Premium Essay

Case Study Gillette Product and Marketing Innovation

In:

Submitted By mgenovese69
Words 707
Pages 3
Questions:
(1) Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain.

Gillette had dominated the personal shaving market for quite a long time. They did not focus on product innovation very much, and when it did, it focused on acquiring existing product lines. In 1962, when Wilkinson Sword launched its stainless-steel blade, Gillette finally had competition. Wilkinson Sword could not exploit the niche it had created and Gillette was able to purchase much of their existing blade business. However, the damage was done and the competition dropped their market share to an all-time low.
Gillette continued to diversify their product line, but was met with mixed success. It was at that time that Gillette gained even more dominance in its market by their product development. It began continuously attacking its own products. From the Trac II to Atra to Sensor to Mach3 to Fusion, Gillette kept on innovating and attacking it own products. It revolutionized the wet-shaving market throughout the world through continuous evolution in their product line since its inception.
In many ways Gillette has been a victim of its own success - when they were being innovative, they were "cannibalizing" their own successful products. While their new inventions drove up their sales, it often took away from the sales of its previous products and did not increase their market share.
I do feel product innovation in the wet-shaving market has come to an end. The five blade Fusion did nothing significantly different from their own Mach3 and Schick's Quattro. It also says something when introducing each new product, sales of the initial razor were higher than refill cartridges. People are eager to try to the new product, but may be they aren't pleased

Similar Documents

Premium Essay

Gillette Case Study

...Case Study #2: Gillette The following notes give a background understanding in the case of Gillette and can be used to make analytical decisions in the best interest of the company. Who: Gillette, a mature razor and blade manufacturer owned by Procter & Gamble, holds a commanding share of the current market. It’s primary competitor is the Schick Company whom Gillette goes head-to-head with in terms of their newest innovation: the Fusion 5-bladed razor. Where: The company is currently facing “a saturated US market” that is mostly unresponsive to their products (unless they are new and innovative). For this reason, Gillette looks to expand its market share globally. What issues did they face: Gillette currently has a commanding market share, however, the company faces issues that potentially hinder more growth: -Acquisitions: Historically, Gillette’s acquisition of smaller companies have lead to their unpreparedness in dealing with new competitors. In the past their share had decreased as much as 20%. -Product Width: One of Gillette’s strategies to counteract their loss in market share, they added more products through the said acquisitions. Because of this, their product width grew too large and therefore they couldn’t keep up with newer more innovative products such as Bic’s disposable lighter. -Schick Quatro: The introduction of the Schick Quatro sparked lawsuits between the two rivals claiming stolen ideas and misleading advertisements. These proceedings...

Words: 567 - Pages: 3

Premium Essay

Case Study 1

...Case Study 1 GILLETT: WHY INNOVATION MAY NOT BE ENOUGH CASE STUDY #1 Readings: Chapters 1 - 4 Case Study 16 (pgs. 481 - 492). Grading:  Case Study 50 points GILLETT: WHY INNOVATION MAY NOT BE ENOUGH (11.9%)  Read the following Case Study: Answer the following questions: 1 Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain. 2 What do you make of the razor wars, first between Gillette and Schick, and now with online competitors? Does Gillette face a serious threat from competitive inroads? Explain. 3 What actions would you recommend over the next five years that could help Gillette maintain its worldwide dominance in the shaving market? What specific marketing program decisions would you recommend? Should Gillette be worried about its pricing strategy? Explain. A paper format around 3-4 pages following appropriate APA Style format is required.  See rubric for grading.  Citations and references are required to reinforce your comments and ideas (looking for at least 2 additional credible sources than the textbook).  Also add a Reference Page (practice using APA style). Avoid using 1st person style writing.  Instead or using I, substitute with this author or avoid using a specific reference.  For instance, Starbucks coffee tastes great; instead of “I think Starbucks coffee is great.”   When referencing your sources in your...

