Business Company Report on Gillete Research Paper
- Length: 9 pages
- Sources: 10
- Subject: Business
- Type: Research Paper
- Paper: #96874555
Excerpt from Research Paper :
Some customers are interested in the advertorials they find in their favorite magazine, some are attracted by the fact that celebrities promote the product in case, and other customers are attracted by sponsoring and organizing certain events they are interested in.
There are several aspects that must be taken into consideration when analyzing the success of the media message in the case of Gillette ProFusion razor. For example, it is not only important that the message reaches the targeted customer segment, but also if the message produced the expected results. In order to analyze the success of the message and of the product, it is recommended to take into consideration product reviews.
Gillette's website provides a section for each product where customers can post their review for these products. Customers' opinions are varied regarding the performance of Gillette ProFusion razor. In this case, the customers and their opinions can be categorized as:
Customers that like the product but consider that the price is too high for its advantages
Customers that did not like the product
Customers that like the product and consider the price as suitable for its quality
The most important category in assessing this product is represented by customers that liked the product but consider the price as being too high for the characteristics of the razor. This means that the company managed to send the message to the intended customer segments.
The opinions of customers that bought and used the product prove that the message was understood. This means that the message was clear and easy to understand. It is important to develop a clear message that does not create confusion among customers. The customers understood that Gillette ProFusion razor is supposed to be a premium product at a premium price. But some of them do not agree with the fact that this price matches the characteristics of the product.
This is not the message's fault, since the price was incorrectly established by the marketing team. In other words, if the performance of the product regarding its sales volume does not reach the established levels, it is not because of the media message, but because of the pricing strategy that was not developed in accordance with the product strategy and with the needs of customers.
Gillette developed Fusion in order to increase its sales volume and its market share. The premium product was intended to be introduced as the star of the product line. The market was prepared for this advanced product through the introduction of previous models that proved to be successful and to gain significant profits (Altaf, 2010). However, the problem was represented by the high price of the Fusion. In order to counteract this issue, the company considered that the advanced technology provided by this product and its advantages in comparison with other products would persuade customers into buying it.
The company's expectations regarding the financial performance of Fusion were quite daring. Procter & Gamble intended to reach $1 billion in sales (Chernev, 2009). In order to achieve this objective, the company developed several strategies:
Launching a new advertising campaign
Reducing the retail price of the razor
Reducing the retail price of the cartridges
Redesigning the packages
Maintaining the strategic line
Gillette is the leader of the razors market and most of its products reach high standards regarding their sales volume. Some of the company's products sell better than others. The company focuses its strategy on advanced technology, innovation, and significant investments in the research and development activity.
However, this does not mean that each advanced product introduced by Gillette on the market reaches the sales volume expected by the company. This is because the premium price of some of the company's products are considered too high by mass consumers. This is also the case of ProFusion.
The message that the company intended to send was well developed and it reached the targeted customer categories. The problem with this product is that the pricing strategy was not developed in accordance with the product strategy. This conclusion can be drawn from the opinions of customers posted on the product review section on the company's website.
In other words, one cannot state that ProFusion's sales are not performing. The sales of this product are supported by the sales of other products of Gillette. The advertising strategy developed by Gillette is also successful because of the celebrity sportsmen selected as spokesmen, like Tiger Woods, Roger Federer, and Thierry Henry. This strategy helps attract a large number of customers that support the company's sales volume.
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