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Gillette  Fusion  Promotional  Plan   Michael  McCully    


McCully 2


McCully 3 Situation Analysis

King Gillette, a traveling salesman, first founded the Gillette Company, a well-established business that is now over 100 years old. It was 1895 when Gillette, a determined vendor, found that the edge of his straight razor had dulled. Irritated by his new razor’s bluntness, Gillette envisioned a new razor – one with

King Gillette (Gillette)

disposable razor blades. He had been searching for a product around which to craft his business, preferably a product that required regular usage and replacement (Funding). Gillette modeled his enterprise around the straight razor businesses of the time and concocted the idea for an inexpensive, double-edged blade that could clamp over a handle and used up until dull; thereafter the dull blade would be discarded and a new blade could be attached (Funding). Gillette would approach his colleagues, professional toolmakers and scientists who would write him off as unrealistic. After persistent networking, Gillette would partner with Massachusetts Institute of Technology’s educated machinist, William Nickerson. Together, the two mens’ innovations turned into a production, distribution process. Gillette also formed the American Safety Razor Company to front the $5,000


McCully 4 needed to manufacture the new razor (Funding). With King Gillette sitting heading a three-man advisory group, the razor’s production process would begin launch in 1903. Gillette extensively advertised the new products in printed publications, specifically Systems Magazine. King Gillette sold fifty-one razor sets at $5 each and 168 blades originally priced at twenty blades for $1 in the first year alone (Funding). In 1904, Gillette’s razors received the first U.S. patent on safety razors and sales skyrocketed to 90,000 razors and 12 million blades (Reidy). King sought after bigger and better business through expansion; in 1905 he bought a six-story building in which to base his new company out of. Business was good. With print ads rolling hot off the presses, King’s audience started to comprehend that Gillette’s sharper razor provided a more comfortable shave with less cutting or skin irritation. King’s expansion efforts soon started to pay off as well. By the end of 1905, King established the first foreign office, a London sales branch that would go on to open up new possibilities. More impressively, by 1909 he had established manufacturing plants in Berlin, England, France, Leicester, Montreal, Paris, and Germany; foreign business accounts would soon account for nearly thirty percent of sales (Funding). Also, in 1915 Gillette released the anticipated first women’s razor: the Milady Décolleté. Business was booming. Unfortunately, Henry J. Gaisman, owner of the Auto Strop Safety Razor Company would initiate a suit against Gillette for patent infringement (Funding). Gaisman claimed that Gillette’s new blade – featuring a continuous-strip process – was identical to the original blade that Gaisman used to pitch Gillette (Reidy). Gillette would eventually merge with Auto Strop; however, Gaisman would soon discover that Gillette


McCully 5 had been over-reporting its earnings for the past five years by approximately $3 million. Thus, brand loyalty was devastated and stock prices dropped from a high $125 to a mere $18 (Funding). After some company hierarchical reorganization, King Gillette resigned as nominal president, and passed away shortly after at the age of 77 (Teather). Under Gaisman’s newly acquired rule, Gerard B. Lambert – son of the founder of the Listerine Company – came out of retirement to become the president of the Gillette Company (Funding). Under Lambert’s honest, customer-centered approach to business and Gaisman’s innovative strip-processing method, Gillette released the Blue Blade. The Blue Blade redeemed the company, but this rebirth would be short-lived as the Great Depression forced users to return to bargain blades. Upon Lambert’s resignation in 1938, the company directors appointed Joseph Spang Jr., as president in an attempt to revitalize company efforts (Reidy). Spang reinvented the company’s advertising budget and purchased advertising space on some of the most prestigious sporting events. Spang purchased radio broadcasting rights to the 1939 World Series for $100,000, and encouraged by the extreme success of marketing Gillette to the World Series, Spang developed the “Gillette Cavalcade of Sports” – which encompassed all the sporting events that Gillette sponsored (Funding). Gillette sponsored such events as the Orange Bowl, the Sugar Bowl, the Kentucky Derby, the World Series and the All-Star game (Reidy). Gillette’s growing success was directly attributed to the success of sports advertising. After World War II, Gillette entered into a profitable postwar phase. In 1936, Gillette introduced Brushless Shaving Cream, its first non-razor, and non-blade product. Diversity ensued as Spang purchased the Toni Company as well, renaming it as the as the


