...To establish its own success, Gillette tried many ways to exploit and develop. For example, Gillette spearheaded the acquisition for many companies of different industries, such as Braun AG (German manufacturer of small appliances), S.T. Dupont (French maker of luxury lighters), Eve of Roma (high-fashion perfume) and Jafra Cosmetics (home sales) and so on. Some of these companies became the victims for the success of future development. Four of these acquisitions proved to be unprofitable or unsuitable and were divested, and the other three yielded low profits by Gillette’s standards. One example is that there is a French manufacturer Bic, which excelled in disposable products. Gillette has a company in the same industry, Paper Mate. The French manufacturer big brought some trouble to the Paper Mate. It s $0.19 disposable stick pens particularly affected the Paper Mate line of refillable pens and drove Paper Mate’s share of the retail ballpoint pen market from over 50 percent down to 13 percent. Although Gillette got a success in building market share when reintroduced to be market in 1975 with heavy price promotions. But the two other products of Bic, its disposable razors and lighters, which were being marketed very successfully in Europe and elsewhere and threatening Gillette’s strengths. And the loss of before is a victim for Gillette. Another thing that Gillette became a victim is about advertising. Schick sued Gillette for misleading claims of technological superiority...
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...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 did not focus too much on product innovation until several years later. There was no need to focus on innovation because they dominated the market for so long with no new competitors in the industry. It wasn’t until later on that Gillette started working on product innovation when a competitor entered the market. In 1962 an English firm named Wilkinson Sword entered the market with stain-less steel blades. Luckily for Gillette, they were able to buy out this competitor and remain dominate in the market. Even though they were able to buy Wilkinson Sword out this still had a negative impact on Gillette because it made their market share drop to $1.33 per share. There was several times where Gillette became a victim of its own success. The first is in its early years when they dominated the market with no competitors. When Gillette saw this continued success the company wanted to try something new so it decided to buy two business ventures unrelated to the personal grooming industry. The companies were the Toni Company and the Paper Mate Pen Company. This was a bad idea because the attention was then turned to these new products and the other product that was already performing so well was being ignored. As time moved forward a new competitor (Wilkinson Sword) entered the market and caught Gillette off guard...
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...Managerial Marketing Marketing Plan Questions for Discussion 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. While evaluating the product innovation at Gillette throughout its history, it is easy to relate to the companies ups and downs, as well as its struggles. Especially in the younger developmental years, we see the resilience of the company and the drive that was necessary in order to continue operations. These hardships pushed the company to continue to refine its product and mine for new innovations. It was stated that the Gillette Company lead the personal care and grooming industry through manufacturing efficiency and exceptional marketing. By offering consumers high-quality shaving products that would satisfy basic grooming needs at a fair price. This demonstrates the immediate innovation shown by Gillette as a fledgling company. As they grew, Gillette effectively captured more than half of the entire razor and blades market across the globe, and the innovation continues. I strongly disagree that Gillette has been a victim of its own success. As with any company, consumer needs change, and it is the mission of the company to adapt with the times. Gillette has suffered ups and downs that lead to the readjustments of their products, but I believe overall it can be called a win. I also do not think wet-shaving will ever come...
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...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...
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...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. King C. Gillette has founded Gillette in 1901. It was one of the first great multinational organizations and a marvel of marketing effectiveness. Gillette has set a goal for his company: To offer consumers high-quality shaving products that would satisfy basic grooming needs at a fair price. Throughout its history Gillette has always strived to be on cutting edge of shaving technology in a market that thrives on innovation. Gillette did a great job in razor market dominance. Its innovation also expanded to other products like introducing the refillable Paper Mate pen and the Cricket disposable lighters and the Soft & Dri antiperspirant. Meanwhile Gillette's Trac II razor was a great success. The Colman Mockler era was one of the most successful in Gillette's history, producing memorable innovations as the Atra razor, the Good News! Disposable razor and the Daisy razor for women. With such product additions, Gillette held majority of the US shaving market and also 75% of the global market share. Gillette has been throughout its history a first runner in innovation. Its introduction of new products that were developed in its research laboratories helped boost sales in razor and blades, personal care and writing instrument segment. In the razor and blades segment, Gillette introduced the Altra-Plus...
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...GILLETTE CASE 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. When we look at Gillette’s product innovation throughout its history, Gillette continued developing, innovating it self. Yes the product innovation in the wet-shaving market come to an end and now it is in decline part of the cycle but Gillette razors are still selling because shaving with razors has become the habit of consumers throughout the years and it is the cheapest way. Gillette also came up with personal care products. As the rivalry gets hot, Gillette comes up with new innovations, which are better than the competitors every time. 2)What do you make of the battle between Gillette and Schick? Is the battle one upmanship good for either company? The battle between Gillette and Schick is very good for the consumer. This rivalry is upmanship good for both of the companies in a way. Because everytime that one of the brands come up with a new product, the other brand decides to produce a better version of it. So the innovations always stay fresh and the consumers benefit from this battle. 3)What actions would you recommend over the next five years that would help Gillette maintain its worldwide dominance in the shaving market? What specific marketing program decisions would you recommend? Should Gillette be worried about Schick? Explain. I would recommend Gillette to focus...
