

18 Hear

The tone of the brand is pretty subtle compared to that of others in the P&G portfolio despite the aggressive advertising strategy

Taste

Unavailable, not involved in the brand essence.

Feel

Expressed through the ads, an emotional attachment of self grooming satisfaction, once again playing to the primal functionality of the product but not reinforcing emotional value

Touch

The packaging and design and feel of the blades is essential in this product, if it fails at this function then it goes into BIC status – cheap throwaway product, this explains why there has been so much emphasis on the design and feel of the blades, ‘your closest shave’.

See

TV ads and online presence are the main source here, using celebrities give a sense of aspiration and upholds a dominant status. The ads are usually quick and product focused reinforcing brand image such as the colour blue.

Smell

Unavailable, not involved in the brand essence.

Figure 11: KSF (Key Factors to show differentiation in market in comparison to main competitors marked out of 5)

Gillette

Wilkinson Sword

King Of Shaves

Usability/Functional

4

4

4

2

Product Design

3

4

4

2

Consumer Engagement

3

3

4

1

Clear Brand Identity

2

3

4

4

12

14

16

9

Bic

Factor

Overall

20804980

Brand Strategy

Appendix Referenced Within Text

19

20804980

Figure 12: Advertising Spend. Source P&G (2011)

Context Analysis

Brand Strategy

Appendix Referenced Within Text Figure 13: Website screenshots Male VS Females

20

20804980

Context Analysis

Brand Strategy

Appendix Referenced Within Text

Figure 12: P&G Email

21

20804980

Context Analysis

T H E

E N D