Razor and Gillette

Good Essays
Topics: Razor, Marketing, Shaving
A. CASE ANALYSIS

I. Statement of the Problem

How can Gillette Company maintain and improve its profitability?

II. Objective

1. To reinvigorate the blade-and-razor system market while keeping the lead in the disposable razor market.

2. To develop strategies that will continue to sustain and increase the market share.

3. To maximize the profitability of the company.

III. Analysis of Case Facts/SWOT Analysis

Strengths

1. Gillette invented the blade-and-razor system.
2. Has always been an industry innovator, with ample budget allocation for Research & Development.
3. Gillette has cartridge systems, electric razors, and disposable blades.
4. The company has strong international capabilities.
5. Gillette's sponsorship of sports gets good response from the market.
6. Gillette introduced its product to the US military which created a big market of self-shaving individuals.
7. Gillette has ventured in overall personal grooming.
8. Products of Gillette are known for its "good quality".
9. Paul Hankins and Jim Pear impose a strong leadership in the company with strict control over product costs, overhead expenses, and working capital.

Weakness

1. Gillette's market share is shifting to disposable razors from its cartridge system.
2. Gillette's electric razors are produced by Braun.
3. Gillette has multiple blade-and-razor systems but their cartridges are not interchangeable with their other models.
4. Gillette's effort in 1980's was not synchronized with its goal. It introduced more new disposable razors and product enhancements while it wants to regain its market for blade-and-razor system where it can get three times more profit than disposable razor.
5. Spending on Blade and Razor advertising has drastically decreased over the years.
6. There is a low morale inside the company.
7. Gillette's global team is not well-coordinated.
8. System razor is heavier than disposable razor.

Opportunity

1. There is a continuous

You May Also Find These Documents Helpful

  • Best Essays

    Gillette The Razor Wars Continue Overview Case Overview: Founded in 1901 by King C. Gillette, the Gillette Company has been extremely successful since it’s inception into the shaving market. Gillette did such a good job from the start in the shaving market, that the company went sixty-years before having any meaningful competition for it’s customers. In 1962 Gillette was enjoying a seventy percent share of the market and everything was looking rosy for the top shaving product company in the…

    • 3298 Words
    • 14 Pages
    Best Essays
  • Good Essays

    Gillette Safety Razor Division: Case Write Up Overview Ralph Bingham, VP new business development of Gillette Safety Razor Division (SRD) needs to decide whether to enter the rapidly growing blank recording cassette market. He is assessing whether Gillette can use its strengths in high volume manufacturing and marketing of mass distributed packaged goods to assume a leadership position in this new market. I recommend Gillette avoids entering this market Analysis The SRD commissioned consultancy…

    • 1190 Words
    • 5 Pages
    Good Essays
  • Good Essays

    In late 1970, after the split-off of the Toiletries Division, the Gillette Safety Razor Division (SRD) is considering a proposal to enter the blank recording cassettes market to try to achieve its assigned earnings growth target. The blade and razor business is mature and the SRD knows it won’t be able to achieve the growth target there, so it’s evaluating a diversification strategy to enter the new business. As in any diversification strategy, they are facing a new market, with a new product. The…

    • 1053 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Gillette

    • 16391 Words
    • 66 Pages

    [2007] Group 6 Section B Gillette India Ltd MAK – II Project Abhishek Anand Abhishek Tiwari Nishit Jalan N P Easwaran Venkata Bhargava Talasila Wasi Rizvi Sec B Group 6 IIM Indore IIM Indore Group 6 Section B 1. EXECUTIVE SUMMARY 2. INTRODUCTION OF PROJECT 3. HISTORY OF GILLETTE 3.1. FOUNDATION OF GILLETTE INDIA 3.2. GILLETTE’S STRATEGY IN INDIA 3.3. SALES 3.4. STRUCTURE 3.5. PRODUCT DETAILS 4. ANALYSIS OF GILLETTE 4.1. FINANCIAL ANALYSIS 4.2. VISION AND FUTURE GROWTH 4.3. EXTERNAL…

    • 16391 Words
    • 66 Pages
    Powerful Essays
  • Satisfactory Essays

    MBA515 Gillette

    • 389 Words
    • 3 Pages

    A Capital Budgeting Decision — Gillette Prepared by Ray Kerlagon The following capital budgeting situation is up for review. Things to consider include: Identification of incremental cash flows. Any working capital requirements and/or sunk costs. What is the appropriate capital budgeting technique? How should we address risk? What is the cost of capital? What is the project’s IRR? PROJECT DEFINITION: A market research study was conducted in 1997 at a cost of $1,500,000 that indicates…

    • 389 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Gillette

    • 498 Words
    • 2 Pages

    a Sum-of-the-Parts valuation of Gillette, it fundamentally divide Gillette operation into parts and do individual valuations on all of them to take a fair value in the end. This valuation basically the replacement cost of each operation of Gillette. However, there are two problems with this valuation method. First, it does not take Gillette’s group cost-savings and synergies into consideration. Secondly, it does not take the cost-savings and synergies that Gillette can potentially offer to P&G too…

    • 498 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Gillette

    • 1148 Words
    • 5 Pages

    El lanzamiento de Gillette Sensor: Problemática: Gillette está evaluando un lanzamiento para su último producto que la hará posicionarse de ser una empresa internacional, con una gestión del negocio adaptada a cada uno de los diferentes mercados locales, a convertirse en una empresa global que consiga tener éxito lanzando un producto estandarizado que apuntale su liderazgo y potencie su imagen de marca. Análisis 4 p´s: * Producto: La maquinilla Sensor de Gillette se enmarcaba dentro…

    • 1148 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Gillette in Indonesia

    • 1506 Words
    • 7 Pages

    GILLETTE INDONESIAN Given the information and the projections for 1996 behavior of the Indonesian market, Should Chester Allan implement his strategy based on increase only sales, instead of focusing efforts on market development (marketing, promotion, supply chain) aside of sales, just as Rigoberto Effio suggests? BACKGROUND GILLETE Since its creation in 1901, Gillette has established a solid worldwide leadership as a producer of razors and blades, as well as other consumer product categories…

    • 1506 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Marketing and Gillette

    • 1373 Words
    • 6 Pages

    Marketing Management Case 7: Gillette The Razor Wars Continues Prepared by: Hala Question 1: Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in wet-shaving market come to an end? Explain? King C. Gillette has founded Gillette in 1901. It was one of the first great multinational organizations and a marvel of marketing effectiveness. Gillette has set a goal for his company: To offer consumers high-quality…

    • 1373 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Gillette Marketing

    • 908 Words
    • 4 Pages

    Gillette Razor corporation was founded in 1901 by King Camp Gillette as the American Safety Razor Company. In 1895, while working as a salesman for Gillette envisioned an inexpensive, double-edge blade that could be clamped over a handle and simply disposed of when the blade dulled. Gillette spent many years searching for an inventor or engineer that could help him in making the dream a reality. Many people told him it couldn’t be done but in 1901 William Nickerson, a Massachusetts Institute of Technology…

    • 908 Words
    • 4 Pages
    Good Essays