Adv campaign for Gillette

Heshan Perera

Advertising Campaign Proposal

No Shave November “LET IT GROW” Prepared By Heshan Perera For Dr. Smith Date 04/21/2015

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Disclaimer The project is not affiliated with Proctor & Gamble or the Global Gillette Corporation. This was prepared by student of Texas Wesleyan for educational purposes only.

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Contents Executive Summary ...................................................................................................................................... 4 Situation Analysis ..................................................................................................................................... 5 Background ........................................................................................................................................... 5 Mission Statement ................................................................................................................................. 6 Past Advertising Themes and Current Theme ...................................................................................... 6 Current Problems and Opportunities Facing Gillette ............................................................................ 7 Product Evaluation ................................................................................................................................ 7 Summarized SWOT Analysis ............................................................................................................... 8 Consumer Evaluation ............................................................................................................................ 9 Competitive Analysis .......................................................................................................................... 10 Marketing Goals.......................................................................................................................................... 11 Budget ......................................................................................................................................................... 12 Advertisement Recommendations .............................................................................................................. 14 Media Recommendations........................................................................................................................ 14 Target Market.......................................................................................................................................... 15 Creative Strategy ..................................................................................................................................... 15 Sample Advertisements .............................................................................................................................. 17 New logo and slogan ............................................................................................................................... 18 Newspaper and Magazine Advertisement............................................................................................... 19 Billboard Advertisement ......................................................................................................................... 20 Direct Mail Coupon ................................................................................................................................ 21 Work Cited .................................................................................................................................................. 22

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Executive Summary Gillette is a brand of men's safety razors, among other personal care products such as shave gels, aftershave, body wash, deodorant, and other razor products owned by Procter & Gamble.i Based in Boston, Massachusetts, it was one of several brands originally owned by the Gillette Company, a supplier of products under various brands, which was merged into P&G in 2005. The Gillette Company was founded by King C. Gillette in 1901 as a safety razor manufacturer. On October 1, 2005, Procter & Gamble finalized its acquisition of the Gillette Company. As a result of this acquisition, the Gillette Company no longer exists. Its last day of market trading— symbol G on the New York Stock had ceased to trade after the buyout was completed. Previous to this merger, Gillette had avoided 3 merger attempts from 1975-1991 under the incumbent CEO Coleman Mockler, the corporation was a focus by other corporations to merger with due to Gillette’s’ market share and their amount of products. The Gillette Company's assets were incorporated into a P&G unit known internally as "Global Gillette". In July 2007, Global Gillette was dissolved and unified into Procter & Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household Care. Gillette's brands and products were divided between the two accordingly. Proctor and Gamble bought out Gillette for a $57 billion dollar price tag, which made P&G an even more dominant presence in consumer products. During one large acquisition, P&G acquired Duracell batteries, Right Guard 10 10 deodorant, and the Gillette shaving brand, which added to its more than 300 consumer brands, including Ivory Soap, Head and Shoulders shampoo, Pringles, Crest toothpaste and Bounty paper towels. Razors are one of the most profitable businesses for P&G with operating margins of 31%. Procter & Gamble controls 70% of the global blades and razors market led by Gillette. Gillette’s annual revenue in personal care products is nearly $8 billion dollars, and the

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brand value is estimated to be nearly $20 billion dollars as of November 2013. The company employees exactly 28,700 employees all over the globe.

The campaign will throughout the month of November. It will start November of 2015 and be completed by November 31 of the same month. Since Gillette has done no previous advertising for no shave November, a logo and slogan will be developed. These will be used on all packaging of products and leaflets and all other Gillette related products that will be manufactured for the month of November.

Media used in this campaign will be direct mail, coupons, billboards, newspapers, the Internet. This will campaign will be a national and as such requires access to large capital the budget allocation for the proposed campaign is $1000, 000. The media use and budget will be discussed further in this proposal.

