Gillette Fusion

Executive Summary

The single most important problem faced by Gillette is its inability to quickly make Gillette Fusion a 1 Billion USD brand. The primary cause of this problem is Gillette’s failure to communicate the value proposition of the Gillette Fusion Razor. To address this problem the company should launch a new advertising campaign where it would emphasize on communicating the benefits of the Gillette Fusion Razor to its target customers as appose to simply listing the products features.

Situation Overview

• The most important problem facing the company is its failure to quickly increase sales to make Gillette Fusion a 1 Billion USD brand. Gillette Fusion’s market share should have grown from 10.6% in Q1 to 18.79% in Q2 to match Mach3’s growth; instead it obtained a 10.8% market share during Q2, which resulted in a 1.89% increase from Q1 to Q2.

• The primary actionable cause for this problem is Gillette’s failure to communicate a convincing value proposition for the Gillette Fusion Razor. This is because Gillette’s focus was on listing the product features rather than communicating the value these features bring to the customer.

Action Overview

To solve the above problem the company should make the following changes to its strategy and tactics.

Proposed changes in the strategy:

• Gillette will continue targeting all existing MACH3 customers. Considering that 50% of men in the United States have some form of facial hair, Gillette will also target the estimated 20% of men who use electric trimmers to shape their mustaches, goatees, chin straps, or soul patches. The main change in strategy is the modification of the value proposition.

o Value Proposition: The Gillette Fusion Razor is a superior shaver than the MACH3 for all men with or without facial hair, because its superior technology delivers less irritation, greater comfort and has a new precision trimmer which allows men to easily trim sideburns, shave under the nose, and shape...