Product Analysis on Gillettes’s Razors

Gillette is booster cable worldwide home applicants, such(prenominal)(prenominal) as shave, battery, electronic and manual toothbrush, manufacturing guild. On April 14, 1998, the guild introduced the worlds archetypal common chord blades razor and begun to swap July 1, 1998 in the joined States and September in the Western Europe. Since Gillette launched spic-and-span razor in 1998, the follow expect juicy returns in short-term however, the firmness of purpose of the virgin product has been outlined yet.The atomic number 18as of the privileged factors ar Finance, Manage manpowert, Manufacturing, Market position, Personnel, and Research & adenylic acid Development. All these factors can be defined as either strengths or help slightness or both. First of all, the corporation as a whole gained earnings barters gist of 10. 1 billion dollars and net income of 1. 4 billion dollars for the 1997 due to conduct conveying battery company Duracel in 1996 and grow of Sen sor go by razor. As a result, company could fell 1 billion dollars to invent Mach 3 which is tierce blades razor.Even though Gillette had sufficient gillyflower to invent the juvenile product, the company took full(prenominal) risk of financial side that if the new products sale does non r distri exactlyively to companys expectation, the company result face shortage of nifty resources and can be surpass to bankruptcy. however if Mach3 turn out to be a New Coke or McDonalds Arch Deluxe much-hyped new products that were for the most part duds and fizzle- the gloom include be heavy from Gillettes corporate home office in Bostons stake Bay to the reciprocal ohm Boston grind that Gillette has oerhauled to assign 600 jillion Mach3 blade cartridges per class, or about half of Gillettes iodine-year target of 1. billion Mach3 blades. (Boston Globe, 4/15/98)Since Gillette introduced Mach3 in April, the company changed its manufacturing tools to produce Mach3 South Bost ons factory. Gillette already spend 300 million dollars for advertising and promotion worldwide for the year that company introduced new product. The amount is double as much as the company put for advertising Sensor Excel in 1989. Gillette released the new product to sell stores on July 1, 1998, and starts to advertise on TV and the separate media six weeks later however, umpteen plurality went to the companys web site to flavor at the new product.Even though company spent tremendous amount of fund for the advertising, some people from Asia did not recognize the product fit to our groups survey. For customers, on that point argon satisfaction and explosive charges for Mach3. People, who satisfied with Mach3 according to our survey, said there ar less(prenominal) irritation and faster shaving time. Customers who complaint about Mach3 argue that they do not want to spend more funds on better outlook. According to our survey, one hundred percent of surveyees, who does no t incorporate through with Mach3, say the value is too richly for the product.Price is relatively high than another(prenominal) products including Sensor Excel which was the most high-ticket(prenominal) one before Mach3&8243 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 may lead to decrease in sales and the companys total revenue. The company is try to strike customers several different ways. Gillette offers Mach3 software product, which included Mach3 itself and couple of extra razors, splinter cream and deodorant.This package product makes each items unit price lower than sell separately. Also, the company offers sweepstakes on the companys web site, and there is no obligation. This is the one of the finest ways to go and get involve the customers. The company spring chance to peop le to win regard as without any obligation however, people result recognize the product automatically. Also, Gillette can con the Since Gillette is well- sack outn global company, many sell stores are not offended 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 irregular for increasing stores sales revenue because price is too high so that consumers would not buy. External factors are Competitive, Economic, and Social. Gillettes major rival in the market is Shick. Since Gillette is the offset company produce triple blades razor, the company will lead the market however, rival company such as Shick will develop the self alike(p)(prenominal) product with higher quality or lower price.Then the result will be unforeseen unless Gillette improve Mach3&8243s weakness high price. For farseeing time in the get together States, peoples incom e has been growing. As a result, customers buying power also increased. However, the companys market is not only the United States nevertheless also overseas, in fact, over sixty percents of sales are do from overseas. Consequently, the company has to consider the facts that poor countries consumers are willing to use cheaper product peculiarly the countries in economic crisis.There are 3 target groups in the market. The first group is temperament razor users that its virtually more than half of the market. The advantages of this group are cleaner, cheaper and easy to use. On the other hand, it is less quality than other two razors. The due south group is regular razor such as Mach3 about 40 percents. The lead group is electronic baby users which it takes remain market share. The customers who use the electronic shaver satisfied with high technology, easy to use, salve time and safety compare to the other two products.The disadvantages of this product are high price and le ss cleanness when one shaves. The destruction of Gillette is trying to acquire customers who use disposal and electronic shaver to Mach3. In send to persuade the customers to change to Mach3, the company should ticktock other products weaknesses and add the improved the weakness of the other product to Mach3 and decreases of its weakness. Mach3 has several strengths the first impression is fancy outlook that makes customers detect differentiated from other products.Second of all, men are challengers, always pursue new trend especially on the evident items with high technology. Although Mach3 has several strengths, it also has weaknesses. full(prenominal) price makes people think twice to purchase Mach3 the of age(p) generation of the Gillette razor is cheaper than Mach3, that makes people wonder if it is necessary to spend more silver on the Mach3. The bring up purpose for Mach3 is to shave beard, but the old(a) generation is also doing same hire out as Mach3 that makes no different mingled with older and newer product. The next weakness is the advertisement.Gillette has spent 300 million dollars on the advertisement, but we did the survey with at least 30 people 22 out of 30 surveyees know the brand from Television and magazine, but they have never uses it. This take to bes the advertisement has preached the good news, but it has not reach peoples life. The mass of men do not know why they should spend more money to buy same result. The market strategy did not fail the sale of the Mach3, it is price controller. The main point of the merchandising is to opening a market for product.Since 73% of the men from the survey know the product, this mean the marketing strategy succeed its intention. The biggest break 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 add the same price as older generation. Let public buys Mach3 as the same price as older generation, allow public to try out differences betwixt Mach3 and older generation. After when market ingest of the Mach3 is higher than older generation, then increases its price.