Analysis of Gillette's Marketing Strategies in Emerging Markets

This report analyzes Gillette's marketing strategies in emerging markets, focusing on their expansion into developing countries. It examines the reasons behind this strategy, including the first-mover advantage, growth opportunities, diversification, and brand image enhancement. The report also addresses the potential dangers of targeting emerging markets, such as cultural risks, legal and political problems, customer loyalty issues, and economic instability. It then explores specific marketing strategies Gillette can apply, including word-of-mouth marketing, brand value creation, and in-store competition. The report also discusses the motivations behind privately owned companies selling to larger firms like Gillette, and the benefits multinational firms gain from acquiring smaller competitors. Finally, the report concludes that Gillette should continue its expansion, leveraging correct marketing strategies to overcome challenges and maintain its brand image.

Running head: MARKETING FOR MANAGERS ASSINGMENT
Marketing for Managers Assignment
Name of the Student
Name of the University
Author Note

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Executive Summary
The aim of this report is to assess the marketing strategy adopted by Gillette to target the
emerging markets of the developing countries. To perform this analysis a detailed study is to be
conducted on the market position of Gillette and the strategies it can apply to make up for the
losses the company made in the financial crisis that hit the Asian countries, as mentioned in the
case study. The expansion of business strategy by targeting the emerging markets will be
beneficial for the company.

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Table of Contents
Introduction......................................................................................................................................3
Reasons behind Gillette Targeting Emerging Markets................................................................3
Dangers of Targeting Emerging Markets....................................................................................4
Marketing Strategies for Gillette to Apply in the Emerging Economies.....................................5
Reasons for Privately Owned Companies Selling Out to Bigger Companies.............................7
Benefits of Multinational Firms for Acquiring Smaller Competitors.........................................7
Marketing Strategies for Gillette.................................................................................................8
Conclusion.......................................................................................................................................8

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Introduction
Marketing is the promotion of the products of a company; it involves in building a
relationship between a brand and its customers. There are several factors to consider while
marketing a product, especially when it comes to global marketing, it involves providing the
solutions, services and promoting the products assessing the social and cultural scenarios in local
as well as in international markets. In this assignment, a case study has been provided on Gillette
Company and its strategies involving targeting emerging markets in various countries. In the
following paragraphs, the reasons behind the marketing strategies adopted by Gillette will be
discussed and the questions pertaining to the case study will be answered.
Reasons behind Gillette Targeting Emerging Markets
The developing countries like India, Russia, China, and Poland provide lucrative market
opportunities for the popular companies like Gillette who are waiting to grab the chances that
these budding economies provide (Cavusgil et al. 2014). There are certain advantages, which the
emerging economies have:
 First Moving Advantage- The emerging economies provide a fresh market for the
products, if the company can provide product which no other company has launched in
the market, then that company will have a certain advantage in the market and will gain
loyalty of the customers (Nailer, Stening and Zhang 2015). The company will be a leader
in that particular product market. In similar ways, Gillette and its products will bring a
new approach in the razor blade market in the emerging economies (Sinkovics et al.
2014). The new products will immediately grab the attention of the buyers and chances of
the popularity of the company will increase.

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 Growth- The emerging markets provide many growth opportunities for already
established companies like Gillette. Being a part of a growing economy will provide the
company to expand their business (Meyer and Peng 2016.). This is another major reason
behind Gillette choosing an emerging economy.
 Diversification- Diversifying the product market among various economies can prove to
be beneficial for the company’s financial prospect, if one economy suffers the other
branches can make up for the losses (Cerutti, Claessens and Puy 2015). This can be
another reason for Gillette expanding its business in the emerging markets.
 Brand image- Gillette’s strategy of grabbing the growing markets in various countries
will also positively influence its brand image and will promote its brand name in both the
local as well as global image.
In order to attain growth in business a company needs to have business expansion
strategies, so it can be said that the strategy adopted by Gillette to target emerging markets can
be agreed upon, but there will be certain risks faced by the company as the expansion strategies
are quite progressive(Natalicchio, Petruzzelli and Garavelli 2014).
Dangers of Targeting Emerging Markets
Targeting the emerging markets for business investment is attractive no doubt but along
with the positive factors, there are several threats, which the emerging markets can pose to a
business (Vertakova 2016).
 Cultural Risks- One of the main difficulties faced by the companies while promoting
their products in a new country is cultural problems (Marquis and Raynard 2015). Gillette
may face certain difficulties when it will introduce its products in a completely different

