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Gillette Case Study

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Gillette Case Study Date: June 25, 2016

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Situation Analysis

The personal care and grooming industry is an industry characterized as an oversaturated market with limited innovation. The wet shaving market is believed to have peaked by many analysts. These analysts look to the introduction of “new” technology like the 5+1 blade. This razor and other similar razors are accused of being a more expensive razor with no added benefits from the triple or quadruple razors previously released. Gillette, an industry leader has one direct competitor, the Schick Company. Gillette is estimated to have an approximate global market share of 71%, while Schick Company holds 17%.

In the past, Gillette has demonstrated the ability to combat competitive threats with innovative technology for the disposable razor, but still rely heavily on the cash cow products as new entrants are welcomed in to the market. With the constraints of limited innovation Gillette has invested largely in to their marketing strategy, in efforts to expand their market share and ultimately maximize their profits.

While Gillette’s bread and butter products are in considered to be in a mature market and considered to have an enviable position in that market as an organization, market expansion is necessary. It is important for Gillette to focus their marketing plan and strategy to either capture the market share belonging to Schick or tap in to markets through the influence of western culture.

SWOT ANALYSIS

Strengths | Weaknesses | * Long standing History | * Loss of market share due to the distraction by unrelated ventures | * Industry leader | * Reduced credibility due to “trivial” technology boasted by recently released products | * Vast market

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