McCully 6 Paper Mate Company. Upon Spang’s resignation, a man by the name of Vincent Ziegler would step up to head Gillette’s North American operations (Teather). Under Ziegler’s rule, Gillette would experiment with internal development and diverse company acquisition: some of which were Eve of Roma, Buxton leather goods, Welcome Wagon, and the Hydroponics Chemical Company. Upon Ziegler’s retirement, Colman Mockler became company president. Mockler’s dedication to sort out the financial mess left by Ziegler’s exit would cause Mockler to sell several of the companies that Ziegler had acquired. Mockler also ramped up advertising costs at the expense of company wide cost-cutting measures. While doing so, other problems arose as consumer awareness began to grow regarding fluorocarbons – found in Gillette’s aerosol cans, which fluorocarbons were found to deplete the ozone layer. This greatly affected sales in terms of aerosol products, specifically deodorants (Funding). In response, Gillette developed an advertising campaign for non-aerosol pumps and roll-ons. Right Guard, Soft & Dri, Dry Idea, and White Rain grooming products would hit the sales floor in 1978 (Reidy). Dry Idea alone would help recover twenty-five percent of Gillette’s deodorant market (Funding). In 1984 the company once again experienced higher profitability and a surplus of cash as Gillette bought Oral-B Laboratories Inc. for $188.5 million (Funding). Despite the successful atmosphere, the threat of corporate takeover loomed over Gillette. Revlon made several multibillion dollar offers for Gillette, all of which Gillette refused. In turn, Gillette reorganized its workforce and shifted towards modernization. After sorting out corporate takeover threats, Gillette was then again able to refocus its efforts on razor efficiency. In 1989, Gillette released Sensor, “the first razors with spring-mounted twin


McCully 7 blades” (P&G {Media Kit}). The Sensor was a huge success with consumers, winning several awards and grossing $500 million by the time The Lady Sensor was introduced in 1992. Despite Mockler’s unexpected death in 1991, the 90s would reign with prosperity for Gillette (Funding). Gillette added the Parker brand to its already impressive business portfolio containing Paper Mate and Waterman. In 1993, the company ranked number one in worldwide writing instruments (Teather). Also under Gillette’s rule, the recently acquired Oral-B Inc. would rise in popularity as well. Later in 1996, Gillette would make its largest acquisition in company history by purchasing Duracell International Inc. for $7.1 billion (Funding). Barely trailing the sales of razors and blades, the purchase of Duracell would become Gillette’s second most finically successful product. 1996 would also feature Gillette’s fruitful release of over twenty new company products (Reidy). In fact, forty-one percent of that year’s sales were generated by the release of products from within the past five years, “Sales neared the $10 billion mark, as 1996 revenues were $9.7 billion, and net income – despite the cost of the Duracell purchase – was a healthy $949 million” (History Quote). In 1998, Gillette released the Mach 3, a new razor that featured a third blade for a quicker shave offering fewer strokes. Protected by thirty-five patents, the Mach 3 cost Gillette a whopping $35 billion to produce; so the marketing strategists raised the cost of replacement blades by thirty-five percent in hopes to spur customers to purchase the newer model

(Gillette)


