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Razor

In: Business and Management

Submitted By sisca87
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TUGAS KELOMPOK

Clean Edge Razor:
Splitting Hairs in Product Positioning

1. Brief Overiew Of Paramount

Paramount merupakan salah satu perusahaan raksasa di bidang kesehatan dan kecantikan. Pada tahun 2009, tingkat penjualannya di seluruh dunia mencapai $ 13 miliar dan laba kotornya mencapai $ 7 miliar. Unit usaha yang dimiliki oleh Paramount antara lain; kesehatan, pembersih, kecantikan dan make up. Paramount memasuki pasar pada tahun 1962 dengan meluncurkan nondisposable razors (pisau cukur dengan sistem sekali pakai) yang berteknologi maju dengan merek Clean Edge. Perusahaan ini mengambil keputusan yang tepat dengan memperkenalkan Clean Edge ke segmen pasar pria terlebih dahulu di mana produk ini memiliki keterlibatan yang kuat, sehingga dengan cepat menjadi sebuah merek terkenal dalam industri ini. Hal ini dibuktikan dari sumbangan penjualan nondisposable razors dan refill cartridge di AS pada tahun 2009 berupa pendapatan $ 170 juta, laba kotor $ 92 juta, dan laba operasi sebesar $ 26 juta. Randall Jackson, manajer produk untuk Clean Edge, melakukan strategi positioning terbaik dengan meluncurkan berbagai inovasi. Salah satu strateginya adalah memposisikan Clean Edge sebagai produk "niche", dan menargetkan segmen pasar moderat atau high-end groomers dimana para pengguna akan memilih produk perawatan kulit yang unggul sehingga kita harus menawarkan value atau mutu yang tinggi. Produk yang ditawarkan Paramount saat ini adalah pisau cukur berlapis (dua baris) sekali pakai dan isi ulang kartrid Pro. Maka, dengan kedua produk ini memungkinkan Paramount sebagai pemimpin market share di tahun 2009, dengan market share sebesar 23,3%.

2. Market Condition

2.1 Market size

|Unit |2005 |2006 |2007 |2008 |2009 |2010 |
|Nondisposable Razors |$ 178 |$ 212 |$ 188 |$ 198 |$ 208 |$ 218 |
|Refill Cartridges |$ 763 |$ 801 |$ 802 |$ 815 |$ 832 |$ 853 |
|Disposable Razors |$ 440 |$ 456 |$ 477 |$ 490 |$ 504 |$ 522 |
|Shaving Cream | $ 271 |$ 275 |$ 269 |$ 266 |$ 263 | $ 260 |
|Depilatories |$ 104 |$ 101 |$ 106 |$ 100 |$ 94 |$ 88 |

Tabel 1. Data penjualan retail di US Produk pencukur dan Hair Removal (Milion $)

[pic]

2.2 Consumer Trend

Tingkat pengenalan produk untuk nondisposable razor dan refill cartridge telah dipercepat dalam beberapa tahun. Oleh sebab itu, total pengeluaran untuk media iklan juga telah meningkat lebih cepat dari penjualan pasar ritel, dan tren ini diperkirakan akan terus berlanjut. Secara umum, outlet-outlet pendistribusian menanggapi pertumbuhan permintaan pisau cukur dengan cara menambah ruang pajangan untuk produk tersebut. Namun karena sifatnya yang tidak sekali pakai maka pisau cukur jarang dibeli oleh konsumen sehingga tidak membantu perputaran yang baik untuk toko. Tetapi margin ritel pisau cukur dengan produk perawatan pribadi lainnya (misalnya, sikat dan pasta gigi) cenderung jauh lebih tinggi. Saat ini, distribusinya juga mulai mengalami pergeseran ke toko makanan dan obat tradisional. Pada tahun 2000, toko-toko makanan menjual lebih dari setengah market share dari semua pisau cukur. Tetapi di tahun 2009, mereka hanya mewakili 42 % dari penjualan. Jadi, produk-produk khusus perawatan laki-laki tampaknya merupakan titik terang baru dalam industri ini. Tren terbaru mengindikasikan perawatan rutinitas pria contohnya pisau cukur telah melampaui produk perawatan cair lainnya seperti semprot tubuh pria, shower gel beraroma, dan lotion perawatan kulit berjamur dalam beberapa tahun terakhir. Selain itu, produk perawatan pribadi pria kini melebihi pertumbuhan pasar kecantikan perempuan. Dengan promosi media yang mengacu pada bidang perawatan pria dan gaya pria diharapkan segmen ini akan mengalami pertumbuhan yang baik.

