MKTG 1266 MARKETING COMMUNICATIONS ‘GILLETTE FUSION INTEGRATED MARKETING

MKTG1266

MARKETINGCOMMUNICATIONS

‘GILLETTEFUSION­INTEGRATEDMARKETINGCOMMUNICATIONS2012’

LECTURER:PATRICIALIU

SUBMITTEDBY:

MANESHJAGDISHKARNANI–S3320262

JIANGPENG–S3320191

LEEBOONHAW–S3320203

DEVININDRASUHONDO–S3321603

RENDYWIJAYA–S3320288

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Executive Summary

Two stages are presented in the report for Gillette Fusion. In stage 1, Gillette Fusion is briefly

described. It was launched in 2006 and was introduced to Singapore in 2007. After 4 years

operating in Singapore, the market share is lower than expected. This is partly due to

skeptical perceptions among consumers who believe that 5-blade razor is exaggerating. In

Singapore market, Schick and Bic are the major competitors. However, diversity of

competitors is present, with small competitors ranging from ASCRO to house brands.

Moreover, Gillette Fusion face intra-brand competition. Gillette Fusion targets at males aged

between 18 and 40, which care about their appearance. Its most recent advertising program is

the Champion campaign featuring Tiger Woods, Thierry Henry, and Roger Federer, which

conveyed the message that Gillette Fusion provides the most comfortable shaving experience

with technological advancement. However, this campaign is not longer in use. A new

program needs to be initiated.

The marketing objectives are to increase sales and market share (financial objective), and to

foster brand loyalty, change consumer attitudes and beliefs towards Gillette Fusion (non-

financial objective). The time set for these objectives last for 1 year starting from January

2012. The total budget will be S$3 million, including 20% of Gillette Fusion sales, which is

S$1 million, coupled by subsidy of S$2 provided by P&G, the parent company.

Stage 2 starts with Agency Brief presented by Vision Communication (Viscom), a marketing

communication consultancy agency. As Gillette Fusion wants to increase sales, market share,

and reinforce positive attitudes and beliefs among consumers, Viscom is hired to compose an

integrated communication plan. This plan is targeted at aspirational male between 18 and 40

in age. The objective of the plan is to remove skeptical attitude of consumers towards Gillette

Fusion, and to increase sales and market share. In SWOT analysis, Gillette Fusion’s strength

is at R&D and technological advantage, while its weakness is the premium price and low

market position. The main opportunities identified are market shift to premium shaving

segments, and potential market for hair removal shaving, and the threats are heighten

competition and criticisms. With this understanding, the plan, as described in the Agency

Brief, will convey the communication theme of ‘Top of The Class’ through various media.

Traditional advertising includes TV, magazines, and newspaper. The TV ad will incorporate

sponsorship and public relations activities to convey the message, whereas magazine and

newspaper ad will integrate with promotional tools like coupon. Online social media such as

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facebook would be used for interactive advertising. Place advertising subsumes poster and

transit ad, which carry the link to Fusion’s page on facebook and other social media as a

means of integration. Promotions include coupon, bonus pack, and sweepstakes, which are

meant to incentivize short-term purchases, again, coupled with other communication tools for

integration. Lastly, sponsoring the Singtel Singapore Grand Prix 2012 and actively publicize

this move would be the main course under PR and sponsorship effort. Creative ideas

including storyboards, print ads for poster, magazines, and newspapers are attached in

appendix. The media objective for media plan is comprehensive, including 80% reach in

Singapore market; a target frequency averaged 2 times per week, a pulsing schedule to be

adopted, etc. The specific vehicles for each medium are Channel 5 for TV, August Men and

Men’s health for Magazine, Straits Times for newspaper, Facebook and Youtube for social

media, bus stops for poster, SBS buses 154, 105, and 36 for transit ad, etc. The estimated cost

totaled around S$2.4 million, which is less than the allocated budget of S$3 million. The

specific budget and estimated cost for each of the communication mix elements will be

calculated.

Lastly, various evaluative techniques and control mechanism would be involved for each of

the communication mix element. The principal method will be consumer surveys and

interviews, to be conducted before and after September 2012 to measure the major marketing

communication effort.

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TableofContents

ExecutiveSummary ...........................................................................................................2

Stage1

1.Introduction...................................................................................................................6

2.ProblemandPromotionalPlan.......................................................................................6

3.CompetitiveFrame.........................................................................................................73.1.DiversityofBrands .............................................................................................................. 73.2.Intra‐brandCompetition...................................................................................................... 73.3.PositioningAnalysis ............................................................................................................. 8

4.BrandMarketOperations...............................................................................................84.1.TargetAudience .................................................................................................................. 84.2.BehaviorSequenceModel ................................................................................................... 84.3.CommunicationProcessofChampionCampaign.................................................................. 9

5.MarketingStrategy ......................................................................................................105.1.Product.............................................................................................................................. 105.2.Pricing ............................................................................................................................... 105.3.Place.................................................................................................................................. 105.4.Promotion ......................................................................................................................... 11

6.MarketingCommunicationObjectives .........................................................................116.1.MarketingCostConsiderations .......................................................................................... 116.2.CommunicationEffectsSequence ...................................................................................... 126.3.Timing ............................................................................................................................... 12

7.CommunicationsBudget ..............................................................................................12

Stage2

8.AgencyBrief.................................................................................................................138.1.Background ....................................................................................................................... 138.2.TargetAudience ................................................................................................................ 138.3.ThoughtsandFeelings ....................................................................................................... 138.4.ObjectivesandMeasures................................................................................................... 148.5.BehavioralOutcomes......................................................................................................... 148.6.Positioning......................................................................................................................... 148.7.MessageandMedium........................................................................................................ 148.8.Strategy ............................................................................................................................. 14

9.SWOTAnalysis .............................................................................................................15

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9.1.Strength............................................................................................................................. 159.2.Weakness ........................................................................................................................... 159.3.Opportunities .................................................................................................................... 159.4.Threats .............................................................................................................................. 16

10.CommunicationsMix .................................................................................................1610.1.MediaAdvertising............................................................................................................ 16

10.1.1.Television ......................................................................................................................... 1610.1.2.Newspaper....................................................................................................................... 1710.1.3.Magazine.......................................................................................................................... 17

10.2.InteractiveAdvertising..................................................................................................... 1810.3.PlaceAdvertising ............................................................................................................. 1810.4.Consumer‐orientedPromotion ........................................................................................ 19

10.4.1.Coupon............................................................................................................................. 1910.4.2.BonusPack ....................................................................................................................... 2010.4.3.Sweepstakes .................................................................................................................... 20

10.5.PublicRelationsandSponsorship..................................................................................... 2110.5.1.PublicRelations................................................................................................................ 2110.5.2.Sponsorship ..................................................................................................................... 22

11.MediaPlan.................................................................................................................2211.1.TargetAudience............................................................................................................... 2311.2.MediaObjective .............................................................................................................. 23

11.2.1.Reach ............................................................................................................................... 2311.2.2.Frequency ........................................................................................................................ 2311.2.3.Weight.............................................................................................................................. 2311.2.4.Continuity ........................................................................................................................ 2411.2.5.Recency............................................................................................................................ 2411.2.6.CostConsideration........................................................................................................... 24

11.3.MediaandVehicles.......................................................................................................... 2411.3.1.Television ......................................................................................................................... 2411.3.2.PrintAdvertisements ....................................................................................................... 2611.3.3.InteractiveAdvertising..................................................................................................... 2711.3.4.PlaceAdvertising.............................................................................................................. 27

11.4.EstimatedCostRevisited.................................................................................................. 28

12.EvaluationsandControl .............................................................................................2812.1.TraditionalMediaAdvertising.......................................................................................... 2912.2.PlaceAdvertising ............................................................................................................. 2912.3.OnlineSocialMediaAdvertising....................................................................................... 2912.4.Consumer‐OrientedPromotion........................................................................................ 3012.5.PublicRelationsandSponsorship..................................................................................... 30

13.ReferencesList ...........................................................................................................31

14.Appendix....................................................................................................................33

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1. Introduction Gillette, currently owned by Procter & Gamble mainly deals with razors, which are labeled

different subsidiary brand names, such as Mach 3, Venus, Fusion, etc (Cocanhazie 2009).

