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Section A, Group 4:

Camille Le Bian
Dhruv Bhatia
Niranjana Narayanan
Saswath Suresh
Srinithi S
Sundeep Allamraju
Umakant Sahu
Gillette Trivia
1895: King C. Gillette invented safety razor
1903: Launched after 8 years
1903 :51 razor & 168 blades
1917-1918: Wide consumer acceptance during World War I
1980s: Gillette primarily focused on global markets and strategies
1986: 800 products in more than 200 countries
1989: $770 Mn US domestic razor and blade
1932: Blue
Blade
1938: Thin
Blade
1946: First
Blade
Dispenser
1959: Super
Blue Blade
1971: Trac II
1976: Good
News!
1977:Atra
1980: Swivel
1984:Good
News! Pivot
1985:
MicroTrac
1986:
Contour
Plus
1988: Trac II
plus
1988: Good
News! Pivot
Plus
1988: Daisy
Plus
Product Innovation History
Case Facts
61.90
%
16.20%
9.30%
12.60%
Market Share - US
Gillette
Schick
BIC
Others
41.50
%
45.80
%
12.70
%
Product Category
Disposable
System
Double Edge
23 23.2
27
30.6
32.7
34.9
38.5
41.1
14.3
15.4
17.4
20
21.1
22.7
22.2
24
1981 1982 1983 1984 1985 1986 1987 1988
Disposables Market Share %
All Disposables Gillette Disposables
Wet Shave Brands- An Evaluation
Attributes Trac II Atra GoodNews
Universal image of
brand
High High High
Ability to
manufacture
Relatively easy
Relatively easy

Difficult
Product dissimilarity No No No
Perceived difficulty in
manufacturing
Yes Yes No
Consumers
Involvement in the
extension
High High Low
EVALUATION Symbolic Symbolic Functional
Points of Concern
Focus on system razors VS Disposable razors
Additionally segmenting disposable razors
Advertising
Expenditure
Concept
Consumer profiling
Age
Usage
Masculine image of shaving
Logo
Retail packaging and display
Women consumers
Competitor Analysis
Leader in the injection shaving market : controls over 80% of it
Late entrant in the disposable razors market
Narrow-headed disposable razor used to enter market in 1988 (Slim Twin)
67% of revenues are overseas
Schick
Keeps introducing products enhancements and razor improvements
Pioneered & focused in disposable razor segment
Main product is the shaver for sensitive skin
Philosophy of Maximum service, minimum price
Only single blade disposable razors

Bic
Entered with Super- Sword Edge, blade with a steel coating
Introduced several innovations but were short-lived
Ultra Glide to compete with Gillettes Atra Plus, priced at 5 to 8% lower
Competed with Gillette in advertising by using comparative ads

Wilkinson Sword
Customer Segmentation
DEMOGRAPHICS
Permanent razors &
cartridge
Disposable razors Injector & double
edged
Women
Men
Young
(Under 30 yr)
Men aged 30+
PREFERENCES
Price Sensitive
Quality Sensitive
Possible Alternatives
1. Give-up Strategy
Transition to disposable razors
Segmentation of disposable razors
based on performance
4. Product Innovation in
system razors and blade
category
Product innovation and modification to
provide convenience and performance
to all consumer segments
All-in-one handle
2. Price segmentation in
system blade category
Product innovation in permanent
segment to come up with products
at various price points to cater to
disposable price sensitive
consumers
3. Price reduction in System
razors and blades category
Price discounts on existing system
razors and blades
Alternative 1 Analysis
Product
1. Disposable and system razors
2. Gradual increase in disposable share
Price
According to features provided: e.g.
lubricating strips/movable heads etc.
Place
1. Continue to use the existing
distribution channel(Super market,
retail stores etc.)
2. Focus on improving retail
distribution system
Promotion
1. Focus on advertising the attributes
like low price, convenience to promote
the use of disposable blades
2. Advertise the additional attributes to
justify their price
Pros Cons
1. Growing disposable blades
market (Might approach 100%
market given current trends)
2. Retain market leader position
1. Lower margins: Profitability
2. Possibility of cannibalization of
permanent razors and blades
category
3. Increased pressure to improve
profits due to take-over battles
Our Decision: REJECT
Alternative 2 Analysis
Product
1. Disposable and system razors
2. Gradual reduction in disposable
share
Price
System razors at various price points
based on features provided
Place
1. Continue to use the existing
distribution channel(Super market,
retail stores etc.)
2. Focus on improving retail
distribution system
Promotion
1. Focus on different advertising for
different price point of permanent
razors
Pros Cons
1. Will attract consumers with
specific needs to a product that
is tailored to their requirements
2. May convert the disposable razor
users to the system razors of
lower price
1. May cause the current system
users to switch to a lower price
product
2. Lesser focus on disposable
razors: might reduce the market
share in the segment
3. Less consolidated product
offering

Our Decision: REJECT
Alternative 3 Analysis
Product
1. Disposable and system razors
Price
Reduction in price of system razors
Place
1. Continue to use the existing
distribution channel(Super market,
retail stores etc.)
2. Focus on improving retail
distribution system
Promotion
1. Focus on advertising the low price
availability of system razors, where
performance and quality is more
affordable
Pros Cons
1. May incentivize disposable users
to shift to a better quality razor
for a smaller price increase
1. Lesser focus on disposable
razors: might reduce the market
share in the segment
2. May lead to disposable users
continuing to use disposable
razors and system users paying
less, hence reduction in overall
profits increase in
cannibalisation is a possibility
Our Decision: REJECT
Alternative 4 Analysis
Product
1. Disposable and system razors
2. Innovation to increase convenience
of system razors (e.g. Universal handle
for all Gillette blades)
Price
Relatively cheaper handle price, blades
slightly lower than disposables
Place
1. Continue to use the existing
distribution channel(Super market,
retail stores etc.)
2. Focus on improving retail
distribution system
Promotion
Give considerable number of blades for
free to make the consumers habituated
to the system razors
Pros Cons
1. Higher margins: Better
profitability
2. Higher Operating efficiency:
Economies of scale
3. Incentives to the consumers to
switch to more profitable system
razors
4. Brand strengthening

1. Lesser focus on disposable
razors: might reduce the market
share in the segment
2. Difficult to get funds for
promotions
Our Decision: ACCEPT
Implementation Plan
Stage 1
New product development
Focus R&D on developing a
standardized razor handle
Reinvigorate logo and packaging
to focus on the fact that the
handle is reusable
Customization can be included
with the variety of blades that fit
this handle
Start weaning off advertising for
disposable, and increase budget
for system razors
Stage 2
Roll out new handle with
supporting promotions
Ads (print, TV, POS)
highlighting convenience of new
system razors
Emphasize convenience of new
handle and the pack of free
blades with purchase
Partner with university stores
etc. to make the youth use
Gillette system razors
Stage 3
Reduce focus on disposable
razors
Higher margins and extra
incentives to motivate retailers
to focus more on the new
system razors
THANK YOU
&
HAVE A NICE SHAVE