Gillette Case Analysis
Case Analysis for Gillette: Product and Marketing Innovation
9/11/2012
Abstract Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
Situation Analysis
Product quality and efficient marketing are the core value propositions that set the pace for Gillette’s success. With continued innovation in both product development and marketing strategies Gillette has been able to retain a commanding worldwide market share in a highly competitive, but mature, razor and blade market. Strong market share allowed Gillette to sustain profits even through economic droughts in recent years.
On the flip side, Gillette’s innovation success also posed challenges. In order to maintain their market share, a dependency on continuous product improvement formed over time. Now Gillette will need to determine how to balance investment in research and development along with other areas of the organization. At times their own innovation of new product lines impacted their leading product lines in the market. During the 1990s Gillette found themselves cannibalizing their own successful products when trying to out due the competition. Even though internal competition shifted sales from one product line to another, Gillette’s sales were able to re-coop development costs.
Expanding market share around the world also revealed challenges with varying religious and culture beliefs. Western influences have started to generate growth with European woman as younger generations watch American movies and television that depict women with sleek underarms and legs.
Gillette’s latest innovation, the Fusion 5(+1) blade, was back in 2006. Since then
9/11/2012
Abstract Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
Situation Analysis
Product quality and efficient marketing are the core value propositions that set the pace for Gillette’s success. With continued innovation in both product development and marketing strategies Gillette has been able to retain a commanding worldwide market share in a highly competitive, but mature, razor and blade market. Strong market share allowed Gillette to sustain profits even through economic droughts in recent years.
On the flip side, Gillette’s innovation success also posed challenges. In order to maintain their market share, a dependency on continuous product improvement formed over time. Now Gillette will need to determine how to balance investment in research and development along with other areas of the organization. At times their own innovation of new product lines impacted their leading product lines in the market. During the 1990s Gillette found themselves cannibalizing their own successful products when trying to out due the competition. Even though internal competition shifted sales from one product line to another, Gillette’s sales were able to re-coop development costs.
Expanding market share around the world also revealed challenges with varying religious and culture beliefs. Western influences have started to generate growth with European woman as younger generations watch American movies and television that depict women with sleek underarms and legs.
Gillette’s latest innovation, the Fusion 5(+1) blade, was back in 2006. Since then
References: 1. O. C. Ferrell and Michael Hartline (2011), Marketing Strategy, 5th ed. South-Western Cengage Learning, ISBN-13 9780538467384