2.3 Competitor Analysis

Pada tahun 2010, pasar nondisposable razor dan refill cartridge didominasi oleh tiga pemain multinasional, yaitu Paramount, Prince, dan Benet & Klein. Pendatang baru, Radiance Health Inc dan Simpons, keduanya juga berkembang dalam bentuk product personal care dan baru-baru ini secara intensif telah berkompetisi dalam pasar. Mayoritas dari pesaing-pesaing ini bermain dalam segmentasi nilai dari pasar. Adapun pesaing-pesaing Paramount saat ini, yaitu: a. Prince Prince memproduksi dan menjual berbagai produk perawatan pribadi di seluruh dunia. Produk-produk yang ditawarkan antara lain; produk perawatan mulut, perawatan kulit, produk cukur, dan deodorant/antiperspirant. Prince juga telah menjadi pemimpin pasar pisau cukur sekali pakai sejak tahun 1950 dan memegang posisi nomor satu dalam hal penjualan pada tahun 2009. Prince menjual nondisposable razor dan refill cartridges dengan merek Cogent and Cogent Plus. Keduanya dipertimbangkan sebagai super-premium produk. Pada tahun 2009, pendapatan Prince untuk nondisposable razor dan refill cartridges mencapai $ 224 juta dengan laba operasi sebesar $ 45 juta. b. Benet & Klein (B&K) B & K adalah perusahaan kecantikan dan kesehatan multinasional yang memproduksi dan menjual vitamin, kosmetik, produk perawatan kulit, perawatan rambut, produk pencukur, dan wewangian. B & K memasuki pasar nondisposable razor pada tahun 1985 dengan merek Vitric. Untuk inovasinya, B& K meluncurkan lini nondisposable razor dan refill cartridge (Vitric Master) di tahun 2009 yang menyediakan strip pelumasan maju, menangani non slip, dan superior teknologi dengan pisau anti-korosif. c. New Entrants. Pada 1 Agustus 2009, Simpsons mengeluarkan nondisposable razor baru yang menggunakan deodorant dengan merek Tempest. Tempest merupakan pisau cukur yang memiliki kepala dapat berputar sehingga memungkinkan untuk mencukur secara halus. Pendatang lain, Radiance juga berencana menciptakan nondisposable razor yang mengandung deodorant dengan merek Naiv. Naiv menawarkan fitur berdenyut hampir serupa dengan Clean Edge yang bergetar. Para eksekutif Paramount telah mempelajari Naiv karena produk tersebut telah dipasarkan secara nasional pada September 2010. Pada tes pasar yang dilakukan Naiv telah memperoleh pangsa pasar sebesar 13 %. Setelah Radiance meluncurkan produk barunya, Paramount menyakini itulah saatnya untuk berkompetisi. Marketing executive Paramount memperkirakan Radiance akan menghabiskan dana $ 16 juta untuk media iklan pendukung Naiv. Saat ini, Radiance dan Paramount bersaing sengit dalam beberapa produk kategori personal care.

3. 4 Product Analysis

Dalam membuat strategi pemasaran, unsur penting yang tidak boleh dilupakan adalah marketing mix. Dalam konsep marketing mix, seorang analisis pemasaran wajib menganalisis minimal 4 komponen yang terdapat dalam marketing mix, antara lain: product, price, place, and promotion.

