![]() Financial Daily from THE HINDU group of publications Wednesday, Jul 06, 2005 |
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Marketing
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New Products & Services Gillette bid to push for twin-blade razor sales Our Bureau
Mr Sumeet Narang, Regional Business Manager (Blades & Razors), Gillette India, with a model at the launch of Wilkinson Sword Twin 2 a twin-blade readyshaver in Kolkata on Tuesday. A. Roy Chowdhury
Kolkata , July 5 GILLETTE India Ltd has decided to focus on sales of twin blade razors with a view to ensuring higher realisations from unit sales, according to Mr Sumeet Narang, Gillette India Ltd's Regional Business Manager (Blades & Razors) in-charge-of India & South Asia. Addressing a news conference held here today to announce the launch of the Wilkinson Sword Twin 2 blade readyshaver, Mr Narang said that, in unit terms, twin blades account for four per cent of the overall market for blades, while double-edge blades account for 96 per cent. In value terms however, twin blades account for 20 per cent of the gross sales realisations. According to him, the size of the domestic market for blades has been pegged at Rs 550 crore. The market, however, was dominated by low-priced blades even as the disposable razor category had registered an annual growth rate of around 10 per cent. The Gillette Wilkinson Sword Twin 2 blade readyshaver was priced at Rs 10 and was positioned as an entry-level brand that was specifically targeted at the "price-sensitive customer". It would be pushed aggressively in markets in the North East, eastern and western India. Gillette India has planned several marketing and advertising initiatives aimed at pushing sales of its product offerings, including the newly-launched Wilkinson Sword Twin 2 blade readyshaver. In 2004-05, the company spent Rs 58 crore on advertisements and sales promotion initiatives. Last fiscal, it recorded a turnover of Rs 406 crore from sales of blades, razors and oral care products, among others things. In 2003-04, the company registered a turnover of Rs 363 crore. Mr Narang expressed the hope that the company's momentum of growth would be maintained in the current fiscal even as the promotional corpus as a percentage of its turnover would be maintained at last year's levels.
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