Braun Case Study
RE: Braun Case Study
Chairman Bernhard Wild stated in his concern regarding the risk for new and true innovations, “When a product is really new it takes courage. People don’t know what they want so Braun needs to create the need and expectation.” At Braun, they were driven by technological innovation, not price competition. This is supported by the core values of Braun design. So pricing is secondary. Braun needs to think globally when evaluating the introduction of the Syncro Shaver and its accessories. It is obvious there are differentials in what would attract customers in each global market. People’s wishes and expectations differ from one region to another, so Braun has to try and reduce these differences. In defining the type of customer, packaging and positioning of Braun’s Syncro Shaver we must differentiate by market regions. They are identified as follows:
• Japan – The combined shaver/cleaner center would be most attractive to the Japanese consumer. They had taken a liking to the National/Panasonic washable shaver whereas you could hold it under the faucet and rinse the dirt from the head. The popularity produced a sharp increase in sales which caused slippage in Braun’s market share. Braun knew it needed to design a better product, not just match the competition. The target group in Japan is those who currently own washable shavers or own existing Braun shavers. The focal point of the marketing would be one of gaining a close shave without the risk of infection. Pricing should be competitive with Panasonic with the emphasis on value units. Value is what the Japanese want. The positioning of the product will increase back to 1995 and 1996 value and units. It is very difficult to change position in a market where two products compete.
• Germany – Braun first tested the new concept in Germany where Braun was trusted. The research indicated that based on the interviews with high-end users, the cleaning center concept would be
Chairman Bernhard Wild stated in his concern regarding the risk for new and true innovations, “When a product is really new it takes courage. People don’t know what they want so Braun needs to create the need and expectation.” At Braun, they were driven by technological innovation, not price competition. This is supported by the core values of Braun design. So pricing is secondary. Braun needs to think globally when evaluating the introduction of the Syncro Shaver and its accessories. It is obvious there are differentials in what would attract customers in each global market. People’s wishes and expectations differ from one region to another, so Braun has to try and reduce these differences. In defining the type of customer, packaging and positioning of Braun’s Syncro Shaver we must differentiate by market regions. They are identified as follows:
• Japan – The combined shaver/cleaner center would be most attractive to the Japanese consumer. They had taken a liking to the National/Panasonic washable shaver whereas you could hold it under the faucet and rinse the dirt from the head. The popularity produced a sharp increase in sales which caused slippage in Braun’s market share. Braun knew it needed to design a better product, not just match the competition. The target group in Japan is those who currently own washable shavers or own existing Braun shavers. The focal point of the marketing would be one of gaining a close shave without the risk of infection. Pricing should be competitive with Panasonic with the emphasis on value units. Value is what the Japanese want. The positioning of the product will increase back to 1995 and 1996 value and units. It is very difficult to change position in a market where two products compete.
• Germany – Braun first tested the new concept in Germany where Braun was trusted. The research indicated that based on the interviews with high-end users, the cleaning center concept would be