Gillette Introduces the Sensor Razor
What marketing strategy (s) does Gillette seem to be following with the development and introduction of the Sensor razor? Gillette followed selective demand strategy with the development and introduction of it is Sensor razor. This is because Gillette has clear market share dominance. Gillette market was stabled between 1986 and 1989 the market share grew by 2.6 percent in units while in dollar Gillette sales reached to 26.7 percent. Gillette selective demand strategy expanded in three different ways: -
First, Gillette expanded the current market being served. -
Second, acquiring competitors’ customers.
Third and finally, retaining current customers.
First, Gillette aimed to increase it is brand sales the market being served, therefore Gillette’s new Sensor razor and blade system was revealed in Europe and Unites States on October 3, 1989. In fact, rapid geographic growth of Gillette’s new products went far beyond these two continents, into Canada, Japan, Latin America, Australia, Africa, and indeed the rest of the world. The statistics showed that Gillette would gain $20 million in pretax profit. Second, Gillette selective demand strategy expended in different way which is acquiring competitors’ customers (customer acquisition strategies), however, Gillette exclusives anticipated roughly one-third of Sensor’s sales would approach from competitors’ disposable razors. According to R. R. Campbell the Sensor ranked 26 percent better than the Atra Plus and 35 percent better than its nearest non-Gillette competitor. Still, Gillette executives anticipated approximately one-third of Sensor’s sales would come from competitors’ disposable razors. Thirdly and finally, Gillette concentrated in retaining their customers when it had tested the Sensor in October 1988, holding a continuing dialogue with about a hundred thousand consumers, who rated it in comparison with Gillette’s Atra Plus and with...
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