Preview

Gillette Swot Analysis

Good Essays
Open Document
Open Document
725 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gillette Swot Analysis
Stephannie Niell
Case # 14 – Gillette

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?

Gillette has had the ability to appeal to men for decades and learn what they need and provide that for them. By “convincing” the world that more is better, it was simply done by their marketing team. The marketing team has used not only athletes throughout the decades but the research done before each product launch. By doing such extensive research and learning what consumers didn’t like about razors helped them to develop more bladed razors. More blades equal fewer tugs and pulls on facial skin, and this became more appealing to men who had sensitive skin or those who wanted the cleanest look. The fact that the newest razor, The Fusion, with six blades accounts for 45% of the men’s razors sold in the US is showing Gillette that more is actually better. Gillette is in the process of making their other grooming products as important as their razors. The ability of the company to create highly demanded products around the entire globe was due to their transparency and marketing efforts, and they are trying to do the same for their other grooming products.

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.

The issues that endorsements create when they are associated with a famous athlete or another world-renowned celebrity do not hurt their brand equity or their message. The reason being, although this individual made a mistake, he is still the epitome of a man who needs the products. Some may argue that it ultimately hurt the brand image, but the company continued to be the largest shaving and Razor Company with 70% of the global market share. The 7.5 billion in annual sales suggest that issues with



Cited: "Best Practices: Designing the Best Supply Chain Gillette Can Get." Supply & Demand Chain Executive. 2006. Web. 14 Aug. 2014. "Gillette." Forbes. Forbes Magazine, 6 Nov. 2013. Web. 14 Aug. 2014. "Interbrand – Best Global Brands 2013 - Gillette." Interbrand – Best Global Brands 2013 - Gillette. 2014. Web. 14 Aug. 2014. "Schick Cuts into Gillette 's Market Share - St. Louis Business Journal." Widgets RSS. 20 Apr. 2012. Web. 14 Aug. 2014.

You May Also Find These Documents Helpful

  • Powerful Essays

    HBR Paramount Clean Edge

    • 2283 Words
    • 10 Pages

    After extensive and exhausting research for the past few months on our newest product “Clean Edge”, in which many of our internal departments and managers have contributed invaluable knowledge, time and energy in seeing that Clean Edge has an efficacious launch in the super-premium non-disposable razor market, I was appointed by Mr. Quimby to spearhead a recommendation to the executive steering committee on my proposals for the branding, positioning and marketing budget allocation of Clean Edge’s launch. I have included in this memo my proposals as well as the research that supports my conclusions.…

    • 2283 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    For instance, Tiger Woods’s scandal agitated a media madness, forcing some of his sponsors (Gillette, Accenture, and Gatorade,) to drop him. Knittel and Stango (2010) found that, in a week after Tiger Wood’s scandal came into light, organizations whose products were endorsed by him, encountered major drop in stock market, in respect to both the stock market and the competitor organizations. The main five sponsors (Gatorade, Nike, Accenture, Electronic Arts, and Gillette) lost 2% to 3% of their total market value after the scandal broke, and his three main sponsors; Electronic Arts, Nike, and PepsiCo (Gatorade) lost over 4%. Therefore because of these potential dangers, a brand must take extra precautions when hiring a star for endorsement.…

    • 117 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Gillette Fusion Case Study

    • 2795 Words
    • 12 Pages

    The MACH3 was introduced to the market in the United States, Canada, and Israel in 1998; this razor was special because it saves time. With the three blades, users of this razor can shave three-time faster with each stroke. MACH3 was a huge success for Gillette; it took 15% of the market share and brought in $60 million in the first six month. The new method of loading cartridge for the MACH3 is much easier; the blade edge’s material is thinner, three times stronger than stainless steel, and lasts much longer. The strip color-fading feature is great because it alert users when they need to change out the blades, which is very helpful; customers won’t have to waste money replacing new blades too soon and avoid having uncomfortable shaving experience due to old blades. The price for the razor and its cartridge is much higher than the older version razors, which is why lots of money is spent on promoting and advertising. Due to the…

    • 2795 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Gillette Fusion

    • 678 Words
    • 3 Pages

    The media’s reaction to the “blockbuster” advertisement campaign highlights many of the campaign’s flaws. The campaign focused on the product features rather than its benefits. Due to the ad’s product focus, Gillette failed to communicate why the additional blades and elastomer handle coating improved the quality of consumer’s shave. The proposed advertising campaign would address these flaws and focus on the customer experience. In order to educate consumers, Gillette should employ a mass media campaign similar to Pepsi’s “Pepsi Challenge.” This campaign will include blindfolded individuals testing and comparing the Gillette Fusion with several other razors, and will be hosted by a celebrity who shares similar brand qualities as the Fusion. The celebrity will be young, sleek and innovative, like Ashton Kutcher or Dwayne Wade.…

