1.

0 EXECUTIVE SUMMARY
Treet Corporation Ltd has been the leading brand in mens grooming industry across the
Pakistani market. With its wide range of products caters to the premium segment of the mens
grooming market. It faces intense competition in the razor market whereas the competition in the
blade market is not that intense.
This case study aims at identifying the problems faced by TCL in the razors market. We have
suggested a plan for TCL Safex Razor along with other suggestions for TCL to face the
competition by launching new product (Safex Razors) in the near future.
2.0 SITUATIONAL ANALYSIS
Of TCLs recent moves, is the hygienic razors. TCLs track record is shaky, with successes in the
1990s and 2000s into Pakistani market for hygienic razors by name of PAKI, Hygiene razors.
But TCLs strength is are convinced they can use their strong brand name as an umbrella for a
wider range of hygienic products. The line includes 1- 2 items, notably for under shaves and a
gel shaving cream. The most innovative product: hygienic razors with comb and shaving cream.
Will it work? Procter & Gamble now owns Gillets distribution in Pakistan, Colgate
market Korean product DORCO. But nobody has a better brand name than TREET in
Pakistan.

That means higenic razors become a kind of profit leader for TREET RAZORS business. But
would retailers refuse to stock Gillettes bladesthe best-selling hygenic RAZORS in Pakistan.
2.1 MARKET SUMMARY
The market for mens hygenic has developed in tandem with a number of lifestyle changes
affecting the population in general, and men in particular. These include a growing interest in
health, fitness and appearance among consumers, with the rise in gym attendance having
been of particular consequence to the market for mens hygines. There have also been
changes in mens perceptions of themselves. However, despite many attempts to `label this
phenomenon, there is now a recognition that these changes have been more subtle than first
thought and that changing the habits of men is not particularly easy. The development of the
mens magazine market, was very important in providing direct contact with male consumers
through advertising. However, this sector declined sharply (in both volume and value terms)
lately. Demographic trends (in particular, the ageing population) have not been particularly
favorable to the mens hygienic market. However, between in recent years, there was a
significant increase in the number of men in the 15 to 40 age range. These men tend to be mass
market consumers and their numerical strength, combined with a willingness to spend time and
money on skincare products and grooming routines, has been beneficial to the hygienic product
market in general.
There are forecasts indicating that the male hygienic and toiletries market will continue to be
more dynamic. There is still plenty of room for growth in the former market, in particular as the

current generation of young males reach a more mature life stage and, hopefully, will be more
willing and able to spend on premium products.
2.2 KEY ENVIRONMENT TRENDS
2.2.1 Competitive Environment
TCL experiences intense competition for sales of its RAZOR products in most markets. Treet
Corporations products compete with widely advertised, well-known, branded products, as well
as private label products, which typically are sold at lower prices. In most of its markets, TCL
has major competitors, some of which are larger and more diversified than TCL. Aggressive
competition within TCLs markets to preserve, gain or regain market share can affect TCLs
results in any given period.
2.2.2

Changes in Technology & New Product Introductions

In most product categories in which TCL competes, there are continuous technological changes
and frequent introductions of new products and line extensions. TCLs ability to successfully
introduce new products and/or extend lines of existing products depends on, among other things,
TCLs ability to identify changing consumer tastes and needs in local and international markets,
develop new technology, differentiate its products and gain market acceptance of new products.
TCL management is confident that it will successfully achieve these goals.
2.2.3

Intellectual Property

TCL relies upon patent, copyright, trademark and trade secret laws in the Pakistan and in other
countries to establish and maintain its proprietary rights in technology, products and Treet
Corporations brands. Treet Corporations intellectual property rights, however, could be
challenged, invalidated or circumvented. TCL does not believe that its products infringe the
intellectual property rights of others, but such claims, if they are established, can result in
material liabilities or loss of business.
2.2.4

Cost Savings Strategy

TCL has implemented a number of programmers designed to reduce costs. Such programs will
require, among other things, the consolidation and integration of facilities, functions, systems
and procedures, all of which present significant management challenges. There can be no
assurance that such actions will be accomplished as rapidly as anticipated or that the full extent
of expected cost reductions will be achieved.
2.2.5

Sales & Operations outside of the United States

Sales outside of the Pakistan represent a substantial portion of TCLs business. In addition, TCL
has a number of manufacturing facilities and suppliers located in various places of Pakistan.
Accordingly, the following factors could adversely affect operating results in any reporting
period:

- Changes in political or economic conditions;

- Trade protection measures;
- Import or export licensing requirements;
- The overlap of different tax structures;
- Unexpected changes in regulatory requirements or tax laws; or
- Longer payment cycles in certain markets.
TCL also is exposed to foreign currency exchange rate risk to its sales, profits, and assets and
liabilities denominated in currencies other than the Pakistani Rs. Although TCL uses instruments
to hedge certain foreign currency risks (through foreign currency forward, swap and option
contracts and non-TCL products denominated financings) and is implicitly hedged through its
foreign manufacturing operations, there can be no assurance that Treet Corporation will be fully
protected against foreign currency fluctuations.
2.2.6