Words: 294 - Pages: 2

Premium Essay

Gillette Case Study

...------------------------------------------------- Gillette Case Study Date: June 25, 2016 ------------------------------------------------- Situation Analysis The personal care and grooming industry is an industry characterized as an oversaturated market with limited innovation. The wet shaving market is believed to have peaked by many analysts. These analysts look to the introduction of “new” technology like the 5+1 blade. This razor and other similar razors are accused of being a more expensive razor with no added benefits from the triple or quadruple razors previously released. Gillette, an industry leader has one direct competitor, the Schick Company. Gillette is estimated to have an approximate global market share of 71%, while Schick Company holds 17%. In the past, Gillette has demonstrated the ability to combat competitive threats with innovative technology for the disposable razor, but still rely heavily on the cash cow products as new entrants are welcomed in to the market. With the constraints of limited innovation Gillette has invested largely in to their marketing strategy, in efforts to expand their market share and ultimately maximize their profits. While Gillette’s bread and butter products are in considered to be in a mature market and considered to have an enviable position in that market as an organization, market expansion is necessary. It is important for Gillette to focus their marketing plan and strategy to either capture the market...

Words: 1455 - Pages: 6

Free Essay

Mba 5501 Case Study 7

...Unit 7 Case Study Question 1-3 The first question that I would like to answer in this case study about Gillette is that Gillette has successfully convinced the world that “more is better” in terms of number of blades and other razor features. Why has that worked in the past? What is next? Gillette is solitary of the recognized shaver trademark targeted at man. The shaver has conventional fame and conservative by man who hand over their mug and membrane to Gillette. The technical novelty and promise for excellence and carry on development geared towards the only one of its kind requirements of man, which assist them to sense and give the impression of being their finest subsequent to every use. Gillette has existed victorious in persuasive the globe that supplementary is enhanced, in view to the integer of razor blades and other features of a shaver. To be unbeaten in the industry, it is essential that, a business comprehend the desires of its patrons and make sure that those requirements are gather and existing to clientele. Gillette realizes what man wish in their employ of shaver for their clean up and also appreciate and be acquainted with how to advertise the Gillette trade name to all man around the globe. As well as the scientific novelty and get through has shaped the preponderance excellence and healthy soughed shaver by man approximately the utterance. “From the twin blade (Trac II), the introduction of the triple blade shaving system (Mach 3), and the six...

Words: 1565 - Pages: 7

Premium Essay

Gillette Case Study

...Executive Summary Gillette has been the leading brand in men’s grooming industry. The competition in the razor industry is becoming more intense since the start of online retailing of razors. With competition heating up Gillette has to find a way to cater to consumers. Gillette merged with P&G in 2005, which instantaneously became a competitive advantage. Gillette uses its aggressive advertising to compete with customers and keep its market share. The company will introduce a new women’s razor to put more emphasizes on women. The company will use aggressive advertising and survival pricing, to target low to moderate income women. The company projects that this product will bring in $20 million in sales after launched and increase Gillette’s overall market share. Situation Analysis The Internal Environment Review of marketing goals and objectives Whether a customer uses electric or disposable razors, Gillette hopes to give their consumer the best shaving experience possible. Gillette has a strong market background which helps with identifying customer trends and promotes new product development. This is why Gillette’s shaving products are in its maturity stage. The company has been in the industry for more than 100 years and has high sources of equity (Gillette, 2015). The company’s current marketing goal is to continue to differentiate its strategy by innovation and marketing products in an unusual way. Gillette’s primary focus has been on the extension of its...

