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Case 2. Strategy Analysis For Gillette: Gillette and The Men's Wet-Shaving Market
Case 2. Strategy Analysis For Gillette: Gillette and The Men's Wet-Shaving Market
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• Gillette was marketing 800 products in 200 countries. They applied Fist regionally then Globally.
• Gillette is famous for its innovative approach with the launch of First Safety Razor (1895), Blue Blades
(1932), Thin Blades (1938), Silicon coated blade (1959) and Super Blue Blade (1961) with Market Share
of 61% & double edge blades 90%. Trac II system : “Hysteresis”- a double blade cut process.
• To speed up growth through inorganic channel, it acquired Toni Company -Women's grooming aid
market; Paper mate -A writing instruments co; and Sterilon Co.-Disposable Hospital supplier
• Launched Good News! – A contain & switch strategy which did not succeed, A disposable razor
delivered lower profit margins than razors & blades. As it was marketed on Price & convenience not
performance.
• Gillette faced competition from SCHICK, BIC Corp. and Wilkinson Sword.
• In order to avoid the takeover attempt by Coniston, Gillette increased debt by $2billion.
• Gillette South Boston Plant- Employed 2K-3K for testing shaving products.
• Introspected reasons for lower profits : Higher sales of low prize razors, low marketing spending.
• Gillette advertising being Product Based (90%) and Image Based (10%).
• Created different brand images for Gillette – By Men over 40 (Athletes & Sports) & younger
generations (Twin Blades, Blue & plastics) .
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