Gillette Is The Market Leader In Mens Care Products Essay Example

of the MACH3 are more expensive than previous versions, a substantial amount of money is spent on promotion and advertising. This investment has resulted in the introduction of the MACH3 Cool Blue, which maintains all the same features but with a blue handle instead of the original black and silver. Additionally, in 2002 Gillette launched another product named the MACH3 Turbo, which I believe offers good value at $8.99 for a complete shaving system consisting of a razor and two cartridges.

To improve the razor, 10 microfins were added, resulting in a closer shave and less irritation. Gillette introduced new options to meet customer preferences with the MACH3 Turbo G-Force and Champion, which offered more color choices. In 2004, Gillette launched the M3Power. This was the world's first powered wet-shaving system and it required one AAA battery that came included in the package. The M3Power was positioned as the "World's best shave" and proved to be highly successful for Gillette. Instead of investing in new inventions, modifications were made to their existing MACH3 product line to create this razor and its blades.

Customers often assume that a battery-powered razor will be more powerful and efficient, ultimately saving them time. However, some customers may hesitate to purchase such razors due to the additional expense of buying new batteries on top of blade filters. Gillette's Fusion razor is the first one with five blades and comes in both power and manual versions.

The Fusion razor is suitable for men with or without facial hair. Its blades are designed for precise trimming of sideburns, shaving delicate areas like under the nose, and shaping facial hair

comfortably. This Gillette razor has advanced features like automatic shut-off after eight minutes, a low-battery indicator light, a color-fading strip, and a lubricating strip enriched with Vitamin E and Aloe. These elements set a new standard in shaving technology for Gillette and its competitors. Gillette has introduced various razor variants with unique attributes and functionalities.

Gillette offers a range of razors, catering to the needs of every customer. From disposable options to battery-operated razors with five blades, Gillette has unique features that make finding the perfect razor easy. To turn the Fusion razor into a billion-dollar brand, Gillette's marketing team devised five strategies. These include lowering retail prices, reducing the price of Fusion cartridges by 20%, running an extensive advertising campaign to enhance Fusion's positioning, introducing smaller packages without compromising on design, and maintaining their current approach until more conclusive data is available.

The first strategy focuses on aggressive price competition by recommending retail prices of $9.99 for power razors and $8.99 for manual razors. This move is aimed at increasing sales by attracting customers through lower prices. Retailers like CVS have already implemented this strategy by offering a $6 credit towards any purchase at their stores when purchasing a Fusion razor from them.

The issue with this approach is that Gillette faces the possibility of pricing its products too high for the market. An alternative strategy was proposed to lower the retail price of Fusion cartridges. The goal was to reduce the price by twenty percent, as indicated by consumer surveys which revealed that sixty-four percent of men take price into consideration when buying cartridges. This strategy aimed to increase sales

and ease the shift from MACH3 products to Fusion. In competitive markets, such as razor cartridges, price becomes a crucial element.

Reducing the price by 20% will likely add value for customers, making Fusion cartridges a preferred choice. The third strategy emphasizes the perception of Fusion by consumers instead of pricing. It entails enhancing Fusion's positioning and implementing a comprehensive advertising campaign. This strategy was developed due to Gillette's failure to effectively communicate the advantages of the additional two blades to their customers.

The unnecessary change of Fusion from their consumers has become a source of many jokes, tarnishing its image. To establish a positive image, Gillette launched an extensive advertising campaign to communicate the benefits of purchasing extra blades instead of just listing Fusion's features. Gillette aims to achieve this in the minds of their consumers. The fourth strategy focuses on packaging, replacing four-cartridge packages with three-cartridge ones.

The suggestion is to maintain a similar design but with fewer units in each package. This approach was created with the consumer's viewpoint in mind. The objective was to decrease the perceived cost while keeping the price per cartridge consistent. The effectiveness of this approach is based on past experience when Gillette reduced the number of cartridges for MACH3 during its initial phase. The fifth strategy seems to be cautious yet potentially wise. It is advised to continue without making any extreme changes until more conclusive data is accessible.

The argument proposes that comparing the market share of Fusion with the entire U.S. razor and blade market is an unfair benchmark. Instead, it suggests that Fusion's market share should be compared to the

male non-disposable segment of the market. This comparison reveals a more positive perspective as Fusion has captured 25% of the male systems market and now holds approximately 75% of the market along with MACH3. This indicates growth since Fusion was introduced previously. Hence, evaluating Fusion's success within the male non-disposable segment highlights Gillette's effective strategy.

In order to position Fusion as a $1 billion brand, Gillette should adopt a cautious approach and prioritize strategy number five. It is essential to gather more information to determine whether considering Fusion within the entire razor blade market is an accurate benchmark for success. Once a suitable benchmark is identified, Gillette should then proceed with strategy three to further strengthen Fusion's brand equity.

By contributing to market share and helping consumers differentiate between competing brands or products, Fusion can achieve its desired market share. This will also result in higher sales levels. Another strategy to position Fusion as a $1 billion brand is to lower the price by twenty percent, as consumer surveys have shown that men prioritize price when purchasing cartridges. This will create value and attract more buyers.