Words: 4767 - Pages: 20

Premium Essay

Amazon.Com

...CASE STUDY GILLETTE Nguyen Thao – 217535 Columbia Southern University 1. Gillette has been successful in convincing the world that more is better regarding number of blades and other features of razor because of the following reasons. First of all, the company not only understands what kind of product men would desire for their needs of grooming, but knows how to market its products to men around the world. The company has implemented breakthroughs for its marketing strategies. Gillette is the first company that created what is called the twin-blade and triple-blade shaving systems. Especially, its six-bladed Fusion has become a brand of billion (Kotler & Keller, 2012). Nowadays, Gillette becomes the leading company in providing razors for men and occupies over 70 percent of the global market, and reaches annual sales of over $7 billion. Second, the company carries out extensive search of consumers, makes innovations regarding product quality, and engages in mass communications. The impressive marketing knowledge and campaigns of the company has helped it be known worldwide. For example, the campaign named “The Best a Man Can Get” launched in 2009 is an extension of its well-recognized campaign. Through this campaign, the company has become sponsor sporting events and created what is called the Gillette Champions. The purpose for designing the campaign is to expand the company’s brand into its...

Words: 716 - Pages: 3

Premium Essay

Gillette

...* 1.0 EXECUTIVE SUMMARY Gillette has been the leading brand in men's grooming industry across the globe. With its wide range of products caters to the premium segment of the men's grooming market. It faces intense competition in the toiletries market whereas the competition in the razor market is not that intense. This case study aims at identifying the problems faced by Gillette in the toiletries market. We have suggested a plan for Gillette toiletries along with other suggestions for Gillette to face the competition in the near future and the long run. 2.0 SITUATIONAL ANALYSIS Of Gillette's recent moves, by far the riskiest is the toiletries line. Gillette's track record there is spotty, with successes in the 1960s and 1970s followed by a series of disappointments, such as a failed foray into European women's toiletries in the 1980s. But Gillette's strength is with men, and executives are convinced they can use their strong brand name as an umbrella for a wider range of men's products. The line includes 14 items, notably pre- and after-shaves and a gel shaving cream. The most innovative product: a gel-based deodorant that will roll on using a patented, sieve like delivery system. Will it work? Many outsiders are sceptical, citing Gillette's sorry record in toiletries. Besides, competition has become very stiff in the once fragmented men's toiletries business. Procter & Gamble now owns Old Spice and Noxzema, Colgate bought Mennen, and Unilever grabbed Faberge's...

Words: 11660 - Pages: 47

Premium Essay

Gillette

...Group Assignment (Gillette Case Study) Submitted to: Mr. Syed Ahmed Submitted by: (Group Members) • Saima • Maria Memon • Kashif Soomro • Jawaid Shaikh 1. How is the Gillette Series being positioned with respect to (a) competitors, (b) the target market, (c) the product class, (d) price and quality? What other positioning possibilities are there? a. Premium to competition b. The Best a Man can Get" - not the most convenient or cheap at all, but the most value added products, building on the popularity of sensor. c. Differentiated on functional attributes through innovation d. Price premium at an index of 110 to 120. There are many other positioning possibilities for a Brand. Gillette can position the various products it has separately, or treat Gillette as a master Brand. If Gillett is one Brand, then the positioning should be the same as for the other series of men’s grooming products. However if it breaks it into categories, then there is a shaving line, and then a deodorant line, and it can get into an aftershave line as well, unless it wishes to keep it aligned with the shaving category. In this scenario there can be 3 distinct positioning that Gillette can take up in the consumers’ minds. 2. Is Gillette making the best use of the brand equity that has been created with Sensor? Given that Gillett is attempting to make a name for itself and that Sensor has been its biggest success, it makes sense to use the impetus of that to tie into the rest of its...

Words: 792 - Pages: 4

Premium Essay

Case Study: Has Restructuring Paid Off at Procter & Gamble?

