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Gillette Fusion Proglide Power Razor
Introduction to Marketing, Spring 2013
March 19, 2013
Introduction
Men have wanted to groom their faces as far back as the Bronze Age. Today’s modern
razor bears little resemblance to the clam shells, shark teeth and flints used for centuries. In fact,
regular shaving, especially for the masses, is a relatively new idea. The straight blade was
invented in Sheffield England in 1828, but was mostly used by the upper classes. But that all
changed, when the modern safety razor was
brought to market by King Camp Gillette in 1904.
When Gillette introduced his patented safety
razor with disposable blades in the early 1900s, he
chose to offer a number of hooks to get people to
try this new type of razor. Gillette understood that
the profits were in the blades, and not the razor handle. He priced his razor and the initial set of
20 blades at $5. An additional dozen blades was $1. In 1907, a man’s suit cost was $81
, making
the Gillette razor a premium product. Gillette wooed new customers with a money-back
guarantee. In 1903, they only sold 51 razors and 168 blades. But as the marketing improved,
just one year later, the company sold 90,000 razors and 12 million blades.2
1
"Morris County NJ Historic Price Survey 1907-2007." Morris County NJ Historic Price Survey 1907-2007.
Morris County Library, 1 Nov. 2006. Web. 17 Mar. 2013.
2
"Gillette Company Timeline." Timeline. Procter & Gamble, n.d. Web. 17 Mar. 2013.
<http://news.gillette.com/about/timeline>.
2
The Gillette company adopted the price skimming philosophy for most of the 17 years
they held the initial patent. Interestingly, once the patent ran out, the company repackaged the
original product and sold it at a lower price point, plus introduced a new high end razor. By
segmenting the market to appeal to lower-income level consumers, profits took off.
Men’s Grooming Is a Growing Market
Today, two billion razors3
blades are bought (and tossed out) in the US. The American
men’s grooming market is growing and expected to reach $5.8 billion by 2016 according to
Euromonitor International. Proctor & Gamble, owners of Gillette, have the lions share, with a
42% market share. Unilever follows, a distant second with 12% share and Schick-Wilkinson
Sword with 8% share. The Gillette Fusion Proguide Power razor sales grew nearly 170%4
in the
2010/11 sales year as compared to the year before with a 9.4% market share. Making it the
second most popular razor. The first was the non-battery operated Gillette Fusion Proguide with
a 14.2% market share.
Product Market Review
We analyzed the product market for ProGlide Power by reviewing the competitive,
economic, technological, cultural and social environments of the product. Our research was
targeted at answering the following questions:
Competitive Environment for ProGlide
The competition includes Gillette's own Mach3 and Fusion product lines. External
competitors include Energizer Holdings' Schick Hydro and Quattro.
3
MacEachern, Diane. "Q & A: Disposable Razors." Recyclebank. Recyclebank, 20 Apr. 2011. Web. 17
Mar. 2013. <https://www.recyclebank.com/live-green/q-a-a-disposable-razors>.
4
Sales Growth of Leading Brands of Razors in the US. Publication. Grocery Headquarters, 2011. Web.
17 Mar. 2013. <http://www.statista.com/statistics/194714/share-of-us-razor-sales-in-2010-and-2011-by-
brand/>.
3
What are the Competitive Advantages and Key Differentiators for ProGlide
Power based on Competitor Analysis?
The competitive advantages include:
● Thinner, finer blades (compared to Fusion) that help reduce tug and pull
● MicroComb to guide stubble to blade (available only in ProGlide Power)
● Precision Trimmer (enhanced blade with anti-clogging rinse slots) - available only in
ProGlide Power and Manual
● Up to 5 weeks of comfortable shaves with 1 cartridge
● Lubrastrip - largest among Gillette's shaving products, infused with mineral oil and
lubricating polymers, enabling the razor to move smoothly over skin. Mineral oil added
only to the ProGlide series.
Does ProGlide have any sustainable competitive advantages?