McCully 8 (Funding). Unfortunately, Gillette would see its worst return in company history, as the cost of producing the Mach 3 would require a longer turnaround. Sales in the third quarter of 1998 dropped by fifteen percent (Reidy). This frustrating performance would continue into the new millennium and would again force Gillette to reorganize the company from the top down. Challenging times lay ahead for Gillette. To meet these challenges head on, the managing board hired former Nabisco CEO James M. Kilts to join forces with the company in hopes to once again fortify company sales. Kilts would be tasked with raising company stock prices, as they fell by approximately sixty percent from 1999 to 2001 (Brooker). To further complicate things, Gillette’s longstanding rival SchickWilkinson Sword released the Schick Quattro in 2003 (Teather). The Quattro’s sleek design offered customers four blades. Gillette brought Schick to court claiming that the four-blade design directly infringed upon Gillette’s Mach 3 patent. Gillette felt justified in doing so as Schick’s Quattro increased their market share from fourteen to seventeen percent while Gillette’s share slipped (Funding). Gillette would go on to lose the court case against Schick; however, sales would then boost for Gillette as they unleashed the Mach 3 Turbo, Passion Venus Spa Collection, and expanded upon the original Mach 3 and Venus series.

Gillette Venus Passion, Mach 3 Turbo, and Venus Embrace (Gillette)


McCully 9 Over the next several years, Gillette would go to bigger and better things; this time period specifically allowed Gillette to produce several of the most innovative, technologically advanced razors available on the market today. In 2004, Gillette introduced the first powered wet shaving system for women: The Venus Vibrance (Reidy). In the first quarter of 2005, inspired by high-performance vehicles, Gillette released the Mach 3 Power Nitro (P&G).

(Gillette)

The Procter & Gamble Company began to take interest in Gillette’s innovations; in fact, P&G offered Gillette $57 billion (P&G {2009 Report}). Gillette graciously accepted the offer and on October 1, 2005 P&G’s acquisition of Gillette was complete. This strategic move allowed both P&G and Gillette more opportunity, as Sean Egan – Managing Director of the Egan-Jones Ratings Co. told CBS Radio News, “The fight for shelf space is ongoing, it's one of the main things that a large consumer product company like Gillette is looking at, and a combination with Procter & Gamble makes a lot of sense," Egan said. "It'll enable both Gillette and Procter & Gamble to get better shelf space and to distribute their products more cheaply” (Vries). P&G agreed to pay 0.975 of a share for each of Gillette’s shares, which equaled out to $55.32 (Vries). In the fourth quarter of 2005, Gillette’s reported income rose from


McCully 10 $416 million to $475 as brand loyalists upgraded their older razors to the newer Mach 3 Power series (P&G {2009 Report}). Under new ownership, it wouldn’t be long before Gillette would release its greatest razor yet. Towards the latter end of 2005, Gillette released the Fusion series – a brand new shaving system combining sleek design with ground-breaking technology to produce a five-blade shaving surface on the front of the blade cartridge and a Precision Trimmer on the back (Teather). Since 2005, Gillette has expanded on the successful Fusion series, adding the Fusion

(Gillette)

MVP, Fusion Gamer, Fusion Phenom, Fusion Phantom, to the Fusion lineup. Targeted at men, the Fusion lineup has been the number one razor on the market for the past five years (Vries).

(Gillette)

Fusion’s target market consists of men, ages sixteen and up. Since beards will always grow back, Fusion does not have a cutoff age – men will always need razors for grooming purposes; an aspect of the business King Gillette anticipated thoroughly. But for practicality of the Fusion campaign, Gillette has specifically targeted men, ages


McCully 11 sixteen to thirty-five. Socio-economically speaking, Fusion’s target ranges from the lower middle class to upper high class. Personality specific, Fusion’s North American efforts have targeted the smart, classy, sporty American man; and what keeps them coming back to Gillette is the fact that hair always grows. Razors are an absolute need for men concerned with the way their face looks. Fusion’s main competition consists of Bic razors, as well as the Schick Quattro. Although Gillette currently possesses seventy-two percent of the razor’s market share, competition battles on as Schick – primary competition- controls fifteen percent, and Bic – secondary competition - controls six percent (Gillette{Fact Sheet}). Smaller, much less common companies – tertiary competition - control the remaining six percent. Unlike P&G and Energizer Holdings Inc., Bic is publicly traded through the stock exchange in Paris, France.