Product Analysis

Pada tahun 2007, CEO Paramount membuat sebuah tim khusus yang diabadikan untuk pengembangan terobosan teknologi sehingga Paramount menyediakan produk baru yang menonjol. Setelah mengevaluasi beberapa desain, tim menentukan bahwa vibrating, ultra-thin five blade design akan menjadi revolusioner dari produk Paramount dan membuat mereka sebagai pemimpin inovasi. Keunggulan dari produk baru yang ditawarkan ini adalah baterai AAA yang ditempatkan di gagang pisau cukur akan memberikan getaran yang merangsang folikel rambut. Selain itu, packaging yang lebih besar dan lebih berat akan memberikan kontrol keseimbangan yang lebih baik. Desain pisau yang lebih tipis dan cangih juga meminimalkan resiko iritasi. Uji klinis dan riset konsumen yang dilakukan selama 18 bulan menunjukkan Clean Edge mencapai peningkatan 25% dalam hair removal dibandingkan merek pencukur sekali pakai lainnya (seperti, Cogent dan Vitric). Uji coba juga membuktikan manfaat yang lebih baik untuk kondisi kulit secara keseluruhan baik dari warna kulit maupun tekstur kulit.

3.2 Place Analysis

Untuk pendistribusian produk, Paramount melakukannya secara retail kepada outlet atau toko-toko yang ada seperti: of Nondisposable Razfood Stores, Drug Stores, Mass Merchandisers, Club Store, dan mungkin supermarket atau mini market yang ada. Penjualan ritel umumnya dilakukan di nondisposable razfood stores dan drug stores. Dari data penjualan keseluruhan dapat terlihat bila penjualan produk tersebut rata-rata semakin meningkat.

|2007 | |2008 | |2009 | |2010 |
|Vol (%) |$ (%) |Vol (%) |$ (%) | Vol (%) |$ (%) |Vol (%) $ (%) |
|of Nondisposable RazFood |45 |47 |44 |44 |42 |42 |42 43 |
|Stores | | | | | | | |
|Drug Stores |32 |33 |31 |33 |29 |33 |29 31 |
|Mass merchandisers |19 |17 |18 |18 |21 |20 |21 21 |
|Club Stores |1 |1 |4 |3 |5 |3 |5 3 |
|Other |3 |2 |3 |2 |3 |2 |3 2 |

Tabel 2. % of Nondisposable Razor Sales by Retail Channel: 2007–2010

3.3 Price Analysis Paramount telah memutuskan untuk meluncurkan produk berteknologi maju dan elit yang pertama pada pangsa pasar pria. Eksekutif di Paramount juga setuju “Clean Edge” harus memiliki harga di segmen super premium. Sebagai pemasok utama dalam segmen itu, dengan daya tarik yang luas maka “Clean edge” menjadi pisau cukur yang paling efektif yang tersedia di pasar. Produk ini diposisikan pada Super-premium segment. Harga Clean Edge merupakan harga yang tertinggi bila dibandingkan para pesaingnya dengan harga $ 12,99 untuk Razor dan $ 10,50 untuk refill cartridge pada “harga khusus” dan, $ 11,19 untuk Razor dan $ 8,89 untuk harga cartridge pada “harga umum”. Perbandingannya, Prince sebagai tertinggi kedua menawarkan $ 12,50 untuk razor dan $ 10,00 untuk refill cartridge. Sedangkan harga terendah dari segement premium ini diduduki oleh Tempest dari Simpsons dengan harga $ 10,99 untuk razors dan $ 8, 75 untuk refill cartridge.

3.4 Promotion Analysis

Berdasarkan Tabel 3, promosi yang dilakukan paramaount menempatkan posisi ke 3 dibawah Benet & Klein dan Prince. Sedangkan untuk kenaikan biaya tersebut dari tahun 2009 ke 2010 mengalami peningkatan sekitar 5%. Dari tabel dapat dilihat, pesaingnya B & K mengeluarkan dana paling besar untuk keperluan promosinya.