The flag brand of Gillette is Fusion, which will be the brand analyzed in this report. Gillette

Fusion was officially released in the U.S. market in 2006, and subsequently introduced into

Singapore market in 2007. Fusion is claimed to incorporate the most advanced shaving

technology at the time it was released, and is superior to its close predecessor, Mach 3.

Specifically, the main features include the 5-blade shaving technology, which delivers a

closer, more comfort shaving experience, an enhanced Indicator Lubrastrip, which exudes

lubricants automatically, providing great glide, and an integral precision trimmer, used for

shaving tricky spots like under the nose and around sideburns (Gillette 2011).

In stage 1, a thorough discussion of the current marketing program of Gillette Fusion is

provided. At stage 2, a detailed Integrated Marketing Communication plan will be presented.

2. Problem and Promotional Plan Generally, Advertisements and promotions are intended to create awareness or incentivize

purchase as well as to improve the brand image. Regardless what problem the

Advertisements want to solve, the ultimate goal is to increase profitability. Currently the

main problems faced by Gillette Fusion are stagnant sales growth, low market share in Men’s

grooming market, and skeptical attitudes and beliefs held by consumers towards Gillette

Fusion.

Stagnant Sales Growth

In 2007 when Gillette Fusion was launched in Singapore, the year-end sales amounted to 2.4

millions . This figure boosted to around 4 million in 2008, showing a decent sales growth rate

of 67%. The stagnant sales growth also reveals some problems such as consumer attitudes

towards the brand being skeptical, ineffective Advertising program, and strong competition.

Low Market Position

The market share of Gillette Fusion in 2007 gained a modest 10%, which is considered

acceptable for a new product then. However, after 4 years in 2010, the market share remained

at a low level of 19.3%. Whereas Gillette Fusion secured the third in position in the men’s

grooming market, the first and second brand also belongs to Mach 3 and Mach 3 Power, with

33% and 20% respectively. This spells out the implication that the market reception of

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Gillette Fusion is less than ideal. Although Fusion is considered the main hit of Gillette,

which embodies technological innovation and engineering advancement, and is claimed more

comfortable and user-friendly, it was still not persuasive enough to change the established

consumer attitudes and behaviors.

Skeptical Attitudes and Beliefs towards Gillette Fusion

When Gillette Fusion was first launched, many potential customers thought of it as a joke.

This was because many thought that it was pointless to have a 5-blade razor when a 3-blade

razor such as Mach3 was sufficient. During this period the Gillette fusion team decided to

create a campaign to bring up awareness and establish a positive attitude towards the product.

Therefore, the resultant campaign called ‘Champion’ was featuring sports celebrities such as

Tiger Woods (The English Shaving Company 2011). The campaign was launched in 2007

and had some effects among consumers. However, over time, the effect started to diminish,

and Gillette ended Advertising deals with some of the original superstars endorsers. Now the

‘Champion’ campaign is no more effectual, the attitudes and belief held by Singapore market

still remains skeptical about the new features, functions of Fusion.

3. Competitive Frame The fierce competition faced by Gillette Fusion in men’s grooming market in Singapore is

characterized by diversity of brands and intra-brand competition.

3.1. Diversity of Brands

Relative to the small size of Singapore market, Gillette Fusion faces fierce competition

because of the diversity of brands. To name a few, there are Schick, ASCRO, Bic, Gillette

Mach 3 and Merkur. Other than the listed competitors, there are many private labels like

Watsons and Guardian Fair-Price, that heighten the competition, which are generally

positioned as low-price razors and appealing to lower level of the target market.

3.2. Intra-brand Competition

Intra-brand competition refers to the competing products are all from the same company. This

is the case for P&G in Singapore market, where Gillette Mach 3, Sensor, and Fusion compete

fiercely (McCollum 2011). Since their target market overlap, consumers give up a trial of

Gillette Fusion attribute to the intra-brand competition. With Gillette Mach 3 being the

leading brand in the market, Gillette Fusion, despite its technological advancement, still has

to push for Advertising communication effort in order to excel.

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3.3. Positioning Analysis

The position analysis will be based on two dimensions, namely, price and brand image. It

presents a visual picture of the competitive frame in the market. Its positioning statement is as

follow: ‘Gillette Fusion is the one razor that provides aspiration male with the best shaving

experience because of its Lubrastrip, 5-blade system and other technological innovations’. In

other words, Gillette Fusion has positioned itself as a premium brand that is relatively high in

price and strong in brand image in the product category1.

4. Brand Market Operations

4.1. Target Audience

Target audience often emerges as a specific segment of the target market. It is a specific

group of people within the target market at which the marketing message is aimed (Kotler et

al. 2010). Thus, before profiling Gillette Fusion’s target audience, we must first have the

knowledge of Gillette Fusion’s target market.

Gillette Fusion’s target market can be identified in a fairly broad range, briefly described as

males in the ages between 18 and 59, who have relatively high disposable income and prefer

brands that epitomize class and sophistication, showing their exquisite and luxurious taste.

Within this board range, the target audience is slightly younger. They are aspirational males

between 18 and 40 in age, who care about their personal appearance, are excited by sports,

and live busy lives.

4.2. Behavior Sequence Model

The purchase of Fusion razor requires limited decision making as Gillette Fusion belongs to

low involvement product category . The generic problem recognition is recognized by

consumers when they feel that their long facial hair is perceived to be not consistent with

their desired personal image, thus triggering the needs to shave. Next, the information search

process involved in behavior sequence model is mainly limited to internal search. Internal

information such as memories of past searches, personal experience, or information from

low-envolvement learning and classical conditioning, is consulted when consumers makes

the purchase decision. External informance from independent sources is rarely used.

1 Refer to Appendix A. Positioning of Gillette Fusion

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For alternative evaluation, Gillette Fusion would fall under the evoked or consideration set,

as its brand image is generally perceived stronger than competitors, attributed to the large

Advertising budget in P&G for its core brands (Cable News Network 2011). Consumers

would generally compare Gillette Fusion and other brands on a set of criteria including price,

comfort, features, etc. It is to Fusion’s advantage if consumers put large weight on innovative

features and comfort. However, if price takes heavy weighting, Gillette Fusion would be

disadvantaged. Purchase can be made in various outlets, such as supermarket, pharmacies and

toiletry shops. Since Gillette Fusion purchase involves limited decision making, there will be

limited evaluation and is less likely to have dissonance. If consumers are satisfied by Gillette

Fusion’s performance, they will repeat their purchase in the future and vice-versa.

4.3. Communication Process of Champion Campaign

Communications process involves nine elements on how meaningful information is conveyed.