(Yahoo! Finance {Energizer})


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Direct Competitor Comparison Procter & Gamble Company

Energizer Holdings, Inc.

BIC Share Price

(NYSE: PG)

(NYSE: ENR)

(Euronext Paris: BB)

After Hours: 62.6178 -0.11 (0.18%) 4:30pm ET

After Hours: 62.7239 0.09 (0.15%) 4:12pm ET

After hours: 56.70 4:30pm

Last Trade:

62.73

Last Trade:

62.63

Trade Time:

Apr 9

Trade Time:

Apr 9

0.17 (0.27%) 62.56 62.57 N/A N/A

Change: Prev Close: Open: Bid: Ask: 1y Target Est: Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield:

0.23 (0.37%) 62.40 62.26 N/A N/A

Change: Prev Close: Open: Bid: Ask: 1y Target Est: Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield:

69.76 62.51 - 63.00 46.98 - 64.58 9,146,643 11,766,900 182.21B 14.94 4.20 1.76 (2.80%)

68.00 62.14 - 63.13 48.48 - 69.11 525,391 657,408 4.37B 13.22 4.74

Price at 05:40 pm * Closing Price % Change Opening Price Highest of the day Lowest of the day Highest of the year (closing price) Lowest of the year (closing price) Price at 31DEC-09

€ 56.70 € 56.59 +0.19% € 56.73 € 57.07 € 56.47 € 57.65

€ 49.03

€ 48.30

N/A (N/A)

(BIC) (Yahoo! Finance {Procter & Gamble}) (Yahoo! Finance {Energizer Holdings, Inc.})

Objectives The 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” (Gillette). Gillette’s vision: “..to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than


McCully 13 our competition. This Vision is supported by two fundamental principles that provide the foundation for all of our activities: Organizational Excellence and Core Values” (Gillette). Although Gillette was bought out by P&G in 2005, Gillette’s mission has stayed the same. P&G’s grooming business thrived from 2007 t0 2008; however, P&G’s grooming businesses suffered from sales from 2008 to 2009 (P&G {2009 Report}). GROOMING ($ millions)

2009

Volume

n/a

Change v. Prior Year -6%

2008 n/a

Change v. Prior Year +5%

Net sales

$7,543

-9%

$8,254

+11%

Net earnings

$1,492

-11%

$1,679

+21%

(P&G {2009 Report}) My objective is to increase Gillette’s sales by 15% in the months of June 15, 2010 – June 15, 2011. In doing so, I hope to potentially raise awareness of Gillette’s Fusion series to men, ages 18-30 – specifically college students and young professionals by 50%. To reach this goal, I propose Gillette’s newest promotional campaign, “Gillette’s Fusion Solution”. This campaign will be directed towards younger men who have a less than basic knowledge of proper grooming and shaving technique. Historically, this age group of men has continually been one of the hardest audiences to successfully direct market. We plan to direct this age group towards Gillette by modernizing our approach: going viral. Today advertising implies that we must utilize social networking websites such as YouTube, Facebook, Twitter, and Myspace; however, a current trend that is on the rise relates to “going viral”, which essentially means to market to an audience with tactics