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...GILLETTE 1 Gillette XXXXXXX BA440 XXXXXX GILLETTE 2 Gillette is a household word and has been around for over one hundred years. Beginning in 1901, a Gillette has been giving men a clean, safe shave. It began with the single blade safety razor and has evolved into a 5 (+1) blade system. It is easy to recall the days of fathers using the single safety blade system, it seemed to work, but they still suffered the occasional nick and cut. Just like on TV, dads would emerge from the bathroom with tiny bits of toilet paper stuck to their faces to stop the bleeding. Through the years, Gillette has developed many new blade concepts and competitors have jumped in to gain some of the dominance established by Gillette. In a way, Gillette has become a victim of their own success. Like a world class athlete, once you reach the top, you want to stay there. In order to stay at the top, Gillette has had to try and improve on what has already been a proven success. In order to improve, money has been spent on development and production along with marketing and advertising. Along with higher production costs comes the increase costs passed on to consumers. The latest and greatest comes with a higher price tag. Some say that product innovation in the wet-shaving market has come to an end. From the step up to a twin blade razor like the Atra or the three bladed Mach 3 there has been the four bladed Quatro and even the five bladed Fusion. These...
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...Gillette: Why Innovation May Not Be Enough Successful & Innovated Products -Trac II Razor (1971) -Atra Razor (1977) - GOOD NEWS! Disposable Razor (1976) The strength of these 3 products Gillette sales rose to $2 billion Marketing Strategies Market shares through the years “Offer consumers high-quality shaving products that would satisfy basic grooming needs at a fair price.” "Reigned as a virtual monopoly until 1962" Competition- Wilkinson Sword Company When they introduced the stainless steel blade, Gillettes marketshares dropped to an all time low of 49% Through the years, the market share has been 70% or higher Since bought by P&G, Gillette has held 69% of the razor and blade market & 80% if the highly profitable replacement blade market Brief Overview -The Gillette company was founded in 1901 by king Camp Gillette -New Idea: "A razor with a safe, inexpensive, disposable blade" -With the help of William Nickerson the Gillette Company was born -2005 Procter & Gamble bought Gillette for $57 billion Successful & Innovated Products -Sensor (1990) -Sensor Excel (1993) -Mach 3 (razor wars, 3 blades) (1993) -Fusion (razor wars, 5(+1)blades) (2006) -Fusion ProGlide Shaving systems (2010) Gillette is a brand operated under the ownership of Procter & Gamble. The Gillette company was founded by King C. Gillette in 1901 as a safety razor manufacturer. It is a company categorized in the personal care sector that holds commanding worldwide...
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...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...
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...Gillett: Why Innovation May Not Be Enough 1) Evaluate product innovation at Gillett throughout its history. Has Gillett been a victim of its own success? Has product innovation in the wet-shaving market come to an end? In 1901 King C. Gillett invents the safety razor complete with disposable blades, the start of a business dynasty. From 1901 to 1938, Gillett receives its patent and introduces a blue and thin blade. From 1946 to 1969 Gillett offers the first blade dispenser, develops the first adjustable razor with three settings, adds a super blue blade w/silicone coating, introduces a coated stainless steel blade, and adds a platinum chromium coating. During the 1970’s Gillett produces the Trac 2, Good News, and Altra razors thus continuing the innovation and their market share moving forward. During the 1980’s Gillett continues its leading edge technology by producing the first razor and disposable razor with a lubricating strip and a razor with spring mounted twin blades. The 90’s stalled somewhat but the introduction of the Mach 3 was a huge product announcement. From 2000 – 2009 Gillett enhanced the features of the Mach 3 and entered the post shaving product market. In 2010 Gillett introduced the Fusion Proglide which completes the razor advancement and innovation at Gillett. On the acquisition side Gillett went on a product development campaign which included selecting a number of key products associated with different market arena’s that ultimately drove Gillett’s overall...