(Cheng, Kotler & Lee 2009). For the communication to be effective, the message needs to

pass through encoding, decoding, response and feedback travelling from the sender to the

receiver2. The most recent communication process of Gillette Fusion was the Champion

campaign, with a message featuring tennis champion Roger Federrer, soccer player Thierry

Henry, and golf-pro Tiger Woods (The English Shaving Company 2011). Due to their

positive image, they enhanced trustworthiness dimension of source credibility and

communicate such a message that Gillette Fusion is the most durable razor. Also emphasized

in the message were the features such as the 5-blades system and the lubrastrip which

releases lubricant overtime, and providing great glide. Such content appealed to the target

audience’s rational thinking. In addition, these superstar endorsers helped appeal to emotional

feelings because they were successful, good-looking, and promoted a strong image of

masculinity (Gillette 2011).

The media chosen for the campaign included TV, public relation and the Internet. The

specific vehicles through which the message was conveyed were weekly TV-show ‘Gillette

World Sports’ in TV, magazines in press and Youtube. The encoding function took place

when the three superstars came together and filmed the TV-ad campaign with marketing

expert. On the other hand, the decoding function worked when the receiver actually watched

the ‘Gillette’ Champion program and interpreted it. Hence, the communication is effective

when the meaning they perceive is similar to what the sender intended. The response and

2 Refer to Appendix B. Communication Process

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feedback in this communication process varied. It generated the most preferable end when the

target audience, who could be either current or potential customers, purchased Gillette

Fusion. Alternatively, the brand image perception and brand preference also increased and

thus affected future purchasing behavior. On the other hand, others complained because their

direct experience diverged from the expectation generated from interpretation of the ad.

5. Marketing Strategy

5.1. Product

Gillette Fusion is designed for general male population usage. To enhance customer value, a

product can be categorized into core benefit, actual product and augmented product (Kotler

2009). Gillette Fusion’s core benefit is facial hair shaving, while their actual product is

incorporated with technological innovations and thus possesses many advanced features,

which contribute to high product quality. Again, it carries the brand name that is most

Advertised and promoted and it has always been packaged uniquely. Such branding effect

and packaging also enhances the actual product. In addition, shaving techniques, user

feedback, and information on men’s grooming provided at Gillette Fusion official website

add on to form the augmented product. The rationale for such product design is that

customers can enjoy better shaving experiences by trying the elements belonging to each of

the three levels.

5.2. Pricing

Gillette Fusion utilizes premium pricing whereby they set prices artificially high so that

favorable perceptions about the brand may be fostered. It makes consumers to presume that

expensive items imply good reputation or exceptional quality, thus purchasing the product.

Again, those status-conscious customers would perceive that the brand is sophisticated and

prestigious, thus consistent with their personal image. Moreover, premium pricing would help

Fusion distinguish itself from other low-cost brands, thus avoid the case of price war, namely,

competing by relentlessly lowering price (Rao 2009).

5.3. Place

Gillette Fusion is distributed through retailers, such as Guardian, Watson, and Giant. It is also

made available through online shopping websites to facilitate the purchase process by a click.

Its distribution embodies pull strategy whereby P&G spends huge budget on Advertising and

thus creates the demand by consumers. As a result, it attracts wholesalers and retailers to

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carry Gillette products. Generally, the wide distribution of Fusion makes purchase convenient,

thus maximize the promotion effort when a new promotional program is launched.

5.4. Promotion

The two major promotional tools used by Gillette Fusion are Advertising and sales promotion.

For Advertising, Fusion has long been initiating new Advertising program in TV, magazines,

and billboards. With P&G’s creative maerketing communication plans, Fusion is able to tap

on this advantage. The rationale for Advertising, again, is to practice pull strategy to create

awareness, interest, and demand, thus increasing sales. For promotion, Gillette Fusion tries to

boost sales in the short-term or incentivize light- or non-users to switch brand.

6. Marketing Communication Objectives Both financial objectives such as sales and market share, and non-financial objectives such as

attitude change and brand loyalty reinforcement will be incorporated into the objective

statement. The expected performance to meet the objectives will also be mentioned below.

Gillette Fusion’s marketing communication objective for the year 2012 in Singapore market

is to realize increased brand loyalty and changed consumer attitudes and beliefs towards

Gillette Fusion, measured specifically by increases in sales to S$6.5 million (S$5.1 million in

2010) as the target, and increase in market share to 25% (19.3% in 2010) as the target. The

employed agency need to come out with an IMC plan that meet the above outlined objectives.

6.1. Marketing Cost Considerations

Marketing cost includes product, price, promotion and place. It is linked to product life cycle

in such a way that different stages of the product life cycle will entail different patterns of

marketing spending. In Singapore market, Gillette fusion, based on its market position

relative to that in other comparable markets, is determined to be at Growth stage. At this

point, product cost will become lower than in Introduction stage as it only consists of variable

costs such as production and packaging. Pricing strategy for fast-moving consumer goods in

Growth stage is typically rigid. In other words, there will be no price reduction unless

promotion is on which is regarded as promotion cost. Distribution cost, in view of the

intention to increase sales, will be higher as more will be spent on warehousing, shipping, etc.

Finally, promotion cost is the major part of marketing cost, for which a total budget of S$3

million will be allowed, as elaborated in the Communication Budget section.

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6.2. Communication Effects Sequence

In developing a marketing communication objective, marketing managers need to know at

which level their product is in the hierarchy of effects. The hierarchy of effects show at which

stage the target audiences are in relation to the product. The higher the stage the product lies,

the closer it is for target audience to purchase them. In the case of Fusion, they are in the

intermediate stage of Belief Reinforcement and Attitude Reinforcement. They have passed

through the Unawareness, Awareness, Expectations, Trial and Beliefs-Attitude stage. This

was achieved by implementing the Champion campaign. The campaign provided great

awareness to the audience since they used famous athletes. This Advertisement also provides

audience with features and develops the great feeling on using the product.With the effective

Advertising and promotional efforts, target audiences are aware and have tried the product.

With this trial of the razor, a belief and attitude would have been developed. However,

currently the attitude of the audience towards Fusion is not as its best. Many of them feel that

the 3-blade razor of Mach3 is enough to fulfill their shaving needs. Hence, for the next

Advertisement campaign, we have the objective to ensure potential customers that the 5-

blades of Gillette Fusion is better than Mach3. It is also important to introduce this as a

revolution in the shaving sector with an attitude change of ‘shaving isn’t just a rushed process’

but rather a precise art with the best comfort and tools needed. When this is achieved, Gillette

Fusion can reach the last stage of the hierarchy, which is Brand Loyalty.

6.3. Timing

This campaign will be initiated in 2nd January 2012, and will end in 31st December 2012,

covering a time span of one year.

7. Communications Budget In 2010, Men's Razors and Blades market was valued at S$26,558,900 and 19.3% of the

value was from Gillette Fusion, calculated as S$5,125,867.70. The industrial average for

Advertising in men’s grooming market is around 16%. As the Gillette Fusion wishes to have

aggressive Advertising in 2012 to solve the three problems. 20% of this profit will be used

for marketing communications, which is S$1,025,173.54. In addition, as a common practice,

P&G, the parent company, would subsidize S$2 million to build up the brand in Singapore

market. In total, the budget provided would be 3 million dollars3.

3 Refer to Appendix C. Budget

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8. Agency Brief Vision Communication (VisCom) is a communication consultancy agency specialized in

developing integrated marketing communication strategies. They provide tailor-made

marketing solutions to satisfy different clients. Their mission is to provide the platform on

which different market players can communicate effectively with their intended audience.

8.1. Background

VisCom agency has been hired by Gillette Fusion to formulate an IMC plan. This plan has to

achieve certain objectives defined by Gillette. The Agency shall create a campaign that

involves TV, print and interactive Advertising, sales promotion and public relation activities.

