...11/12/14 Clean Edge Razor Case [pic] Table of content 1. Executive Summary………………………………………………………………….3 2. Problem/Issue Statement………………………………………………………..4 3. Situation Analysis…………………………………………………………………….4 4. Alternatives……………………………………………………………………………..8 5. Evaluation of Alternatives………………………………………………….…….8 6. Recommendation(s), Action Plan/Implementation…………………..9 7. Appendix…………………………………………………………………………………11 1. Executive summary As a marketing advisor, my role is to analyse the Clean Edge Razor Case in terms of the inner and external situation, the alternative solutions and assess each solution, then give recommendations on which alternative solution to choose, what the advantages and disadvantages are. Finally, suggest implementations that should be taken in order to achieve the goal. www.termpaperwarehouse.com/print/Clean-Edge-Razor-Case/244312 1/9 11/12/14 Clean Edge Razor Case As a leader in the heath product and grooming manufacturer company, Paramount is introducing a more technologically revolutionary nondisposable razor into the super-premium market to maintain market share. However, there are many competitors in this segment and Paramount is considering the proper the positioning method to choose to gain the most market shares. Both niche positioning and mainstream positioning have pros and cons. Niche positioning focus on specific group of male that are very concerned with the functionality and the messaging of the razor. They seek superior...
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...Alternatives……………………………………………………………………………..8 5. Evaluation of Alternatives………………………………………………….…….8 6. Recommendation(s), Action Plan/Implementation…………………..9 7. Appendix…………………………………………………………………………………11 1. Executive summary As a marketing advisor, my role is to analyse the Clean Edge Razor Case in terms of the inner and external situation, the alternative solutions and assess each solution, then give recommendations on which alternative solution to choose, what the advantages and disadvantages are. Finally, suggest implementations that should be taken in order to achieve the goal. As a leader in the heath product and grooming manufacturer company, Paramount is introducing a more technologically revolutionary nondisposable razor into the super-premium market to maintain market share. However, there are many competitors in this segment and Paramount is considering the proper the positioning method to choose to gain the most market shares. Both niche positioning and mainstream positioning have pros and cons. Niche positioning focus on specific group of male that are very concerned with the functionality and the messaging of the razor. They seek superior shaving experience and consider shaving as daily grooming ritual. Mainstream positioning focus on a broad market and target at the consumers that have ordinary shaving needs. However, the key issue is that mainstream positioning may cause cannibalization effect, triggering decline in sales of the...
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...Management Case Analysis Clean Edge Razor: Splitting Hairs in Product Positioning Group AE1: Abhinav Singh (14S601) Anima Tapadiya (14S607) Dushan Garg (14S616) Niharika G (14S628) Raviteja Palanki (14S636) Prem Sharath (14804) Q.1. What changes are occurring in the non disposable razor category? Assess Paramount’s competitive position. Changes occurring in the non-disposable razor category: Consumers are increasingly becoming aware of technology and are demanding for technologically advanced and innovative razors. The market is growing at the rate of 5% approximately from 2007-10. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. To cater to this increasing demand, 22 new stock keeping units were introduced between 2008 and 2009. Initially, the distribution of non-disposable razors was limited to traditional food and drug stores. But over the years from 2007 to 2010, the distribution started to shift towards mass merchandisers and club stores. Paramount’s Competitive position: Paramount presence is in the moderate and value segments. Paramount’s products Pro and Avail were currently not able to cater to the demand for technologically advanced and innovative products. Paramount also faced competition from substitute products like disposable razors, electric...
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...Executive Summary We are 3+2 group，introduce team member Timber， Jie，Penny ，Helen ， and Stella. We’ll present the marketing strategy for the innovative product Clean Edge razor. Now let’s begin. Our presentation outline are： Paramount Health and Beauty Company Ultra thin five blade and vibrating technology- technology leading position 2011 - Introduce new Clean Edge target at niche market 2012 - Sunset Avail 2013 - Cut Clean Edge price to occupy mainstream market 2013 - Introduce Clean Edge Plus target at niche market to increase market share 2014 - Technology leading position in market, to achieve 472million annual revenue, and 32% market share in US non-disposable razor market. Our 推出新产品定位niche 2年后降价定位主流市场 并推出plus a new non disposable razor Clean Edge with cutting edge technology to improve men’s shaving experience by the use of leading vibrate technology in the super premium segment. 1. 我们的新产品有CE ultra thin five blade and vibrating technology， technology leading position 2. 我们将于2011推出CE，target at Niche market 3. 我们将于2013 cut CE price，to occupy mainstream market。 4. 同时我们将推出CE Plus，我们的客户是（高端客户），在市场保持领先地位share。 5. 我们的总体目标是2014年达到XXX. Our principle is technology leading, 1. 现在市场中super占最大。 2. 同时social是最大的消费群体。 3. 所以，我们决定将我们的主要客户定位在xxxx上。 1. 我们现在主要的竞争对手有XXXX。 ...
