The global razor market, worth $6 billion in 2005, is divided into three segments: the electric razor, the conventional razor and the disposable razor, with the last segment being the dominating player of the market with 66.8% value.
The market for razors is fairly concentrated with Gillette as the leader (69% market share). It poses a challenge to Wilkinson which occupies 19% of the share. A study conducted by the SIMM in 2003 revealed that men no longer want to pay dearly to shave. Each year's budget on R&D represents 3.5% of sales and the company has invested in a research center in Boston that experiment with the various innovative products designed by the R&D lab.
Tags: Gillette marketing, Gillette market share, Gillette marketing strategy
[...] This is why media plans used are defined from an intensive strategy that all men can be informed of this revolution. For example at the launch of Mach3 primary target has been exposed in ODVand ODE an average of 40 times over 2 months. Gillette thus uses a massive publicity with respect to new products and they frequently run the tests to see if the products are working fine as they need loyal customers to buy their products regularly. Indeed, the razor blades GII which was started in 1978 are still present on the shelves of supermarkets, it is because a user who is testing a razor often remains loyal for life. [...]
[...] At the heart of his visit, the buyer will be exposed to three links that will advise him in his shaving and at the same time inform the complementary products (e.g shaving foam and Mach3 Power blades). Conclusion We therefore find that the image positioning is a key feature to differentiate themselves by giving symbolic value to the product to appeal to the applicant. The product is a star. Regarding marketing, we find that in this context, its mision is to revitalize the market. Finally, it would be interesting to analyze in depth how Gillete uses « trend » themes to implement its communication plans. [...]
[...] This is why at the launch of Mach3 Power, a contract sponsorship has been concluded with David Becham so that it shows his image of masculinity, beauty, power which is associated with the product. Another lever used by Gillette to position the product is use of innovative packaging design function by adjusting colors and graphics. Finally for the consumer to have the feeling that the new shaver offers extra softness, the new challenge of Gillette is to educate consumers to shave well. The technique used is that the game now on the packaging that encourages the new buyer to visit the website. [...]
[...] So in order to maintain steady sales throughout the life cycle of the product, the strategy of Gillette was to launch a coping strategy by repositioning or slightly improving the product attributes. Mach3 was launched in 1998, and Mach 3 Turbo in 2002 succeeded over it and then the M3 Power in 2004 and finally in 2005 M3 PowerNitro succeeded over all. However, does the success of Gillette relies with its innovation strategy? The strength of communication The communication campaigns targeted at a new product that was launched for men between the age group of 14 to 35 years. [...]
[...] Hence the problem: How does Gillette happen to sell blades at a high price in a theoretically saturated market ? A product oriented strategy innovation Gillette's product strategy is innovation with the aim of launching a new product every 10 years on an average. This is why its budget each year in R & D represents of sales and the company has invested in a research center in Boston, which aims to observe the ritual of shaving a "guinea pig". The result of this strategy happened to give a regular introduction of a new product (e.g. [...]
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