With this campaign Gillette Fusion wishes to achieve increment in sales, reinforcement of

positive image and progress in market position. To this end, they are hoping to create great

awareness and thus achieve all the financial objectives. Since the men’s grooming market in

Singapore becomes increasingly competitive, VisCom Agency will have to create an

aggressive campaign involving budget that exceeds average figure. This is approved by P&G

and campaign is named ‘Top of The Class’.

8.2. Target Audience

As Gillette Fusion’s target market is general male population in Singapore, Gillette Fusion’s

target audience can be defined as aspirational male, aged between 18 and 40, who love sport

programs, have busy lifestyles, and is appearance-conscious. In terms of demographics,

Gillette Fusion targets at those who have yearly income above S$20,000. For psychographics,

the target audience values premium and high performance products. Concerning

buyographics, Gillette Fusion targets at users of other razor brands or light and none users of

Gillette Fusion.

8.3. Thoughts and Feelings

Before deciding on the Advertisement and other communication activities, research need to

be done to understand the audience perception and attitude towards the product. Having

carried out the research, VisCom Agency concluded that consumer attitude towards the

product is not negative. However, consumers believe that the 5-blade system of Gillette

Fusion is to some extent ‘exaggerating’. Having this in mind, VisCom Agency will develop

the campaign creatively and persuasively to offset such skeptical attitude.

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8.4. Objectives and Measures

The objective of the campaign is to firstly remove the skeptical attitude of consumers towards

Gillette five-blade system and high prices. The intended outcome of the IMC plan is for

customers to view Gillette Fusion as a high-end product and make them feel that they deserve

a better lifestyle. The ultimate objective of these changes in attitudes and feelings is to

increase sales and market share. Hence, sales level and market share data will be utilized to

measure the effectiveness of the campaign. Surveys will also be conducted to understand the

impact of the campaign on the prospects’ perception about Gillette Fusion.

8.5. Behavioral Outcomes

The idea on creating creative Advertising is to motivate target audience to take desired

actions. The ‘Top of The Class’ campaign is created to reinforce positive attitude of Gillette

Fusion of the audience and make comment the brand in a favourable manner. Moreover,

certain limited-time sales promotion strategies would also be integrated in this campaign for

them to go down to retail stores and purchase Gillette Fusion.

8.6. Positioning

Gillette Fusion has many competitors in the market, such as some house brands and other

razor manufacturers. In this campaign Gillette Fusion provide an aspiration for the best

shaving experience because of its Lubrastrip, 5 blades system and other technological

innovations. Such innovations will differentiate Gillette Fusion from other product.

8.7. Message and Medium

This campaign is intended to convince the target audience that Gillette Fusion is ‘Top of The

Class’. By this slogan, Gillette Fusion would convince their audience that it is the best shaver

ever. The product has five blades, which able to shave smoother faster and more accurate. In

this campaign Gillette Fusion uses several media, such as television, magazine, bus stops and

buses itself. Lastly, the message would also be conveyed via social media such as Facebook

and through PR activities.

8.8. Strategy

In order to promote the Gillette Fusion, the campaign would involve several strategies such

as event-Advertising coordination, buzz building activities, and sales promotion tactics. As

for event-Advertising coordination, the strategy is sponsoring the eye-catching F1 series in

Singapore. When Gillette Fusion uses sales promotion strategy, the purpose is to encourage

consumer trial. Research carried out by VisCom agency found out Gillette Fusion’s potential

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customer are highly involved in online activities, therefore online Advertising strategy will be

utilized. Lastly, the buzz creating strategy will be supported by PR activities.

9. SWOT Analysis

9.1. Strength

· Resource and technology advantage

With the strong and resourceful Research and Development department, the Fusion team was

able to come up with the 5-blade system. The razor satisfied a need that was developed by the

product itself. Moreover, with the strength and funds of Gillette, Fusion was able to continue

and upgrade their product to prevent any other competitor to be ahead of them.

· Strong parent brand equity

Gillette, the parent company of Fusion has strong brand equity with the large number of well-

established brands. This makes introducing new products to be easy, as the societies are well

acquainted with the names and are more receptive towards Gillette. When Fusion was

introduced to the market, the high quality image of Gillette was reflected to the product.

Hence, allowing Gillette Fusion to charge high prices.

9.2.Weakness

· Market share lower than other razors

Since Gillette Fusion is a recently launched product, their market share is lower than other

competitors. Hence, customers have not trusted Fusion’s performance and continue to rely on

their current product. With the low number of people purchasing Fusion, their market share is

very low. Even other Gillette razor brands such as Mach3 and Sensor has higher market share.

· Premium price

Pricing strategy has been a key to revenue growth in mature category such as the razor

market. The price of Gillette Fusion is relatively higher than other brands and makes

customers reluctant to purchase them. Hence, this becomes a weakness for Fusion as they are

loosing sales to other brands (Symonds 2006).

9.3. Opportunities

· Price increases in premium shaving segments

From the day Gillette Fusion was introduced into the market, prices of other brands of razor

and blades have increased (Anand 2007). This price increase will help them to accumulate

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more sales because prices of competitors’ products are almost level. Therefore, with the new

technological innovations Fusion would be able to attract more customers.

· Socio-cultural trends in hair removal

The trend for shaving has moved since few years back. Nowadays, even women use razors to

remove hair from their body parts. The trend of having facial hair for men has also developed

as it is thought to be manlier. This creates an opportunity for Gillette Fusion to promote their

products to every part of the world.

9.4. Threats

· Strong competition, imitations and disposables

Gillette Fusion’s ability in maintaining a premium price on its extensive investment on a five-

blade platform is threatened by the strong competition and imitators including disposable

razors. This can be a long-term threat as it might reduce their sales drastically.

· Heavy critics and negative reviews, unfavorable publicity

Many criticized Gillette Fusion, as they felt that the five-blade system was a form of

‘exaggeration’ and there is no need for it (Tong 2008). They believed that the three-blade

system of Mach3 was sufficient for users. This idea might be a threat if it continues to move

from person to person.

10. Communications Mix

10.1. Media Advertising

10.1.1. Television

For the ‘Top of The Class’ campaign, television Advertising will be integrated. In Singapore,

99.5% of households own a television set (Abhijit 2009). Hence, television ads tend to

generate great exposure in Singaporean society. The theme of the new campaign will be to

position Gillette Fusion as the best razor among other brands. Since in this campaign Gillette

is planning on sponsoring the ‘SingTel Singapore Grand-Prix 2012’, our television ad would

be connected to Formula 1 (F1)4. This integration of TV Advertising and sponsorship would

improve the image of Gillette Fusion as F1 is viewed as a highly regarded sport. Moreover,

the ad would also inform potential customer on features that the razor provides. Thus, the

technique used would be informative persuasion because men generally want the best for

their skin. 4 Refer to Appendix D. TV commercial storyboard

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The objective of this campaign is to improve the market share of Gillette Fusion and

reinforce the ‘top-class’ razor to the audience. By informing the unique features of Fusion,

there is an intention that many potential customers would change their razor to Gillette

Fusion. The budget allocated to TV Advertising will amount to S$ 1,000,000 including

filming, covering both the share in Advertisement filming and media purchase. Detailed cost

considerations will be presented in the media plan section.

10.1.2. Newspaper

Integrated in the ‘Top of The Class’ campaign is a newspaper ad. According to the latest

Nielsen Media Index survey, 73% of Singapore population reads newspaper on a daily basis

(Charlton media Group 2008). Hence, newspaper can be important for Gillette Fusion to

generate maximum exposure in Singapore Society.