To accomplish its goal of becoming a $1 billion brand, Fusion can effectively position itself by employing three different strategies either separately or in conjunction. The initial stage in devising a strategy for a new product is vital since the objective is to create awareness and educate potential customers about the product. This can be achieved through diverse methods, including distributing complimentary razors to individuals who have never tried the product and providing discounts on cartridges to encourage them to keep using the free razor they

received.

In order to boost sales and foster customer loyalty, the company has the option of temporarily lowering the price of the razor, thus making it more accessible and appealing to prospective buyers. Moreover, providing a free pack of cartridges along with the razor for a limited period would enable customers to utilize the product for an extended duration and become acquainted with its advantages. Distributing the product as a giveaway or offering it at a discounted rate are crucial tactics that can generate widespread recognition and facilitate customers' long-term adoption of Gillette.

To help customers understand the product and the advantages of the additional features compared to regular razors, the next step is to educate them about the benefits of a fifth blade. This will clarify that it serves a purpose and contributes to a closer and more comfortable shave. One way to do this is by attaching a small booklet to the packaging. Customers can browse through the pages and learn about the newly added features. To highlight this, a coupon for discounted blades when purchased together can be included on the first page of the booklet.

To further improve the product's appeal and attract more customers, the company plans to understand consumer buying habits and explore expansion opportunities. One way is through eye-catching packaging design that grabs attention and sparks interest in potential purchases. Another strategy involves increasing product availability, such as offering bulk discounts on razors to boost sales volume and attract new retailers.

Gillette can collaborate with retailers to sell their product in convenient store locations, such as near the cash register or at eye level

in the shaving needs aisle. To make purchasing easier, Gillette can run promotional campaigns on TV or place ads in frequently visited spots for men. These advertisements will emphasize the superior quality of Gillette's new razor compared to other brands, despite its slightly higher price. The objective is to persuade consumers that it is worthwhile to spend extra money for a closer and more comfortable shave.
To ensure repeat purchases, customer satisfaction is crucial. To achieve this, Gillette should provide a suggestions hotline or website where customers can give feedback and suggest improvements for the product. This feedback will help the company understand their customers' needs and make necessary adjustments. Additionally, Gillette can encourage repeat purchases by including fewer cartridges in each pack, thereby motivating customers to buy more packs.

The company may consider adding a color strip to the moisturizer, which would act as an indicator for customers. The strip would fade away to signal the need for a new razor. Additionally, the strip could be designed to fade slightly faster than before, creating the perception of a dull blade and encouraging customers to buy razors more often. To increase sales volume, Gillette could offer discounts for buying multiple items. For example, they could include two handles in one package and charge 1.5 times the price of a single handle. Alternatively, customers could receive a 50% discount on their third pack of cartridges when purchasing two packs.

The following stage is the intention stage, where the company can boost customers' desire to buy by creating excitement about the product and convincing them that they are purchasing the best quality razor available. To incentivize

repeat purchases, Gillette can offer a coupon for a discount on their next purchase, which can be obtained through a receipt or mail. This coupon can be used towards a discounted pack of cartridges or another razor handle. Furthermore, to decrease cartridge usage rates, Gillette has reduced the number of razors in each pack and made the packaging similar in size to minimize customer detection of this change.

Gillette utilizes another strategy by incorporating a colored moisturizer strip that gradually diminishes over time. This prompts the buyer to purchase a new blade because once the strip is gone, they are not achieving the most comfortable shave. As for marketing implications, the progression of the color strip design in various generations of Gillette razors can be summarized as follows: The MACH3 Razor featured a blue lubricating strip infused with Vitamin E, which aimed to minimize skin irritation.

The blue strip faded into white to indicate when users need to refill the MACH3 Turbo, the second generation for their MACH3. The gray colored fins were updated to blue and the lubricating strip was changed to forest green to fit the product design. In 2004, Gillette introduced the M3Power Razor, which was the first powered wet shaving razor. The M3Power Razor had an orange lubricating strip that faded into green to alert users that a refill was needed.

The new design uses green accents to associate the product with high-tech devices and video games. The Fusion Power razor is the first to have 5 blades and a lubricating strip that changes color from blue to white when the shaving conditions are not optimal, signaling the

need for a refill. This constant change in design reflects Gillette's differentiation strategy for their brand positioning.

Gillette employs an image differentiation strategy to distinguish their products from rivals. By varying the packaging and appearance of each razor generation, Gillette is able to create a distinct brand presence. This strategy enables Gillette to customize its products to meet consumers' specific social and psychological desires. For instance, when Gillette changed the color of its lubricating strips on their razors, it appealed to consumers who appreciate being notified when their product is not performing optimally.

The consumer recognizes the need to replace the razor blade through color differences. Interestingly, the color also connects with a specific social need. For instance, the M3Power Razor's green lubricating strip appeals to tech-savvy consumers who appreciate innovative technology. The frequent design changes ultimately attract consumers who seek constant updates and additions in products they purchase.