Gillette is recognized nationally for it's reputable success in the razor and blade industry, but online competitors' are slowly entering the market. In a society where convenience, immediate results, and impatience is typical, the online industry is rapidly expanding. Consumers were once skeptical about entering personal information, such as credit card and address, due to high risks of identity theft; however, the implementation of safety regulations and encrypted websites, are reassuring and have boosted retail sales. The Dollar Shave Club has entered the shaving industry and Gillette management is concerned about the low prices advertised and the potential loss of consumers. Utilizing the four basic elements of marketing, following is a basic plan that could be utilized to sell Gillette's razors and blades via an online subscription model. …show more content…
The online subscription model would describe the benefits of purchasing a Gillette subscription, which details the specifications of the product, statistical data which displays proven results, and the benefits of joining a company that has developed several razor models (Winzar, 1992, pgs.259-264) . Next, with the pricing strategy, I would not introduce the product at a lower cost than the competitor, primarily because of the unknown quality of their product. If they are selling mediocre products at a fraction of the cost, consumers will assume that Gillette is introducing a product that is not of its original brand, which is known to be a quality commodity. The pricing objective of market demand, would prove beneficial to an online subscription model, as prices are determined based on customers expectations, which is a situational based approach (Ferrell & Hartline,
BBBY faces both external / internal potential problems while it tactics to implement its expansion plan.
Examining the consumer behavior for nondisposable razors, we can observe that consumers are focusing on the premium segment. Also, they are becoming more sophisticated and expecting new technologies to smooth the shaving process. Focusing on that, Paramount should invest in the premium products category. Even though that would create cannibalism for the “pro-products” which is already loosing market.
Online marketing is an important step for a company to take. There are several advantages that come from online marketing for retail. In order to know those it would be beneficial to know the various kinds of online marketing methods that exist to clients looking to succeed in online marketing. Those methods include banner placement, internet search engine placement, search engine optimization, e-mail newsletters, link building, article submission, affiliate marketing, online direct selling, pay per click advertising, and online public relations (Livnat, 2009). All of these methods allow companies to reach customer bases in one way or other. Below is listed key advantages related to marketing retail online.
In 2010, Big Skinny CEO Kiril Alexandrov was looking to transcend from retail distribution and print advertising to the world of online marketing to achieve maximum growth. The retail sales pitch was an easy one, as Alexandrov focused on the value of the wallet and the impulsiveness of consumers (Benjamin & Kominers, 2012). Unfortunately, translating this type of sales pitch was much harder to do in the world of cyberspace.
Establishing online brand recognition is as important as providing good service. Any product purchase involves a certain level of risk (Murphy and Enis 1986). Online purchase is even more so when e-tailers can potentially be fly-by-night opportunists, misuse customer information, or violate customer privacy. Therefore, many e-tailers try to differentiate themselves by building a strong brand recognition and customer loyalty through advertising. For example, Amazon.com is one of the most well known brands in the e-tailing industry. According to van Gelder (2003), brand recognition is far more than mere brand awareness. Brand
Various organizations operate in an increasingly complicated industry - more than a few different products, ample of business process and clients ranging from retailers to small business, service providers, exporters, and independent shops. The organization has identified increasingly the evolving trend in consumers and responds
The new advances in technology allow businesses to reach different customer bases. This includes buying and selling products over the Internet. The online shopping process is considered e-commerce. E-commerce is made up of different behaviors but for the purpose of this discussion the three discussed are consumer-to-consumer (C2C), business-to-business (B2B), and consumer-to-business (C2B). The different behaviors have different mediums to reach their targeted audience. The message for each behavior persuades a particular audience to purchase a product using that particular medium. Consumers and businesses look to the web for cost-effective ways to sell and buy products.
The Internet has emerged as a great way for a young entrepreneur to dabble in business or start a full-time business venture. Today, a large portion of the population shops online instead of shopping at brick and mortar stores. This paves the way for more entrepreneurs to enter the online world and create their own e-commerce site that meets the consumer's specific needs. Deere relates that Lime Crime is one company that helped pave the way for future online cosmetic companies. Hopefully, more innovative entrepreneurs will pave the way for even more future entrepreneurs. Deere recommends listening to what the people want and fulfilling that need. That is the way to achieve
1. How would you characterize the business risk of Bed Bath & Beyond? Review their financial performance.
Running Head: DOLLAR GENERAL 1Dollar General StrategiesGlenda ReeseManagerial Marketing BUS 620Professor Mary WrightJuly 8, 2012
It is now, not only commonplace to have a website detailing the operations of your company, but expected. ?The reality is consumer ? likely even you ? turn to the internet to discover what to do, where to go, who to buy things from and more. Keeping this in mind, shopping online isn?t the only reason people go online. Instead, being online leverages multiple avenues for small businesses to gain visibility among consumers.? (Leinbach-Reyhle, 2015). For a small business trying to compete with other small and larger businesses, visibility is key.
In a market with a vast amount of competitors offering similar products, it is vital that competitors stay at the front of the market. In order to do this, companies, such as Blue Nile, must increase globalization efforts. As the market shifts worldwide, so must companies. Blue Nile, for example, has recently seen success in the worldwide market, although international profits only make up 13% of revenue. Also, companies must offer reliable customer service, such as Blue Nile offers. Along with reliable customer service, online competitors must focus on reliable shipping, lowering costs when applicable. Finally, marketing efforts must be vamped to ramp up customer traffic and build larger customer bases.
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.
“Contemporary marketing innovations such as 24-hour retailing, telemarketing, cash machines, and “instant credit” home shopping networks make it easier for the consumer to operate on a whim now
This essay examines Harley-Davidson's use of the Internet as a strategic marketing tool. Unlike their competitors' websites, Harley takes advantage of every online opportunity to build relationships with customers, promote their brand, and market Harley offerings. The Internet in particular is an effective promotion medium for Harley because it extends their efforts to market the company's products and services.