Retail Environment

With the growing trend towards retail trade consolidation, especially in developed markets such
as the Middle East and Europe, TCL is increasingly dependent upon key retailers whose
bargaining strength is growing. Accordingly, TCL faces greater pressure from retail trade
customers to provide more favorable trade terms. TCL can be negatively affected by changes in
the policies of its retail trade customers, such as inventory destocking, limitations on access to
shelf space and other conditions. Many of TCLs customers, particularly high-volume retail trade
customers, have engaged in accelerated efforts to reduce inventory levels and shrinkage and
change inventory delivery systems. While TCL expects the level of trade inventory of its
products to decline over time, the speed and magnitude of such reductions and/or the inability of
TCL to develop satisfactory inventory delivery systems could adversely affect operating results
in any reporting period.
2.3 MARKET PROFITABILITY & GROWTH
Treet sold only 7 razors and 12 blades in its first year, but then discovered that men were
Willing to pay up to Rs 15.00 for his new razor. Instead of paying at the local barbershop, men
could now shave at home without the bother of sharpening the blades. Because blades were so
cheap, they could be thrown out when they blunted. As shaving at home became cheaper and
easier, social customs changed to encourage daily shaving. With these changes, Treets business
boomed. By that time, Treets domestic market share had grown to exceed 90%, a leadership
position it had sustained ever since.

Treet then focused on growing sales at home and abroad. The companys strategy turned to push
for an extensive international. To supply foreign markets, which accounted for almost half
of Treets total sales and the growing demand in the Pakistan, Treet built new manufacturing
plants in Lahore.

Then Treet began to expand its product line into other shaving products. Few of these products
was very successful, and Treets management began to consider expanding outside the
normal shaving to hugenic products industry to reduce the companys dependence on
blades.
Treet has five major lines of business: blades and razors, toiletries, Packaging products, Motor
bikes, paper and board products. Blades and razors contributed over 80% of Treets profits
through most of the 2000-2011. This performance let the company meet its stated goal of
sustained profitable growth.
This tradition of profitable growth was challenged when profits on blades and razors
faltered and the price of Treets stock stagnated. The diversification strategy that distracted
managements attention from blades and razors had diluted the valuable Treets brand name
by associating it with other-shaving products.
To rectify that, Treets management had to improve operating performance. Some managers
believed that Treets should concentrate on the blades and razors and sell off the other
businesses, while others thought that those businesses should be retained but revamped. Treets
CEO believed in the synergy of the different businesses and regarded product innovation as
the key to growth and profits. The result was the Sensor gamble.
The introduction of a line of mens hygienic razors (Treet Series) that was years in
development represent a risky, perhaps final, attempt by Treets to fix its flagging operation. The
trouble: Despite its pre-eminence in razors and blades, Treets has had difficulty persuading
men to stock other Treets goods in their medicine cabinets. In part, thats because its
offerings, including Right Guard hygienic razors, shaving cream, have suffered from
unfocused marketing and commodity pricing.
2.4 CUSTOMER METRICS
2.4.1 Market share
Few firms have dominated an industry so completely and for so long. Razor shaving is 90
million market. Treets share is 50 percent, with the remainder divided among Schick (5 percent),
Bic (11 percent), Korean razors and blades (2 percent), Gillete (20percent) and a number of
private brands.

Disposable Razor Market Share

2.4.2. Satisfaction
Men hygenics preliminary main two segments are:
Experimenters and Adopters: This category of consumer comprises of males from the age
group 16-30 years. These are the people who are willing to try new brands. These people are
generally found to be taking more care than others in terms of grooming. These people want to
make a style statement through the products they are using and hence are generally found using
highly advertised products. They tend to prefer shopping centres with a wide variety.
Suspicious Traditionalists: These are men who are more traditional and not very much willing
to try new brands. They are a slightly older age group (33-50 years) whose main concern is the
safety and health of their skin. They also show a preference for products or brands that have been
present in the market place for many years and which they have already tried and tested.
We can conclude that, Treet Hygenic primarily targets consumers which are more focused
on the product attributes.; whereas the perception of price sensitive consumer towards Gillette
is of an over-priced brand.
For price sensitive customers products like Gillete, are also satisfying than Treet.
Treet is considered to have the best packaging among all the brands. This feature highlights
the fact that point of purchase is an important selling point for the razors market and Treet
has been outperforming the competitors.
High satisfaction in the availability in stores shows the robust distribution system that Treet
has put into place to cater to diversified markets.
In the customer-value hierarchy, Customers evaluate Treet to be significant along the product
attributes and the point of purchase factors, giving it an image of high quality brand with
attractive packaging and best availability. Dorco and Shick are its closest competitors in attribute
and price sensitivity respectively. Treet lags behind all its competitors in price sensitivity which
includes price and offers. Additional features of the Treet hygine razors have below satisfaction
level performance which implies that the variants introduced in the market for hygine razors
have not able to satisfy the demand of the consumers.
In analysing this case, it has been deducted that consumers are most satisfied with Treet
hygienic razor (Safex) in all cases except when the purchasing decision is based on price
along with additional features.
2.4.3. Loyalty
The study argues that it can be concluded that the Brand loyalty in the Treets Razors line
segment has proven to be low compared to Treets razor segment where customers would not
stick to it and would easily switch to substitutes. The case also argues that convincing

consumers that the Treet Series line is actually better and the higher price justified is more
difficult than in the case with Sensor.