Unit 2009 2010
|Benet&Klein |$ 35.2 |$ 36.8 |
|Prince |27.8 |29.2 |
|Paramount |19.1 |20.2 |
|Simpsons |$ 2.4 |15.2 |
|Radiance |– |$ 16.1 |

Tabel 3 Nondisposable Razor Media Advertising Expenditures,a 2009–2010

[pic]

Paramount melakukan promosi dengan tiga cara. Pertama, dengan melalui media massa diantaranya melalui iklan TV, radio, koran, majalah, dll. Kedua, dengan melalui kegiatan-kegiatan yang dilakukan dalam bentuk consumer promotions di mall atau tempat umum lainnya. Consumer promotions ini dapat berupa kampanye penggunaan produk pada pasar yang telah ditentukan. Melalui promosi dalam bentuk ini maka produk lebih didekatkan pada konsumen dan target pasar dapat lebih difokuskan. Ketiga, trade promotions berupa pengenalan produk, launching produk, dll. Dari 3 jenis promosi yang dilakukan, media menempati urutan pertama untuk biaya promosi, menyusul trade promotions dan terakhir consumer promotions.

2009 2010
|Media |$ 19.1 |$ 20.2 |
|Consumer Promotions |$ 11.5 |$ 13.1 |
|Trade Promotions |$ 13.7 | $ 15.0 |
|Total |$ 44.3 |$ 48.3 |

Tabel 4. Advertising and Promotion Expenditures for Nondisposable Paramount Razors: 2009–2010 ($ in millions)

4. STP Product Analysis

4.1 Segmentation

Segmentasi pasar merupakan kegiatan membagi-bagi pasar yang bersifat heterogen dari suatu produk ke dalam satuan-satuan pasar yang bersifat homogen (Kotler, 2001). Segmentasi membagi pasar menjadi kelompok-kelompok pembeli yang dibedakan sesuai dengan kebutuhan, karakteristik, atau tingkah laku berbeda yang mungkin membutuhkan pemasaran prodduk terpisah. Pisau cukur Clean Edge di pasar Amerika dapat dipecah menjadi dua kategori yaitu nondisposable razor dan refill catridge. Dalam industri Clean Edge razor di Amerika, konsumennya dapat dibagi menjadi tiga segmen berdasarkan segmentasi tingkah laku yang di lakukan pembeli terhadap produk Clean Edge razor. Dari tingkah laku pembeli terhadap harga dan kualitas produk yang diinginkan, Clean Edge Razor membagi menjadi tiga segmen yaitu: Value, Moderate, Super Premium. Dengan melihat Tabel 5, terlihat bahwa segmentasi pasar yang membeli produk Clean Edge razor paling tinggi pada segmen Moderate sebesar 43% volume mencapai 44% dollar dari penjualan produk. Sedangkan pada segmen paling rendah yang memilih Clean Edge razor adalah segmen Super-Premium sebesar 25% volume mencapai 34% dollar dari penjualan produk dan untuk segmen Value terhitung mencapai 32 % volume dapat mencapai 22% dollar dari seuruh penjualan produk. Segmen Value merupakan kelompok pembeli yang membeli produk Clean Edge razor berdasarkan harga produk yang menurut mereka sesuai dengan kebutuhan dan daya beli. Segmen Moderate merupakan kelompok pembeli yang membeli produk Clean Edge razor berdasarkan loyalitas mereka terhadap produk-produk yang digunakan sesuai dengan kebutuhan. Segmen Super Premium merupakan kelompok pembeli yang membeli produk Clean Edge razor berdasarkan teknologi yang disesuaikan dengan kebutuhan mereka. Untuk meningkatkan penjualan produk terhadap segmen Super Premium, perlu inovasi produk Clean Edge razor menyesuaikan keinginan pasar tersebut. Dengan demikian, setiap segmen pasar dapat dipertahankan. Volume USD
|Super-Premium |25% |34% |
|Moderate |43% |44% |
|Value |32% |22% |

Tabel 5. Persentase Segmen Clean Edge Razor Nondisposable Razors and Refill Cartridge Retail Sales by Segment

