Essay Gillette Case Analysis

The article analysis the Paramount’s situation, competition, product positioning, marketing strategy through the U.S. razor market, market segments and consumer behavior and the trends of nondisposable razors and refill cartridges. After the company

The company offered a new product, safety razors and blades, a product of convenience at a reasonable price. Gillette had a few lean years to establish a customer base. To attract new customers Gillette tried advertising by putting his face stamped on the thin razor blades, and then gave away the razor as a free gift. The razor was useless without the blades. The marketing gimmick of “FREE” worked! Gillette gave free razors that then created a demand for the blades. Gillette sold razors in bulk at discounted prices to banks so they could use them as give away when you opened an account, the” Shave and Save” campaigns were huge success. Gillette took it even further when he then sold to the Wrigley’s gum company; packets of coffee, tea, spices, and marshmallows. Gillette sold millions of razors at steep discount to the Army hoping the habits soldiers developed at war

The modern day United States justice system has improved leaps and bounds over the last 50 years, so you can only imagine the progress that has been made in 100 years. The difference between right and wrong is known to everyone in the U.S., whether it be legislative or ethical. Despite this, there is constant dispute between people over what is theirs, what they did or didn’t do, who stole what, and where you were when a crime occurred. As a United States citizen in this day and age, we can be assured that the court system will fairly and legally solve and dissolve any dispute. In the time of the early 1900s, things were not so fair or legal. An example of this legal progression is the tragic story of Grace Brown and her boyfriend, Chester Gillette, who was accused as Grace’s killer after a highly prejudiced, biased and speedy trial and was sentenced to death by the electric chair. Chester Gillette’s sentence after trial was unjust because of a lack of unbiased evidence and the corruption of criminal investigation processes of the time.

Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.

* 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.

* Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market

For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by

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.

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.

The Gillette Company has effectively entered the razor blade market in the main parts of Indonesia. Even though there is still a lot of potential for growth, it faces stiff competition, as well

The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale.

Gillette marketing strategy of tying, sport to its brand and using sport figures to stand behind their brand is the way to the future and increase in sales and profit. Also spending millions in research and constant innovations will continue to attract and maintain Gillette’s market share.

Because of their similarities, Proctor & Gamble and Gillette are a good strategic fit. Between the two entities they have the ability to combine operations, technology, resources, distribution channels and research costs in efforts to drastically cut spending. With lower costs, and the merger complete, the collaboration of Proctor & Gamble and Gillette should achieve a 1+1=3 effect.

Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.

The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.