...Case study 1: Has restructuring paid off at Procter & Gamble? Procter & Gamble (P&G), formed by William Procter and James Gamble in Cincinnati in 1837, is one of the oldest global companies. Its famous brands include Tide, Pringles and Crest. For much of its history, the company has been innovative in producing new consumer products and new marketing techniques, such as the soap opera. However, despite its record of reliable profit growth, by the 1990s P&G had become weighed down by bureaucratic hierarchy. According to Richard Tomkins: ‘the company became formula-driven, risk-averse and inbred. Even the smallest decisions had to be referred to senior management. Individuality was frowned upon: employees learnt how to write memos, how to speak and how to think’ (Financial Times, 12 June 2000). Times became harder for the well-known brands, which were losing sales to copycat products and supermarket own brands. The big supermarket chains, such as Wal-Mart, grew more powerful and were able to demand lower prices from manufacturers. In a restructuring in 1990, P&G’s chief executive closed 30 plants worldwide, cutting 13,000 jobs. This move brought down prices, but damaged employee morale and adversely affected product innovation. In 1999, a new chief executive, Durk Jager, took radical measures to dismantle the company’s multilayered bureaucracy. Aiming to recreate entrepreneurial spirit, he took power away from country-based divisions and created global product managers, with greater...

Words: 697 - Pages: 3

Premium Essay

Project

...Free Term Papers, Essays and Research Documents The Research Paper Factory Join Search Browse Saved Papers Home Page » Business and Management Procter & Gamble, Scope Case Study In: Business and Management Procter & Gamble, Scope Case Study Case Study: Procter & Gamble, Inc. Scope Introduction Procter & Gamble (P&G), first introduced a great tasting mouthwash that was minty green and sure to fight off bad breath, called Scope in 1967. In 1990, Scope led the Canadian market share with 32%. However, since 1988 when Pfizer Inc. launched a new mouthwash called Plax, it became Scopes’ major competitor. Plax offered something different from the typical mouthwashes. Plax had the advantage over other brands because not only did it offer fresh breath and killing germs, but it was also a plaque fighter. Gwen Hearst, brand manager, is in charge of increasing market share, volume, and profits for Scope. Marketing Issues First, does Scope intend on introducing a new line extension by developing a product that strictly focuses on fighting plaque. This must be done in a way not to mistake the customer into thinking that there are additional claims to the original product. Second, add new claims to the already existing product. This would state something like “Scope not only gives fresh breath and kills germs, but it also fights plaque.” Or third, take no action but would need to focus on increasing advertising and promotion...

Words: 488 - Pages: 2

Premium Essay

Competitive Strategies

...Energizer vs. Duracell 1 Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract ​The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer ​Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon...

Words: 965 - Pages: 4

Premium Essay

P&G Case

...P&G Case Executive Summary This case study analysis is on the Proctor & Gamble Company (also referred to as “P&G”). Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide. The Case Study includes an Introduction, Company Overview, Company Mandate, Internal Analysis, and External Analysis, followed by various Strategic Options (see below). The author then makes a Final Strategy Option Recommendation. Strategic Option #1: Market to Lower-Income Consumers in both Developed and Emerging Markets (Expand and Build Beauty Segment strictly aimed at Low-Income Consumers). Industry Consolidator. Strategic Option #2: Given the maturity of the North American/Western European market, combined with the emerging popularity and demand for Natural/Organic ingredient products, P&G should look to create New Natural Products and Products tailored to the Male market - Multiple Segments, not just Skin Care (Expand and Build Beauty Segment). Industry Consolidator. Strategic Option #3: Related Diversification through Acquisition. Strategic Option #4: Joint Ventures in Emerging Markets such as China and India. Final Strategy Recommendation: The Recommendation is to go for a combined Low-Income segment and New Natural Product strategy as this facilitates P&G’s need to capture a greater slice of the Low-Income consumer market both in Mature and Developing markets, which also capturing a greater...