McCully 14 that include advertising online only. Old Spice, Pepsi, and Doritos have all employed viral advertising efforts that require consumers to visit the company website in order to follow the campaign so as not to miss a chance to win or participate. Young men and women typically view viral advertisements, primarily because this younger generation is constantly turning to Web 2.0 for entertainment. This entertainment usually takes the form of accessing YouTube to inquire about the latest, most daring commercials that major corporations are getting away with. This younger age group has a vastly different take on what makes for a good commercial; that being said, today companies are producing humorously eclectic, attention-getting ads. There is a great deal of potential in marketing to this age group for the purpose of creating a viral campaign. Fusion Solution will specifically advertise the Gillette Fusion Power razor as well as the complete Fusion lineup. The aim of this promotional plan is to acquaint young men with Gillette’s Fusion series in hopes that they will invest, or upgrade from the Mach 3; thereafter, they will keep coming back to purchase replacement blade cartridges. The Fusion Solution simply asks our audience, and men of all ages to “Get rid of Beardface”. Beardface is of course a serious illness known to cause out of control beards, ridiculous looking mustaches, and the incapability to land a job. Fusion Solution’s charming, witty advertisements will convince men to tame their beard or mustache, with Gillette Fusion Power’s Precision Trimmer. While promoting the sleek design and technological advantages instilled in Gillette’s Fusion Power, the Fusion Solution will also humorously portray quality in Gillette’s razors. The Fusion Solution will effectively target younger men with outlandishly styled slogans, offering younger, entry-level men the chance to “Score an A in Life”.


McCully 15 In order to successfully promote this campaign, we have developed a plan of action that requires three channels – the first of which, media. We have carefully chosen to utilize three specific forms of media: television, magazine, and Internet. Discount coupon cards will also play a key role in encouraging current and previous Gillette consumers to check out discount terms - applicable in Wal-Mart, CVS, and Walgreens stores across the U.S.A. Finally, we will supply retail stores with Gillette Fusion Solution displays containing the Fusion Power razor. Dollar Appropriations P&G’s net sales for the grooming industry came out to $7.5 billion in 2009 (P&G {2009 Report}). Gillette’s net sales for the fiscal year of 2009 came out to approximately $5.7 billion (P&G {2009 Report}). By allotting room in the budget for costs of production and distribution, the remaining 45%, $2.5 billion will go toward the cost of promotional marketing and advertisement costs. This large budget allows funding for television commercials, magazine print ads, Internet ads/videos and microsite, direct mailing of coupons, and retail store displays. For the retail store display posters, the best deal on printing offers 10,000 printed posters for $2,400. These numbers offer Fusion Solution the chance to appear in every Wal-Mart store that sells Gillette’s Fusion series. The Fusion Solution display ads will ship out three per store, given that there are 2,747 Wal-Mart locations nationwide (WalMart). These printed ads would illustrate the benefits of the Fusion Solution campaign; however, an additional 10,000 more prints would be added to simply advertise Gillette’s Fusion series. Given that there are over 6,300 CVS pharmacy stores, 6,000+ Walgreens


McCully 16 stores across the U.S., 20,000 more printed ads brings the total for this advertising tactic to $9,600 (CVS) (Walgreens). This transaction brings the budget to $2,545,752,900. Next, Gillette will ship out 4,000,000 copies of in store coupons for the purchase of Gillette’s Fusion Power. Like the printed display ads, these coupons can be found at Wal-Mart, CVS Pharmacy, and Walgreens. The coupon cards measure 4 x 6, come with an aqueous coating, are made of recycled paper, and have a high gloss finish. The cost of printing and postage adds up to $1,260,113 (PrintPelican). The discount will read, “Buy 1 Gillette Fusion Power, get 1 can of Fusion Shaving Gel Free”. For a limited time only, the discount cards - available near the check out line of each retail store - will encourage men to purchase the Fusion Power for the sake of discount savings on Fusion Shaving Gel. The in store discount coupons bring the budget down to $2,544,492,787. To coordinate with the retail store’s printed display ads and coupon cards, we plan to partner with Wal-Mart, CVS, and Walgreens to further drive the promotion home. In doing so, each employee will receive a promotional shirt with the company endorsement on the front, and the words, “Get rid of Beardface” on the back. The combined employee workforce for these three major companies adds up to a whopping 2,470,000 (CNN). Gillette can supply the major companies’ sales floors with campaign endorsed Polo tee shirts for $14,671,800, bring the running budget to $2,529,820,987 (CNN). The next tactic we will utilize in our plan is magazine ads. Gillette has always been a very active, trendy, and sporty product; therefore, we feel advertising in Sports Illustrated Magazine best correlates with our strategy and purpose. The average price of advertising in Sports Illustrated – on the back cover, full color design – runs approximately $309,400 (Sports Illustrated). When our college aged, young professional


