Gillette Case - Launch of Sensor

Andrews plans to introduce one high-tech sensor, Alpha, in 2022. When launching this new sensor, Andrews will build low-tech labor intensive factories. Although this strategy will increase the dependency on labor, Alpha will be flexible for frequent updates. This characteristic is important to have in the high-tech market because consumers want the highest updated quality.

Chester Sensor Corporation is in a good competitive position at the end of the seventh year of operations. Market share, profits, and stock price have all increased. There were some bumps in years

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?

Due to the break-up of the sensor production monopoly, Andrews has decided to take this opportunity to differentiate the company from its competitors by focusing our resources and expertise towards two market segments while still maintaining some presence in the three remaining segments. By focusing on just two categories we ensure that our resources are not spread too thin, while at the same time, ensuring that we are taking advantage of profits in all markets and not wasting the equipment and resources that we have to produce all products. We have chosen to focus most of our research and development, marketing, and production efforts on our High End and Performance segments, the products Adam and Aft respectively. With our primary focus

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.

The Andrews management team has opted to pursue the strategy of differentiator with a product life cycle focus. This strategy involves the creation of products with excellent design in terms of size and performance (on the perceptual map), and MTBF. Significant investment in awareness and accessibility, and development of proficiency in the research and development sector is also central to this business strategy. In order to compensate for these high initial investments, our product prices will be relatively high; however it is believed that our customers will be drawn to our product due to high awareness and due to the superior quality of our sensors. Our released products will need to be manipulated according to the changes in expectations of the marketplace by producing smaller and faster products, according to the expected ideal size and performance of the sensors in future years. In addition, our company must invest in other important activities such as; total quality management (TQM), marketing, and human resources (HR) in order to

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.

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.

* 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.

Andrews Corporation is a multimillion dollar company that was designed when the parent company was mandated by the SEC in a monopoly settlement. This action resulted in six smaller companies. Along with the other five companies when the government split a monopoly into identical competitors, Andrews manufactures and sells sensors in five diverse market segments. As a monopoly, operating inefficiencies and poor product offerings were not addressed because increasing costs could be passed onto customers. Secondly, mediocre products would sell because customers had no other choices. Although last year’s financial results were decent, it is now our job increase product sales, marketing strategies, efficient production, and proper financial management to achieve financial greatness.

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.

In 2001, Jim Kilts became the first non-Gillette person in history to be named the Chairman and CEO of Gillette. Kilts had a very successful change effort. By the beginning of 2005, Gillette had $11 billion in revenues and sold products in over 170 countries. Gillette generated $2 billion in cash compared with $400 million when Kilts first arrived. Before Kilt’s arrival at Gillette, the company had fifteen consecutive quarters of below budget earnings. Once the turnaround started though, things changed such that by the end of 2004, Gillette posted six consecutive quarters of record profits. According to Kanter and Bird 2008, employees who once worried about an imminent takeover at the turn of the millennium, exuded a new confidence in themselves and in their teams. The stock market rewarded the effort; Gillette’s shares

Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?

Gillette, founded in Boston, Massachusetts, United States in 1901 by King C. Gillette, is a brand of men’s safety razors and other personal care products including shaving and hygienic supplies. Gillette is famous for introducing the first safety razor in the shaving market, and later on for its Mach and Fusion blades. The Gillette company is owned by multi-national corporation Procter & Gamble (purchased in 2005); an American consumer goods corporation that primarily specializes in a wide range of cleaning agents, personal care, and hygienic products. As of May 2016, Gillette as a brand is worth $20.2 billion, generates sales of $7 billion/year and is #28 on the Forbes’ “The World’s Most Valuable Brands” list. It also generates 29% of