Gillette Case Study
1662 WordsAug 18th, 20107 Pages
Gillette is a world known multinational company in shaving products market and holds more than 70% market share (Hartline 2007) in this segment. Since its very inception in 1901, Gillette has always been envied for delivering the finest shaving care products both for men and women. Besides, it has also diversified its product lines extending it to toothbrushes, toiletries, stationeries, cosmetics and other household appliances. Originated in Boston, Gillette has been dominating its domestic market in the United States since starting and then slowly and gradually becoming a global leader. This case study provides an overview of the constant product innovation by Gillette throughout its’ history and scope for…show more content…
Product innovation can be in terms of introducing/creating a new product/service or significant improvements in the existing one in relation to its technological specifications, components and materials, incorporated software, user friendliness or other functional characteristics (Weyrich 1998).
Gillette has always followed the concept of innovation, making it a part of its corporate culture, the result is some technologically superior products in the consumer products industry and most importantly, sales boosting for the company. Annexure 1 provides details (Gillette Fusion Case Study 2008) of some of the razor innovations introduced by Gillette over the years including the first double-bladed razor in 1971 (Trac II), loaded blades in 1990 (Sensor), the three-blade razor in 1998 (Mach3) and finally the five-bladed razor in 2005 (Fusion). These include both manual and battery operated versions. It also introduced razors specifically for women like Sensor, Sensor Excel in 1993 and Venus. Some of its products sales hit $ billion mark winning many awards also for technology. But the game of innovation has often turned ugly with each of the company trying to bring in something new every time and filing lawsuits against each other. This is what happened when Schick introduced Quattro- the world’s first four bladed razor in 2003. This also created the
Gillette Advertising Marketing Case Study Essay
1955 Words8 Pages
Gillette is an American company founded by King Camp Gillette. It was founded on 1901 and until 1962 it did not have any serious competition. This can be explained by its constant concern for innovation, which follows the belief of its founder, “a successful invention is the one that is purchased over and over again by a satisfied customer”. (Original idea of William Painter)
For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by…show more content…
This can be clearly illustrated by the situation Gillette faced during the leadership of the CEO Vincent Ziegler. He started to buy other companies and failed to generate more profit. At first his plan looked very promissory and generated revenue but at the end the company ended up losing money and time they could have invested in their own business.
Competitors, on the other hand knew how to react towards Gillette’s distraction. This was when Shick, company founded by Wilkinson Sword made its movements and introduced to the market its “stainless-steel blade”. As mentioned before, Gillette was distracted by the loss on its acquisitions and failed to foresee the problems this could bring. Although Shick did not have the enough resources to compete with Gillette in order to exploit the niche markets it had penetrated and ended up being sold by Wilkinson Sword to Gillette; they took 21 percent of market share away from Gillette.
By all this we can conclude that Gillette was actually consumed by its ambition to earn more revenue through the wrong way. Instead of trying to generate more profits buying other businesses, the Gillette executives should have focused more on the continuous innovation to their own company, because after all it was this continuous innovation and dedication that took Gillette to the top and avoid it to have any serious competition until 1962.
It was because Gillette’s executives were so confident in their own success that