McCully 17 finishes skimming through the latest issue of Sports Illustrated, there on the back cover lies the Fusion Solution, “Get rid of Beardface” campaign. This clever tactic provides humorous brand recognition and interest, and long shelf life. Assuming we buyout Sports Illustrated Magazine’s advertising space upfront – purchasing the back cover for each issue of the fiscal year this channel’s expenditures bring the budget down to $2,526,108,187.

Gillette’s most recent ad in Sports Illustrated (Gillette)

The quickest, most efficient way to reach our entire targeted audience is through television. After spending $500,000 in production costs, we plan to run national ads in hopes to reinforce our campaign and further qualify Gillette’s image (CNN). Keeping our audience’s sense of humor and favorite pastimes in mind, we plan to purchase advertising space during Fox Network’s The Simpsons ($293,000), Family Guy ($163,000), Sunday Night Football ($342,000), and Two & Half Men ($275,000) bringing the subtotal for each program to $1,073,000 (Vries). Television is our primary medium; TV also allows for ease and efficiency in terms of measuring effectiveness. Our commercials will be the heart and soul of the Fusion Solution campaign. After factoring in the $500,000 TV production costs, and the $1,073,000 advertising space the subtotal for television advertisements comes out to $2,524,535,187. Last but not least, our approach to Internet advertising will greatly please our consumers and feature an eternal shelf life. We plan to launch a fully-fledged, social networking effort in hopes to provide interactivity with our consumer base and invite users to comment on our company’s products and style. The most popular social


McCully 18 networking outlet, Facebook, will become our go-to guide for consumers wanting to learn more about the Fusion Solution campaign. Also, we will place banner ads on Facebook’s site in order spur web users into checking our individual Facebook page. A full year of advertising space on Facebook.com averages out to $366,000 (CNN). The total bill at the end of the allotted time will be based on how many impressions were actually made; Gillette will pay $0.23 per 1,000 impressions (CNN). With the target market selected on Facebook’s advertising demographics, males ages 1630, any educational level, any relationship status, English and Spanish speaking, in the U.S.A, the estimated amount of impressions is 152,000 per day. The maximum amount we have chosen to pay per day is $1,000; once the impressions max out at 152,000, the service will stop (CNN). After the cost of the Facebook ads, the budget comes out to $2,524,535,187. To contribute to the mass media aspect of promotional avenues, the Twitter account will send weekly updates to all of Gillette’s followers. A tweet might read something like, “Be sure to check Gillette’s YouTube account to view all of our hilarious Fusion Solution commercials. http://www.youtube.com/user/Gillette”. Period tweets would vary in content. The primary purpose of Gillette’s Twitter account would be to inform consumers of upcoming company events and ways to save on the Fusion series’ costs. This leaves $2,524,535,187 left in the budget for additional advertising expenses if necessary. Management of Program Elements & Coordination and Integration of Elements The looks of Fusion Solution ads will be unlike anything Gillette has ever produced. Fusion Solution hopes to become a part of pop culture with its clever new ads. Although the basic color and layout of the ads will remain the same, the content of this


