Reference no: EM133154555
Introduction
The Gillette Co. - The Best a Man can Get Gillette is known world over for its razor blades. Its manufacturing operations are conducted in more than 50 locations in 26 countries and its products are distributed in over 200 countries. In 1901, King C. Gillette and William Nickerson started the American Razor Company in Boston to produce Gillette razor sets. They could sell only 51 razor sets in the first year. However, in the next year they sold 90,844 sets. Within four years, in 1905, Gillette established its first overseas operations. It developed sales by distributing free razor blades and with boxes of Wrigley's chewing gum.
During 1960s and 1970s the company expanded its product range by introducing Right Guard (deodorant), Trace 2( twin blade razor), Cricket (disposable lighter), Good News (disposable razor), and Erase Mate ( Erasable pens). It also acquired Braun (electric shavers and appliances). In 1984 it even branched into dental products.
The different marketing strategies adopted by the company are as follows:
a. Identifying a product for which there was need and developing from the beginning a high quality product and convincing the customers to buy the products. This enabled the company to sell more expensive product at a higher margin of profit.
b. They carried out market research, studied the needs of the customers and produced new products as demand arose. The company always did considerable market research and design engineering. From the data obtained after the research, it launched a new razor in 1990, known as 'Sevor'. Researches have stated that this is the most successful product launched in Gillette's history and has helped it grab 9 per cent of the US market share in the year it was launched.
c. They carried out test marketing and sales wave's research.
d. After the research, they implemented pricing strategies that made huge profits.
e. They studied product lie cycle and carried out effective product planning. Thus, Gillette has made remarkable profits and established as the most successful organisation.
Questions
1. What were the different marketing strategies carried out by Gillette Co.?
2. What are the stages of product life cycle?
3. What are the advantages of test marketing?
4. Customer behavior should be considered while deciding pricing strategies. Give reasons.