We believe that ProGlide Power does not have any sustainable advantages as all the
aforementioned differentiators can be copied by external competitors.
How has Gillette positioned ProGlide to weather any economic downturns?
Amazon.com had a $4 off coupon and Safeway provided a Club Price discount of $4.
We believe that the coupons are only for introducing the product to the market. ProGlide is a
premium priced, high end shaving product and is therefore insulated from the sensitive middle
tier customers who are likely to trade down during economic downturns.
How has Gillette taken advantage of various Internet technologies to market
ProGlide?
4
A Google search for 'Gillette ProGlide' yielded a sponsored link. The website supports
HTML5 and is enabled for iPad and iPhone. Several blogs discuss ProGlide and online retailers
sell the razor and blades. ProGlide has an active Facebook and Twitter presence.
Describe the cultural and social environment of ProGlide's product market.
ProGlide is targeted at the GenX and GenY market. It is not targeted at the Baby
Boomers.
Which geographical markets is ProGlide focused on currently?
The packaging explains the value proposition of the product in English, French and
Spanish languages. We therefore believe that this product is currently targeted at the USA,
Mexican and Canadian markets.
Target Market:
Gender: male
Age range: Gen X and Gen Y
Psychographics: Self aware, groomed, busy
Socio-economic: Premium brand, urban mid to high income groups
Geographic: North America
Target market indicators
Product details: 5 blades, battery powered,
hydration strip which would appeal to a
younger demographic.
5
Promotion: The advertisements are geared towards more urban, self-aware men and appeal to
the opposite sex which is geared towards Gen Y males
Promotion: Introduced the concept of male grooming that goes far beyond a simple shave,
more likely to adopted by Gen X, Y males
Price: The price is relatively higher than the older brands that Gillette sells. As seen with other
(non shave products) Gen Y demographic is more likely to switch to something new even if the
satisfaction level from the current product is relatively high.
Place: Available at all drug stores, grocery stores etc...
Key elements that the manufacturer is trying to communicate
● First 4 blade razor in the market
● Ultra thin blades for increased comfort
● Micro-comb to help guide the stubble to the blade
6
● Precision trimmer for hard to shave areas like under the nose
Competing products
Biggest competitor: Schick hydro 5.
Price range: razor (comparable), blades (cheaper than Gillette)
Target market: comparable
Marketing message: Direct comparison to Gillette - Claim that the shave is similar but a lesser
price. That Schick is endorsed by the common man and not just athletes (going after Gillette's
pro football commercial).
Online ads like this one on Esquire.com takes interested consumers to the Gillette
“KissandTellUs.com” website.
Advertisement Analysis
7
We decided to focus on a few elements of our target market when developing our ad,
namely, that the majority of potential Gillette Fusion Power users are younger, technologically
savvy, and likely have a good sense of humor. Playing to this sense of humor we felt was an
effective way to capture our target customer’s attention. It also follows in a similar vein of other
Gillette ads, in that it features a strong, masculine figure as it’s central focus. We decided to
make this our focus, as the primary distinguishing factor between the Gillette Fusion Power and
other offerings in the Gillette product line was that it is battery powered, giving this product a
shave that is even closer and smoother than even other similar, non-electric versions of the
razor like the Gillette Fusion Proglide.
Additionally, we strove to make our ad a reminder that Gillette has been a name
synonymous with innovation and quality in shaving technology since the beginning of the safety-
blade razor era. Hearkening back to an earlier time in history with our tag-line, “Not your great-
great-great-…great-grandfather’s razor,” this razor appeals both to Generation X and
Generation Y males who are looking to distinguish themselves with the most advanced razor
and blade combination in the market. As we have mentioned previously, our product lacks a
strong sustainable competitive advantage, therefore, ads such as this are vital in maintaining a
strong image in the minds of Gen X and Millennials.