    • 678 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Clean Edge Razor

    • 941 Words
    • 4 Pages

    Paramount is planing to launch a non disposable razor ‘Clean Edge’. This companyis a market leader in the non disposable razor market. Currently it is offering Paramount Pro and Paramount Avail. Neither pro nor Avail has introduced significant technology innovations in the last five years. The non disposable razor and refill cartridge market is divided into three segments based on price and quality – Moderate, Value and Super premium. The Super premium category has the highest growth among the three categories. Clean Edge was developed after a thorough research and is a technologically superior product. The company is not sure how to position Clean Edge. They have two options, either to position it as a niche product or to position it as a main stream.…

    • 941 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In the past, nondisposable razors merely served as hair removing tool for the vast majority of the population. However, according to Exhibit 1, as personal images became important in social life, hair removing routine became a means of gaining confidence for some people. For this reason, customers started to seek nondisposable razor that not only effectively removes hair but also protects skin, and further gives them sense of luxury by utilizing the best technology. Understanding customers’ tendency to always search for newest and advanced products, Paramount developed Clean Edge using their unique technology. Although they were confident about quality of their product, their competitive position was not stable. They had two big competitors, Benet & Klein and Prince which already had loyal customers throughout the world, not to mention other new competitors that started to threaten Paramount with their groundbreaking products. Moreover, because Benet & Klein and Prince’s expenditures in advertising exceeded those of Paramount, it was difficult for Paramount to take away the market share and brand recognition.…

    • 1258 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Female Divine Article

    • 369 Words
    • 2 Pages

    Newman’s article discusses the advertising and marketing angles taken by Gillette, the razor company. In 2001, Gillette launched their three-blade Venus razor (Newman, 2008). Over the years, Gillette has improved upon the original three-blade Venus, and in 2008 launched the Gillette Venus Embrace (Newman, 2008). The Venus Embrace was the first five-blade razor for women, and launched the largest advertising campaign on the female side of the razor business in seven years (Newman, 2008).…

    • 369 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Clean Edge Razor Case

    • 589 Words
    • 3 Pages

    Paramount must decide how it wants to position the Clean Edge Razor in the market. With the men’s grooming market segment poised for growth, it must figure out where the most profit opportunity lies (i.e., super-premium, mainstream, etc.) and then proceed with an implementation plan.…

    • 589 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Clean Edge Razor Case

    • 1586 Words
    • 7 Pages

    * Competitors: Competition includes direct competition as well as substitutes for Nondisposable razors. In 2010 the three major players were Paramount, Prince, and Benet & Klein (B&K). Prince mainly focuses on super-premium products. B&K entered the Nondisposable market in 1985. There are also new entrants which account for the rest of the market. In 2010 Paramount is expected to have a 21.4% dollar market share.…

    • 1586 Words
    • 7 Pages
    Good Essays
  • Best Essays

    The Gillette Company has been presented with a potential business opportunity to expand its offering with a new razor. Market research indicates that the new product will be well received and that it will obtain 10% market penetration. An initial pro forma modeled net cash flows of $22,710,427 over four years including an initial capital investment of $10,000,000. The firm has a strong financial position with an overall WACC of 9.50%.…

    • 2156 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    Competition: Paramount’s main competitor in non disposable razor category in 2010 are Prince, B&K, Radiance health and other substituted products. Prince sold non disposable razors in super-premium category. Prince had gained #1 spot in terms of retail dollar sales up until 2009. Notable feature of B&K another competitor was that they entered the market in this non disposable razor category only in 1985. However, they managed to reach #3 in market share and unit-volumes by superior technology and releasing superpremium products. New entrants were coming to market with super premium products, technology and greater advertising dollars to gain market share. Paramount’s clean edge should compete with Radiance Naiv in test markets. Naiv had already acquired 13% market share in test markets. Radiance and Paramount were fierce competitors and Paramount had to launch a new technology in Super Premium segment to regain market share and continue to exist as a global leader in this category.…

    • 2054 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Currently, Gillette’s operating segments include personal grooming, small appliances, and oral care products, and the portable power segment. In the portable power segment, Duracell’s major competitors consist of Energizer and Rayovac while new and emerging ones included Sony, Kodak, Panasonic, and other private label brands. The collective entrance of these competitors in the 1990s is the primary reasons for Gillette’s lack of success in the battery industry, discussed below.…

    • 1177 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Clean Edge Razor

    • 1011 Words
    • 5 Pages

    Paramount’s newest non-disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning, brand name & marketing budget allocation for the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non-disposable razors sold by Paramount.…

    • 1011 Words
    • 5 Pages
    Good Essays
  • Better Essays

    I intend to study the positive and negative effects that athlete endorsements have on the product and the brand itself. In being the huge sports fan that I am, I have seen many athlete endorsements become extremely successful. A great example would be David Beckham’s endorsement with Adidas. However, I have also seen some athlete endorsements go terribly wrong, like Terry Keane’s endorsement with 7-Up. These two compelling examples inspire me to learn and understand the effects that star athletes can have on a brand itself and the specific products that they endorse. To learn everything about these effects, I will conduct my research…

    • 908 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Gillette protects its industry leadership on the back of intensive expenditure in R&D and the careful recording of the experiences that men have using Gillette razors. Armed with its superior knowledge on shavers and shaving, Gillette manages to outgun the competition by constantly leaping forward with novel products, which therefore have superior quality.…

    • 1646 Words
    • 7 Pages
    Good Essays