4.2 Targeting

Penentuan target pasar untuk Clean Edge razor menjadi sangat penting karena perusahaan tidak dapat melayani seluruh konsumen yang ada di pasar dengan adanya keberagaman kebutuhan dan keinginan konsumen. Maka, perusahaan perlu memfokuskan pada target dan sasaran yang ingin dicapai. Target pasar merupakan kelompok konsumen yang homogen dimana perusahaan mencoba memberikan pelayanan berupa kepuasaan terhadap sebuah produk. Dari tiga segmen pasar yang memilih produk Nondisposable Razors dan Refill Cartridge, tim pengembangan produk menentukan segmen Super Premium sebagai target pasar. Dengan volume sebesar 25% dari penjualan produk, segmen ini berhasil menguasai 34% USD dari seluruh penjualan produk. Dengan strategi Concentrated Marketing, perusahaan mengembangkan produk yang lebih ideal dan spesifik terhadap segmen Super Premium. Inovasi terhadap pengembangan produk dengan desain baru seperti bentuk yang tipis dapat memudahkan penggunaan produk dan menjadi keunggulan diantara produk pesaing sehingga segmen Super Premium menempati posisi kuat di target segmen yang dipilih Clean Edge razor.

4.3 Positioning

Positioning merupakan elemen yang sangat utama dalam suatu strategi pemasaran. Sebuah perusahaan menanamkan positioning melalui persepsi pelanggan terhadap produknya dan produk pesaingnya. Berdasarkan segmen Super Premium yang dipilih sebagai target pasar, maka perusahaan perlu memposisikan produknya pada segmen tersebut. Dengan memposisikan produk Nondisposable Razors dan Refill Cartridge untuk memenangkan persaingan, perusahaan harus menentukan merek dalam posisi yang berbeda agar tidak masuk dalam jebakan komoditas produk. Perusahaan harus mampu menawarkan produk yang berbeda dengan kualitas terbaik, pelayanan terbaik, dan teknologi paling mutakhir sehingga dapat membidik konsumen yang memiliki kebutuhan, keinginan dan permintaan yang berbeda-beda. Promosi terhadap inovasi produk Nondisposable Razors dan Refill Cartridge dapat memberikan komunikasi yang baik agar segmen Super Premium cenderung mengingat pesan-pesan produk Clean Edge razor dalam jangka waktu lama. Keberhasilan strategi pemasaran dalam memposisikan produk terhadap segmen pasar yang ditargetkan secara potensial dapat meningkatkan penjualan terhadap produk Nondisposable Razors dan Refill Cartridge.

5. SWOT Analysis

5.1 SWOT Matrix
[pic]

5.2 Recomendation Strategy

Dari analisa SWOT di atas, dapat disimpulkan beberapa strategi pemasaran sebagai berikut : • Pembentukan brand image dari Clean Edge haruslah premium, sesuai dengan target marketnya. • Cara promosi dan edukasi produk harus dirancang secara hati-hati agar dapat sesuai dengan Super Premium Customer. • Jaringan distribusi sebaiknya menggunakan sistem “jemput bola”, dengan mendatangi tempat-tempat umum di mana para target customer berkumpul. Selain itu, sebaiknya perlu didistribusikan di jaringan yang premium pula. • Value Product perlu ditonjolkan, yaitu vibrating dan thin blade razor. • Kredibilitas dari Paramount sebagai perusahaan perlu dikomunikasikan kepada pelanggan. • Gunakan Experiential Marketing, agar customer merasakan pengalaman yang tidak terlupakan untuk Clean Edge tersebut. • Integrated Marketing Communication yang perlu dioptimalkan, baik dari segi BTL maupun ATL, PR Strategy, dsb. • Perlunya alignment yang optimal antara segi marketing dan distribusi agar availability product, dan brand awareness dapat tercapai dengan baik.