With the razor, Treet had name recognition as the dominant firm in the industry. In addition, the
design differences in the Sensor were visible, and a consumer could directly experience the
closer shave. With the hygienic razors, Treet does not have a strong position in consumers
minds, nor are the benefits provided by the products obvious.
2.5. BRAND WEAKNESSES & STRENGHTS (SWOT)
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing Treet.
2.5.1. Strengths
Strong brand equity Treets portfolio contains well established brands such as Treet. It eases
the introduction of new products, as consumers are already well acquainted with the names and
more receptive to promises of improved user experiences. The strength and quality image of
these brands allows the company to charge higher prices and achieve high margins.
Market Leadership the Companys products are well known with a reputation of quality and a
market leader in its respective market.
Well Diversified portfolio Treet has a well-diversified portfolio in terms of product
diversification and market diversification. Diversification of this nature helps the company avoid
the risk of overdependence on any one source for its revenue stream.
Technological Innovation Treet has always been an industry innovator, with ample budget
allocation for R & D.
2.5.2. Weaknesses
Profitability highly dependent on core business Treets profitability is highly reliant on the
performance of its razors and blades business. A substantial portion of its revenues come from
this sector. Any downturn in the sector or in Treets competitive position within it could have a
serious negative effect on the company.
Over-reliance on high-street retail outlets for example, Whole sale Stores is Treets major
customer. With a large part of its revenues originating from a single costumer, the company is at
risk of adversely affecting its business, operating results and financial condition if its strategic
relationship with Whole Sale Stores is terminated for any reason.
2.5.3 Opportunities

New product launches Treet is known for constantly introducing new products in the market
with better technology and performance. This new product launches will help the company to
gain competitive advantage over its competitors.
Price increases in premium shaving segments Treet has been increasing the price of its razors
and blades at an average rate of around 4% per year over the last ten years. This price increase
will help the company to accumulate more profits from the present level of sales.
Changing Societal Attitudes Due to increased awareness and rising income levels, the industry
is undergoing a major shift from traditional double-edged razors segment to twin, triple until five
blades razors segment. Within the industry, cosmetics and personal care industry has been
growing at an average rate of 20 per cent for the last few years. However, current consumption is
still below many countries in Asia which shows that there are further growth opportunities. Thus,
the industry is growing at a decent rate but still is at an infant stage and this offers great
opportunities to players like TREET to expand their customer base to include higher number of
lower middle class people and thereby increase their revenues and profitability.
2.5.4 Threats
Imitations / disposables are a threat to the TREETs offering TREETs ability to sustain a
price premium and earn an attractive return on its extensive investment Sensor, including
disposables and private label systems, and even including TREETs own three-blade disposable.
This numerous imitations are threat to the company in the long term as they going to reduce the
sales of the original products.
Pressure on pricing power TREETs pricing power is being further eroded by channel
migration and increasing consumer resistance to paying significantly higher prices for
innovation. Pricing power is key to revenue growth in a mature category especially when
TREETs strategy has historically been to drive revenue growth per consumer and not volume
growth.
Competitive environment TREET faces intense competition in most markets. Its products
compete with widely advertised, well-known, branded products, as well as private label products,
which typically are sold at lower prices. The companys survival depends upon its ability to
adopt itself in this kind of competitive environment.
3.0 COMPETITION
3.1. Competitive Forces
3.1.1. Threat of Intense Segment Rivalry
The segment of toiletries to TREET is already unattractive because it already contains
numerous, strong and aggressive competitors and have high stakes in staying in the segment.

These conditions lead to frequent price wars, advertising battles, and new-product introductions
and is making it expensive for TREET to compete.

3.1.2. Threat of New Entrants

In the hygienic razors segment, entry barriers are high due high set-up costs as well and exit
barriers are high too.
3.1.3. Threat of Substitute Products
In this segment, there are actual and potential substitutes for Treets Hygenic. Substitutes are
placing a limit on prices and profits. Due to technological advances and increase in competition,
prices and profits are likely to fall.
3.1.4. Threat of Buyers Growing Bargaining Power
Buyers in the hygienic razors and creams segment possess strong or growing bargaining power.
Mackro being the main retailer for Treets products makes us conclude that the potential
profitability can become curtailed. This growing buyers bargaining power increases because
hygienic razors represent a significant fraction of the buyers cost and the products are
undifferentiated, and the buyers in this category are price sensitive.
3.1.5. Threat of Suppliers Growing Bargaining Power
For Treet, this threat represents the least threat possible because its the manufacturer of its own
products and maintains a win-win relationship with its raw-material suppliers, in addition to
maintaining a powerful supply-chain management model over the years. Moreover, global
competitiveness always keeps suppliers prices low.
3.2. Competition Analysis
The two main competitors for Hygenic Razors business are:
P& G, especially by acquiring Gillete distribution
Colgate-Palmolive, especially by owning hygienic creams
4.0 MARKETING PROCESS: EFFICIENCY/EFFECTIVENESS
4.1 Product Development
At TREET, it seems that almost everyone gets involved in one way or another with new-product
development. TREET also excels at bringing new products to market. The company understands
that, once introduced, fledgling products need generous manufacturing and marketing support to

