Preview

Gillette Case

Powerful Essays
Open Document
Open Document
1552 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gillette Case
Gillette is a company that has been known to the public for many years for innovation and marketing strategy. They hold a commanding market share in a razor and blade industry that is rapidly growing new companies and competitors. However, their innovativeness has not been the same since 2006 when they created the fusion 5, and their ability to market to people who do not want to pay the price for razors has caused them to look at new ways to maintain or increase its market share. Gillette was founded in 1901 by a man named King Camp Gillette. They have been one of the leaders in the razor industry due to their innovation and marketing. They offer “high quality shaving products that would satisfy basic grooming needs at a fair price. Gillette was one of the few companies to have success in the early 1900’s because it had created product that fit customer’s needs. The challenge now was to continue to grow and innovate new products. Their first competitor was Wilkinson Sword and in 1962, it caused Gillette to begin the phase of branding a series of blades that started with just 1 blade and eventually went up to five blades in one razor. This led to a razor war that would be started and continued for many years to come. In 1990, Gillette was at the height of its powers but was still looking to take command of the market through innovation. They began this by creating the sensor blade which was a huge success. It was succeeded by the sensor blade excel. These two product help shift the attention away from older product that were being used by Gillette. They did the same thing on the women side in 1996 with a sensor and sensor excel for women. However, the competition ramped up in 2003 when Schick and the Quattro created the world’s first four blade razor. This led to numerous lawsuits by both Gillette and Schick which neither won, but Schick was creeping up on Gillette market share. To combat this, Gillette decided to market too many different countries and did

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
  • Satisfactory Essays

    * The company’s positioning strategy was successful in differentiating its product from existing men’s and women’s shaving gel (1986).…

    • 355 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nike Case

    • 836 Words
    • 4 Pages

    Any company’s assets are either financed by its debt or by its equity. The Weighted Average Cost of Capital is the average costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking the weighted average, we can see how much interest the company has to pay for every dollar it finances. Basically, the WACC is the minimum required return that the company must earn to satisfy its creditors, owners, and other providers of capital, or they will invest in another company that has higher returns. In this case, I will first address the issues with Cohen’s calculation, and then analyze an new WACC to decide whether we should invest in Nike Inc.…

    • 836 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Gillette Fusion Case Study

    • 2795 Words
    • 12 Pages

    Gillette dominates 70% of global razor market; their strategy is to keep on producing new products, developing new innovations, and remaining as the market leader in men’s grooming market. Gillette introduced its first razor in 1903; by 1971, they invented Trac II “the world’s first two-blade razor”. Comparing to the original one-bladed razor, the two blades work better. Then they came out with Altra, the razor with a pivoting head, in 1977. The Sensor came out soon after with spring-loaded blades; the spring-mounted blades allow the razor to adjust to the contours of user’s face. The SensorExcel was the first razor to include microfins on the cartridge head; the microfins give users a closer, more comfortable shave. This was the start of many new technological inventions that Gillette is producing. Most of these early inventions are more for the disposable usage because the design and features are simpler; the price is also more affordable.…

    • 2795 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Gillette Case Write Up

    • 311 Words
    • 2 Pages

    Gillette is moving into a new market with a large advertising budget and a strong distribution chain. I expect sales in the first year to reach 3.495 million units, or roughly $3.39 million. This would represent a 15% market share of the standard quality market. With a projected market growth rate of 30% each year and an annual advertising budget of $1.2 million, sales figures are expected to grow to 23.96 million units ($23.24 million) in year five. This figure will represent a 36% market share.…

    • 311 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Maintain company harmonized portfolio: Gillette ‘shaving‘ vs. Old Spice ‘grooming‘.  To continue with ‘grooming‘ functional products for Old Spice.…

    • 1438 Words
    • 6 Pages
    Powerful 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

    1. The non-disposable razor market has, and will continue, to show growth in future years. Trends indicate that this growth will be fueled by innovations and new products. Consumer trends, increasing retail shelf-space, media attention and mainstream acceptance of male-grooming support this forecast, and indicates that “Social/Emotional” and “Aeshetic shavers are likely to be a growing segment of the overall market. Exhibit one indicates that these users currently account for 67% of the total market. This bodes well for Clean Edge.…

    • 865 Words
    • 4 Pages
    Good 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

    Procter and Gamble

    • 5902 Words
    • 24 Pages

    “P&G Signs Deal to Acquire The Gillette Company: Raises Long-Term Sales Growth Outlook”, The Procter & Gamble Company,January 28, 2005…

    • 5902 Words
    • 24 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
  • Satisfactory Essays

    Gillette - a case study

    • 532 Words
    • 3 Pages

    The Gillette Company has a long history of being 'the first to market...' in its own areas of operation. As well as being first to market, Gillette has also continuously produced products which feature improvements to existing technologies, including 3 bladed disposables and ergonomically superior handle developments, including Sensor, Venus Divine and M3Power. For as long as products remain the only one of their kind available, the 'first mover' can establish loyalty and reputation in its brands before potential competitors get going or catch up. A Brand is thus created. There are risks to being the innovator, however. To be successful, the innovation process has to be conducted thoroughly. This usually involves a great deal of research, and in more than one form.…

    • 532 Words
    • 3 Pages
    Satisfactory Essays

Related Topics