Braun : The Syncro Shaver ( A )

1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge?

On 11/16/15 I spoke with Nelda Shaver the owner/director at the operation. Ms. Shavers stated she was in Queen City at an operation she is opening there. Ms. shavers stated Versie Crossland was in charge while Brittany Shavers was on bus route that day. Nelda stated Brittany called her around 3:00 and told her Daniel had fell and cut his forehead. Nelda stated she then returned to the operation, but by the time she arrived Daniel had already been picked up.

The case points out that Gillette’s competitors were quick to copy new products. The launch of Sensor will be a breakthrough in the market and will introduce a new product category the “cartridge laser cut razor with superior quality”. Therefore it is essential for Gillette to protect their new product by pursuing patent enforcement, as they already have. This way will Gillette retain its competitive advantage and will re-introduce and position itself as a technology leader.

Without efficient resource allocation & lack of communication between R&D and Brands, the conflict between departments generated in following steps. Even more, each steps make overall inefficient resource management.

Product groups within the "profit center" divisions focus on serving the needs of the customers associated with a product line. Product group managers have direct control over engineering, manufacturing, and marketing” (Hendricks et al, 2008).

Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.

Old Spice Beard & Head Trimmer is a product manufactured by the famous company, Braun. Braun as a brand was introduced in the year 1935; since then it has been manufacturing high quality products; including male and female grooming devices, oral care, beauty products, clocks, watches, irons, and so many others. Braun shavers and trimmers are particularly famous among consumers for their design and quality.

* Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before.

Gillette is an American company founded by King Camp Gillette. It was founded on 1901 and until 1962 it did not have any serious competition. This can be explained by its constant concern for innovation, which follows the belief of its founder, “a successful invention is the one that is purchased over and over again by a satisfied customer”. (Original idea of William Painter)

Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.

The Indonesian economy has constantly grown within the last 20 years. However, the shaving market is still underdeveloped compared with Western markets. Hence, Gillette should provide more information to spread widely concept of shaving. Moreover, it should introduce new products to facilitate the introduction of shaving products to non-shavers and increase the frequency of shaving in current shavers.

b. Heterogeneous goals and priorities. Each function’s different goal and subunit orientation causes it toview problems differently. Subunits have become competitive as the attempts of one to achieve goalsthwart the attempts of another.c. Bureaucratic factors. Rondell’s structure has evolved historically and status inconsistencies havedeveloped among different groups and managers—between the heads of R&D and engineering. Althoughthe head of R&D, “Doc” Reeves, formally reports to Frank Forbus, the director of engineering,informally Reeves has more status and power. The manufacturing manager is concerned about his lack of a degree, which he believes lowers his status, so he deliberately causes problems for other managers toincrease his power and status.d. Incompatible performance criteria. Each function is evaluated according to its goals, so when slowengineering design raises manufacturing costs or results in lost customers or penalty clauses in customer contracts, functions come into conflict.e. Competition for scarce resources. Some functions, such as R&D, can command whatever resourcesthey want. Engineering services is running very lean, its engineers stretched thin, and no resources for aneffective preproduction unit. Given that profits have fallen, competition for resources might increase,which will worsen the

Shimano’s employees are the most valuable resource that the company possesses. Out of their 5,400 employees, one quarter of them are assigned to research and development; however R&D alone is not where the value originates. Cooperation between the production and marketing teams provides the company with an intangible asset that fuels Shimano’s innovation. The collaboration between these departments is extremely valuable to the company’s guiding principle to inspire and strive for continuous improvement. This is a rare philosophy was not common amongst manufacturers in this industry.

Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.

Gillette has been successful in convincing the world that more is better, in regards to the number of blades and other features of a razor. To be successful in the