For newspaper, there will be a specifically designed ad. The ad is inspired by ‘Top of The

Class’, and thus is depicted as a man holding Gillette Fusion on top of the Himalaya

mountain 5 . Moreover, consumer-oriented promotion information will be featured in

newspaper. The starting and closing dates, the prizes of two pairs of tickets for F1 series, and

information on the progress for the sweepstakes will be provided in the newspaper ad. In

addition, bonus pack promotion news is updated in newspaper ad. Such integration would

form a more comprehensive marketing communication effort perceived by consumers, and

also incentivize immediate purchases.

For the newspaper ad, the plan is to use a frequently read newspaper with the objective to

increase awareness through mass exposure. Another aim is to increase sales. This can be

achieved not only by men reading the ad, but also women who usually buy their husband’s

toiletries. As sometimes men are too busy carrying out their daily activities, they let their

wife to decide on which product will suit them best. The budget for newspaper ad would total

S$ 700,000, and detailed cost consideration will be presented in the media plan section.

10.1.3. Magazine

Gillette Fusion’s ad will also be printed in magazines. Direct response Advertising will be

integrated to invoke a direct response. That is, money-off coupons would be given out in the

5 Refer to Appendix E. Newspaper ad design

18

magazine ad to provide incentives for customers to visit the retail stores. Moreover,

information on retail stores that sell Fusion will also be provided.

The idea for magazine ad comes from the image when F1 racer wins a competition 6.

Therefore, the message to be conveyed is that only winner deserves Gillette Fusion. This is

essentially appealing to men as many of them have the intrinsic sense of competition. Again,

the budget here would be S$ 50,000, and detailed cost consideration will be presented in the

media plan section.

10.2. Interactive Advertising

Nowadays, consumers are becoming more IT savvy and they tend to search product

information online rather than getting information from newspaper and magazines. The

online Advertising plays an important role in interacting with these consumers. Gillette

Fusion can seize this opportunity by placing some creative video ad, coupons, and

sweepstakes in social media to influence consumer attitudes and behaviors towards itself.

Some consumers seldom read newspapers, and prefer reading news through the Internet. The

objective of placing information on the Internet is to reach out wide range of audiences. By

generating ‘buzz’, the audience will be motivated to search for information and go to retail

stores to purchase the product.

In terms of financial concerns, Advertising is much more affordable compared to traditional

Advertising (Scifo 2010). For Gillette Fusion, the interactive Advertising will have no budget

as it will only opt for online social media that provide services free of charge. The strategy to

break through clutter and attract consumer attention would require the interactive Advertising

be featured in posters and transit ad. To integrate in this manner would allow interactive

Advertising take advantage of great exposure offered by place Advertising. Again, another

strategy to integrate is to distribute coupons online, serving as reward to motivate consumers,

who follow Gillette Fusion’s online updates, to be more involved in the communication

process.

10.3. Place Advertising

In order to stimulate the consciousness and awareness of Gillette Fusion, they should not only

focus on the indoor Advertising, but also the out-of-home Advertising. By posting transit ad

6 Refer to Appendix F. Magazine ad design

19

on buses passing by urban regions7, it enables Fusion campaign to penetrate more effectively.

Gillette Fusion should put the posters in the bus stop shelter, and place the transit ad outside

the bus to reach the target audience.

Gillette Fusion will place poster in the bus stop shelter where there are many travellers8. The

objective behind this is to provided a high exposure rate of Gillette Fusion and leave an

outstanding impression to the passers-by. This strategy would prove successful as time passes

by while consumers will recall Gillette Fusion unconsciously. This will help to remind them

to buy Gillette Fusion during the next purchasing period. Besides that, Gillette Fusion will

place the ads in the exterior of buses to increase the exposure of their brand. There is a lot of

design for the bus exterior such as the Full Wrap and Full Back which the size of the ads can

be varied depending on their preferences. They may choose one of the designs and place their

product on the bus, for example Gillette may choose the Full Wrap design to warp a bus with

Gillette Fusion to grab the attention of transit customers and passers-by. The budget allocated

for this communication will be S$500,000, and the cost consideration will be detailed in the

media plan section.

10.4. Consumer-oriented Promotion

10.4.1. Coupon

Coupon is the promotional tool that rewards consumers for purchasing the coupon-offering

brand. Coupons will be provided within the magazine ad and in online social media, where

the customers can cut them off or print them out and present them when purchasing Fusion

razors and cartridge blades. These coupons can be used in Watson, Guardian, Giant,

Carrefour, Fair-price, etc. The validity period lasts for two weeks from the day the magazine

released in to the market. The value of coupon will be at 20% off the usual price9. The

objective to provide coupon, again, is to boost short-term sales, to increase over market share,

and initiating product trial and brand switching among consumers. The strategy for coupon

distribution is that coupons will be coupled with magazine ad and interactive Advertising. By

doing so, the desired response to magazine ad or interactive Advertising is facilitated. Totally,

5000 coupons will be distributed, involving a budget of S$20,000. The cost is calculated as:

7 Refer to Appendix G. Bus ad design 8 Refer to Appendix H. Bus stop ad design9 Refer to Appendix I. Coupon design

20

Coupon cost = Gillette Fusion usual price x coupon price-off percentage x no. of coupon

distributed

= S$18 x 20% x 5,000

= S$18,000

10.4.2. Bonus Pack

Bonus pack is a extra pack that given to the consumer when they purchase the product at

regular price. However, for Gillette Fusion, the bonus pack will be such that when consumers

buy the razor at a higher price of $22 (U.P. $18), 2 sets of cartridge blade worth of $12 will

be given as the bonus. Such bonus packs will be available for sale at selected outlets

depending on the sales of the stores. The objective again is set around sales, market share,

product trial and brand switching among consumers. The strategy is to incentivize and

persuade immediate purchases. Moreover, the technique behind this promotion is to create a

quick response by the potential customers due to limited stock availability. The budget will

be approximately S$60,000. The cost is calculated as:

Bonus pack cost = [Cost of cartridge blade per set x no. of sets - (premium price - usual

price)] x no. of bonus packs for sale

= [ S$6 x 2 - (S$24 - S$18) ] x 6,000

= $36,000

10.4.3. Sweepstakes

Sweepstakes is a form of lucky draw that will determine the winner purely on the basis of

chance. It is particularly catering to Singaporean taste as locals have long been interested in

lucky draws such as Singapore pool. To initiating such a program, the objective remains the

same as other promotion tool aforementioned. The strategy is to deploy the sweepstakes

before the F1 series. Therefore, together with ongoing ads to promote Gillette Fusion and the

F1 series, the prize for sweepstakes, namely four tickets for F1, would become increasingly

more attractive.

The sweepstakes is also featured in interactive Advertising where information is updated as a

way to integrate. The budget will cover the final prize and the effort in organization the

course amounting S$20,000. The cost is consider as the following calculations:

Sweepstakes cost = Tickets of F1 Series x no. of tickets + administration expenses

= S$1,288 x 4 + S$6000

= S$11,152

21

10.5. Public Relations and Sponsorship

10.5.1. Public Relations

The first and foremost objective of public relations is to inform the public that Gillette will be

sponsoring the SingTel Singapore Grand Prix 2012 by holding press conference. Such move

will elicit media coverage and thus create buzz among general public. The intended positive

Word-of-mouth will promote the brand image. Besides, since its release four years ago,

Gillette Fusion has received many negative reviews and criticisms. Such reviews and

criticisms claim that the benefits of Gillette Fusion’s 5-blade technology are greatly

exaggerated and the price and profit margin for the product is too high. Therefore, another

goal of public relations would be to engage these independent media to review Gillette

Fusion favorably. Hopefully, the qualities of speed, high-status, and sophistication associated

with F1 would be translated into Gillette Fusion. Basically, an attitude change is expected in

the independence sources of information on Gillette Fusion so that Gillette Fusion’s positive

brand image among target market can be reinforced10.