Situation Analysis Background

As mentioned previously, Gillette has been in the personal care industry for many generations. In the current time Gillette happens to be the market leader for all personal care items for men. According to recent research razor sales for Gillette and other competitors drops significantly during the month of November. Because most men prefer not to shave their facial hair and stick with the “No Shave November” tradition and support cancer, as such this growing trend is hurting Gillette’s bottom line. Gillette has always promoted one central theme using all their products which is “Confidence” for men. As said previously Gillette has never done a campaign for November, and it may seem why Gillette should do a campaign for November, the only reason behind this campaign is to improve Gillette’s bottom line. I myself am a Gillette 5

Heshan Perera

consumer and only trusts Gillette for good clean cut shave, and as such Gillette as the number one personal care brand for men choosing to do something for November definitely get attention from their customers.

Mission Statement “Gillette has been at the heart of men’s grooming for over 100 years. Each day, more than 800 million men around the world trust their faces and skin to Gillette’s innovative razors and shaving products. This commitment to giving men the very best is carried into our line of personal care products, including deodorant and body wash. All designed for the unique needs of men – helping them to look, feel and be their best every day, (Gillette, 2015).”

Past Advertising Themes and Current Theme Since Gillette has been in the personal care business for more than 100 years, there have been advertising throughout the years and each campaign has had different theme and purposes that needed to be archived. All advertising thus far has been to be promoting Gillette while staying through its current marketing theme of “Confidence” for its users. Gillette is the most well-known shaving brand in the world for men. This campaign will further Gillette brand by showing how socially responsibly brand it is. Alongside Gillette’s existing logo a new unique mini logo will be created to represent no shave November. It will be placed in every packaging for all Gillette products, making it easier for the consumer to identify the product as part of Gillette no shave November product line. The key purpose in this campaign is that Gillette will be donating 15% of their profit from each product for cancer research through the month of November.

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Current Problems and Opportunities Facing Gillette Problem; The economy in 2015 has been extremely soft; Interest rates are at an all-time low. The employment rates have dropped tremendously and businesses are losing sales, merging together, filing for bankruptcy, or are going out of business. All of these examples affect people’s sending habits, lifestyles and frame of mind. Consequently, Gillette could be negatively affected by consumers deciding not to buy razor during the month of November.

Opportunities; In the last five to seven years, no shaving November has become a huge factor in the lifestyles of most Americans. Today’s pace is never sedentary. The trend for this no shaving is growing not only in the United States but throughout the world and as when this campaign becomes a success Gillette could launch this as the global campaign every year during the month of November and improve their overall brand image and sales. Gillette is the world’s leading personal care brand for men to engage in the “No shave November” that will help to further strengthen Gillette as the market leader and its image as a socially responsible brand. While the competitors are faced with decreasing sales during the month of November Gillette will be having the best month of the year it terms of sales and brand recognition.

Product Evaluation Gillette believes they have the best products in comparison to its competition in terms of the features, value, improvements and consumer satisfaction.

Strengths 

Wide variety of products with different specification depending upon consumers need



Excellent pricing and highest of quality (razor blade Fusion for $8.99- 12.59).

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

Offers subscription plan for razor and other Gillette products

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The subscription plan can be personalized according to personal needs



No contract or added fees you can cancel subscription plan anytime.

Weaknesses; 

Not accepting returns



Third party retailers to choose the subscription plan from

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Standard pricing should be implemented across all retailers



Consumers are looking for a simplistic effective, reasonably priced razor

Changes in the industry over past years 

Growing facial hair is a trend among the younger male demographic

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A high quality product is made available at a reasonable price.

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Added higher technology razors and gimmicky features

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In the above 40 age groups for both men and women, facial hear was not preferred for both sexes.

Summarized SWOT Analysis Strengths 

Long standing history



Market Leader



Aggressive advertising

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Brand image and Brand equity



Strong brand name

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Weakness 

Very High cost

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Manual products only

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Limited products for women

Opportunities 

Importance of personal hygiene



Increased grooming



Fashion look



Demand for high quality

Threats 

Manufacturing prices increasing’



Lower cost products



New competitors



Economic downturn

Consumer Evaluation Demographic Profile: Gillette key demographic is men mainly from the Generations of “X” and Generations “Y” roughly the ages from (18-34) and women too of the same generation and same age range.  Psychographics: Typically single men (bachelors), heterosexual, men who are actively seeking female companions, innovators (or people who are able to adapt to new technologies and embrace them), beauty conscious (focused on physical appearance), men who are actively involved in sports or are popular sports fans.