Words: 3683 - Pages: 15

Premium Essay

Png Bio

...4) Can you suggest any alternative to its given future plan of expansion abroad? 10 5) Due to recent financial meltdown and the continuing recession/ slowdown in some developed countries , have some of the recently introduced expansion plans of your company become vulnerable? 12 6) What remedial measure / plan can you suggest? 14 7) Your suggestions for taking the company’s global businesses to the next level? 15 8) References…………………………………………………………………………….17 Executive Summary Procter and Gamble (P&G) was founded by William Procter and James Gamble on October 31, 1837. The company is now the largest company and brand in Fast Moving Consumer Goods (FMCG) industry. The company, today, deals with personal care product, pet food and cleaning agents. The company scored $83.86 billion sales in 2012 and ranks 1st in the Fortune magazine’s “Global Top Companies for Leaders.” The company as on February 19, 2013 has a market capitalization of $ 211.38 bn (Source: Yahoo Finance). The company has simple expansion plan. They have, since early days, have believed in both organic and inorganic growth. The company cultivated and grew in house brands for their organic growth. This includes the names of “Ivory” soap, “Tide” detergent, “Pampers” diapers, etc. These names are still big brands and contribute to company’s revenue. The company became international with the acquisition of Thomas Hedley Co. in 1930. The company acquired other renowned companies like...

Words: 3993 - Pages: 16

Premium Essay

Marketing Strategy

...A framework for macro-environmental analysis . 3.2 The economic and political environment 3.3 The social and cultural environment 3.4 The technological environment 3.5 Changes in marketing infrastructure and practices 3.6 New strategies for changing macroenvironments 3.7 The Five Forces model of industry competition 3.8 The product life cycle 3.9 Strategic groups 3.10 Industry evolution and forecasting 3.11 Environmental stability 3.12 SPACE analysis 3.13 The Advantage Matrix Summary Case study: Food group shifts strategy to volume growth PART1 MARKETING STRATEGY CHAPTER 1 MARKET-LED STRATEGIC MANAGEMENT Puma gives the boot to cardboard shoeboxes . 4 Introduction 5 1.1 The marketing concept and market orientation 6 1.2 The resource-based view of marketing 12 14 1.3 Organisational stakeholders 1.4 Marketing fundamentals 19 1.5 The role of marketing in leading strategic management 23 Summary 25 Case study: Consumer trust sees John Lewis set retail pace 25 54 54 55 56 57 59 62 64 65 68 71 74 77 79 81 83 84 85 CHAPTER 2 STRATEGIC MARKETING PLANNING Asos founder turns to online homeware Introduction 2.1 Defining the business purpose or mission 2.2 The marketing strategy process 2.3 Establishing the core strategy 2.4 Creation of the competitive positioning 2.5 Implementation Summary Case study: iPhone 27 27 28 29 32 33 42 45 49 49 CHAPTER 4...

Words: 1496 - Pages: 6

Premium Essay

Vi John Pdf

...Product Strategy & Management Term Paper Industry- Personal Care Industry Company – VI-John Private Limited Product – VI-John Shaving Cream Submitted to: Prof. Ramesh Venkateswaran By Group 8A Kartik Saruparia (144043) Nitu Rai (144064) Priyanka Katoch (144081) On 12.08.2015 INDIAN INSTITUTE OF MANAGEMENT, Udaipur VI-John - Journey of Desi Brand From the second storey of his office, Vimal Pande looked towards the sky and started contemplating his thoughts what to do next to maintain the pace with innovative and competitive personal grooming industry. VI-John was founded in 1960, Kochar family had built the desi company into one of the major players in manufacturing of shaving creams. Customers used VI-John shaving cream because it was affordable and delivered quality. The company is known for high-quality shaving cream in the business and charging low prices for them. The company has always targeted mass customers and never raised the price of the product alike their competitors. Currently, the company is enjoying its position in the industry as a volume leader. But the market value share (21.7%) of the VI-John shaving cream is less than market volume share (29.2%) whereas competitors like Axe, has market value share (12.9%) greater than market volume share (7.4%), similarly, Gillette having market volume share of 3.9% has a market value share of 7%. (Refer Exhibit 1) In past, the company had tried to increase its value share by increasing...

Words: 7019 - Pages: 29