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...Gillette Indonesia Marketing The marketing plan appropriate for Gillette Indonesia would be to focus on the higher-end razors as they are probably already purchasing the low-end razors. With constant competition from cheaper-made shaving products, Gillette should find a way to fight dirty campaigns. In other words, razors are nothing more than sharp steel and by using a quality blade over the cheap ones, people can avoid razor cuts that can cause tetanus and various other infections. To receive good healthcare treatment in Indonesia usually requires money. With the average person making less than $10k per year, constantly going to the medical clinic for treatment for tetanus, will not suit their pockets well. The marketing can focus on good quality razors saving lives and money by minimizing the trips to the medical clinic. This would be an easy marketing technique because the World Health Organization (WHO) has already approved Gillette as one of the safest razor blades made. The WHO has recommended Gillette as a healthcare hygiene product because Gillette is actually used in hospitals across the world as a shaving tool before surgery. Another campaign should be made to use clean shaved men to represent sex-appeal. Make beardless men look more attractive by society standards. Don’t just make them look good on television, but rather make society love them. Show these men wealthier, happier, and even more attracted by the opposite sex. Gillette can even go as far as having...

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...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...

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...MANAGEMENT BRIEF - GILLETTE - THE SENSOR RAZOR LAUNCH. 15 August 1992 The Economist (c) The Economist Newspaper Limited, London 1992. THE BEST A PLAN CAN GET Our second case study involves one of the most successful launches of a consumer product in decades: Sensor, Gillette's high-priced, high-tech razor. In April 1990 Gillette's Bruce Cleverly made one of the hardest decisions a marketing boss can ever face: to pull an expensive television-advertising campaign off the air. Hard, but in this case, enviable. The advertisements in question had not been attacked as misleading; they had caused no offence; they had not failed to stir consumers. Far from it. Mr Cleverly was forced to stop advertising his company's newest product, Sensor, because demand for the high-tech razors was so intense that the company could not produce them fast enough to meet it. In America and Europe, pre-launch publicity had consumers clamouring for Sensor weeks before it arrived in shops that January. When it arrived, many retailers could not keep the razor and its premium-priced blades in stock for more than a day or two. Gillette vastly under-estimated its product's potential. The company's most optimistic pre-launch projections were for the sale of 18m razors and 200m blades in 1990. The actual totals were 27m and 350m. Sensor grabbed 7% of both the (at the time) $850m American blade market and the $1.1 billion European one, and an astonishing 42% of the $150m combined American and European...

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...First mover: advantages and risks The Gillette Company has a long history of being 'the first to market...' in its own areas of operation. Its achievements include producing the first successful: • safety razor 1901 • twin bladed razor 1972 • twin bladed disposable razor 1976 • pivoting head razor 1979 • pivoting head disposable razor 1980 • razor designed specifically for women - Sensor 1992 • triple blade razor - Mach 3 1998 • battery powered razor - M3Power 2004. As well as being first to market, Gillette has also continuously produced products which feature improvements to existing technologies, including 3 bladed disposables and ergonomically superior handle developments, including Sensor, Venus Divine and M3Power. This timeline above also demonstrates how the speed of innovation has accelerated with shorter and shorter gaps between new introductions and superior products. Being 'the first to' can bring advantages known as 'first mover advantages'. These include being able to generate initial consumer interest via both media investment and accompanying press and PR coverage. This then leads to the main retail stores displaying the products in-store and supporting the products with powerful promotional campaigns. For as long as products remain the only one of their kind available, the 'first mover' can establish loyalty and reputation in its brands before potential competitors get going or catch up. A Brand is thus created. There are risks to being the innovator...

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...Dollar Shave Club University of Maryland, University College CMST 301 01/31/2016 Introduction & Synopsis In The New York Time article written by Dahl titled “ Riding the momentum create by a cheeky video” the author presents a founder of a Dollar Shave Club company which is based in Santa Monica, California. The company sells shaving razors to man based on a monthly subscription. Michael Dubin was the founder and he used digital media to achieve a goal of getting more customers but also to get investments from big companies. The prices range from a $1 to $9 a month based on what type of razor blade customer chooses. The idea of selling razor via subscription came to the owner Michael Dubin because he have heard of many man complain of the prices of razors in stores. At the begging of launching his business, he spent months driving down San Diego to connect with bloggers to spread the word. However, it was difficult and he decided to make a video to tell the story of buying a razor via subscription. After launching his video on YouTube it has been seen almost 10 million times. In the first 48 hours of launching the video, he had 12,000 orders placed. After the launch of the video the business kept growing, Dubin struck a deal with many investors, which helped him, grow the company. Today the business is valued at $615 million, what started, as a video ad now is multi million-dollar company. With the use of digital media, Dubin was able to...