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country, the requirements of the people may differ over there, and their social and
cultural perspectives might influence their preferences.
 Legal and Political Problems- the political and legal infrastructures of all the countries
differ from time to time and these changing policies can be harmful for the companies
investing in these economies (Bekaert and Harvey 2014.). The laws pertaining to
businesses, import, exports and other laws influencing the economies of these developing
countries are weak and no well developed, thus Gillette may face certain obstacles in the
way of their business expansion.
 Customer Loyalty- Although the economies are emerging but there might some existing
companies who sell the same products and then it becomes difficult to gain the loyalty of
the customers (Elg et al. 2017). Gillette may face other local competitors who hold the
loyalty of the customers, to ascertain their position in the market Gillette has to present
something new and better to the customers. The consumers may support the local
products more than the new ones and that will prove negative for Gillette.
 Unpredictable Economy- As the economies are still developing, the framework of
accounts and audit in the companies set in the developing countries are weak and this can
lead to bankruptcy. Gillette will have to take such risks if it wants to expand its business
in the emerging economies, as mentioned in the case study due to a financial crisis, which
began in Thailand and spread quickly over Asia Gillette faced a huge financial loss
(Grinblatt and Titman 2016). To make up for the loss Gillette had to lay off its
employees. This is one of the serious dangers, which Gillette faces for targeting the
emerging economies.

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Marketing Strategies for Gillette to Apply in the Emerging Economies
The marketing strategies, which can be adopted by Gillette to gain popularity in the
emerging economies, are as follows:
 Word of mouth- In emerging economies the brand name promoted through
recommendations of people has deeper impact in establishing the brand image of the
companies (Cuervo-Cazurra and Ramamurti 2014). This is not the scenario of developed
countries, thus to build a market for the company in the emerging markets Gillette has to
establish their brand image in such a way that the common people are aware of the name
of the brand and they can recommend their friends and relatives to use the products of the
company.
 Brand Value- Building brand value will be the most important thing, which Gillette will
have to do if the company wants to expand its business in an emerging economy
(Sivaprakasam and Srinivasan 2015). In order to do this Gillette will have to promote
their brand name through series of advertisements in television channels and in local as
well as in national newspapers, so that the name becomes a household one. The focus of
the advertisements should be geographic, the general population of the emerging
economies tends watch the local news channels and read local newspapers, and thus the
advertisements should be made accordingly.
 In Store Competition- This is another important factor that influences the market in
emerging economies that the developed ones. The people of the emerging economies
tend to consider many options while buying a product. Gillette will have to get its
products into the local stores so that they get a better exposure in front of the customers.
Small brand promotions can also be hold in local supermarkets to familiarize the products

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to the consumers. Winning the in store battle will ensure that how long a brand will
survive and hold its position in the market.
Reasons for Privately Owned Companies Selling Out to Bigger Companies
The privately owned local brands like Astra often sell out to the bigger companies like
Gillette, merge with them, and adopt their brand identity. This happens due to the following
reasons:
 Financial Gain- The privately owned local companies are smaller in size and in financial
stature thus when a bigger multinational company makes an offer to them, they sell out
their business to the bigger corporate (Zhu, Zou and Xu 2017). In this way, they smaller
companies like Astra make a huge financial profit by selling out to bigger companies like
Gillette.
 Global Exposure- The bigger companies have their brand name already established in the
market and are internationally known names, similarly Gillette is a well-known brand in
the international market. Astra, by merging its assets with Gillette will gain an exposure
in the global market and will become a popular household name in no time.
Benefits of Multinational Firms for Acquiring Smaller Competitors
The scenario is quite common where multinational companies like Gillette acquire local
brands like Astra. The following reasons can be the motivation behind such action:
 Fast Expansion in local markets- One of the chief reasons for the bigger firms to acquire
a small company is fast expansion of the company in the local market. The local brands
like Astra have established themselves in the local market and have gained popularity

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among the locals, thus Gillette by acquiring Astra will promote their brand name among
the local population.
 Eliminate Competition- The products of the local companies maybe better in quality or
have a loyal consumer niche thus it will be tough for new companies to gain popularity
among the local people, thus buying out a local company will eliminate the chance of any
such competition. This can be another reason why Gillette decided to buy Astra.
Marketing Strategies for Gillette
 Product Diversification- Gillette is a well-known brand in the worldwide market, thus if
the company wants to expand its business it has to provide different types of products in
the market to attract various customers and to gain popularity.
 Pricing- Different countries have different types of economies and per capita income, so
to meet the price expectations of the consumers of each of the countries it is very
important to keep in mind the economic factors. Keeping the price range in parity with
the economic condition of the country will help in gaining popularity.
 Promotion- To introduce new products into the market proper promotional campaigns are
required. Advertisements should be given in the local channels; free products can also be
distributed along with other products to pique the interest of the consumers. The
advertisements and promotions should reach the particular target audience.
Conclusion
To conclude provided the situation given in the case study, Gillette needs to continue
with its expansion in the emerging markets, although Gillette faced a certain financial loss in
Russia and in other Asian countries, yet it has the capability to bear such loss as Gillette is a big

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company both in the terms of brand name and financial position. In this financial crisis, it will be
easy for Gillette to acquire the local companies who have been hit hard by the crisis. Thus, by
adopting the correct marketing strategies and continuing with their business expansion in the
emerging economic markets Gillette can easily gain considerable profits and uphold their
multinational brand image.

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