Gillette Case Study Introducion

INTRODUCTION
Gillette has long been known for innovation in both product development and marketing
strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a
commanding worldwide market share. The peak of its innovation occurred in 2006 with the
introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by
a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest”
in shaving technology. Gillette must decide how to put the razor wars behind them and maintain
or increase its share of the global razor market.
Gillette has always prided itself on providing the best shaving care products for men and women.
The company was so visionary that it didn’t have any serious competition until 1962, when
Wilkinson Sword introduced its stainless-steel blade. Since that time, the Wilkinson Sword-
Schick Company has evolved into Gillette’s primary competitor. Through the years, Gillette has
strived to stay on the cutting edge of shaving technology in a market that thrives on innovation.
King Camp Gillette was born in fond du Lac, Wisconsin in 1855. William Painter, the inventor
of disposable crown cork bottle cap assured him that “A successful invention was one that was
purchased over and over again by a satisfied customer”.
In 1895, Gillette suddenly had a brilliant idea while shaving. It was an entirely new razor and
blade. A razor with a safe, inexpensive and disposable blade. But because of technical problems
idea was not immediately successful. However, in 1901 that King C. Gillette with technical
partnership of MIT graduate William Nickerson, fundamentally transformed shaving with the
invention of the first safety razor in Boston. Gillette receives the first U.S. patent on the safety
razor on November 15th, 1904.
1901 - King C. Gillette invents the safety razor with disposable blades.
1920-1930 - Gillette’s success carried the company through economic droughts and world war
II. Gillette by 2 unrelated ventures:
1. 1948 - The Toni company-maker of DOY home permanent-wave kits

2. 1955 - The paper mate pen company-producer of retractable, refillable ball-point pens.
Although seemingly profitable at first, both acquisitions proved to be unsuccessful as sales and
revenue waned due to declining demand and innovative competitors, such as Bic’s low-priced
disposable (nonrefillable) pens from France. As a result, Gillette’s unblemished track record for
success became tarnished as net profits slumped to $1.33 per share in 1964.
1962 - English firm Wilkinson Sword introduced its stainless-steel blade. Gillette starts to lose
the market share and didn’t know how to respond. Due to lack of sources Wilkinson Sword sold
much of its blade business. Already Gillette lost his market share from 70% to 49%.
1975 - Gillette introduce write brothers line of disposable pens and salvaged a good portion of
lost market share.
Gillette experienced moderate successes under the leadership of Ziegler with the introduction of
Cricket disposable lighters and Soft & Dri antiperspirant (until the industry experienced a sharp
decline in sales of the spray product due to the belief that aerosols destroy the ozone layer.)
Furthermore, the introduction of the Trac II razor was deemed a “great success” and thus
continued Gillette’s dominance in this market. Other successful product developments came
under the leadership of Colman Mockler, Gillette’s next CEO, whose strategy was to cut costs
and invest more money into advertising and product development.
Under Mockler, Gillette experienced some of its greatest successes including memorable
innovations such as the Atra razor, the Good News! disposable razor, and the Daisy razor for
women. After these product additions, Gillette held roughly 75 percent of the global market in
razors and blades, including a majority of the U.S. shaving market (razors, blades, and the
leading shaving cream).
Gillette’s Atra-Plus shaving system, which featured a refillable Atra cartridge with a lubricating
strip, overtook the Trac II as the number one selling razor. In addition, to directly compete with
Bic and other razor companies, Gillette updated its Good News! line to include a disposable
razor with a lubricating strip. Furthermore, in the personal care segment, Gillette made several
introductions, including Aapri facial care products, Dry Idea deodorant, Bare Elegance body
lotion, Mink Difference hair spray, White Rain hair care products, and Silkience shampoo and
moisturizers. These additions had mixed results and left Gillette still searching for the keys to
success in this business segment. In the writing instruments segment, Gillette achieved moderate
success with the development of Eraser Mate erasable, disposable pens. Also, the steady sales of
Paper Mate pens and Liquid Paper correction fluids helped to maintain company performance.

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INTRODUCTION

1. 1948 - The Toni company-maker of DOY home permanent-wave kits

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