Product Analysis on Gillettes’s Razors

Gillette is leading worldwide home applicants, such as razor, battery, electronic and manual excessivelythbrush, manufacturing follow. On April 14, 1998, the beau monde introduced the worlds prototypal-class honours degree triple blades razor and begun to sell July 1, 1998 in the United States and September in the Western Europe. Since Gillette launched unfermented razor in 1998, the gild expected amply re go games in short-run however, the leave behind of the new crop has been defined yet.The atomic number 18as of the internal factors atomic number 18 Finance, Management, Manufacturing, grocery store position, Personnel, and Research & Development. All these factors can be defined as either strengths or failing or both. First of all, the comp any as a whole gained loot gross revenue amount of 10. 1 billion dollars and net income of 1. 4 billion dollars for the 1997 due to bring in leading battery company Duracel in 1996 and grow of Sensor stick out razor. As a r esult, company could spend 1 billion dollars to invent Mach 3 which is triple blades razor. regular(a) though Gillette had sufficient fund to invent the new product, the company took amply risk of financial side that if the new products sale does non r apiece to companys expectation, the company go away face shortage of capital resources and can be lead to bankruptcy. But if Mach3 turn out to be a New Coke or McDonalds Arch Deluxe much-hyped new products that were mostly duds and fizzle- the gloom will be heavy from Gillettes corporate headquarters in capital of Massachusettss Back Bay to the South Boston factory that Gillette has overhauled to aver 600 million Mach3 blade cartridges per year, or about half of Gillettes annual target of 1. billion Mach3 blades. (Boston Globe, 4/15/98)Since Gillette introduced Mach3 in April, the company changed its manufacturing tools to create Mach3 South Bostons factory. Gillette already spent 300 million dollars for advertising and packa ging worldwide for the year that company introduced new product. The amount is twice as much as the company put for advertising Sensor exceed in 1989. Gillette released the new product to retail stores on July 1, 1998, and starts to advertise on TV and the early(a) media six weeks later however, many people went to the companys weather vane site to look at the new product.Even though company spent tremendous amount of fund for the advertising, some people from Asia did not recognize the product according to our congregations survey. For customers, there are satisfaction and complaints for Mach3. People, who snug with Mach3 according to our survey, said there are less irritation and meteoric shaving time. Customers who complaint about Mach3 argue that they do not inadequacy to spend more m unrivaledy on better outlook. According to our survey, one hundred percent of surveyees, who does not satisfy with Mach3, say the wrong is too high for the product.Price is relatively highe r(prenominal) than other products including Sensor Excel which was the most expensive one before Mach3 came out. Its price is 6. 99 dollars per razor with one blade include currently, the company is selling for 7. 29 dollars per Mach3. It is 4 percents increased from original price, and 40 percents higher price than other products. This whitethorn lead to decrease in sales and the companys pith r neverthelessue. The company is fork overing to reach customers several different ways. Gillette offers Mach3 package product, which included Mach3 itself and couple of extra razors, Shaving cream and deodorant.This package product makes each items unit price lower than sell separately. Also, the company offers sweepstakes on the companys sack up site, and there is no obligation. This is the one of the finest ways to reach and get concern the customers. The company give chance to people to win prize without any obligation however, people will recognize the product automatically. Also, Gillette can acquire the Since Gillette is well- issuen global company, many retail stores are not pained to carry the companys product even though the products price is high.Retail stores are assume that Mach3 will bring more customers. On the other hand, even more customers come to store, it is unpredictable for increasing stores sales revenue because price is too high so that consumers would not bargain. out-of-door factors are Competitive, Economic, and Social. Gillettes major rival in the food market is Shick. Since Gillette is the first company produce triple blades razor, the company will lead the market however, rival company such as Shick will develop the akin product with higher quality or lower price.Then the result will be unforeseen unless Gillette improve Mach3s weakness high price. For long time in the United States, peoples income has been growing. As a result, customers purchasing power also increased. However, the companys market is not only the United States but also overseas, in fact, over sixty percents of sales are made from overseas. Consequently, the company has to pick up the facts that poor countries consumers are willing to use cheaper product especially the countries in economic crisis.There are 3 target groups in the market. The first group is disposal razor users that its approximately more than half of the market. The advantages of this group are cleaner, cheaper and booming to use. On the other hand, it is less quality than other two razors. The second group is regular razor such as Mach3 about 40 percents. The last group is electronic shaver users which it takes stay market share. The customers who use the electronic shaver satisfied with high technology, easy to use, saving time and safety compare to the other two products.The disadvantages of this product are high price and less cleanness when one shaves. The goal of Gillette is trying to acquire customers who use disposal and electronic shaver to Mach3. In lay out to persuade the customers to change to Mach3, the company should beat other products weaknesses and add the amend the weakness of the other product to Mach3 and decreases of its weakness. Mach3 has several strengths the first impression is learn outlook that makes customers feel differentiated from other products.Second of all, men are challengers, always pursue new trend especially on the obvious items with high technology. Although Mach3 has several strengths, it also has weaknesses. High price makes people imply twice to purchase Mach3 the older generation of the Gillette razor is cheaper than Mach3, that makes people enquire if it is necessary to spend more money on the Mach3. The key solve for Mach3 is to shave beard, but the older generation is also doing same personal credit line as Mach3 that makes no different between older and newer product. The next weakness is the advertizement.Gillette has spent 300 million dollars on the advertisement, but we did the survey with a t least thirty people 22 out of 30 surveyees know the brand from Television and magazine, but they have never uses it. This means the advertisement has preached the good news, but it has not reach peoples life. The majority of men do not know why they should spend more money to bargain for same result. The marketing strategy did not fail the sale of the Mach3, it is price controller. The main point of the marketing is to opening a market for product.Since 73% of the men from the survey know the product, this mean the marketing strategy watch over its intention. The biggest mistake we found is the price. As I mentioned, the majority of men do not know why they should spend more money to buy same result. I would recommend to the company, to lower the price and fellow the same price as older generation. Let public buys Mach3 as the same price as older generation, allow public to try out differences between Mach3 and older generation. After when market demand of the Mach3 is higher t han older generation, then increases its price.