While the first goal is proactive, i.e. informing, the second goal would be termed Reactive

Marketing Public Relations as it undertakes to deal with external pressures and challenges

brought about by the public. The ultimate objective is to prevent market erosion and regain

any lost sales. The fact is that, as Fusion’s parent brand Gillette has very strong brand equity,

consumers still hold positive evaluation to Gillette Fusion. The budget allocated for public

relations would be about S$50,000. Particularly, cost factors include Gillette Fusion’s share

in organization of press conference to announce the Gillette’s sponsoring, and sample Gillette

Fusion razors specifically packaged for various independent media to test and review.

Specific costs are calculated as follow:

Public Relations cost = Specifically packaged sample for media review x no. of samples +

cost shared for holding press conference x no. of conferences x

Fusion’s share percentage

= S$18 x 200 + S$30,000 x 3 x 40%

= S$39,600

10 Refer to Apendix J. Press release draft

22

10.5.2. Sponsorship

As the parent brand of Fusion, Gillette is reputed for its sports sponsorships. To increase sales

for Gillette products in Singapore and improve consumer attitude towards Gillette Fusion,

one of the considerations is to sponsor the SingTel Singapore Grand Prix 2012. The rationale

for F1 sponsorship is that this sensational event attracts attentions island-wide and it is

believed that F1 fans and the target market of Gillette are overlapping to a great extent. That

is, the F1 series are associated with the lifestyle of the target market for Gillette products. In

addition, F1 series appeal to audience with its sophisticated image, which coincident with the

brand image that Gillette aims to build from the very beginning, i.e. a sophisticated shaving

brand with engineering advancements and breakthrough technology. Moreover, the chance of

being noticed in the F1 series is high since there are currently one sponsor, SingTel.

The objective of F1 sponsorship would be to recapture market attention to the brand, to create

buzz, and to reinforce the brand image in a wish that the target market would be thus

persuaded to purchase the brand. Unlike SingTel that signed title sponsorship contract with

Formula 1, Gillette Fusion would only have to be a minor sponsor for the event because the

sponsorship is devoted only to Singapore market rather than global presence that SingTel

aims at (Lighthouse Independent Media 2008). In particular, the sponsorship contract would

specify the length of partnership, terms and conditions, costs and benefits (Dunn 2011).

Budget allocated to the sponsorship would be S$600,000. This consists in the cost of sharing

in the total sponsorship expenditure covered by Gillette, with other Gillette Brands such as

Mach 3, Sensor, etc. Such amount would benefit Gillette Fusion in the following ways.

Gillette brand name and logo appear on banners and signs along the racing track. Links to

Gillette websites are available on official websites of the SingTel Singapore Grand Prix 2012.

Besides, right to claim as official sponsor for the event in Gillette Fusion Advertisements is

granted. With such presences, Singapore market would perceive Gillette as more favorable,

legitimate, and established brand, thus benefiting Fusion as a subsidiary brand.

11. Media Plan

This section will elaborate on the media used for carrying out the marketing communication

activites. The strategies of media plan would support and help achieve the marketing

communication objective of Gillette Fusion. Attached in appendix P is the media schedule.

23

11.1. Target Audience

As mentioned earlier, the target audience for the Advertising campaign will be aspirational

males in Singapore, aged between 18 and 40, who love sport, live busy lives, and cares about

their personal appearance. For psychographics, they have busy lifestyle and value premium

and high-performance products. They are typically light or none users of Gillette Fusion or

users of competing brands. The media plan, hence, is designed with these people in

consideration.

11.2. Media Objective

Before choosing the coordinated media channels, it is important to determine on what these

media are suppose to achieve. A media objective usually incorporates six elements as

discussed below.

11.2.1. Reach

One of the elements in media objective prescribe that Gillette Fusion should aim to reach the

majority of the target market. For an Advertisement to be effective, it should reach a certain

proportion of the target audience. In this case, Gillette Fusion has coordinated different media

in order to reach 80% of their target audience. In addition, they planned to use multiple media

and different media vehicles, and vary the day-parts in terms of television, i.e. whether

Gillette Fusion should be Advertised in the morning or at night.

11.2.2. Frequency

The frequencies with which target audience is exposed should average at 2 times per week

for TV ad, at 2 times per week for newspaper ad, and at once per month for magazine ad.

Regarding place ads, the target audience is expected to expose itself three times per week for

both bus stop poster and transit ad.

11.2.3. Weight

To accomplish the first two elements, we have to set the objective of the third element, which

is weight. Gross Rating Points (GRPs) is the method employed here. GRPs defined as the

total number of ad exposures which is multiplication of the reach of media and the frequency

of exposures that target audience experiences with the ad in certain time of period (Pfajfar

2011). In Gillette Fusion’s case:

GRPs = Reach (R) x Frequency (F)

= 80 x 2.0

= 160

24

The figure suggests that for weight element, Gillette Fusion’s Advertising schedule must

achieve 160 GPRs from all the media vehicles combined.

11.2.4. Continuity

The fourth element, continuity is related to budget allocation over time. The budget allocated

to Advertising over the 1-year period will be characterized by pulsing schedule, with

especially heavy portion of budget placed during September 2012 when F1 series occurs.

Basically, the budget allocation would spread unevenly over the year.

11.2.5. Recency

To leave a deep impression, influence brand choice effectively, and optimize weekly reach,

the recency element requires that the first exposure of Gillette Fusion’s Advertising campaign

be as much close to the time when consumers feel the need to shave as possible. In addition

to the right time, the right place is important. Thus, the other recency requirement is that

Gillette Fusion razors should be placed on the most eye catching or evident locations possible

in retail stores so that it can influence the consumer choices making. There is no quantitative

measure for these two requirements in this regard anyway, but eventually, whether the

recency are fulfilled is based on the weekly reach.

11.2.6. Cost Consideration

The cost consideration as one of the elements of the media objective is important in

maintaining the efficiency of these channels. For Gillette Fusion, the cost-efficiency is

particular crucial as it budget is contrained. Cost per thousand (CPM) will be used as the

formula to understand the cost of employing a media per every thousand audience exposed.

Therefore, the standard for the cost should be in between S$50 - S$70 for every one thousand

audience.

11.3. Media and Vehicles

11.3.1. Television

For the ‘Top of the Class’ campaign, there are several media that will be utilized. Television

is a favorite one as it can reach mass audience and has a strong impact on people’s minds.

Even though the cost of Advertising on television is expensive, broadcasting at a particular

timing for the target audience would be beneficial. The media vehicle chosen for the Gillette

Fusion ad will be Channel 5. On the other hand, Gillette Fusion’s PR activities will be

25

integrated with television ad in that the sponsoring of F1 Series will be mentioned at the end

of the TV ad.

When deciding on putting an ad on television there are two factors that needs to be

considered: Firstly, the different programming segments and secondly the alternative outlets

for television commercial. For the first factor, since Gillette Fusion is generated towards men

the ad would be broadcasted during prime time at 9.00pm to 10.00pm every Thursday, Friday

and Sunday. Since the TV programme schedule for the year 2012 would change, the choice

of the programme will be decided once the programme guide is available. The rationale is

that during this timing most of the working men would be relaxing by watching the television

after a day at work. The ad would only be broadcasted in Channel 5, the local channel of

Singapore. Since, the ad is connected to the F1 series that will be held in Singapore, a great

amount of local awareness of the sponsorship would be a necessity.

