Gillette Case

Topics: Razor, Shaving, Duracell Pages: 5 (1651 words) Published: March 6, 2014

Gillette Case Study

1.Background Synopsis
Gillette is a razor and blade company started in 1901 by King Camp Gillette and was at the time the only shaving company available to men and women. According to the book, “Gillette has long been known for innovation in both product development and marketing strategy” (Ferrell). The company was the first to invent the disposal razor and the first 5-bladed razor. The company has lasted through many trying times and has invented many of the products we use today. The company has also had many successful and unsuccessful joint ventures and now is a part of the Proctor and Gamble company, which is a world-wide leader in many household products.

2.SWOT Analysis
Strengths- I would say that a major strength for Gillette is that they have lasted through so many years and decades. The company has made it through a major economic drought (1920’s and 1930’s), a war (World War II), and has outlasted many of its competitors. Another strength I believe the company has it that it has teamed up with many different sporting franchises, the gaming industry, and alternative audience groups. The Gillette company has teamed up with the MLB, NFL, NASCAR, MLS, and the NCAA. I believe that teaming up with the different sports, they reach a broader audience and they target more of the men’s population who participate or watch a sport. It appears that this was a strength in their marketing strategy by having a football stadium named after them and having promotional give-aways within the sports. This was also a great market strategy by reaching out to the international crowd with the MLS sponsorship. The MLS is popular in other countries and according to the book, “60 percent of Gillette’s sales are generated outside of the United States” (Ferrell) . It was also a great marketing strategy to reach out to gamers, who represent a different target market. This would also appear to be the case with the alternative audience groups. I feel that with a strategy like this that the company is trying to reach out to many different demographics and expand their sales.

Weakness- I feel that one of the weaknesses of the company is that they were mainly men based and that they could have targeted the women’s demographic a little better. The company makes products for women but according to the book “1.3 billion men worldwide shave with a razor blade and in addition to that 100 million women in the United States remove hair in some fashion. Of these women, 94 percent prefer to shave with a razor blade” (Ferrell). It would appear to me that the company could focus a little more on trying to sell products to the women’s population to increase sales. I would like to think that women have more to shave then men and that the company would make a bigger profit by advertising more to the women’s population nationally and worldwide. I think another weakness of the company is that they are stuck on the innovation because after the 5-bladed razor where else can you go from there. They were the first company to come out with the 5-bladed razor and this was a strength but at the same time a weakness. It was a strength because they were the first but a weakness because now they have nowhere left to go with the design and innovation of the razor blades and the technology that goes behind it. Another weakness I found was the company was selling more razors but not enough of the replacement cartridges. When looking at the statistics in the book for the price of the razors and the replacement cartridges it appears to be cheaper to buy the razors instead of the cartridges. I know that when you buy a razor it usually comes with the blade on it and two replacement cartridges. It usually sells for anywhere between $8-11 dollars and the replacement cartridges for a four pack sell anywhere from $ 10-14 dollars. When you look at it that way it seems that it would just be cheaper to buy the razor and uses the two...
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