Gillette is actually a subsidy company of Proctor and Gamble. Proctor and Gamble recently paid $57 billion for the rights to Gillette products, a move that opened a gold mine in personal hygiene products that had become a household name(Shaving, 2005).
Experts believe that the razor line of Gillette products is the most lucrative and successful line of products that came with the acquisition.
"The addition of Gillette shaving items is expected to instantly produce 7% of P&G's overall sales and about 14% of its profits, and has the potential to completely alter P&G's image with consumers, the analysts note(Shaving, 2005). "
Proctor and Gamble has operated for more than 160 years but has primarily been a supplier of women's products. The purchase of Gillette opened an entirely new market area for the company when it brought aboard its men's razors and shaving accessory lines(Shaving, 2005).
"There's plenty of room to keep growing in every strategic focus area," P&G chairman, president and chief executive officer A.G. Lafley said at the company's annual shareholders meeting last month(Shaving, 2005).
Gillette brings to the P and G table the potential for $22 billion in annual sales.
The target audience for the Gillette company is men that are old enough to shave. While the company produces and sells millions of disposable razors each year, the main focus of Gillette will now be to get men to trade up to the more expensive line of razors(Shaving, 2005).
To that end the company is working on marketing the more expensive razors throughout the world in the hopes that men will believe they are worth the purchase.
The focus will be on men who are in their 20's to 40's as they are the most inclined to switch to a more expensive razor and become Gillette loyal according to research.
"Men are generational about their razors, a 58-year-old executive said in a recent interview in The Cinci...