thrive in the hotly competitive consumer products marketplace. To deliver the required support,
TREET has devised a formula that calls for R&D, capital investment, and advertising
expenditureswhich it refers to collectively as growth driversto rise in combination at
least as fast as sales. Thus, over the decades, superior new products have been the cornerstone of
TREETs amazing success. The company commands the loyalty of more than 700 million
shavers in 45 countries around the globe.
4.2 Marketing of Hygenic Razors
Significant development and manufacturing costs dictated a premium price for Hygenic Razors.
TREET planned to price the razor at a level lower than some non-disposables but judged high
enough to preserve Sensors prestige image. After allowing for the fact that disposable blades
tended to provide fewer shaves than cartridge blades, it appeared that Safexs cost per shave
would be slightly high. Such calculations were predicated, however, on specific assumptions
about the number of satisfactory shaves per blade.
Launch patterns raised a second issue. TREET favoured introducing in January 2010 in the
Pakistan,
Advertising levels constituted a final marketing issue. TREET had already ratcheted up its
advertising expenditures. The Safex team was proposing an advertising campaign that would
pump up the costs already being incurred to support existing razors by an additional Rs10
million based on the fact that theres a price of entry in most consumer product categories and
that lots of companies try to cheat, if you will, on putting the kind of dollars behind their
program that is critical to its success.
4.3 Competitive Positioning of Safex Hygeinic Razor
The team wanted the disposable razor and become the best-selling razor in the market. It was
unclear how well this quality over price positioning would work.

5.0. GAPS IN PERFORMANCE, RELATIVE TO CORPORATE VISIONS/GOALS

The Gillette approach to innovation (which started with the SENSOR in late 80s when they faced
the threat from the BIC disposable razor) is a classic example of big R&D leading to a
blockbuster product. This approach is getting outdated. In sharp contrast is P&Gs connect +
develop programme which is actively seeking technologies and ideas from the outside world,
which are relevant to its categories /consumers and which can be successfully commercialised.
This is not a covert corporate effort. There is dedicated website for it. There are already 5-6 big
hits which have come out of this programme and come to think of it P&G with over 1000 Ph.D.
scientists has perhaps the largest in-house R&D strength within the FMCG world. This is more
than a subtle shift. Every consumer goods company realises that to stay ahead of the game (in an
environment of media fragmentation and big retail squeeze) they dont just need to innovate
faster and cheaper, but also have REAL innovation, which the consumer values enough to pay a
.0 MARKETING PROCESS: EFFICIENCY/EFFECTIVENESS

4.1 Product Development

At Gillette, it seems that almost everyone gets involved in one way or another with new-product
development. Gillette also excels at bringing new products to market. The company understands
that, once introduced, fledgling products need generous manufacturing and marketing support to
thrive in the hotly competitive consumer products marketplace. To deliver the required support,
Gillette has devised a formula that calls for R&D, capital investment, and advertising
expenditureswhich it refers to collectively as growth driversto rise in combination at
least as fast as sales. Thus, over the decades, superior new products have been the cornerstone of
Gillettes amazing success. The company commands the loyalty of more than 700 million
shavers in 200 countries around the globe. Gillettes new-product prowess is so much a part of its
image that it has even become the stuff of jokes.

4.2 Marketing of Sensor

Significant development and manufacturing costs dictated a premium price for Sensor. Gillette
planned to price the razor at a level lower than some non-disposables but judged high enough to
preserve Sensors prestige image. After allowing for the fact that disposable blades tended to
provide fewer shaves than cartridge blades, it appeared that Sensors cost per shave would be
slightly high. Such calculations were predicated, however, on specific assumptions about the
number of satisfactory shaves per Sensor blade. If consumers used Sensor for just one more
shave than the predicted 10 to 12 shaves per blade, the implied losses in unit volume might
significantly affect Gillettes bottom line.

Launch patterns raised a second issue. Treet favoured introducing Sensor in January 1990 in the
United States, during the Super Bowl, followed by rollout within a few days in 16 European
countries, and within a month in Japan (where Gillette trailed Schick, the first-mover). The
same visuals and music were planned for each country, although languages were to be varied
appropriately. Gillettes international rollouts had been staggered rather more in the past and had
been tailored on a national basis to address perceived nuances within each cultural area.

Advertising levels constituted a final marketing issue. Gillette had already ratcheted up its
advertising expenditures. The Sensor team was proposing an advertising campaign that would
pump up the costs already being incurred to support existing razors by an additional $100 million
based on the fact that theres a price of entry in most consumer product categories and that lots of
companies try to cheat, if you will, on putting the kind of dollars behind their program that is
critical to its success.

4.3 Competitive Positioning of Sensor

The Sensor team wanted Sensor to be the antithesis of the disposable razor and become the bestselling cartridge razor in the North Atlantic market. It was unclear how well this quality over
price positioning would work. If price-sensitivity continued unabated, Gillettes top
management would probably be ousted. And when Sensor did meet market share forecasts, its
profitability to Gillette now depend on the sources from which it drew its customers.
5.0. GAPS IN PERFORMANCE, RELATIVE TO CORPORATE VISIONS/GOALS

The Gillette approach to innovation (which started with the SENSOR in late 80s when they faced
the threat from the BIC disposable razor) is a classic example of big R&D leading to a
blockbuster product. This approach is getting outdated. In sharp contrast is P&Gs connect +
develop programme which is actively seeking technologies and ideas from the outside world,
which are relevant to its categories /consumers and which can be successfully commercialised.
This is not a covert corporate effort. There is dedicated website for it. There are already 5-6 big
hits which have come out of this programme and come to think of it P&G with over 1000 Ph.D.
scientists has perhaps the largest in-house R&D strength within the FMCG world. This is more
than a subtle shift. Every consumer goods company realises that to stay ahead of the game (in an
environment of media fragmentation and big retail squeeze) they dont just need to innovate
faster and cheaper, but also have REAL innovation, which the consumer values enough to pay a
premium for and which retailers value enough to list it in their outlets. Imagine going to Wal-

Mart and asking for Shelf space because the company is launching a new extension of an already
established Gillette Gel brand, called Gillette Gel with Aloe Vera.

