Gillette Essay

Case abridgment for Gillette Product and merchandise Innovation 9/11/2012 Abstract Gillette is seeking means to go along dominance in market region they have ternary for the fail century. Along with sustaining market sh ar Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in locate to contact a recommendation on travel that would favor Gillettes organization in meeting their aspirations. Situation Analysis Product quality and efficient marketing are the core revalue propositions that set the pace for Gillettes success.With continued innovation in some(prenominal) ingathering outgrowth and marketing strategies Gillette has been fitted to retain a imperious worldwide market share in a highly competitive, and mature, razor and blade market. Strong market share allowed Gillette to sustain net profit even through economic droughts in recent years. On the turn over side, Gillettes inno vation success alike posed challenges. In order to maintain their market share, a dependency on continuous product improvement formed over time.Now Gillette will need to discip demarcation how to balance investment in research and development along with other areas of the organization. At times their own innovation of newly product lines wedge their leading product lines in the market. During the 1990s Gillette found themselves dealnibalizing their own made products when trying to out due the emulation. Even though internal competition shifted sales from one product line to a nonher, Gillettes sales were able to re-coop development costs. Expanding market share around the world also revealed challenges with change religious and culture beliefs.Western influences have started to generate growth with European woman as younger generations watch American movies and television that furnish women with sleek underarms and legs. Gillettes latest innovation, the fusion 5(+1) blade , was back in 2006. Since hence Schick, Gillettes leading competitor has not responded with their own break through. Gillette should be wondering what Schick might do next. Problem As the market Gillette has lead for so long became mature, their growth ultimately declined due to market impregnation and increase competition. Fluctuations occurred only when newer, more(prenominal) innovative products were introduced.This put more insistence on development advancements and marketing tactics. Many analysts believe that Gillette and Schick, leaders in razors and blades, have reached the end of meaningful product innovation 1. In 2006 when the Fusion 5(+1) blade was introduced, it exploded off the shelves. Gillette sold more than 4 gazillion Fusion razors with in the first two months. The Fusions sign success was quickly fleeting as sales reports showed that razors were outselling the cartridge refills. This was actually concerning to Gillette as it is well-known that razor manufac turers earn most of their profits from refills, not the initial razor purchase.Critics also questioned why five blades were needed to play the best shave when Gillette had touted its three-bladed Mach3 as the best a man can get. Consumer reports conclude that there were no additional performance benefits provided by the five-bladed Fusion, especially when compared to the Mach3 1 pg391. Economic recession also impacted sales as Gillettes products went up in price due to a need to re-coop development costs. How can Gillette continue to maintain or grow market share in a mature market and keep future strategies reorient with customer wants?Alternatives Continue product line and marketing without major change. No additional research and development costs would need to be spent, which in return reduces the need to raise prices for maintaining their profit margin. However the risk looming would be competitor innovation impacting current market share. Schick may produce a new innovative product that would sway consumers from purchasing Gillettes products. As stated in the case Gillette must find new ship canal to innovatively out-produce or out-market the competition.Investing in research and development to create new product line or enhance current products adds considerable expenses. breeding costs will need to be re-cooped. This will keep competitors in check, but will be challenging to keep pricing competitive. encomium current leading product lines that keep consumers happy. Promoting Christmas, Fathers mean solar day and Mothers day gift grooming kits that meets more of the consumers needs will also introduce consumers to other product lines Gillette has to offer. tenseness marketing potential growth opportunities globally by challenging protection in product awareness and interests.As a Gillette razor consumer, I have encountered an inconvenience that I think can be solve and build customer loyalty. Ive been using Mach 3 razors for over xv years, and when purchasing refills I have found it difficult to find blades that are compatible with the razor parcel out that I own. Thinking out of the box, what if Gillette were to make razor handles that are compatible with any of Gillettes product line of refills? This would then provide consumers the freedom to purchase from a variety of Gillettes product lines without having to spend extra money on a handle that works with the particular product refill.Owning a Gillette universal handle would also encourage customers to stay with Gillette refills as converting to another brand would cost more with the initial bringd handle purchase. Implementation From the case I would wear off Gillette will continue to innovatively out-produce or out-market the competition 1. I believe base forward with developing a universal handle with Gillette refills would accomplish this. This would require investment into developing a new handle and rollout of the product. Here is an evaluate timeline to co mplete.