Gillette Fusion Case Study

Gillette uniting Case StudyIntroductionGillette holds leadership martplace sh atomic number 18 which is 70% within the shaves market (PG 2008). The companys success has been establishd by regular overlap innovations and esteemed contends in order to boost the sales. However, one product namely concretion, which is the quarterner five bladed razor has captured 55% of each(prenominal) new razor sales in the US just four weeks after pitch (Datamonitor, 2008). What is more, Fusion was expected to be Procter and Gambles fastest ever product to seize a US$1 billion in sales (Datamonitor, 2008). This radical will focus on why it is so important to decease customers to Fusion and how to attain and promote this migration.Why Gillette is so despe prescribe to conk all customers to FusionThe Boston Consulting Group matrix provides a simulation for allocating resources among several(predicate) products. This technique is useful for multi-divisional and multi-product companies such as Gillette since it al let outs them to compare different products and decide where to invest the money.As apprize be seen above protagonist blade razor is a detent which means that this product has a modest market share and low growth rate and it do non generate large amount of cash. However, chases nates turn pop to be a cash trap since Gillettes money can be tied up there with no potential for the future increase.Furthermore, Mach 2 double blade razor is between being a dog and question mark but due to market saturation and product advancements Mach 2 soon will be a dog with low market share and growth.Mach 3 triple blade razor on the other hand, is between a question mark position which is low market share but high market growth rate and a sense impression. Star can generate large sums of money because of its sacrosanct market share but at the same time can consume a lot of resources due to high growth rate. Mach 3 has the potential to gain market share and bec ome a star however, Gillette found out that when Mach 3 did not become a market leader there was a possibility that it would become a dog with a little market growth. As a result, Gillette focused all its assist on Fusion which is between being a star and a cash alarm that gives greater return on assets than the market growth rate. Consequently, Gillette analysed the BCG matrix and decided that the company needs to persuade all the customers to buy Fusion in order to fulfil a location of cash cow for this product and bring continued cyberspace with relatively little investment in the future. Furthermore, according to Armstrong and Kotler (2008) the better way for Gillette to achieve that position was to introduce new product in this case Fusion that outdate the live ones Mach 3 Mach 2 and single blade razors. Therefore, Gillette is using electropositive cannibalization practice. This means that the company is focusing its selling resources on befuddleing its stimulate cu stomers from Mach 3 to more profitable Fusion line instead of attempt to gain more market share from competitors (Ritson, 2009). In the long run this is more effective strategy as it is cheaper for Gillette to market to existing customers and easier to sub-rosa them than anyone else (Holland 2008).The merchandising devise market mix is a part of marketing plan that involves different techniques to work perception favorably towards the product (Keller Kotler, 2006). The primary(prenominal) parts of marketing mix are four Ps which are known as Product, Price, Place and PromotionProduct Gillette Fusion is the first-class honours degree shaving system for men that combines revolutionary blade technologies on the confront and on the back (Gillett, 2008).Price The next part of the marketing plan is the pricing strategy as this will indicate what kid of ROI (Return on Investment) the company will have (Dewhurts Burns, 1989). However, the charge has to be competitive but still allo w the company to make a reasonable profit (Barrow et all 2005). In this case reasonable will depend on the customer. Gillette charges 40% price premium over Mach 3 and to persuade its customers to switch for a Fusion the company needs better communication. This means by educating existing consumers on product advancements and improved shaving per mannequinance, only because higher price can be justified.Place- Distribution as shown underInstead of selling directly to the consumer Gillette sells through an intermediary such as a wholesaler and retailer who resell companys products Fusion razors.Promotion foodstuffing communication which is a different term for promotion constitutes part of the marketing mix. It is not a single entity but rather, involves a wide throw off of activities that aim to convey marketing messages to target audiences (Pickton Broderick, 2001). Those activities can be categorise into four overlapping heading.To promote the migration from older Gillettes products to Fusion the company can use sales promotion. That means launch an introductory promotional entailment joined with a competition with entry via product purchase. This could grab the attention of male consumers and encourage existing to switch.Another idea to convince existing consumers to use Gillette fusion is to advertise it for different parts of the body and not only for the face. The advertisement can be supported by online campaign (interactive videos) which will encourage the clients to use Gillette razors to shave for example their armpits.Finally, new kind of public relations should be used to spread the word via blog. Gillette could create a shortlist of influential bloggers that are male between 18 and 35 years of age. Then, the company would send them a gift concourse including Fusion razor, shaving gel and aftershave with some background details of the product. Further, Gillette could influence them to use it for a short period of time and write well-nigh t heir experiences on their blogs. As a result, this could promote migration of companys existing customer undercoat to Fusion from the older razor products.ConclusionAfter detail abbreviation it can be concluded that Gillette wants to migrate companys existing customer tush to use Fusion. Since Fusion is perceived as a cash cow which brings continuous profits with relatively little investment in the future. Furthermore, the best way to attaining a massive migration to Fusion will be by sales promotion, online advertising and writing blogs. Consequently, massive migration to Fusion will be achieved.ReferencesArmstrong, G. and Kotler, P. (2008) Principles of marketing 13th ed., late Jersey, Pearson apprentice HallAaker, D. A. (1995) Strategic Market Management, 4th ed. John Wiley Sons, New York.Barksdale H. C. and Harris C. E (1982). Portfolio analysis and the plc Long vomit up homework, 15(6) 74- 83.Barrow.C.Barrow.P.,Brown,R.,(2005) The Business Plan Workbook, 5th Ed, Cambria n Printers, Wales.Burns.P. (2007) Entrepreneurship and Small Business, 2nd Ed, Palgraive Macmilla, New York.Datamonitor, (2008) Gillette Fusion case study developing a US$1 billion brand available from http//www.market-research-report.com/datamonitor/CSCM0171.htm (accessed 2 December)Dewhurts.J.Burns.P.,(1989) Small Business Planning Finance and Control , 2nd Ed, Macmillan Education, London.Gillette (2008) P G Annual cover available formhttp//www.scribd.com/doc/5892225/PG-2008-Annual-Report (accessed on 2 December).Holland A. (2008) Sherpa Blog Quick, lightheaded Step to Increase Repeat Buyers (Profits) Real-Life trade Story available from http//www.marketingsherpa.com/article.php?ident=30687 (accessed 3 November).Keller K.L. Kotler,P (2006) Marketing Management, 12th Ed, Pearson Education, New Jersey.Kotler P. Armstrong G. Saunders J. and Wong V. (1999) Principles of Marketing, 2nd European edn, London Prentice Hall Europe.P G (2008) Annual Report overview 2008 available form http//www.pg.com/annualreport2008/financials/mda-overview.shtml (accessed 3 December)Pickton D. W. and Broderick A. (2001) Integrated Marketing Communications, London, Financial Times Prentice Hall. ch. 1.Ritson M. (2009) 5 Reasons Gillette Is The Best A Brand Can Get available from http//www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-brand-can-get.html (accessed 3 December)Shimp T . A (1997). Advertising and Promotion and Supplemental Aspects of Integrated Marketing Communications, 4th ed, Fort Worth Dryden Press.