Gillette Innovation Case Study 17 Oct 2011
Michael Smurfit UCD Graduate Business School
University College Dublin
Frank Bradley
17 October 2011
GILLETTE INNOVATION
Gillette with over 70 percent market share in the wet shave market in both the US and Europe dominated the category. This dominance was born from a relentless pursuit of better shaving technology, a willingness to invest whatever was needed to manufacture its products effectively, and a formulaic, integrated marketing strategy. Gillette prided itself on its innovations in shaving technology and its ability to persuade consumers to trade up as new improved versions of existing razors were launched. In 1990, the Gillette Sensor represented a breakthrough in shaving systems technology with its twin blade cartridge. This product provided a platform for development of other members of the Sensor family, including
Sensor for Women and the SensorExcel. It was believed that Sensor’s launch and subsequent success saved the company from takeover bids by Revlon. In 1998, Gillette introduced the
Mach3 razor, which added a third blade to the razor. The Mach3’s introduction came at a time when the company was experiencing financial headaches, which culminated in takeover rumours involving Procter & Gamble.
Throughout the 1990s and into the new century, the company continued to spend large sums of money on developing flagship products at times of crisis, so that the company’s entire future essentially relied upon their success. There was concern at Gillette that the constant peaks and troughs faced by the company were ultimately going to affect shareholder expectations in the long term. As such, Gillette needed to find a way to smooth out the ups and downs as much as possible to provide a more consistent performance. A steady stream of incremental innovations would prove less risky and less expensive, but such an approach would not be consistent with Gillette’s brand image as technology leader – an image that had allowed it to
University College Dublin
Frank Bradley
17 October 2011
GILLETTE INNOVATION
Gillette with over 70 percent market share in the wet shave market in both the US and Europe dominated the category. This dominance was born from a relentless pursuit of better shaving technology, a willingness to invest whatever was needed to manufacture its products effectively, and a formulaic, integrated marketing strategy. Gillette prided itself on its innovations in shaving technology and its ability to persuade consumers to trade up as new improved versions of existing razors were launched. In 1990, the Gillette Sensor represented a breakthrough in shaving systems technology with its twin blade cartridge. This product provided a platform for development of other members of the Sensor family, including
Sensor for Women and the SensorExcel. It was believed that Sensor’s launch and subsequent success saved the company from takeover bids by Revlon. In 1998, Gillette introduced the
Mach3 razor, which added a third blade to the razor. The Mach3’s introduction came at a time when the company was experiencing financial headaches, which culminated in takeover rumours involving Procter & Gamble.
Throughout the 1990s and into the new century, the company continued to spend large sums of money on developing flagship products at times of crisis, so that the company’s entire future essentially relied upon their success. There was concern at Gillette that the constant peaks and troughs faced by the company were ultimately going to affect shareholder expectations in the long term. As such, Gillette needed to find a way to smooth out the ups and downs as much as possible to provide a more consistent performance. A steady stream of incremental innovations would prove less risky and less expensive, but such an approach would not be consistent with Gillette’s brand image as technology leader – an image that had allowed it to