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

Benefit

Segments

Demographics

Behavioristic Psychographics

Favored

Brand

Quality of shave Executives, working men Regular and heavy users High autonomy, value oriented Gillette 

Convenience Employees Regular and heavy users Hedonistic, high self-involvement Gillette Technology/Fashion Teens/youth, mid-level executives First time users, appearance conscious High sociability, active Gillette



Price Conscious Low income, illiterates, unaware Laggards, non-regulars Hypochondriac, conservative Local players

1: Strategic Message Plan for The Gillette Fusion ProGlide Power Razor

Competitive Analysis There are several competitors; 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 10

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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. Increasing the incidence of shaving habits will improve the market share.

Marketing Goals Because Gillette has been in the industry for a very long time financial marketing goals will not be that prudent. An organization such as the size of Gillette should focus in the sustainability of its brand image and maintain its self as the market leader in the industry. To accomplish increased name recognition, this advertising campaign proposal chooses to advertise in the national newspaper such as the New York Times, USA Today, LA Times, Dallas Morning News, Star Telegrams and etc. As stated previously a logo and slogan will be developed to be used in all advertisements. Gillette with the increased name recognition would be like to double its sales for the month of November. Because this is going to be a nationwide campaign consistency is highest of importance. That will be managed with careful selection of specific mediums to advertise and what kind of advertisements will be placed. Main focus here is to make individuals buy as much as Gillette products as possible in spirit of charity, so they all can become a part of Gillette “LET IT GROW�, campaign. We will further have a nationwide contest to see who has grown the biggest beard and in a grand finale use Gillette Fusion pro blade to give him a clean cut shave and as a grand price give a certain amount of money to any cancer related charity organization of the contestant’s choice in his or her name. While maintain the main cause of donating 15% of the profits of every product bought throughout the month.

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Budget This was the most difficult section to compose. There are so many factors that enter into a budget. While most of the numbers mentioned below are directly from the printing source rate sheets or freelance artist, some numbers were estimated. The budget given for this campaign by Gillette was $1000, 000. With all our recommendations, the Advertisement campaign will cost $986,004. See next page for an itemized cost of Ad campaign.

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Gillette “LET IT GROW” No Shave November 2015 Budget for Advertising Campaign Logo Design and Slogan

$50000

Newspaper Advertisement Template

$39,895

Newspaper Advertisement cost

$149,986

Billboard Advertisement cost

$125,880

Direct Mail (consist of Valpak coupons Postage

$89,845

-Oversized - 34₵ for bulk rate of 850,000 and design) Labor cost for all but Internet

$58,950

Internet Website and Online Advertising -

General Project Coordination

$30,000

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Creative platform

$ 45,000

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Photo and related video illustrations

$95,898

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Applied content & programing for digital platform

$75,550

Biggest Beard contest cost for preparation and grand finale

$225,000

TOTAL AD CAMPAIGN COST

$986,004

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Advertisement Recommendations As mentioned before, Gillette is contained in industry of personal care for men holding the highest market share. It is more focused on increased name recognition as a socially responsible brand for personal care products for men. It is also focused on being a “one- stop shop” and promoting the importance of personal hygiene and grooming. Obviously, having a largest market share means higher profits, this means larger budget for advertising compared to competitors. The budgeted amount for Gillette advertising was set at $100,000. This amount is very significant amount where advertising is concerned; however this campaign will seek to double the sales by the end of the month November.