Report Contributors:
Robin Bertelsen
Aman Kapoor
Gordon Kramer
Frankie Wong
Rajesh Madhawarayan

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Gillette Fusion Proglide Intro to Marketing 2013 03 Paper

  • 1. 1 Gillette Fusion Proglide Power Razor Introduction to Marketing, Spring 2013 March 19, 2013 Introduction Men have wanted to groom their faces as far back as the Bronze Age. Today’s modern razor bears little resemblance to the clam shells, shark teeth and flints used for centuries. In fact, regular shaving, especially for the masses, is a relatively new idea. The straight blade was invented in Sheffield England in 1828, but was mostly used by the upper classes. But that all changed, when the modern safety razor was brought to market by King Camp Gillette in 1904. When Gillette introduced his patented safety razor with disposable blades in the early 1900s, he chose to offer a number of hooks to get people to try this new type of razor. Gillette understood that the profits were in the blades, and not the razor handle. He priced his razor and the initial set of 20 blades at $5. An additional dozen blades was $1. In 1907, a man’s suit cost was $81 , making the Gillette razor a premium product. Gillette wooed new customers with a money-back guarantee. In 1903, they only sold 51 razors and 168 blades. But as the marketing improved, just one year later, the company sold 90,000 razors and 12 million blades.2 1 "Morris County NJ Historic Price Survey 1907-2007." Morris County NJ Historic Price Survey 1907-2007. Morris County Library, 1 Nov. 2006. Web. 17 Mar. 2013. 2 "Gillette Company Timeline." Timeline. Procter & Gamble, n.d. Web. 17 Mar. 2013. <http://news.gillette.com/about/timeline>.
  • 2. 2 The Gillette company adopted the price skimming philosophy for most of the 17 years they held the initial patent. Interestingly, once the patent ran out, the company repackaged the original product and sold it at a lower price point, plus introduced a new high end razor. By segmenting the market to appeal to lower-income level consumers, profits took off. Men’s Grooming Is a Growing Market Today, two billion razors3 blades are bought (and tossed out) in the US. The American men’s grooming market is growing and expected to reach $5.8 billion by 2016 according to Euromonitor International. Proctor & Gamble, owners of Gillette, have the lions share, with a 42% market share. Unilever follows, a distant second with 12% share and Schick-Wilkinson Sword with 8% share. The Gillette Fusion Proguide Power razor sales grew nearly 170%4 in the 2010/11 sales year as compared to the year before with a 9.4% market share. Making it the second most popular razor. The first was the non-battery operated Gillette Fusion Proguide with a 14.2% market share. Product Market Review We analyzed the product market for ProGlide Power by reviewing the competitive, economic, technological, cultural and social environments of the product. Our research was targeted at answering the following questions: Competitive Environment for ProGlide The competition includes Gillette's own Mach3 and Fusion product lines. External competitors include Energizer Holdings' Schick Hydro and Quattro. 3 MacEachern, Diane. "Q & A: Disposable Razors." Recyclebank. Recyclebank, 20 Apr. 2011. Web. 17 Mar. 2013. <https://www.recyclebank.com/live-green/q-a-a-disposable-razors>. 4 Sales Growth of Leading Brands of Razors in the US. Publication. Grocery Headquarters, 2011. Web. 17 Mar. 2013. <http://www.statista.com/statistics/194714/share-of-us-razor-sales-in-2010-and-2011-by- brand/>.
  • 3. 3 What are the Competitive Advantages and Key Differentiators for ProGlide Power based on Competitor Analysis? The competitive advantages include: ● Thinner, finer blades (compared to Fusion) that help reduce tug and pull ● MicroComb to guide stubble to blade (available only in ProGlide Power) ● Precision Trimmer (enhanced blade with anti-clogging rinse slots) - available only in ProGlide Power and Manual ● Up to 5 weeks of comfortable shaves with 1 cartridge ● Lubrastrip - largest among Gillette's shaving products, infused with mineral oil and lubricating polymers, enabling the razor to move smoothly over skin. Mineral oil added only to the ProGlide series. Does ProGlide have any sustainable competitive advantages? We believe that ProGlide Power does not have any sustainable advantages as all the aforementioned differentiators can be copied by external competitors. How has Gillette positioned ProGlide to weather any economic downturns? Amazon.com had a $4 off coupon and Safeway provided a Club Price discount of $4. We believe that the coupons are only for introducing the product to the market. ProGlide is a premium priced, high end shaving product and is therefore insulated from the sensitive middle tier customers who are likely to trade down during economic downturns. How has Gillette taken advantage of various Internet technologies to market ProGlide?
