Case: Gillette

Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. However, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay the high prices associated with the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market. What is your take on the razor wars, first between Gillette and Schick, and now with online competitors? Does Gillette face a serious threat with respect to its pricing model? Explain 2. How can Gillette use other parts of the marketing program to take the focus away from pricing? Are there specific types of non-price strategies that Gillette could utilize? 3. The continued success of online competitors like the Dollar Shave Club has Gillette management worried. They have asked you to sketch a basic plan for selling Gillette’s razors and blades via an online subscription model. Explain how you would create such a model using each element of the marketing program.