Gillette Case essay

Gillette was founded in 1 901 by a man named King Camp Gillette. They have been one of the leaders in the razor industry due to their innovation and racketing. They offer “high quality shaving products that would satisfy basic grooming needs at a fair price. Gillette was one of the few companies to have success in the early 1 ass’s because it had created product that fit customer’s needs. The challenge now was to continue to grow and innovate new products.

Their first competitor was Wilkinson Sword and in 1962, it caused Gillette to begin the phase of branding a series of blades that sat rated with just 1 blade and eventually went up to five blades in one razor. This led to a razor war that would be started and continued for many years to come. In 1990, Gillette was at the height of its powers but was still looking to take command of the market through innovation. They began this by creating the sensor blade which was a huge success. It was succeeded by the sensor blade excel.

These two product help shift the attention away from older product that were being used by Gillette. They did the same thing on the women side in 1 996 with a sensor and sensor excel for women. However, the competition ramped up in 2003 when Chick and the Equator created the world’s first four blade razor. This led to numerous lawsuits by both Gillette and Chick which either won, but Chick was creeping up on Gillette market share. To combat this, Gillette decided to market too many different countries and did the unthinkable by creating the fusion blade which was the world’s first five blade razor.

This was not received like they thought as many consumers bought the blades but never refilled them and people wondered why go to five when three was touted as the best shave a man can get. So what else has Gillette done to stay ahead? Well they have started to go into the entire shower market by creating hair and body products for showering as well as the Gillette fusion pro glide system in 2010 which help room getting irritation while shaving. This lead to people picking the Peroxide over the fusion at a 2-to-l ratio was named the best razor in 2010 by Men’s Health.

They have expanded on the Peroxide family in recent years to continue their trend of innovative products and their lines. This has led their marketing strategy to be one that is not solely focused on innovation but into a science. They also have used sports to market by naming a football stadium Gillette Stadium as well as MASCARA and the Olympics. One area where they can improve is in their pricing strategy as they are seen as a high priced modify and not always known for their products. For the Fusion Peroxide, it is $9. 99 for a razor and $31. 9 to refill the cartridge. In the case of Chick, they have a Equator Titanium that sells for 59. 99 but is only $20. 99 for 8 razors. It is obvious that Gillette focuses on quality products but needs to think about price as well. Innovation in marketing and product development is what will keep Gillette in the front for many years to come. They need to innovate and not be trivial about it rather create product that are consumer based and looking to target those who want something different rather than just doing it because they ant to stay ahead.

Their expansion possibilities along with their high prices are causes for concerns but can be used to better create a strong market share by lowering prices and making themselves available in more ways than just one. They have a bright future and can benefit from continued success in their key areas. SOOT Analysis Strengths 1 . They have a great reputation and are well known for their razors 2. They have a large market share which allows them to dominate the market 3. They use lots of marketing techniques such as sports, athletes, and slogans.

Weaknesses 1 . They are growing so fast that their inability to continue to grow at high rates will cause stagnant movement 2. Have not had a good acquisition in the past causing a loss of focus on their consumers 3. High priced products on the men’s side versus their competitors such as Chick. Opportunities 1 . The razor market is ever changing with an opportunity to expand their market share globally and acquire new companies. 2. Beginning to move into more personal hygiene rather than just razors through body and hair wash along with deodorant. . New and innovative creams and lotions along with have gel to help irritation Threats 1 . Saturated or a mature market makes it hard to grow 2. Lots of fierce and steady competition 3. Consumer skepticism with their continued upgrades in the number of blades per razor. Questions 1 1 think that Gillette has been a victim of its own success. In 1 990 they found themselves in the interesting position Of cannibalizing its own successful products with the launch of the Senor razor, and again in 1993 with the Senor Excel.

This also happened to women’s razors as well with the same products. Then again it shifted its most sold razor to the Mach and Venus in 1998. Then in 2006 it released the Fusion which had 5 blades, but then critics started wondering why that was need when they said the Mach, which had 3 blades, had the slogan “the best a man can get’. So each time they came out with a new product they made their old razors obsolete. They had to rely on the new product to outsell and make more money on that razor then the two could make together.

Yes, I believe Innovation in the wet-shave market has come to an end. I think this because, Gillette hasn’t come out with a totally new product, and they just keep making tweaks to their old products to make hem a more comfortable shave. So in that sense they are just making improvements but they haven’t come out with the next big improvement that changes the market. 2 think that the razor wars were very good for Gillette because it made them bring the best razor to the market before they it was needed and has made them very successful.

They had great success with the Mach and then in a short time they changed the entire market and it is no longer their number one product. Until Chick comes out with something that competes with the Fusion they don’t face a problem with them. With the new online companies, I o think that Gillette faces a serious threat from them. Yes even though Amazon still sells their razor blades they are much cheaper than buying them in the store and eliminate the drive so it is more convenient and they can lose great deal of money that way.

Also with Dollar Shave Club they have less people buying their product. Yes its not a big number now in time it can become a problem. Also with people always try save money think they will start losing sales to them because of their cheap monthly prices. Also they make it more of a convenience because they send the razors to their customers’ homes so they don’t have to leave to get their shaving equipment which could become a major problem for them. 3 1 would recommend that Gillette tries to make their products cheaper.

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