For the past year, Gillette has had no specific logo for one particular month or campaign or a slogan and no advertising was done for national issues like these that directly impact Gillette. Having a visual (same logo, typeface, targeted image and layout in all advertising), verbal (slogan – “LET IT GROW”) and attitudinal similarity (consistent attitude toward the product and people using it) and having mini logo and slogans in the packaging enables the consumer to identify Gillette product easily as part of the no shave November awareness month and also will begin to give recognition for Gillette as socially responsible brand. The campaign objectives will be archived in two different promotions mentioned below.

Media Recommendations Specialized media (direct mail, Valpak coupons, and advertisement placements in other businesses) will be used in the campaign more than traditional media (television, radio, magazines, etc.) The intended use if this type of media is to simply deliver advertising messages, such as creating the buzz about the “LET IT GROW” beard contest. There will be some

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involvement of editorial content. Traditional media is intended for mass distribution and the cost of this media is significantly higher.

Target Market The selected targeted audience for this campaign is predominantly men, married, single, and bachelors the ages of 18 and 40. The targeted market is having at least a high school education and either some college, or Bachelor’s Degree. Their house hold property values range from 25,000 to 100,000. Most are working men with occupations in executive and management, professional specialty, sales or administrative support. The combined household income ranges from $35,000 to 75,000. The targeted market is within the United States mostly based in metropolis areas.

Creative Strategy There will be two different promotional integrated in the campaign. The first promotion will be the 15% profit for each Gillette product purchased. The message is to devote attention (in buying any Gillette product and be a part of a great cause, which is the fight against cancer). The offer will run from November 1st to November 31st 2015. As stated previously the packaging will include clear statement about the 15% profit donation and the clearly illustrated mini logo and slogan. The second part of the campaign is the contest which is “LET IT GROW� (the longest and biggest beard) information will be printed in color alongside the first promotion in leading nationwide newspapers. As mentioned previously earlier in the Executive Summary, standard template for advertisement will be created and added to the budget. The template will be used in magazine advertisements, and these advertisements will be placed in most health magazines and lifestyle magazines, the newspaper budget did include magazine advertisement cost too. It will be printed in color and will be one sided.

And billboards will be placed strategically throughout 15

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the country to gain attention and create awareness about the campaign. The final method of advertising is Internet. A lot of thought went into deciding on whether or not this method of advertising would be beneficial for such a large firm and it was concluded internet advertising is going to be the corner stone of the success of this whole campaign.

The internet offers

inexpensive, quick and easily available interactive medium it is especially effective among the youth Gen “X” and Gen “Y” generations. The internet is the ultimate research tool in today’s modern society. It has the ability to measure how many “hits” the website has received, so its effectiveness is readily available at any time. It is among the most flexible media that has the ability to change messages immediately in reaction to market and competitive conditions.

Internet will be the most important medium of advertising for the whole campaign, for example a specific website will be created for the “LET IT GROW” contest where interested parties can register for the contest and other material will be integrated such as social media like Instragram, Facebook and Twitter. So people can stay up to date with what’s going on with the campaign. It was decided the budgeted $246,448 was well worth the investment.

All sample illustrations of advertisement and sample packaging is shown below under sample advertisements.

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Sample Advertisements

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New logo and slogan

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Newspaper and Magazine Advertisement

This November Gillette will be donating 15% of profit from every Gillette product purchased to further the fight against cancer!

START BUYING!

Enter the “LET IT GROW” competition this month and win a chance to donate $225,000 to any cancer charity of your choice For more info – www.letitgrow.com

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Billboard Advertisement

Enter the “LET IT GROW” competition this month and win a chance to donate $225,000 to any cancer charity of your choice For more info – www.letitgrow.com

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Direct Mail Coupon

This November Gillette will be donating 15% of profit from every Gillette product purchased to further the fight against cancer!

START BUYING!

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Work Cited

Bierwirth, Bryenn. "Strategic Message Plan for The Gillette Fusion ProGlide Power Razor." Bryenn Lopez-Bierwirth. WordPress, 16 Dec. 2012. Web. 12 Apr. 2014.

"Procter & Gamble." Mission. Gillette, 16 Feb. 2012. Web. 16 Apr. 2015.

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