The television commercial will follow the flighting strategy. Here, there will be different

level of expenditure on television ad throughout the year. This is done since continuous

exposure towards the ad might create a negative impact and boredom towards it. The TV

commercial will be broadcasted in four different time throughout the year. It will start in

January for three weeks to create a ‘buzz’ on Gillette Fusion’s F1 sponsorship, followed by

the whole month of June, end of August and September and lastly at the end of December.

The cost of buying a spot in Channel 5 and broadcasting the 30 seconds commercial will be

around S$240,000. The commercial will be broadcasted for a total of 15 weeks and in a week

Gillette Fusion will broadcast their ad 12 times. Since, MediaCorp is the parent company of

Channel5 and this is the first time VisCom is working with them. Therefore, MediaCorp

provide them with the ‘Welcome Tax’ package of S$ 16,000 for 12spots 11. These 12 spots

will be utilized for one week. Therefore the following cost is derived:

TV Advertising cost = Cost of purchasing spot x no. of weeks

= S$16,000 x 15

= S$ 240,000

In addition, since the sponsorship for F1 is shared among all subsidiary razor brand of

Gillette. Therefore, the filming of the Ad will be shared in terms of cost, even though the

11 Refer to Appendix K. Channel 5 price listing

26

particular brand included inside the commercial will be Gillette Fusion. The cost for Fusion

for the filming will be S$600,000.

11.3.2. Print Advertisements

The Fusion ads would be printed in a high quality newspaper and magazines to create the

high-end image. Straits Times is one of the renowned newspapers read by Fusion’s target

audience. In addition to the print ad, the PR news release will be expected to show up in

Straits Times as well. On the other hand, high quality men’s magazines such as Men’s Health

and August Man will be used to increase awareness and improve Fusion’s image.

Newspaper

Gillette Fusion is targeted towards adult male between the ages of 18-59; hence Straits Times

will be utilized to Adise the product. Out of the total Singapore population, Straits Times has

the highest daily read paper with 36%. It is also true that 3 out of 5 PMEBs

(Professionals/Managers/Executives/Businessmen) reads Straits Times. This is suitable for

Gillette Fusion since most of our targeted market falls in this category.

The newspaper ad will be integrated and serve as a support for the sales promotion activities

for Gillette Fusion. The ad will be printed in the month of March, May, August and

December. This will result in a total of 11 weeks, where the Ad will show in the main paper

every Wednesday and Friday. The cost of printing a full colour- full page Ad on Wednesday

is S$27, 828 and for Friday S$ 29,124 12From here the cost formula is derived:

Cost of Newspaper Ad = Cost of printing the ad on Wednesday & Friday x no. of

weeks

= (S$ 27,828 + S$29,124) x 11

= S$ 626, 472

Magazine

The most important factor to consider when Advertising through magazines, is to choose the

perfect vehicle to reach the target audience. In this campaign, the magazines chosen will be

Men’s Health and August Man. Since the Ad is directed towards men, this magazine will

serve the purpose. Furthermore, since the objective is to prove that Fusion is better than the

rest, Men’s Health and August Man is suitable since they are both high quality magazines.

12 Refer to Appendix L. The Straits Times price listing

27

Also, this allows Gillette Fusion to be looked as a healthy and at the same time fashionable

product. For both the magazines the ad would be printed as full color page with coupons

underneath the ad.

Both Men’s Health and August Man are published monthly, therefore the Fusion ad will be

printed for the month of February and September. The cost of printing the ad in both the

magazines vary. For Men’s Health13 a full color page ad costs S$ 3,800 and for August Man

it costs S$ 7,500 14Hence, the cost derivation is as below:

Cost of Magazine Ad (Men’s Health) = Cost of printing the ad x no. of magazines

= S$ 3,800 x 2

= S$ 7,600

Cost of Magazine Ad (August Man) = Cost of printing the ad x no. of magazines

= S$ 7,500 x 2

= S$ 15,000

11.3.3. Interactive Advertising

For online social media, Gillette Fusion will opt for YouTube and Facebook as the vehicles.

On YouTube, there will be a specific channel created for Gillette Fusion where Advertising

campaign and F1 series related videos would be uploaded. Consumers who view those video

and like and comment are selected to have online coupon as the reward through email. Again,

on Facebook, a Gillette Fusion page will be created on which news about promotions,

sweepstakes, and F1 series would be updated. Consumers who visit the page can also like and

comment on the page, in which case they would be rewarded the online coupons sent through

email. No costs will be involved in interactive Advertising as the services are free of charge.

Thus, the time frame for interactive Advertising will cover the whole year of 2012.

11.3.4. Place Advertising

For place Advertising, a specifically designed print ad will be placed at bus stops as poster in

city area. The total number of bus stops which have the poster will be 100, spreading over the

crowded locations. Thus, numerous bus travelers and walkers are expected to be exposed.

The time frame for bus stop posters lasts for 11 weeks starting from 6th August. This is to

integrate with other communication mix during the F1 Series when the major marketing

effort is deployed. 13 Refer to Appendix M. Men’s Health cost listing 14 Refer to Appendix N. August Man cost listing

28

On the other hand, transit ad will be available on the surface of buses. That is, the buses are

wrapped with Gillette Fusion’s ad. Specifically, medium and vehicles are such that SBS

buses 154 and 105 will be chosen as the double-deck buses carrying the Gillette Fusion

transit ad, and bus 36 would be the single-deck bus for the ad. These buses passing by the

central areas such as Orchard Road, Bukit Timah Road, etc. The time frame for transit ad will

be the whole year. Therefore, great exposure could be resulted and attentions are drawn to

Gillette Fusion. Car drivers and passers-by are the main audience.

The costs involved in place Advertising are calculated based on rate information sourced

online15 as follow:

Poster cost = one-time poster production cost per bus stop x no. of bus stops + poster

cost per week x no. of weeks x no. of bus stops

= S$180 x 100 + S$150 x 11 x 100

= S$183,000

Transit ad cost = (one-time ad production cost for Double-Deck x no. of Double-Decks +

cost per month for Double-Deck x no. of months x no. of Double-Decks) +

(one-time ad production cost for Single-Deck x no. of Single-Decks + cost

per month for Single-Deck x no. of months x no. of Single-Decks)

= (S$3400 x 2 + S$7000 x 12 x 2) + (S$2100 x 1 + S$3200 x 12 x 1)

= S$215,300

As shown, the total cost for place poster and transit ad will totaled $400,400.

11.4. Estimated Cost Revisited

The total estimated cost, after calculation, would be $$2,565,548, against the budget of S$3

million.

12. Evaluations and Control

Evaluation of the marketing media is indispensable because it measures the successfulness.

Distinctive methods are adopted to measure effectiveness of different marketing

communication tools. For Gillette Fusion, increase in sales is their ultimate objective, so

quarterly evaluation will be carried out to measure sales. Feedback from consumer survey

will be collected too to determine whether any corrective actions are necessary.

15 Refer to Appendix O. Bus cost listing

29

12.1. Traditional Media Advertising

As the objectives of TV and print ads are to reinforce a high-class brand image and to

increase sales, target audience who is able to recall and retain the ad would contribute toward

these objectives. Thus, the evaluation effort will be organized on these topics.

To evaluate TV commercials, pre-testing method, Ipsos ASI Next*TV, is utilized by showing

the finished ad to sample group within the target audience (Ipsos ASI 2009). For this pre-

testing, concept testing and focus group will be utilized. Therefore, Gillette Fusion is able to

predict the possible effect of the ad. The day after the ad has been launched in TV, newspaper,

or magazines, recall testing will be conducted. It helps to determine whether viewers are able

to recall, after seeing the ads in these traditional media. By interviewing people in recall

testing, it is able to gather information about consumer perception of the ads and how this

perception might influence their attitudes and beliefs towards Fusion. Lastly, tracking will be

used to inform awareness levels of the commercial and image of Fusion.

