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Has Gillette Been A Victim Essay

508 words - 3 pages

1. Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain.

2. What do you make of the razor wars, first between Gillette and Schick, and now with online competitors? Does Gillette face a serious threat from competitive inroads? Explain.

3. What actions would you recommend over the next five years that could help Gillette maintain its worldwide dominance? What specific marketing program decisions would you recommend? Should Gillette be worried about its pricing strategy? Explain.
Products
Founder of Gillette Safety Razor Company- King Camp Gillette
Traveling salesmen
Met William Painter who told him a successful invention was one bought over and over again by a satisfied customer.
Intrigued, ...view middle of the document...

M3: Male customers who are in their late 30's or above, do not have a very high disposable income, and are not very concouis of their looks or the status value of the products they buy.
M2: Customers who lie between these two customer groups
Gillette has multiple capabilities in many different product categories. The advantages of this strategy include diversification of the firm's risk and the ability to cherry pick only the most attractive market segment opportunities.
Global Expansion-Individual and Social Influences
Customer loyalty program
Alternative for Women
Consumer buying process- pricing strategy
Timeline
First serious competition- English firm Wilkinson Sword introduced its stainless-steel blade.
Wilkinson Sword lacked the resources necessary to exploit the niche markets, eventually sold much of their blade business to Gillette
Gillette’s new CEO Vincent Ziegler organized an acquisition and product development campaign.
Gillette bought seven companies
These ill ventures led to competitive pressures
Bic’s disposable razors and lighters as well as their 19-cent disposable stick pens. Gillette fought back by introducing their new Write Brothers line of disposable pens
Gillette’s next CEO, Colman Mockler, strategized to cut costs and invest more money into advertising and product development
Experienced some of their greatest successes from their product additions which included the Atra razor, the Good News! disposable razor and the Daisy razor for women.
By 1990, Gillette became a victim of their own success when they launched the Sensor razor
In 1998, the Mach3 was introduced
2003 was faced with a new, more threatening competitor: Schick
Schick introduced the Quatro
Gillette retaliates- the Fusion

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