If Gillette was truly an innovative company it would have not missed the boom in the Male
grooming segment. They stayed focused on just one aspect of the male grooming regimen
(shaving) while Old Spice for Men, in the mass market and Clinique for Men, in the premium
segment took the lead. Gillettes belated attempt the Gillette Series came in a bit too late. So
what is the big point! Its about consumer centricity vs. brand /product centricity. By
narrowly defining its brand around shaving Gillette missed a huge opportunity. There was no
other brand in a mans toilet kit stronger than Gillette and they blew it up. If they were spending
time researching evolution of the male grooming habits (instead of tracking the rate at which the
facial hair grows), other brands that focused largely on Mens toiletries would not have been the
market leader in that range.

The application of the manufacturers brand can have important strategic implications. Gillette
consciously limited or de-emphasized the use of its name on its products. A key reason was
the desire to enter multiple product categories, many of which were sold to women. Gillette was
attacked by Bic through employing the opposite strategy to great effect. Bic built a formidable
company across multiple categories with a single brand essence: good enough, plastic
disposable products at a very low price, with a bit of personality. The strategy built sizeable
advantages in plastic extrusion and superior scale in branding and distribution. With toiletries,
Gillette is tying the new line to the Sensor but using a different brand name. If consumers
dont associate the Gillette series with the innovativeness and success of Sensor, the new line
may just be another brand in the already cluttered market.

Gillette has made extensive promotion campaign for its razors in the market and the world
market. Tiger Woods, David Beckham and Terry Henry are a few of Gillettes global
ambassadors called Gillette Champions. But for toiletries, Gillette does not have any brand
ambassador nor has been much of advertisements. In fact, there is only one ad for Gillette
Series Shaving Gel shown not too prominently. For the toiletries products, Gillette has coadvertised with its razors.

6.0. STRATEGIC ISSUES THAT REQUIRE MANAGEMENT ATTENTION

6.1.
Difficulty convincing consumers that the Gillette Series is actually better than
the competition and the higher price justified.

ALTERNATIVE 1: Behavioural Segmentation

Using this strategy, Gillette will divide buyers into groups on the basis of their knowledge of,
attitude toward, use of, price-sensitivity, loyalty and response to the product. The advantages are
to combine different behavioural bases that can help provide a more comprehensive way to break
down a target market by various behavioural segmentation bases. Gillette can also learn a lot by
analysing the degrees of brand loyalty and relation to price. Split loyalty, for example, can show
Gillette which brands are most competitive with its own, in addition to learning its marketing
weaknesses and attempt to correct them. The disadvantage is that what would appear to be one
purchase pattern due to certain behaviour (loyalty), for example, may reflect other behaviours,
such as, habit, indifference, a low price, a high switching cost, or the unavailability of other
brands.

ALTERNATIVE 2: Differentiated Marketing

By adopting this method, Gillette will operate in several market segments and apply product
modifications indesign/ingredients of Series to fit each segment. Advantages are that
differentiated marketing typically creates more total sales. However, a disadvantage is that it
also increases the costs of doing business, because it leads to higher sales and higher costs,
nothing general can be said about the profitability of the this strategy. Gillette should be cautious
using this strategy about over segmenting their market. If this happens, counter segmentation
measures should be taken.
ALTERNATIVE 3: Mixed Bundling Pricing
Since the Gillette Series line products are closely related in consumption behaviour, mixed
bundling pricing could be a solution by offering the products both individually and in bundles.
Gillette will charge less for the bundle than if the items were purchased individually, for
example, aftershave and gel. The advantage is that customers may not have planned to buy all
the products, but the savings on the price bundle will be enough to induce them to buy it. The
disadvantage would be that as promotional activity increases on individual items in the bundle,
buyers perceive less savings on the bundle and less apt to pay for it.

6.2.

With the razors, TCL have a strong position in the consumers mind

ALTERNATIVE 1: Lifestyle Positioning

Treet as a global brand is well suited for lifestyle positioning. Lifestyle positioning allows
consumers to wear a badge on how they want to be perceived. For consumers, lifestyle can be
seen as self-indulgent but also as a reward for a life of hard work and achievement. It is not
something experienced as passive observers, but rather something engaged in by all senses. More
often than not, it involves a sense of community which is dynamic, individualistic and
experiential. A value platform can be a solid base for Treet to expand into markets, where
consumers are becoming more aspiration and are moving out of basic needs into early wants. An
advantage is that it puts the consumer in charge rather than the distributor, intermediaries, and
retailers. It is also a pivot for entering emerging markets by introducing the idea of affordable
pricing for value. The disadvantages are that Treet needs to identify the key attributes or
benefits that represent the value of Treet Series along with investing heavily in customer-value
market research and promises have to backed by support all the time to reinforce the Series
value and hype.

