Gillette, Inc. Case Study

Gillette Inc.

Gillette has successfully convinced the world that 'more is better' in terms of number of blades and other razor features. Why has that worked in the past? What's next?

Gillette has, over time, sought to influence the life of men. It has presented itself not as a mere self-indulgent, but as a daily need, telling consumers that it has got their back and will get them whatever it is that they really desire. This has partly accounted for the company's continued success. However, three other factors have also had a hand in driving the company to success.

The first is the company's commitment to research and development, as well as product innovation. According to Michael Abbott, the marketing director at P&G, the company's ethos of supporting innovation is driven by an urge to develop products capable of meeting the ever-changing needs of men, and consequently transforming the life of the modern 21st century man (Socio, 2010). The company's innovation sphere is based on an element of understanding men, their skin, their shaving needs, and their shaving habits - an understanding brought about by intense and continued R&D geared at ensuring that products remain relevant to current users and appealing enough to newcomers (Socio, 2010). The force behind this has always been an attempt to meet the goal of delivering an ideal shave for customers - one that causes no skin irritation, but brings about optimal comfort and great closeness. In 1958, this meant developing the very first razor with an adjustable blade (whose adjustment properties increased the closeness of shave); the Trac 1 in 1971 (which reduced the number of strokes, thereby minimizing irritation); then the mighty Fusion (whose development, by the way, was based on the findings of an in-depth study of a sampled 10,000 men's shaving habits (Socio, 2010).

Then there is the tendency to take on the competition in a bid to prove value to customers. Gillette has not had the smoothest of rides. Its gradual addition-of-blades strategy has, for instance, often come under fire; with skeptics wondering whether having multiple blades makes the shaving experience any different. Gillette has, however, always taken on its skeptics, at times referring to science in what often seems like a defense rather than a popularizing attempt. For instance, in explaining how multiple blades improve the shaving experience, Abbott makes use of the scientific process 'hysteresis' and demonstrates that "the first blade extends the hair cut of the hair follicle and allows the subsequent blade to cut further down the hair shaft before the hair has fully retracted back into the hair follicle," providing a shave that is not only long-lasting, but also characterized by less skin irritation (Socio, 2010).

Gillette manages to stay ahead of the competition through various strategies. As Abbott points out, "online is an important touch point for" the company (Socio, 2010). For instance, it offers online tutorials on among other things, how to handle acne and skin irritation, to supplement its marketing campaign, which obviously receives significant reinforcement from the company's outstanding association with sport personalities. The best example of such a tutorial is the YouTube video titled 'How to Shave your Groin', with according to the company, has been viewed by more than 6 million consumers. I have included the link to the video in the references section of this text.

Some of Gillette's spokespeople such as Tiger Woods have run into controversy after becoming endorsers for the brand. Does this hurt Gillette brand equity or marketing message?

Gillette is known for its outstanding association with sports and sporting personalities. The company's Champion Program engages such personalities in marketing brand programs, with large names in the sporting fraternity including Ji-Sung Park, Kenan Sofuoglu, Derek Jeter, Thierry Henry, Roger Federer, and Tiger Woods having featured in different marketing programs suited to their specific markets. The program often seeks to personify the various brands as brands of champions. Abbott, however, expresses that despite its long-time reliance on celebrity endorsements, the company is not blind to the risks posed by the same - "anything the ambassador does could potentially damage the brand" (Socio, 2010). At the same time, he admits that the company chooses to maintain the same because of its supposedly high pay-off (Socio, 2010).

Towards this end, scores of researchers have delved into the economic aspect of celebrity advertising to determine whether the value generated from celebrity endorsement can adequately offset the cost of risk involved. Gillette, for instance, made considerable losses when the controversy surrounding golfer Tiger Woods, one of the company's star endorsers, began to emerge. According to Knittel and Stango (2012), Gillette's shareholder value fell by a significant 4% within the first two weeks of the emergence of Wood's scandal. However, Gillette was not the only loser in the scandal -- Nike, which used Woods as an endorser for its golf balls, reported a decline of approximately 136,000 dozen golf ball sales, and $1.4 million in losses during that year (Chung, Derdenger & Srinivasan, 2012). These losses do not, however, compare with the gains the company had made from using Woods as an ambassador. For big companies such as Gillette and Nike, therefore, an endorser's negative publicity may not match the gains derived from their ambassadorship, not only because of the strength of the brand name, but also because, as Abbott points out, celebrities are only used to personify the brand's actual qualities (Socio,2010). Gillette ensures that its brand name is not damaged by an ambassador's negative publicity by ensuring that brands deliver their promises to customers and hence, that customers remain loyal because of their positive experiences with the brand, and not merely due to celebrity influence.

Can Gillette ever become as successful in marketing to women?

Gillette is known for masculine marketing -- something it has been doing for the better part of its existence. Men have always been the company's core focus, with most products being designed to meet the specifications of their bodies. The company has, however, embarked on extending its coverage to include women; and the performance has been quite impressive. At this rate, Gillette is sure to become a leading marketer in feminine products as well.