RURAL MARKETING (Gillette Guard)

Group C5
Sr. No.
1 2 3 4 5 6 7

Roll No
2012070 2012072 2012078 2012097 2012085 2012108 2012117

Name
Ankit Jha Aparna Vohra Himanshu Jain Rachit Jain Kunal Parmar Shubham Agnihotri Sunny Kohli

Why P&G needed Gillette Gaurd

The target market bottom pf the pyramid represents 70% of the countrys population. Hundred year old Double Edge razor technology was still being used in 80% of Indian households. Gillette Guard was therefore developed keeping in mind the safety and affordability needs of the Indian Consumers

The Guard would serve as an entry-level product that could attract new customers and serve as a mechanism for some of those customers to eventually trade-up to higher margin products, like the Mach3, or purchase compliment products like shaving cream. The strategy would double Gillette Indias sales revenue in three years.

Features of Gillette Gaurd

Focus on Safety: Single-blade system lined with a safety comb designed to prevent nicks and cuts. Flexible pivoting razor head helps better manoeuvre the curves of the face and neck and tackle the hair under the chin difficult areas for double edge for users to shave safely. Easy to manoeuvre handle with a light weight, ribbed design offers with a excellent one-handed control to prevent nicks and cuts.

Features of Gillette Gaurd

Added Convenience: Easy-rinse cartridges to prevent clogging. Hang-hole at the end of the razor handle provides a convenient means of storage. Easy-click docking makes it faster and easier to connect the blade to the razor versus the complexity of assembling a double edge razor.

Research Methodology by P&G

In 2007 P&G sent a multi functional team to rural areas to get a first hand experience of how rural India lived . And shaved. . These men usually shaved while sitting on the floor, often in low-light conditions, with a cup of water and handheld mirror. This, in conjunction with a cheap blade, easily led to nicks and cuts. Intermittent access to water also meant that men did not shave everyday. The needed a blade that could easily shave longer hair and be used with a minima amount of water.

Availability
Gillette wanted to achieve a multiplier effect per dollar of marketing spend on the Guard. This multiplier effect would rely on word-ofmouth.

Large number of kiranas dispersed throughout India would play an important role. The small shops were the dominant retail outlet in rural areas and often played a large role in influencing purchasing decisions.

 Gillett's own network in India reaches around 1.5 lakh plus outlets in 3600 towns in addition to P&Gs existing distribution channel. Hub & Spoke Model with 20 hub cities and spokes are tier 2 and tier 3 cities.
Every city has only one franchisee distributor. These tier 2 and tier 3(spokes) cities thus serve as feeder network. Gondia
Nagpur(Hub) Chandrapur Hinganghat Yeotmal Akola Amravati

 The model enables Guard to maximize its reach which ensure its availability to the masses for which the product was created. Packaging, sorting, accounting and POS promotions decisions are all done at the hub level. The product pricing is stringent and hence to maintain margins transportation costs have to be controlled which is ensured by the small number of roots. Frequency of service is high to make sure that product is available all the time in the target markets
All scheduling activities are done at hub level.

Affordability
In 2010, the most popular double edge blade in India was the Super-Max brand which cost at most US$0.03 per blade. The One-Rupee-Shave

The Guards blade cartridge was good for five shaves with each replacement blade costing about US$0.08 a price equivalent to a sachet of shampoo or a small tube of toothpaste. Through a deep understanding of the rural segment, Gillette designed, developed, manufactured and priced the Gillette Guard at US$0.33 per razor system and US$0.08 per blade cartridge.

Affordability
In 2010, the most popular double edge blade in India was the Super-Max brand which cost at most US$0.03 per blade. The One-Rupee-Shave

The Guards blade cartridge was good for five shaves with each replacement blade costing about US$0.08 a price equivalent to a sachet of shampoo or a small tube of toothpaste. Through a deep understanding of the rural segment, Gillette designed, developed, manufactured and priced the Gillette Guard at US$0.33 per razor system and US$0.08 per blade cartridge.

Affordability Analysis

Awareness
Gillette adopted promotional and advertising campaigns unique to the Indian market and its consumers Packaging makes the low-price an eye-catcher, and shows a handsome young Indian man easily shaving himself. This, together with large Gillette branding, make a compelling case Within 3 months after it launched, Gillette Guard became the best-selling razor in India. Within the first 8 months of launch, 11 million men had tried Gillette Guard Gillette Shave India movement http://www.youtube.com/watch?v=uffvu0aztAA - Ad http://www.youtube.com/watch?v=pppAF4AtrGM - Demo http://www.youtube.com/watch?v=HkL97eYUGcQ - Movie

 Gillette wanted to achieve a multiplier effect per dollar of marketing spend on the Guard. This multiplier effect would rely on word-ofmouth, so getting the rural consumer on a talking point would be important. They believed the large number of kiranas dispersed throughout India would play an important role. The small shops were the dominant retail outlet in rural areas and often played a large role in influencing purchasing decisions.

The journey..
But in 2002, its predecessor the Vector was a massive flop after intense focus grouping with MIT students rather than India residents To successfully sell products overseas, particularly in developing markets, companies must tweak them so they're relevant to the people who live there Field research by top executives.That, for me, was a big 'a-ha,' said Alberto Carvalho, vice president, global Gillette, a unit of P&G. I had never seen people shaving like that.

Acceptability
What is Acceptability? A series of pre defined standards related to the performance of an individual product that enables someone to easily determine the capability to perform its function within an acceptable range Customer should think that they can buy the product by putting an extra amount on that It should deliver a great solution to the customer, as perceived by customer The customer should be happy by using the product and feel comfort, there should not be any hesitation to go for it again and again

Cultural differences
Indian men shave less frequently Length of time to shave Condition of shaving Priorities focussed on not being cut and less on a clean shave Westernisation of culture, Facial hair no longer identity symbol

Success of the guard

Reasons for success : Go to the source, Delight dont dilute, Match the model to the market Preferred 6 to 1 over standard double edged razor 74% of the men feel safer and have less cuts using the guard Hold 49.1% of the market share, 12% increase from mach 3

Thank you