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...simple and easily accessible. Let’s take the example of shaving. There are major differences in the behavior of customers in emerging and developed markets. Companies catering to these markets such as P&G often have to adapt to these difference. For example in the US the new Fusion Pro Glide with five blades is the top selling razor of P&G’s Gillette product portfolio priced at around $4. However this product does not address the needs of Indian customers. Most Indian people still shave with double-edged razors while balancing a hand held mirror. P&G realized that in order to enter India they had to investigate the needs of the Indian BoP customers. They sent a research to India to observe the shaving behavior of Indians and to understand the role that shaving plays in their daily life. P&G found out that Indian customers need a simple razor that can use without running water and which limits the risks of cuts while shaving. After conducting this research they introduced a simple razor called the Gillette Guard. It has just one blade, can easily be cleaned without running water, is safe and costs a fraction of the price of the Fusion Pro In fact, the razors and blade cartridges sell for about $0.30 and $0.10, respectively. To market the Gillette Guard, P&G focused on Indian kiranas, or local shops, since thisiswhere BoP customers preferto shop. For their promotion P&G used a local approach with ads and TV spots hosting...

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...Group Assignment (Gillette Case Study) Submitted to: Mr. Syed Ahmed Submitted by: (Group Members) • Saima • Maria Memon • Kashif Soomro • Jawaid Shaikh 1. How is the Gillette Series being positioned with respect to (a) competitors, (b) the target market, (c) the product class, (d) price and quality? What other positioning possibilities are there? a. Premium to competition b. The Best a Man can Get" - not the most convenient or cheap at all, but the most value added products, building on the popularity of sensor. c. Differentiated on functional attributes through innovation d. Price premium at an index of 110 to 120. There are many other positioning possibilities for a Brand. Gillette can position the various products it has separately, or treat Gillette as a master Brand. If Gillett is one Brand, then the positioning should be the same as for the other series of men’s grooming products. However if it breaks it into categories, then there is a shaving line, and then a deodorant line, and it can get into an aftershave line as well, unless it wishes to keep it aligned with the shaving category. In this scenario there can be 3 distinct positioning that Gillette can take up in the consumers’ minds. 2. Is Gillette making the best use of the brand equity that has been created with Sensor? Given that Gillett is attempting to make a name for itself and that Sensor has been its biggest success, it makes sense to use the impetus of that to tie into the rest of its...

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...Innovation May Not Be Enough 1) Evaluate product innovation at Gillett throughout its history. Has Gillett been a victim of its own success? Has product innovation in the wet-shaving market come to an end? In 1901 King C. Gillett invents the safety razor complete with disposable blades, the start of a business dynasty. From 1901 to 1938, Gillett receives its patent and introduces a blue and thin blade. From 1946 to 1969 Gillett offers the first blade dispenser, develops the first adjustable razor with three settings, adds a super blue blade w/silicone coating, introduces a coated stainless steel blade, and adds a platinum chromium coating. During the 1970’s Gillett produces the Trac 2, Good News, and Altra razors thus continuing the innovation and their market share moving forward. During the 1980’s Gillett continues its leading edge technology by producing the first razor and disposable razor with a lubricating strip and a razor with spring mounted twin blades. The 90’s stalled somewhat but the introduction of the Mach 3 was a huge product announcement. From 2000 – 2009 Gillett enhanced the features of the Mach 3 and entered the post shaving product market. In 2010 Gillett introduced the Fusion Proglide which completes the razor advancement and innovation at Gillett. On the acquisition side Gillett went on a product development campaign which included selecting a number of key products associated with different market arena’s that ultimately drove Gillett’s overall profit margins...

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