McCully 19 campaign will be a bold new step for Gillette. The print ads will entice young men to want to learn more about the campaign for humor’s sake. The printed ads, 17 x 11 inches, will continue to use the sleek, bluish background colors only with different content. The printed ads will feature “Beardface” in all his glory, taunting the advertisement’s viewers. Beardface, an illness, now takes on the persona of a long, talking beard. Beardface is strictly a brownish, walking-talking beard that is up to no good. Throughout the entire Fusion Solution campaign, Beardface will cleverly insert his opinions to mix things up. The printed ad will say, “Gillette’s Fusion Solution: Fusion Power.” A picture of the Fusion Power razor will be placed below this statement. Below this, Beardface will be busting through the text, “Get rid of Beardface”. Near the bottom of the ad, smaller text will read, “Be sure to pick up a coupon good for 1 free can of Fusion Shaving Gel with the purchase of 1 Fusion Power. Good at all Wal-Mart, CVS, and Walgreens stores. Coupon valid for a limited time only.” This printed ad will promote mental shelf life as well as initiate conversation among men. The discount coupons will have a similar feel to the printed display ads, only smaller. They will read, “Buy 1 Gillette Fusion Power, get 1 can of Fusion Shaving Gel Free while supplies lasts – for a limited time only”. Beardface will have a small appearance in the lower right corner of these coupons; however, the primary purpose of the coupon cards is to promote the actual discount for consumer awareness. The corresponding, navy blue tee shirts will have the normal Wal-Mart, CVS, or Walgreens company logo on the front – with Gillette’s logo below it – while the back of the shirt


McCully 20 reads, “Get rid of Beardface” across the upper portion of the shoulders. Starting on July 1, 2010, employees will be required to wear the shirts every other week for four months. The internet banner ads and magazine ads will highly resemble the printed display advertisements. This is done to provide consumers with product continuity and additional opportunities to identify with the Fusion Solution Campaign. These ads will feature the Fusion Power more prominently than the display ads. The television spots will air during some of primetime TV’s most sought after time slots. The ads will slightly vary in content but the overall message of the ads will humorously encourage men to get rid of Beardface with Gillette’s Fusion Power. The thirty-second spot feature a successful, unnamed spokesmen demonstrating the symptoms and side effects of Beardface. Emphasis will be placed on specific side effects, such as the incapability to: land a job, charm that special someone, get a bank loan approved, and the inability to hold another’s attention. Before the commercial comes to a close, the spokesman will make one last remark, “Please folks, this is not something to be taken lightly. This condition is real. So please, get rid of Beardface”. The spot’s witty nature will hopefully stir the minds of regular razor users so that next time they need a new blade, they remember Gillette’s clever commercials and choose a Fusion product. With “Get rid of Beardface” as a tagline, Fusion Solution hopes to spark conversation and good gossip. Last but not least, the company website will be altered to fit the campaign appropriately. The television spots and viral YouTube videos will be incorporated into the site’s main welcome page for consumers to access. Also, those subscribed to


McCully 21 Gillette’s electronic newsletters will receive printable versions of the in store discount coupons. Coordination and Integration Efforts The Fusion Solution campaign hopes to charm the younger male audience through humor and the portrayal of quality in media, and on location via in store displays. The Facebook banner ads will easily reach the younger, male demographic. With 152,000 hits per day, advertising on Facebook is a great way to redirect web users to Gillette.com. In fact, every aspect of the Fusion Solution campaign invites consumers to check out what Gillette has to offer online. Next to TV commercials – available to watch online at the company website – the magazine ads have the second longest shelf life. Men who pick up a copy of Sports Illustrated will be more inclined to pick up a Fusion Power and search for Fusion Solution videos online. The in store coupons and printed displays will reach customers who came ready to shop. The discounted pricing on the Fusion Shaving Gel will entice shoppers to check out the actual offer in the printed ads. The Television spots aim to inform younger men as well as men of all ages of Gillette’s Fusion Power razor. These spots will successfully market to the target audience through cleverly worded content and the incorporation of the Beardface persona. To close out means of promotional channels, the e-mail newsletter will be sent to all subscribing customers online. These emails will also be sent to consumers who purchase Gillette online in hopes that they might become repeat buyers. The broad ranging tactics in this campaign will bring a significant increase in profit on the Gillette Fusion series. We predict that marketing to young men will create consumer awareness and thrust the Gillette name into pop culture.