  • 4. 4 A Google search for 'Gillette ProGlide' yielded a sponsored link. The website supports HTML5 and is enabled for iPad and iPhone. Several blogs discuss ProGlide and online retailers sell the razor and blades. ProGlide has an active Facebook and Twitter presence. Describe the cultural and social environment of ProGlide's product market. ProGlide is targeted at the GenX and GenY market. It is not targeted at the Baby Boomers. Which geographical markets is ProGlide focused on currently? The packaging explains the value proposition of the product in English, French and Spanish languages. We therefore believe that this product is currently targeted at the USA, Mexican and Canadian markets. Target Market: Gender: male Age range: Gen X and Gen Y Psychographics: Self aware, groomed, busy Socio-economic: Premium brand, urban mid to high income groups Geographic: North America Target market indicators Product details: 5 blades, battery powered, hydration strip which would appeal to a younger demographic.
  • 5. 5 Promotion: The advertisements are geared towards more urban, self-aware men and appeal to the opposite sex which is geared towards Gen Y males Promotion: Introduced the concept of male grooming that goes far beyond a simple shave, more likely to adopted by Gen X, Y males Price: The price is relatively higher than the older brands that Gillette sells. As seen with other (non shave products) Gen Y demographic is more likely to switch to something new even if the satisfaction level from the current product is relatively high. Place: Available at all drug stores, grocery stores etc... Key elements that the manufacturer is trying to communicate ● First 4 blade razor in the market ● Ultra thin blades for increased comfort ● Micro-comb to help guide the stubble to the blade
  • 6. 6 ● Precision trimmer for hard to shave areas like under the nose Competing products Biggest competitor: Schick hydro 5. Price range: razor (comparable), blades (cheaper than Gillette) Target market: comparable Marketing message: Direct comparison to Gillette - Claim that the shave is similar but a lesser price. That Schick is endorsed by the common man and not just athletes (going after Gillette's pro football commercial). Online ads like this one on Esquire.com takes interested consumers to the Gillette “KissandTellUs.com” website. Advertisement Analysis
  • 7. 7 We decided to focus on a few elements of our target market when developing our ad, namely, that the majority of potential Gillette Fusion Power users are younger, technologically savvy, and likely have a good sense of humor. Playing to this sense of humor we felt was an effective way to capture our target customer’s attention. It also follows in a similar vein of other Gillette ads, in that it features a strong, masculine figure as it’s central focus. We decided to make this our focus, as the primary distinguishing factor between the Gillette Fusion Power and other offerings in the Gillette product line was that it is battery powered, giving this product a shave that is even closer and smoother than even other similar, non-electric versions of the razor like the Gillette Fusion Proglide. Additionally, we strove to make our ad a reminder that Gillette has been a name synonymous with innovation and quality in shaving technology since the beginning of the safety- blade razor era. Hearkening back to an earlier time in history with our tag-line, “Not your great- great-great-…great-grandfather’s razor,” this razor appeals both to Generation X and Generation Y males who are looking to distinguish themselves with the most advanced razor and blade combination in the market. As we have mentioned previously, our product lacks a strong sustainable competitive advantage, therefore, ads such as this are vital in maintaining a strong image in the minds of Gen X and Millennials. Report Contributors: Robin Bertelsen Aman Kapoor Gordon Kramer Frankie Wong Rajesh Madhawarayan