Business analysis of Gillette ProFusion razors

Business Company Report on Gillete ProFusion Razors

Gillette ProFusion Razors Company Report

The process of globalization has determined a series of changes in the business environment that companies address. The competition increases, determining companies to develop innovative ways in which they can gain competitive advantage. At the same time, customers' needs are changing more rapidly, forcing companies to invest in their research and development activity in order to develop products and services that are able to address these needs.

In such an environment, it is necessary for companies to develop marketing campaigns that are able to identify and to anticipate the needs of customers and to develop messages for each customer category and its needs. In other words, it is very important that companies correctly identify the customer segment that seems to be the most profitable for the company in case, identify these customers' purchase motivation, develop the product or service in accordance with their needs, and sending the right message to these customers.

Although the steps mentioned above seem to be easy to accomplish, the practice of marketers reveals the fact that it is quite difficult to reach these objectives, and that there are numerous companies, even large international ones, that are unable to correctly perform these activities. The result is represented by poor sales, low profits, and an unsatisfactory image of the company.

In order to develop and implement a successful marketing strategy, it is necessary to rely on thorough market studies and analyses. In addition to this, given the fact that the customer should be in the center of the marketing strategy, the company should thoroughly analyze the profile of potential and existing customers in order to identify their purchase behavior, they buying motivation, and the needs that determine these aspects.

Furthermore, the company should develop products and services in accordance with the needs identified in the case of the customer segment that company intends to address, and not on what the company considers that would be more suitable for these customers. This is because it is possible that the company's opinions do not match the opinions of its customers.

One of the most important parts of the marketing strategy is represented by the message that the company intends to send to its customers. PR means doing something of high quality and speaking about it. In other words, it is necessary to correctly promote the product or service in case, in order to inform the public about it. It is important for the communications strategy to be developed in accordance with the characteristics of the customer segment that the company addresses. Therefore, the company must identify the communication channels that these customers prefer and the type of message these customers are most likely to respond to.

Gillette Company Presentation

The Gillette Company was established in 1895 as a safety razor manufacturer. The company was purchased in 2005 by Procter & Gamble. Gillette is one of the most well-known international brands. Since its establishment, the company has significantly developed its range of product. Gillette currently produces and commercializes several types of razors and men's body care products. Gillette has also developed a women's product line.

The operations of Gillette are currently included in the operations of Procter & Gamble. This means that the expenditures and sales of Gillette are combined with the other brands owned by Procter & Gamble. This makes it difficult for interested parties to analyze the performance of Gillette and of its lines of products.

The competitive advantage of Gillette is generated by the company's research and development process. The company is interested in maintaining its market share by introducing new products on the market and by upgrading existing products. This way, the company considers that customers will be attracted by the company's interest in developing high quality products that address the needs of customers.

In addition to this, Gillette is trying to attract customers and to develop a loyal customer base by creating products that seem to address the needs of specific categories of customers that cannot be considered mass customers. By developing such products, Gillette expects its customers to feel appreciated by the company and repeat their purchase. Gillette also focuses on developing a marketing strategy that allows the flexibility required by the changing needs of consumers.

Gillette ProFusion Presentation

Gillette produces and commercializes the following product categories: shaving razors, shave gel and foam, skin care, deodorant, and body wash. Each of these product categories consist of several lines of products that address a variety of needs, in the attempt of reaching a larger number of customers.

The Gillette ProFusion razor is considered by the company as advanced technology for proven shaving performance (Gillette, 2010). The product addresses men with sensitive skin that that is easily irritated. The technology used in the development of the product is considered to ensure the reduction of shaving irritation even on sensitive skin.

The technology used by the product, its description and advantages are presented in detail on Gillette's website. The product can also be purchased online.

Gillette Marketing Strategy

Since its establishment, Gillette has managed to develop a strong market position with the help of innovative marketing strategies. The initial marketing strategies of the company were based on the invention of the Gillette disposable razor by King Camp Gillette. The success of these strategies was easily attained, given the novelty of the product and its advantages. This situation created strong competitive advantage that Gillette benefitted from and improved its position on the market.

In addition to this, the initial marketing strategies were based on offering free razors so that customers could buy the blades manufactured by Gillette (Agarwal, 2010). The strategy was very successful, and many competitors tried to apply it. As a consequence, they were sued or acquired by Gillette.

The company's marketing strategy is also based on:

Low prices

Automated manufacturing facilities

Advertising

Although the company's marketing strategy has modified since its establishment because of the modifications of market conditions, type of competition, and customers' needs, the current strategy of Gillette is also based on innovation and on developing products that address a series of specific needs.

However, Gillette's marketing strategy must be developed in accordance with the general strategy on the company. This way, the company is able to identify the areas that require increased amounts of resources and to allocate the resources of the company based on the requirements of each activity and the objectives that must be reached. As a consequence, the global resources of Gillette are organized so that the company can achieve leadership in all product categories.

The corporate strategy of Gillette is based on:

Aggressive research and advertising

Strategic diversification

New product developments

Investments in technology and product innovation

Focus on core competencies

Maximize e-commerce opportunities

Build strong product portfolio

Source: Strategy and Marketing Management, by P. McNamee and K. Stewart.

This marketing strategy establishes the strategic direction that Gillette must follow. The strategy developed in the case of each product is established in accordance with the characteristics of the product, the target market, and the objectives of the strategy. The strategy for blades and razors is developed based on the following aspects:

Innovation through research and development -- this strategy proved to be successful and helped Gillette become the leader in his market.

Premium brand at premium price -- the company's products are designed in order to reach high quality standards. This means that the prices must be established in accordance with the quality level.

Build global product branding -- the company considers that it is better to develop a universal image of Gillette and its products that can be used in most countries. This is a difficult strategy to apply, given the cultural differences between many countries.

Build strong brand loyalty -- it is important that Gillette develops a loyal customer base.

Improve efficiency at lower costs -- the increased competition and the fact that competitors are able to provide similar products at lower prices determines Gillette to develop strategies aiming to reduce production costs. This is usually attained by outsourcing the production process.

As mentioned above, the company develops a marketing strategy for each type of product with an associated message. In the case of Gillette ProFusion razor, the media message the company tried to promote was that this is premium product that uses advanced technology in order to significantly improve shaving performance.

The message was directed towards men with sensitive skin that irritates especially during shaving. But the Gillette ProFusion razor was developed in order to reduce irritation and other problems associated with shaving even for sensitive skin. The targeted customer segment is represented by men aged 25 to 35 with medium to high incomes, educated, sports oriented, with a busy lifestyle, and interested in receiving the best grooming products and services.

The company selected several marketing channels in transmitting this message:

TV advertising

Newspaper and magazine advertising

Special presentation events

Spokespersons

Sponsorship of sports events

This is because each customer category prefers different types of marketing channels. 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: