Gillette Case Study
introduction
Gillette know men in their grooming needs but not for woman. Men have been scraping their beards and moustaches off since the invention of dating, and had been using a variety of single edged razors, including the so-called "safety razor", which had been introduced by Gillette in 1901.
A mere 70 years would pass before the Gillette people could improve on things with the introduction of the Trac II razor, the first two-bladed cartridge. The theory was, that the first blade would -- in the process of severing the offending hair -- actually pull the hair slightly out of the face so the trailing blade could cut off even more. It would then snap back below the surface of the skin, producing irresistibly smooth face parts.
The manual business was made up by competing on price everyone had introduced two-bladed cartridges and making disposable razors that were just barely adequate to shave with but cheap enough to be profitable and drive growth. the idea to add a third blade to the mix. This became known as the Mach3.
This was an incremental innovation, the Schick people responded with the Quattro, which had the startlingly non-obvious innovation of a fourth blade! Gillette responded with the fifth blade, which brings us up to the present.
Defining problems;
There is a doubt if Gillette trade-up model still works. "It's already “the best a man can get”, and men aren't as willing to pay more for better. Pricing, which has tempted thieves and led retailers to put blades behind locked glass cases, makes purchases less convenient and promotions less effective. Consumers chooses inexpensive price with high quality but the reverse for the Gillette with high pricing model focus. Now the consumer trend seems to be on durable razor than a disposable razor due to which, the Disposable razor market share declines, loss of quality image and loss of profits.
The Gillette Company has hit a wall even as its core business is growing.
Reeling from several
Gillette know men in their grooming needs but not for woman. Men have been scraping their beards and moustaches off since the invention of dating, and had been using a variety of single edged razors, including the so-called "safety razor", which had been introduced by Gillette in 1901.
A mere 70 years would pass before the Gillette people could improve on things with the introduction of the Trac II razor, the first two-bladed cartridge. The theory was, that the first blade would -- in the process of severing the offending hair -- actually pull the hair slightly out of the face so the trailing blade could cut off even more. It would then snap back below the surface of the skin, producing irresistibly smooth face parts.
The manual business was made up by competing on price everyone had introduced two-bladed cartridges and making disposable razors that were just barely adequate to shave with but cheap enough to be profitable and drive growth. the idea to add a third blade to the mix. This became known as the Mach3.
This was an incremental innovation, the Schick people responded with the Quattro, which had the startlingly non-obvious innovation of a fourth blade! Gillette responded with the fifth blade, which brings us up to the present.
Defining problems;
There is a doubt if Gillette trade-up model still works. "It's already “the best a man can get”, and men aren't as willing to pay more for better. Pricing, which has tempted thieves and led retailers to put blades behind locked glass cases, makes purchases less convenient and promotions less effective. Consumers chooses inexpensive price with high quality but the reverse for the Gillette with high pricing model focus. Now the consumer trend seems to be on durable razor than a disposable razor due to which, the Disposable razor market share declines, loss of quality image and loss of profits.
The Gillette Company has hit a wall even as its core business is growing.
Reeling from several