ALTERNATIVE 2: Feature-driven Differentiation

Treet should try relying on the Series features to differentiate it. The advantage is that the
message is clear and the positioning will be credible if they stick to the facts about the product,
especially that the trust is already there through the shaving experience. Unfortunately, the
disadvantage is that feature-orientated stances are often rendered useless if the competition
comes out with a faster or more advanced model.

ALTERNATIVE 3: Online Branding

Building an online Treet Series brand doesnt mean they are cheap. The main benefit is that
they are going to be fast, and they will have a large selection. The prices in this case are not as
important, service is not as important. Selection and delivery are the buzz word. The Web will
allow Treet Series to take on new edge or benefit that the company would not be able to use
in the real world. For instance, the Series on the store shelf does not give many choices about
the positioning of the products. An advantage of being online, however, Treet can brand itself as

more than just toiletries supplier, but rather as a hygiene/beauty expert. The site can walk
visitors through a personalized analysis based on their needs, complexions and usage level. Once
the information is entered into the database, answers are compressed, data is cross referenced,
and information telling the customer which products to use from the Series and when. Another
advantage is building a community Community is the other buzz online. If Treet can
stimulate a community around it, then it has a powerful ally. For a community to be successful, it
needs to have a category that will engage people and spur them to want to talk with one another,
what better category than toiletries Treet Series? Customers of the Series will have
opinions about what they like and dont like, which leads to many opportunities for community
interaction and product development at the same time.

ALTERNATIVE 1: Value Pricing (Combination of high-low and everyday low pricing)

Treet has priced its Treet Series well above the industry average. The Perceived-value pricing
strategy suggests that Treet is leveraging its customer loyalty (i.e. the consumers who are brand
loyal to Treet razors). Treet has been using Perceived-value pricing strategy for its toiletries
products based on the buyers image of the product performance (Treet quality perceived image),
the channel deliverables and Gillettes reputation, trustworthiness and esteem. This strategy has
not been working well for Treet in the toiletries category as this segments customers are pricesensitive because they are frequent users of this category of items. Value pricing strategy would
be better for Treet because the toiletries is a highly price sensitive and low price stimulus market
growth industry. Its advantages is that production and distribution costs fall with accumulated
production and a low price discourages actual and potential competition, in addition to
maximizing market share in this category. Value Pricing is aimed at wining loyal customers by
charging fairly low price for a high-quality offering. It isnt a matter of simply setting lower
prices it is a matter of reengineering the Treet operations to become low-cost producer without
sacrificing quality a strategy already adopted in the razors category to attract a large number
of value-conscious customers. Disadvantages would be the risk of getting trapped in to either,
low-quality trap, fragile-market-share trap or price-war trap. In addition, Gillette has to be
willing to make a commitment to have and be able to operate with lower ratios of expense than
everybody else.

ALTERNATIVE 2: Brand reinforcement

Treet brand needs to be carefully managed so that its value doesnt depreciate. Treet brand equity
can be reinforced by marketing actions that consistently convey the meaning of the brand in
terms of what products does the brand represent, what are the core benefits it supplies, how the
brand makes the products superior, and which strong, favorable and unique brand associations

should exist in the consumers mind. The advantages are maintaining the brand equity value
and ultimately supporting all the brand products
ALTERNATIVE 3: Brand extension

Everything begins with shaving its the ultimate male ritual the big man moment of the day.
And this ritual can be used as a pivot for selling men a host of other toiletries based on the
Sensor shaving ritual, from moisturizers and anti-ageing creams to fragrances and bronzing
lotions. If the subtle link with the shaving ritual is established, the products take on a masculine
image and the consumer doesnt feel feminized. By using this strategy, Treet is leveraging
Sensor to introduce the Series under the same brand name. Two main advantages of brand
extension are that they can facilitate the Series acceptance and provide positive feedback to the
Sensor and Treet. The disadvantages are that line extension may cause the brand name
Sensor to be less strongly identified with any one product. The risk of brand dilution can occur
if the consumers no longer associate Sensor with a specific product. The worse possible
scenario is for Treet Series not only to fail, but also to harm the Sensor brand image. Another
pitfall is that even of sales of Treet Series are high and meet targets, the revenue may be
coming from consumers switching to the extension from and existing parent offering in effect
cannibalizing Sensor. By using this strategy, Treet also forgoes the chance to create a new
brand with its own unique image and equity.

ALTERNATIVE 1: Co-Branding

Treet will do good combining its toiletries products with one of its main competitors, such as
P&G or Colgate-Palmolive (co-branding). The main advantage is that the toiletries line of
products may be convincingly positioned by virtue of the multiple brands. Generate greater sales
from the existing target market as well as opening additional opportunities for new consumers
and channels. It images and speeds adoption, in addition to learning about consumers and how
other companies are approaching them. The potential disadvantages are the risks and lack of
control in becoming aligned with another brand in the minds of the consumers. Consumer
expectations about the level of involvement and commitment with co-brands are likely to be
high, so unsatisfactory performance could have negative repercussions for both Treet and the
other brand. On the other hand, if the other brand has entered into a number of co-branding
arrangements, overexposure may dilute the transfer of any association. It may also result in a
lack of focus on existing brands.