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...MANAGEMENT BRIEF - GILLETTE - THE SENSOR RAZOR LAUNCH. 15 August 1992 The Economist (c) The Economist Newspaper Limited, London 1992. THE BEST A PLAN CAN GET Our second case study involves one of the most successful launches of a consumer product in decades: Sensor, Gillette's high-priced, high-tech razor. In April 1990 Gillette's Bruce Cleverly made one of the hardest decisions a marketing boss can ever face: to pull an expensive television-advertising campaign off the air. Hard, but in this case, enviable. The advertisements in question had not been attacked as misleading; they had caused no offence; they had not failed to stir consumers. Far from it. Mr Cleverly was forced to stop advertising his company's newest product, Sensor, because demand for the high-tech razors was so intense that the company could not produce them fast enough to meet it. In America and Europe, pre-launch publicity had consumers clamouring for Sensor weeks before it arrived in shops that January. When it arrived, many retailers could not keep the razor and its premium-priced blades in stock for more than a day or two. Gillette vastly under-estimated its product's potential. The company's most optimistic pre-launch projections were for the sale of 18m razors and 200m blades in 1990. The actual totals were 27m and 350m. Sensor grabbed 7% of both the (at the time) $850m American blade market and the $1.1 billion European one, and an astonishing 42% of the $150m combined American and European...
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...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...
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...simple and easily accessible. Let’s take the example of shaving. There are major differences in the behavior of customers in emerging and developed markets. Companies catering to these markets such as P&G often have to adapt to these difference. For example in the US the new Fusion Pro Glide with five blades is the top selling razor of P&G’s Gillette product portfolio priced at around $4. However this product does not address the needs of Indian customers. Most Indian people still shave with double-edged razors while balancing a hand held mirror. P&G realized that in order to enter India they had to investigate the needs of the Indian BoP customers. They sent a research to India to observe the shaving behavior of Indians and to understand the role that shaving plays in their daily life. P&G found out that Indian customers need a simple razor that can use without running water and which limits the risks of cuts while shaving. After conducting this research they introduced a simple razor called the Gillette Guard. It has just one blade, can easily be cleaned without running water, is safe and costs a fraction of the price of the Fusion Pro In fact, the razors and blade cartridges sell for about $0.30 and $0.10, respectively. To market the Gillette Guard, P&G focused on Indian kiranas, or local shops, since thisiswhere BoP customers preferto shop. For their promotion P&G used a local approach with ads and TV spots hosting...
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...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 profit margins...
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...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...
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...------------------------------------------------- Gillette Indonesia Case Study Analysis October 24, 2015 Sumeet verma EPGP08-116 October 24, 2015 Sumeet verma EPGP08-116 Introduction 1901 – The Gillette Company founded in Boston. 1905 – Opening of London office, 1906 – Established a blade factory in Paris 1971 - Gillette entered the Indonesian market forming a joint venture with a local company 1972 – Established razor blade plant . 1995 – Manufacturing capacity of 150 million blades (46 million exported) 1996 – increase production to 168 million blades (50 million exports) 1996-2001 – Achieve production capacity of 230 million per year. Marketing Mix Products Gillette’s product line includes ; * Double edge razors (Core Product) * Disposables (2 types) * System blades (3 types) 87% of all the blades sold were double-edge (100 million out of 115 million sold) Share of disposables projected to increase to 20% in 1996. Revenue expected to $27.6million in 1996, with a gross margin of 46%. Gillette also expects the revenue from the Sensor system to double. Other product to grow at a smaller margin. Price Gillette’s products are relatively expensive (4 times that of competitions) Place: Distribution is most complex challenge. * Geographical spread across 15K islands. * Regulatory restrictions on foreign companies from directly importing & distributing products . * Poor traffic conditions , no/lack of distribution service...
