Gillette Case Study

Siam Cement’s offer to purchase an initial order of 200 units at $9,000 per unit, would lead to a net profit of $200,000. While this immediate cash influx may seem advantageous in the short term, it will not offset yearly operational expenses of $250,000 (See Exhibit 1). Additionally, accepting Siam Cement’s offer would position Rubbertech as an Original Equipment Manufacturer (OEM). This decision could impede potential growth that would far exceed the offer that is currently on the table. If Rubbertech does not accept Siam Cement’s offer, they can seize a part of

Scope, a green mint tasting mouthwash, was positions as a great tasting mouth refreshing brand that provided bad breath protection. It is the first brand that offers both effective protection against bad breath and a better taste than other mouthwashes.

This mouthwash market was initially developed by Warner-Lambert being pioneered by brand Listerine. In 1977 Warmer-Lambert launched Listermint mouthwash as a direct competitor to Scope. Before 1987 the mouthwash market was continuously growing on average of 3 percent per year, in 1987 the market experienced a 26 percent increase after the introduction of new flavor. In 1976 Scope was the leader in the Canadian 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.

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

A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry

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 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.

Because the absorption-costing model only deducts the fixed manufacturing overhead costs for units sold in the current period, the COO was able to show an increase in profits between 2002 and 2003. What the COO failed to report to the stakeholders on the 2003 income statement was the outstanding fixed manufacturing overhead costs for the remaining 35,000 units

The recession in late 2007 affected Herman Miller like that of other companies in this same industry. Herman Miller was able to come out of this better than most of because of measures taken in earlier recessions. Herman Miller was able to earn $152.3 million on $2.01 billion in sales in 2008. The 2010 sales had fell $700 million and earnings were down $124 million. But despite the downturn in the economy Herman Miller still was profitable. Pay cuts that were instituted in 2009 of 10% and the suspension of the 401(K) contributions. These cuts reduced job security but the employees railed around management because it was best for the company as a whole. Other companies would fail at this. Herman Miller has followed the same basic strategy throughout

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.

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?

Product quality and efficient marketing are the core value propositions that set the pace for Gillette’s success. With continued innovation in both product development and marketing strategies Gillette has been able to retain a commanding

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.

“Today’s Research for Tomorrow’s Health” is an operating philosophy for Braun Company. This company undertakes designing, development, and manufacturing of small electrical appliances. They want to create some new products for human, especially in body and health management. In 1950, Braun introduced the first reliable electric foil saver in Europe, and it is very popular in Europe. In 1967, Braun brothers sold their company to the American company, Gillette, and this company is famous on their razors, blade. Therefore, Braun has a German soul, American spirit, those two reasons bring this company to a global presence.