ALTERNATIVE 2: Guerrilla Warfare

We would argue that Treet is a market challenger in the toiletries business after a life-time focus
on shaving. Being a market challenger with Treet Series. Treet can adopt the Guerrilla attack.
The idea is to wage small, intermittent attacks just to harass and demoralize its competitors with
the launch of the new line, and eventually secure permanent footholds. These attacks could
include selective price cuts, intense promotional blitzes, and legal actions on patents. The
advantages is simply exhausting the competitors and gaining territory meanwhile. Treet can
challenge consumers to be the judge by investing heavily on creating a volunteers campaign to
try the Series and enter their feedback on-line. The disadvantages are that these attacks can be
expensive and ultimately they must be backed by a stronger attack if Treet hopes to beat the
competitors. There is also the risk of crossing the legality or the morality line.

ALTERNATIVE 3: Segment-by-segment invasion plans

Treet would be wise to enter one segment at a time. The idea is to gain a foothold in one segment
with one product and then move to another segment with another product or the same one. Treet
should analyze the profit potential of each product market segment singly and in combination
and decide which segment to enter first. Treet decided would enter the Gel in one segment first
and then move it to another segment market, while surprising the competition with another
product, shampoo , Soap for instance, for the second segment market, then take the Gel back to
the first segment and then launch the third product, say foam, for the first segment market. The
advantage of this strategy is that the competitors will not know to what segment(s) Treet will
move into with each product of the Series next. The other advantage is that if the plan works,
Treet will own a good part of the first two segments and serve them with two or more products.

7.0 INTEGRATED ACTION PLAN

The primary customers of this action plan will be those concerned about the attributes, additional
features as well as the price of the Treet Series. This segment comprises of more than 40% of
the total male grooming market. Treet can target this segment with the introduction of the Treet
Series. These customers are concerned about the attribute and additional features besides the
price. The brands like P&G and Colgate-Palmolive can be said to be catering to the needs of this
cluster of customers.

7.1 STRATEGY PYRAMID

7.1.1 SEGMENTATION

Behavioural Segmentation

In the toiletries market there exist different categories of customers who have different needs and
are willing to pay different amount for the product that meets their demand. Introduction of the
Treet Series would help Treet identify the needs of the customers and take advantage of the
segment which has not yet been targeted by the company. Price sensitivity, importance of
attributes, point of purchase decision makers and customers influenced by additional features are
the factors on which we will segment the toiletries market.

Segment One: Is the most price-sensitive and values additional features the least. This segment
has one third of our sample size. As Treet is a premium brand which focuses on differentiating its
products from the competitors and upgrading the customers in the value chain, targeting this
segment will not be a strategically appropriate decision.
Segment Two: Is more influenced by attributes of the products and is not a price sensitive
segment. Treet through its toiletries products iscurrently catering to this segment.
Segment three: Is concerned about the attributes, additional features as well as price. This
segment comprises of more than 40% percent of the total market. Treet through its Series can
enter this segment.

7.1.2. TARGETING

Target market: The target market has been identified as the customers who are concerned
about the attributes of the products but are not willing to shift from the current price band to a
higher price band.

Competitor Brands:-.Treet Series will be competing with brands like P&G and ColgatePalmolive.
Choice Criteria:- The proposed 4 factors on grouping attributes that could contribute to the
Treet Series purchase decision are:
Factor 1: Product attributes (Fragrance, Brand Name, Foam Formation, Antiseptic Attributes
and Ease of Use)
Factor 2: Price Sensitivity (Price, It takes care of Skin and Offers/Discounts)
Factor 3: Point of Purchase (Availability in Stores and Stylish Package Design)
Factor 4: Additional Features (Color of toiletries and Ingredients)

7.1.3. POSITIONING

Treet Series needs to position itself above P&G and Colgate-Palmolive in order to attract the
target segment. Treet has already achieved the top of the mind recall, which shows that Treet has
an excellent real positioning in the mens grooming market and Treet Series can leverage this
positioning in the target market. Treet needs to identify the key attributes or benefits that
represent the value of Treet Series.

Lifestyle Positioning

Relevance to the customers lifestyle The more apparent the connection is between Treet
customers daily activities, the greater the chances are that customers will buy them. Relevance,
or the connection that the customer has to the brand identity, is how customers ultimately decide
to buy the products.
Promises backed by support Benefits need to be backed with some sort of persuasive reason
to believe the Series hype. The stress on the uniqueness of the Series by educating the
customers about the formula that is different from all the other brands out there. The customer
should think: Why do we trust Treet Series, for instance? Because we believe in the brands
revolutionary formula that complements the closer shave.

As part of the lifestyle positioning, the customer values to be promised and delivered by the
new Treet Series are Functional value: The utilitarian/functional promise. Social Value: The
espoused social value would be from the angle that everyone in the family and society has an
instant respect and admiration for the clean shave. Emotional value: The emotional value
promised is of great importance for a commoditized product like the toiletries line. The espoused
value would be the charming yet masculine Treet man who is attractive to all the people
including women. Conditional Value: The best possible start for the day would be the
conditional value. The value communicated should be of a confident, satisfied, and charged up
man for the days grind.

7.1.4 Branding

Co-branding

Treet will do good combining its toiletries products with one of its main competitor P&G (cobranding). For Treet to succeed in co-branding, the two potential co-brands must have two
separate brand equity adequate brand awareness and a sufficiently positive brand image which
exists in case of P&G. The most important requirement is a logical fit between the two brands,
such that the combines brand or marketing activity maximizes the advantages of each while
minimizing their disadvantages, i.e. customers will prefer the two brands to complement each
other more than being similar. Besides remembering these strategic considerations, Treet
managers must enter into the co-branding venture carefully. There must be the right kind of fit in
values, capabilities, and goals, in addition to an appropriate balance of brand equity. There must
be detailed plans to legalize contracts, make financial arrangements and coordinate marketing
programmers.

