Gillette Case Study

Gillette: Why Innovation May Not Be Enough

MKT 701

Group A

Executive Summary

Gillette has been the leading brand in men’s grooming industry. The competition in the razor industry is becoming more intense since the start of online retailing of razors. With competition heating up Gillette has to find a way to cater to consumers. Gillette merged with P&G in 2005, which instantaneously became a competitive advantage. Gillette uses its aggressive advertising to compete with customers and keep its market share. The company will introduce a new women’s razor to put more emphasizes on women. The company will use aggressive advertising and survival pricing, to target low to moderate income women. The company projects that this product will bring in $20 million in sales after launched and increase Gillette’s overall market share.

Situation Analysis

The Internal Environment

Review of marketing goals and objectives

Whether a customer uses electric or disposable razors, Gillette hopes to give their consumer the best shaving experience possible. Gillette has a strong market background which helps with identifying customer trends and promotes new product development. This is why Gillette’s shaving products are in its maturity stage. The company has been in the industry for more than 100 years and has high sources of equity (Gillette, 2015).

The company’s current marketing goal is to continue to differentiate its strategy by innovation and marketing products in an unusual way. Gillette’s primary focus has been on the extension of its core business and the marketing programs that support the business. Gillette utilizes its brand loyalty in order to be able to charge premium prices. Gillette distributes widely around the world but uses only a few major retailers.

The company uses aggressive advertising and endorsees to reach their goals and objectives. The company has had a number of high profile and sought out endorsees, some including: Tiger...