Case Analysis to get Gillette: Merchandise and Marketing Innovation 9/11/2012 Abstract Gillette is in search of means to retain dominance in market share they may have lead the past century. Along with keeping market share Gillette has ongoing focus on growing worldwide in to less saturated markets. With this analysis multiple alternatives will be explored help to make a recommendation on steps that would favor Gillette’s business in meeting their dreams. Situation Evaluation Product quality and useful marketing are definitely the core worth propositions that set the pace for Gillette’s accomplishment.

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With continued advancement in the two product development and marketing strategies Gillette has been able to retain a commanding worldwide market share in a highly competitive, but older, razor and blade marketplace. Strong business allowed Gillette to sustain profits also through financial droughts in recent years. On the flip side, Gillette’s innovation success also asked challenges. In order to maintain all their market share, a dependency in continuous item improvement shaped over time.

Today Gillette should determine how to balance expense in research and development along with other areas of the organization. At times their own advancement of new catalog impacted their particular leading product lines in the market. During the 1990s Gillette found themselves cannibalizing their own successful equipments while trying to out due competition. Even though interior competition altered sales from one product line to a different, Gillette’s product sales were able to re-coop development costs. Expanding business around the world also revealed challenges with differing religious and culture values.

Western impacts have begun to generate development with Western woman because younger decades watch American movies and television that depict women with smooth underarms and legs. Gillette’s latest creativity, the Fusion 5(+1) blade, was last 2006. Since that time Schick, Gillette’s leading competition has not responded with their own break through. Gillette ought to be wondering what Schick may do following. Problem While the market Gillette has business lead for so long became mature, their growth ultimately decreased due to industry saturation and increase competition. Fluctuations occurred only when newer, more innovative products had been introduced.

This kind of put more pressure on development developments and marketing tactics. Various analysts believe that Gillette and Schick, market leaders in electric razors and blades, have reached the conclusion of important product advancement [1]. In 2006 when the Fusion 5(+1) blade was introduced, this exploded from the shelves. Gillette sold much more than 4 billion Fusion electric razors with in the first two months. The Fusion’s initial success was quickly fleeting as sales information showed that razors had been outselling the cartridge refills. This was extremely concerning to Gillette as it is well-known that razor suppliers earn most of their profits from refills, not the first razor order.

Critics as well questioned so why five blades were required to get the finest shave once Gillette got touted its three-bladed Mach3 as the best a male can get.  “Consumer studies conclude that there were no additional efficiency benefits provided by the five-bladed Fusion, particularly when compared to the Mach3 [1 pg391]. States also influenced sales because Gillette’s items went up in price due to a need to re-coop expansion costs. How could Gillette carry on and maintain or perhaps grow market share in a mature market and maintain future strategies aligned with customer wants?

Alternatives Continue product line and marketing with no major transform. No added research and development costs would need to end up being spent, which in return reduces the need to raise prices to get maintaining their profit margin. However the risk looming would be competitor innovation impacting market place share. Kleidsam may create a new progressive product that could sway customers from getting Gillette’s products. As stated in the case Gillette must find innovative ways to innovatively out-produce or perhaps out-market your competition.

Investing in r and d to create new product line or enhance current products provides considerable bills. Development costs will need to be re-cooped. This will continue to keep competitors under control, but will be challenging to hold pricing competitive. Compliment current leading products that keep consumers cheerful. Promoting Holiday, Father’s day time and Single mother’s day surprise grooming packages that complies with more of the consumer’s needs will even introduce buyers to additional product lines Gillette has to offer. Focus marketing potential growth options globally simply by challenging amount of resistance in product awareness and interests.

As being a Gillette razor consumer, I possess encountered an inconvenience that I think can be fixed and build consumer loyalty. I’ve been using Mach 3 razors for over fifteen years, then when purchasing refills I have found hard to find rotor blades that are compatible with the razor handle which i own. Thinking out of the box, what if Gillette were to produce razor manages that are suitable for any of Gillette’s product line of refills? This would then provide buyers the freedom to buy from a variety of Gillette’s products without having to use extra money on a handle that actually works with the particular product re-fill.

Owning a Gillette universal deal with would as well encourage buyers to stay with Gillette refills as changing to another brand would be more expensive with the initial required deal with purchase. Implementation From the case I would presume Gillette will continue to “innovatively out-produce or out-market the competition [1]. In my opinion moving forward with developing a widespread handle with Gillette refills would accomplish this. This would need investment into developing a fresh handle and rollout in the product. Is an approximate fb timeline to finish.

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