PROCTER AND GAMBLE BIDS ON PRODUCT DIVERSIFICATION TO SOAR GILLETTE BLADES AND RAZORS SALES

Procter and Gamble (P&G) is bidding on product diversification and investment in market research to further grow the market share of its Gillette brand in Kenya.

Gillette currently commands a 17 per cent market with plans by the company to grow its pie through concentration on the middle to lower income segments of the market.

According to Communications Manager Irene Mwathi,, (P&G) has engaged a strategy where it is currently ‘competing against itself’ through the launch of innovative products that target different market segments.

“P&G is currently pushing razor growth by competing against itself. We are keen on tapping into the vast middle to low income cadre in our drive towards availing quality razors to the market,” said Ms. Mwathi.

The company is counting on its market innovation track record to push sales especially among the youth most of whom prefer shaving at the barbers.

“We are moving towards encouraging men to shave at home and take advantage of our cutting edge products in this category. A number of activities will be employed in pushing this campaign,” said Ms. Mwathi.

P&G acquired Gillette in 2005 when it bought the Gillette company which also included oral B and Duracell . Famously known for its shaving products and its advertising slogan, "Gillette - the best a man can get" the brand which is a market leader is used by over x million people all over the world. The big attraction of that deal was that Gillette’s grooming brands complement each other as P&G specializes in hair and skincare for women - while Gillette focuses on male grooming. Founded 115 years ago, Gillette has positioned itself as the ultimate male brand through product innovation.

“Each of these brands has also had a follow-up series of sub-branded product upgrades.  Although they work for the same company, P&G’s razor marketers are not afraid of some in-house competition,” she said.

One of P&G’s biggest challenges in pushing its Gillette shaving razors has been the flooding of the market with low quality products especially from the Far East.

“We continue to be committed to product innovation and research and development to ensure Gillette remains a market leader. We strive to deliver the ideal shave that is characterized by great smoothness, optimal comfort and no skin irritation,” said Ms. Mwathi.

Scaling the Heights of Express Logistics Business in East Africa. The case of DHL Express Retail Network

DHL Express, the global leader in express logistics has tripled its retail footprint in the East African market over the last six months, thanks to a growing demand occasioned by discovery of natural resources and multinational firms setting shop in the region.

The company is investing in partnerships with other service delivery firms in the regional market to address increasing demand in areas far away from capitals and major towns as was the case previously.

In an exclusive interview with EABW, DHL Express Retail Manager for East and Central Africa Ms. Dorothy Chlystun-Githae said the company is well positioned to seize the emerging market opportunities posed by the buoyant economic environment and political stability in the East African region.

“DHL Express has been and will remain a key partner in the economic development of this region. We have streamlined our retail operations to meet growing market demand.  Currently, East African economies are growing at five per cent and above annually; more and more international businesses are setting up regional offices in East Africa demonstrating the business potential and international appeal of this region to the world and urbanization (concentrated buying power) is growing at a pace of about four per cent. East African governments are committed to moving their countries forward in terms of socio-economic development for example; Kenya’s Vision 2030 and its new government projected moving economic growth from the current 4.5 per cent to a possible 10 per cent in the next two years. We are well positioned to tap into this potential,” said Ms. Githae.

 

Currently, DHL Express is the market leader despite increasing industry competition a fact that Ms. Githae attributes to the company’s retail agent model that builds on strategic partnerships with small, medium and large size businesses to provide its services. These partnerships include entities like IRC Travel in Nairobi’s Eastleigh area, Simba Telecom in Uganda and Fargo Courier in Kenya.  These outlets serve as DHL Express collection and delivery centres, greatly boosting the company’s last mile delivery challenge.

“We invest heavily in training our retail partners. We strive to equip them with our in-house service delivery standards and attitudes,” she said.

According to her, the company invests a lot of resources and focus on its retail footprint in view of the changing market dynamics in the region.

“The East African countries are dynamic and rapidly evolving markets. Gone are the days when the capital cities were the only places that business is conducted. Business is growing and booming in towns and areas outside the capital city.  With this in mind, it’s imperative for DHL Express that we are readily accessible to connect these business and towns with markets across the country, across borders and internationally,” adds Ms. Githae.

Presently, DHL Express commands 216 retail outlets in Kenya, 56 in Uganda and 50 in Tanzania with plans to expand the retail footprint to meet the demands of the growing customer base.

In terms of technology, the company has also deployed e-commerce tools which allow the retail outlets to process shipments electronically. For example, the retail partner can scan a shipment once it has been processed for shipping with DHL, in a matter of minutes the customer or recipient can track movement of their shipment using the ‘DHL airwaybill’ number via our website: www.dhl.com  from anywhere in the world.

As is the case with other businesses in the region, Githae admits that DHL Express has its fair share of challenges. Key among them limited infrastructure and transportation. A research conducted recently in Sub-Saharan Africa revealed that reducing in-land travel by simply one day resulted in a seven per cent increase in exports. (Research conducted by Freund and Rocha in 2011). Transport costs can make up 50-75% of the retail price of goods in Malawi, Rwanda and Uganda. An international publication highlighted that shipping a car from China to Tanzania costs $4000 but getting it from there to Uganda is another $5000.

Dorothy says the complex borders, customs and various taxes in the region hinder a seamless environment for business. In addition, she says traffic congestion in major cities like Nairobi, Dar-es-Salaam and Kampala pose a challenge for a business that is time-sensitive like DHL Express.

Going forward, the company is counting on its recently deployed “Certified International Specialists” programme to drive business through reinforcement and reinvigoration of its corporate culture. The programme aims to equip employees with fundamental skills in cross-border shipping and focus their attention on international growth.  Additionally, the company has launched a new competitive and simplified bundled pricing-approach product referred to as Express Easy in all retail outlets in East Africa. The product offers customers the same DHL Express service that they rely on and trust at a more competitive price.