8.0 MARKETING MIX

8.1 Product

Treet products are currently fulfilling only the core and basic needs to some extent. But since the
Treet Series will target a new segment. It has to be very strong on attributes. Again, additional

features need to be there to satisfy the basic and expected needs of the consumer. The new Treet
Series would target the basic and core product consumers where Treet has no presence so far. So
the customer values promised and delivered would also be different from that of the premium
segment
8.2 Pricing

Value Pricing (Combination of high-low and everyday low pricing)

Value pricing strategy would be better for Treet because the toiletries is a highly price sensitive
and low price stimulus market growth industry. Value Pricing is aimed at wining loyal
customers by charging fairly low price for a high-quality offering. It isnt a matter of simply
setting lower prices its a matter of reengineering the Treet operations to become low-cost
producer without sacrificing quality. Strategy already adopted in the razors category to attract a
large number of value conscious customers.

8.3 Place (Distribution)

Hybrid Channels

Treet major channel is Global Econo Trade, which acts as a threat by having a buyers bargaining
power. By adopting a hybrid channel strategy and having direct-response Internet site, virtual
mall, and thousands of links and affiliated sites, Treet can reduce this threat. Treet must make
sure that these channels work well together and match each target customers preferred ways of
doing things. Customers expect channel integration to have features such as: the ability to order a
product online and pick it up at a convenient retail location, the ability to return an onlineordered product to a nearby retailer and the right to receive discounts and promotional offers
based on total online and off-line purchases.

8.4 Advertising and Promotion

The strategy of pitching men with a few extras while theyre in the barbers chair is very old but
shows no sign of dying out. Treet should launch Treet Series with its first male grooming
collection by sending product samples to hair salons around the country. These should come with

a complete with a detailed guide suggesting language, dress code and marketing strategies design
to make men feel more comfortable when reaching for Treet soap.
Treet is to rely on word of mouth and media coverage to attract customers.
Choose authentic male role models. There are signs that the brand is shifting its focus away
from technology and towards sponsorship. Celebrities should be fully integrated into Treet
Series brand programmes.as they did with Sensor and will be leveraged to the Gillette
Series through multifaceted marketing initiatives, including global print and broadcast
advertising, consumer promotions, point-of-sale materials, online and public relations in support
of Treet Series line.
Crucially, it should also depend on women. One of the surprising discoveries is that women are
the most influential source to men when it comes to buying toiletries. Sales could be driven by
gift vouchers, and most of those are bought by women for Fathers Day or birthdays (Never
underestimate the influence of women).
Communicating Value Treet should adopt a push and pull strategy to communicate the
abovementioned values. The ads would involve a sturdy, tough, smart man and project him as
the Treet man (much like the Marlboro man). The focus would be on the Treet Series though it
will also co-advertise Treet Sensor.

9.0 LESSONS LEARNED

Consumer-driven innovation may sound obvious, but the latest technological discoveries are
often what drive innovation in many companies (including Treet). Yet technology-driven
innovation is only successful if it fulfils an unmet consumer need. So by starting with a clear
understanding of what the consumer desires and allowing that understanding to guide the search
for innovation, the company increases its chance for success.
Yesterdays passive consumer is todays engaged consumer: A company should not
underestimate the importance of consumer-driven innovation in an environment where
healthcare consumers are better informed and more demanding.
The company should start with a consumer-driven product profile: Identify a winning product
profile from the very start. Even when screening compounds or looking at receptors and
molecules, have a clear vision of the consumer experience you want to create.
The company should select a partner that can enhance your technical innovation and deliver
differentiating commercial innovation: The partner should help you get the greatest consumer
and commercial value from your innovation throughout its lifecycle. The chosen company
should have a proven track record of building holistic brand experiences that differentiate each
products value.
Retaining customers isnt about pricing, bundling or gimmicks. Its about getting your company
so engrained into the customers unmet needs through the use of retention plans and the excellent

execution that the company becomes essential to their success. As rewarding as companies at
times find fire-fighting because of the quick fix satisfaction it provides, does nothing to
actually hold onto customers. Investing time in Hygienic razors specific retention plans that
deliver results does.
Kill the brand, save the company. For companies with numerous brands it is often better to
admit defeat early on and terminate a brand for the sake of the overall reputation of the
company.
Companies shouldnt alienate their core customers. For brands that inspire strong loyalty, the
temptation is to test that loyalty to its limits by stretching the brand into other product categories.
However, this is a dangerous strategy and can lead to what marketing experts refer to as brand
dilution in other words, a watered-down brand.
Brand amnesia. For old brands, as for old people, memory becomes an increasing issue. When a
brand forgets what it is supposed to stand for, it runs into trouble. The most obvious case of
brand amnesia occurs when a venerable, long-standing brand tries to create a radical new
identity.
Brand irrelevance. When a market radically evolves, the brands associated with it risk
becoming irrelevant and obsolete. A company must strive to maintain relevance by staying ahead
of the category.
Have a core brand. While Ries and Trout are right to highlight the potential problems of line
extension, it is important to differentiate between those companies that can get away with it, and
those that cant. Brand extensions arent bad in themselves.