McCully 22 Measure of Effectiveness To help measure the effectiveness of the campaign, and calculate customer satisfaction, an electronic survey will be sent out to all online buyers once they make a purchase. The survey will question the customers’ satisfaction with their purchases, what they think about the Fusion Solution campaign, and whether or not they appreciate Gillette’s attempts to go viral. The survey will also ask the customers what made them decide to buy from Gillette, and how did they first hear about the Fusion Solution campaign. Next, the survey will question consumers if they plan to purchase from Gillette again in the future; and if not, why have they chosen to terminate use. At the bottom of the survey, a blank space will be provided for customers to write a personalized message to the company regarding any aspect of Gillette and or P&G. This is an effective way to determine what the average user of Gillette products, and specifically, the Fusion Power razor, thinks through direct feedback. A similarly fashioned survey will also be attached to product packaging, allowing customers who purchased online or in store a chance to complete the survey. Incentives for completion of the survey allot 10% off the next purchase of Gillette replacement cartridges. Customer feedback via comments posted on Gillette’s Facebook, Myspace, and Twitter pages will also provide the company with direct feedback. The best way to measure the effectiveness of the Fusion Solution campaign is to research Gillette’s sales via data mining. We must measure whether sales increased from June 15, 2010 to June 15, 2011 by 15% or not, and if so why. 2009 brought in $7.5 billion in net sales for Gillette; if the Fusion Solution successfully brings in a 15% increase in net sales then 2010’s fiscal year will show a profit of $1,125,000,000, which


McCully 23 equals $1,103,772,687 after advertising/production costs are taken into account. Gillette’s projected net sales total for 2010’s fiscal year is $,8,603,772,687. These results imply both product and brand recognition for the 2010 business year. This means men across the nation will have a higher awareness of the clean shave that the Fusion Power offers for the year 2010. Equally important, this campaign allows Gillette to greatly increase customer appreciation and loyalty by taking advantage of the new and popular technology of going viral, which is becoming increasingly popular among major corporations. Social networking websites such as Facebook also provides higher customer satisfaction with “insider deals” and the feeling of having a direct connection to the Gillette Company. Evaluation and Follow Up Using these suggested promotional, evaluation tactics will allow for a clear analysis of the campaign’s results. These three channels will meet and exceed our net revenue’s expectations for the 2010 fiscal year; however, if Gillette decides to use this promotional plan again then several minor adjustments must be made. With a successful Fusion Solution campaign under our belt - over a billion dollars worth of profit – we will more funding for an even more creative approach for the next campaign. This will allow Gillette to use bigger and better promotional strategies in future to further raise product awareness. We hope to eventually drive home the incomparable quality of Gillette’s Fusion Power razor – even among other Gillette razors. The Fusion Power offers the best possible shave you can buy on today’s grooming market.

If this campaign succeeds in

terms of profits and product awareness, the Fusion Solution’s Beardface will become a


McCully 24 respected, established member of the Gillette Company. Profit doubles in size through repeat business when the product itself puts a smile on the customer’s face; we anticipate this reaction through the introduction of Beardface. Our customers are our business. We should aim to please them on all levels; not solely on our products quality, but also in these unexplored areas of humor and interaction. Establishing a more genuine relationship with our targeted audience will capture new, loyal customers in a younger and very important market, cause a quicker financial turnaround, provide larger profits, and a stronger future for the Gillette Company.

(Gillette)


McCully 25 Works Cited BIC. (2010, April). Bic share p rice euron ext pari s. Retri eved from http://www.bicworld.com/u s/finance/the-BIC- share/ Brooker, K.B. (2002). Jim Kilts Is An Old-School Curmudgeon. Nothing Could Be Better for Gillette. Retrieved from Fortune, p. 94-95. CNN. (2010). Global 500. Retrieved from h ttp : / /mo n ey . cn n .co m /m ag az in es /f o r tu n e /g lo b a l5 0 0 /2 0 0 9 / sn ap sh o ts /2 2 5 5

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