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...media and culture cannot be overstated. Gillette faced several issues in 2008, as it attempted to grow the Mach3 brand in India. While there was ample opportunity for growth in India’s market, based on the 400 million men of shaving age, India’s market did not value razor technology as highly as the US market. This was due to the consumer’s risk averse nature and the fact that they did not make purchasing decision lightly. When looking at the consumer buying decision process, Gillette faced hurdles at nearly every stage. When classifying need recognition, Gillette had to deal with the perception that the nicks and cuts of the conventional double-blade were simply inevitable, which stood in the way of Gillette justifying the higher priced razors to this market. Further, facial hair in India was fashionable, thus the average consumer did not express a need to be clean shaved everyday. In addition, Gillette encountered problems with the consumer’s information search, which did not involve men openly talking about their shaving habits as many men did in other markets. The alternative evaluation stage was likely Gillette’s biggest obstacle: consumers had too many cheap alternatives. The Gillette razors were priced ten times above that of disposable blades and about forty times that of double edge blades. In addition, “nearly half of all shaving men regularly visited a barber, and half of those men exclusively visited a barber for all their shaving needs.” One of Gillette’s...
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...Developing new products A Gillette case study First mover: advantages and risks The Gillette Company has a long history of being 'the first to market...' in its own areas of operation. Its achievements include producing the first successful: • • • • • • • • safety razor 1901 twin bladed razor 1972 twin bladed disposable razor 1976 pivoting head razor 1979 pivoting head disposable razor 1980 razor designed specifically for women - Sensor 1992 triple blade razor - Mach 3 1998 battery powered razor - M3Power 2004. As well as being first to market, Gillette has also continuously produced products which feature improvements to existing technologies, including 3 bladed disposables and ergonomically superior handle developments, including Sensor, Venus Divine and M3Power. This timeline above also demonstrates how the speed of innovation has accelerated with shorter and shorter gaps between new introductions and superior products. Being 'the first to' can bring advantages known as 'first mover advantages'. These include being able to generate initial consumer interest via both media investment and accompanying press and PR coverage. This then leads to the main retail stores displaying the products in-store and supporting the products with powerful promotional campaigns. For as long as products remain the only one of their kind available, the 'first mover' can establish loyalty and reputation in its brands before potential competitors get going or catch up. A Brand is...
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...Marketing 3010 004 Website Comparison Marketing Team Go 3 - Firm Website versus Competitor Website The kind of success that Gillette has attained attracts competitors who all desire to be the top razor company in the industry. With that being said, technological savvy by companies is important nowadays especially in the case of website design. One of the larger companies that competes with Gillette in the razor industry is Schick. Schick’s website is very engaging and modern which would most likely attract younger customers, late teens and early adults. An interesting aspect of Schick’s website is that there are two sections for you to enter, Men or Women. Considering the fact that this is the first thing you see when going on the website, I think that it will resonate with female customers better than Gillette’s website. After clicking on the men category, the website displays different products that they offer and gives you the option to learn more. On the other hand, Gillette’s website begins by offering the several different products that they offer such as blades, pre/post shave gels, deodorants, and body washes. I believe that Gillette offers much more than Schick in terms of products which would attract more customers. While Schick’s website does give the customer a choice in purchasing men or women’s products, the rest of their website seems very bland and disinteresting. Gillette does not present their women’s products...
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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 | Gillette | | Kristers Duksis | 11/18/2012 | | 1. The company „Gillette” has been one of the biggest names in the razor producing industry since 1904. Nowadays „Gillette” is still one of the leaders in the market of razors. Actually there was few lessons which company learned. One of those few things was how to keep razors and blades in shape for longer time what actually found out „Wilkinsons” by using stainless steel-blades coated with chemical film to protect edge. It was very large improvment into production development process, because that gave 2-3 times longer lifetime for the new razor. After that „Bic” introduced world with their new disposal razor, which was very good idea, because they figured out that could be more convenient for customers, because the won’t need to buy new razor every time when blades are blunt, so „Gillette” took both of those ideas and made universal razor which gave large develompment in the history of „Gillette”. Also they learnt how to improve another company’s procceses, like evalution, product creation, commercialization and concept generation. Again the made very good decisions about the cost of the production, company made very capable cost for new razor, what made this product availabe to buy for eveyone what let the serviceability to grow. 2. „Gillette” was so slow on stainless steel-blades, because they were already big worldwide company, which could recognize almost everyone, so they started...
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