- Present an evaluation of the history of Gillette. Explain and summarize their competition, innovation and razor wars.
- What actions would you present and suggest to the new product development team to help maintain its dominance in the shaving market?
- Evaluate and present what products, pricing and strategies you would recommend to the team for consideration over the next 5 years.
Introduction
Gillette has been well known for its innovative product line and as its marketing strategy, and for product development. In the mature, but highly competitive market Gillette still has a dominating world market share. The company Gillette had its product innovation at its peak in the year 2006 when it introduced Fusion 5-bladed razor in the market. Now, with innovation in its product line, it is threatened by the lack of innovation in technology and the constant reluctance of its customers to pay for the advanced technology and a new customer experience. The customers are more satisfied with its older products which have fewer refills and can be used for longer periods.
In an era of innovation and product development behind, Gillette now needs to redefine its marketing and product development strategy to recapture its market share.
History of Gillette
Since its inception, Gillette has been so visionary and successful with its marketing strategy and product development that until 1962, after some more than 50 years of its inception, it still did not have any competitors in the market. However, in 1962, Wilkinson Sword-Schick brought stainless steel razor in the market, and Gillette’s first competitor emerged in its market. Through the time, the company Gillette has remained successful with its constant innovative product development strategy. In the presence of the new competitor, this resulted in a constant one-upmanship between the companies, when they both introduced 3- bladed, 4 bladed and then 5 bladed razors in the market one after another. In this competitive market with 66 percent of the world market share, which analysts think has reached to its innovation lengths, the company is investing in research and development for the next big thing, which tends to be fruitless in the end. It is because of the reason that the customers are now prudent to the constant high pricing of the shaving industry and are not willing to pay for the advanced technology.
Competition and Innovation
Gillette’s innovation is historically seen as being its competitor. Gillette had continued diversifying its product line, but was always met with mixed results. It has gained more market at this time; however, this also can be seen as attacking its products as the new product only stole its older versions market share. However, it can be credited to Gillette that it revolutionized the shaving industry. The more Gillette innovated, it witnessed that its new products were eating the market share from its previous products and not expanding into any new market (Gillette, 2016).
Razor Wars
The razor was in the perspective of organizations are tough, however, if we look at it from the perspective of the customer, it simplified, eased, and aided by having a better shaving experience for the customers by having better products as a result of these razor wars. However, for the companies, it is a life and death matter as if one failed in producing the best product would lose all market shares.
Suggestion to New Development Team
The new development team should focus on releasing complementary products rather than on launching of six or seven-bladed razors which would not be welcomed by the customers greatly and only tarnish the earlier products market. The new development team should focus on looking for complementary markets in which it can expand so that the market share can be increased via complementary products. Gillette should look to expand its portfolio of products in the range of shower products to create a full package of showering experience for men and women and expand its business like this.
Other than this, it should work on maintaining its market share through low pricing and repositioning strategy for market development. Gillette‘s new development team can also use benchmarking as a strategy to keep ahead of the competitors.
Recommendations for Next Five Years
Gillette in the next five years should be concerned about its pricing strategy, as the customers are not willing to pay for any new advanced technology. Therefore, low-cost options would be preferable to focus at this time (Fox Business, 2017).
In the last few years, with the increasing online shopping experience of the customers, a new membership club has been quite successful in the offering of basic razors packages on a monthly basis at very reasonable prices (Wahba, 2015). It shows that the customers are not looking for fancy advanced technology based razors, but a cheap, affordably priced, good quality razor. It gives the insight that Gillette can regain its market share through focusing on low-cost razors and develop a separate brand identity for this low-cost option (Picker, 2010). The online shoppers are accustomed to having their products shipped to their doors and even without any charges also, so maybe a subscription delivery service can also be a good option to look. Gillette has its long history of good quality and safety at its hand, being affordable and with delivery service; it can become attractive to the customers and potential customers as well.
Higher priced razors can be designated to another separate product line which would offer high tech comfort razors, and multiple blades or custom razors. The marketing strategy for both would be entirely different as per its target market. The custom high priced razors can be used to market by electronic advertising by fashion designers and celebrities, whereas the other can be advertised as a common man’s utility product.
Conclusion
Gillette in the next five years should be concerned about its pricing strategy, as the customers are not willing to pay for any new advanced technology. Therefore, low-cost options would be preferable to focus at this time. Other than this, it should work on maintaining its market share through low pricing and repositioning strategy for market development. The new development team should focus on releasing complementary products rather than on launching of six or seven-bladed razors which would not be welcomed by the customers greatly and only tarnish the earlier products market.
References
Fox Business. (2017, April 4). Gillette, Bleeding Market Share, Cuts Prices of Razors. Retrieved from http://www.foxbusiness.com/markets/2017/04/04/gillette-bleeding-market-share-cuts-prices-razors.html
Gillette. (2016, January 1). Our History. Retrieved from Gillette: https://gillette.com/en-us/our-history
Picker, R. (2010, September 23). Gillette’s Strange History with the Razor and Blade Strategy. Retrieved from https://hbr.org/2010/09/gillettes-strange-history-with
Wahba, P. (2015, October 23). Gillette says it’s fighting back in the shaving club wars. Retrieved from http://fortune.com/2015/10/23/gillette-shaving-club-wars/
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