Alternatively, the degree to which the consumers like the ads will be measured. This is the

most powerful predictor, as likeability of an ad itself would ensure retention of the message

and higher probability of purchase. Hence, research into emotional response becomes the

main topic, with the self-report measurement being the evaluative technique. Consumers are

asked to self-report their feelings, in both verbal and visual means (Poels & Dewitte 2006).

12.2. Place Advertising

The objective of transit ad and poster is to reinforce existing awareness towards Gillette

Fusion among consumers. In order for Fusion to evaluate the effectiveness of place

Advertising, specific methods such as incorporating questions into consumer survey that are

related to the message conveyed in poster or transit ad. For transit ad, which has the full year

time span, if feedback from consumer survey suggests that it is less than ideal in producing

intended outcome, corrective actions could be taken to remove the ad from buses to save

costs.

12.3. Online Social Media Advertising

To measure the effectiveness of social media Advertising usually involves quantitative

criteria. For Facebook and YouTube, such criteria include how many people have like the

Gillette Fusion page and video and comments on them. By measuring on these criteria, it is

possible to understand the degree to which consumer is involved with the social media

Advertising. In addition, Gillette Fusion can also look into qualitative aspect by determining

30

whether the comments are favorable or unfavorable. Generally speaking, to measure

interactive Advertising means assessing on the popularity of Gillette Fusion in these social

media.

12.4. Consumer-Oriented Promotion

Misredemption occurs when the coupon is redeemed wrongly or for the wrong products

(Hiam 2009). Commonly the percentage of misredemption is around 15% - 40%. For Gillette

Fusion, this percentage could be used to evaluate the effectiveness of coupon promotion, and

it must be controlled lower than 25%. Moreover, to evaluate the coupon and bonus packs

promotion, the short-term sales after coupons and bundled products have been distributed

must be measured. As its objective is to entice purchase and consumer trial, the corrective

action here would be to stop providing coupon and bonus pack if it happens to be considered

ineffective. Lastly, for sweepstakes, the way to evaluate is to measure how many people have

participated in the luck draw.

12.5. Public Relations and Sponsorship

Public relations and sponsorship expenditure can be justified by increased brand equity and

financial performance. Since financial performance is the ultimate objective of the overall

integrated marketing communication plan, evaluative techniques for public relations and

sponsorship mentioned here will be only used for measuring non-financial performance such

as brand equity increase.

Specifically, Gillette Fusion has to conduct a statistical sampling survey for public relation

evaluation since its objective is to create buzz. The buzz creation suggests marketing effort to

engage people in talking favorably about a particular brand (Shimp 2010). Thus, the resultant

statistics will include the percentage of male population who is aware of the fact that Gillette

is the official sponsor for the SingTel Singapore Grand Prix 2012, and how many percent of

the respondents’ comments Gillette and/or Gillette Fusion favorably, etc.

For sponsorship, Gillette Fusion has to measure how many people attend the F1 series, and

then divide this figure by the their share in the overall sponsorship expenditure incurred by

Gillette. As the brand equity objective for sponsorship is to associate Gillette Fusion with

sophistication, competence, and speed, both pre- and post-surveys are required. The

questionnaires would include questions such as ‘Which adjectives you think can describe

Gillette Fusion’.

31

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14. Appendix A. Positioning of Gillette Fusion

B. Communication Process

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C. Budget

Communication Mix Budget (S$)

TV 1,000,000

Magazines 50,000

Newspaper 700,000

Social Media 0

Poster 250,000

Transit Ad 250,000

Coupon 20,000

Bonus Pack 60,000

Sweepstakes 20,000

Public Relations 50,000

Sponsorship 600,000

Total 3,000,000

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D. TV commercial storyboard

1. The commercial will starts with a F1 racer preparing himself to race.

2. The actor puts foam preparing to shave.

3. The F1 racers warming up to prepare for the race.

4. The actor takes Gillette Fusion and is ready to shave.

5. The race starts and the cars drive with high speed.

6. The Actor starts shaving, showing the speed and smoothness of Fusion.

7. The accuracy and gentle turning of F1 cars is shown.

8.Similar accuracy and gentle shaving by using Fusion us displayed.

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D. TV commercial storyboard (cont.)

16. Information on Gillette Fusion sponsoring SingTel Singapore GrandPrix 2012.

15. This picture showing the company logo

11. The 5-blades system of Gillette Fusion is displayed.

9. At the end of the race a new champion is born.

10. Similarly, the guy finishs shaving with a well shaven face and is like a champion.

12. The ads show how the 5-blades help to clean the face in one slide.

13. The ad will then show the design of Fusion.

14. Logo of Gillette Fusion is shown.

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E. Newspaper Ad design

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F. Magazine Ad Design

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G. Bus ad design

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H. Bus stop ad design

I. Coupon design

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J. Press release draft

Gillette Fusion to sponsor the next 2012 Formula 1 Night Race Singapore

GrandPrix

FOR IMMEDIATE RELEASE 27 February 2012 - The Gillette Fusion public relation team

announced today to confirm their decision to sponsor the 2012 Singapore Grand Prix. For

their ‘Top of the Class’ campaign, they want to make a very strong impact and therefore they

decided to sponsor the F1 race. The objective of this decision is to reflect the image of this

sport of speed and accuracy on Fusion.

S$500,000 has been assigned for this sponsorship. P&G has also approved this action, as they

believe this would improve the image of Fusion and increase their sales. They believe that

positive attitude would be developed on their 5-blade system razor.

About Gillette Fusion

The science behind Gillette Fusion addresses every aspect of interaction with both hair and

skin while taking into account dozens of variables reflecting the shaving habits and rituals of

men across the globe. Individually, these advancements, including low cutting force blades

with thinner, finer edges; a new blade stabilizer; and a hair-guiding micro comb improve the

performance of Gillette Fusion – the number one razor recommended by dermatologists in

the USA. However, the unique benefit of Gillette Fusion is the combination and engineering

of all these advancements, working together to deliver incredible comfort and an exceptional

shaving experience.

About Singapore Formula 1 GrandPrix

The Singapore Grand Prix is a motor race, currently in the calendar of the FIA Formula One

World Championship. The first race was held in 2008 and is held in the Marina Bay area of

Singapore. Since the signing of the contract, SingTel has been their main sponsor for the

Singapore GrandPrix.

This annual event features 3 full days of invigorating car races highlighting celebrity Formula

One car teams and worldwide leading car racers competing across the Marina Bay Street

Circuit. The F1 race that is packed with elite programs such as the series of exclusive

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celebrations, shows and exhibitions, race-themed events, celebrity-rocking music concerts,

dining and shopping events, and many more.

K. Channel 5 cost listing

*Source from MediaCorp Pte. Ltd.

L. The Strait Times cost listing

CPM ST ST ST

Readership (Mon-Wed) (Thu-Fri) (Sat)

Base Rate ($) 41.50 44.50 45.00

Full Colour Ad ($)

Full Page 27,828 29,124 29,340

Junior Page 19,113 19,779 19,890

1/2 Page 18,864 19,512 19,620

1/4 Page 14,382 14,706 14,760 *Source from Singapore Press Holding Ltd.

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M. Men’s Health cost listing

*Source from Singapore Press Holding Ltd.

N. August Man cost listing

*Source from Burda Singapore Pte. Ltd.

O. Bus ad price listing

Wholly Painted Single Deck Bus

Whoilly Painted Double Deck Bus

*Source from Moove Media