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...1.)In some ways Gillette has become a victim to its own success. Simply because, when they were being innovative, they overshadowed their existing inventions. Meaning although the new inventions were increasing in sell, it sometimes took away from the sales of its previous inventions. The new products should bring something new to the table but not make what was already created seem unneeded. Then constantly buying out other companies that eventually proved to be unsuccessful also illustrated not well thought out business moves. Yes I do feel product innovation in the wet-shaving market has come to an end. It was evident when consumers stated the Fusion did nothing significantly different from the Mach3. It also showed when the sale of the initial razor was higher than refill cartridges. Meaning people were eager to try to the new product, but obviously wasn't pleased enough as to where they purchased refill cartridges and continued using them. The focus now needs to be on enhancing the current products and strengthening the brand as a whole, as they have been trying to do. The constant research and testing for new products is causing the price of their traditional products to increase which in the end can cause a consumer to go with a cheaper private-label razor. 2.)I don't really see at as a battle. Gillette had been out for awhile with no competition, and I feel Schick came along and challenged them. Although they took away from their...
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...Running Head: THE GILLETTE COMPANY The Gillette Company: An assessment of past performance and future outlook for the brand Yinka Daramola National University, CA November, 2014 Abstract 3 Organizational Overview 4 Case Breakdown 5 Challenges 7 Market Impact 10 Projected Outcome 11 Question 1: 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’s next? 12 Question 2: Some of Gillette’s spokespeople such as Tiger Woods have run into controversy after becoming endorsers for the brand. Does this hurt Gillette’s brand equity or marketing message? Explain. 13 Question 3: Can Gillette ever become as successful at marketing to women? Why or why not? 14 Summary 16 References 18 Abstract This paper seeks to analyze the super-brand Gillette. It discusses its history, strategic growth techniques, and current global success metrics. The methods used to gain and maintain market share are scrutinized, along with the impact of its current alliance with the Procter & Gamble Company on its growth. The current product life cycle stage is identified, and suggestions are made regarding approaches to maintain and grow its global market share. The Gillette Company: An assessment of past performance and future outlook for the brand Organizational Overview Founded in 1903 by King C. Gillette and Will Nickerson as an innovative approach to improving men’s...
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...turn on your television set and see matters of abortion being discusses, it is hard to rule out the religion, and science. These subjects will always cause friction when educating people about human life. Abortion is more than a procedure, it has psychological factors, and it has short-term and long-term effects. There are financial matters as well and those who bears the overall long-term effect, society or the individual needs to be addressed as well when speaking about abortions. The Supreme Court of the United States has been involved in highly publicized cases of abortion; Rowe v Wade, Gonzales v. Carnhart, Ayotte v. Planned Parenthood of New England, are to name a few. The Supreme Court is the highest form of court system in the United States to decide these matters. The state should allow the people having the abortions to establish their own guidelines so they can govern these laws and regulations. Sexual Education in the school systems is flawed, teachers, teach the youth about sexually transmitted diseases, and the risk of what can happen when a life comes into this world unplanned. It is at this time where the subject of abortion needs to have a forum for discussion. Abortions happen for a wide variety of reasons; rape victims that become pregnant, fetuses born with deformities, health problems, financial reasons, and others. With the...
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...Companies struggle to maintain the high ground within a competitive marketplace. One source for maintaining an elevated position is through information gathering on competitors, better known as Competitive Intelligence (CI). Collection of this information can be accomplished through numerous means. History has shown that the collection of CI is not a new practice, only that the methods used to collect the information have evolved over the past century. Intense pressure for turning profits, winning contracts, and avoiding expensive research and development costs drive the methods used in CI collection. With an increase in CI collection, companies are required to protect themselves from inside and outside intruders. II. PROBLEM STATEMENT Corporate America has become oblivious to the information being divulged concerning company trade secrets. Corporate intelligence or company espionage has become an all to commonplace art form. Due to increase pressure to meet production quotas, new product markets, and an increase in stockholder wealth, corporations have changed into a “win at all costs” approach towards business. This organizational behavioral change has created misleading CEO’s, storytelling CFO’s, and cut throat high and...
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...out an indefinite suspension from the league and followed this with an announcement of a new policy regarding domestic violence. A first offense would result in a 6 game suspension and no pay. A second offense would result in a life-time ban, but the player has the option to appeal the suspension and be reinstated after on full calendar year. Even though Goodell admits that he will “now get it right, and do whatever is necessary to accomplish (what it right)”, is the NFL still going down the wrong path? (“NFL”) It seems like the NFL still has a lot of work to do in order to clean their image for good. Even with the revision to the former policy, the new domestic abuse policy is still a little too lenient. It is great there is a six game suspension without pay, followed by a lifetime ban for a second offense. But this is where the NFL fails. In the new rule, there is a tiny blurb that says the first offense is six games “with consideration given to mitigating factors, as well as a longer suspension when circumstances warrant” (Gantt). This basically means the commissioner can change the length of the suspension to whatever length he thinks is necessary. The second offense would mean a lifetime ban, but the player has the option to appeal it and possibly get reinstated into the league. On the other hand, if you review the NFL’s substance abuse policies, you would find that it is much stricter than this new domestic violence rule. Substance abuse is defined by...
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