Marketing Challenges Faced by Gillette - Essay Example

 Contents Contents 1 Analysis of Innovativeness in Mach3 2 Consumer Behaviour in regards to Mach3 4 Positional Analysis of Mach3 5 Competitors 5 Target Market 6 Product Class 6 Price and Quality 6 References 7 Analysis of Innovativeness in Mach3 Mach3 was launched by Gillette during 1998 as a mode of working on continuous innovation exercises beyond the production of razors like Sensor Excel. As a mark of innovation, Mach3 was launched in the market through the incorporation of additional features that in turn resulted in rendering additional benefits to the consumer sphere. The introduction of Mach3 into the razor market by Gillette can also be regarded as an endeavour to provide an effective breakthrough in order to create a new product in regards to the new generation of adult male consumers. Innovation is rendered to the Mach3 product based on certain features like incorporation of three blades where other razors work on two blades. Moreover the engineers in the company went on incorporating further elements of innovation to the Mach3 razor through enhancing the quality dimension of the blades used. It is found that the innovation team at Gillette enhanced the quality of the blades in making them stronger by around three times in regards to stainless steel. Again the alignment of the three blades in the Mach3 razor was done in a fashion as to help the consumers in suffering less of irritation. These quality factors incorporated in the Mach3 razors helped Gillette in gaining enhanced penetration in the new generation male consumer sphere. Amount of irritability in regards to the use of razors was considerably reduced through the incorporation of a separate coating known as ‘Diamond-like Carbon’ coat. This type of coating helped in enhancing the innovative nature of producing blades that would be thinner in nature and yet too stronger. Moreover the key element of innovation studied in regards to Mach3 razors also reflects testifying the product in regards to a target market based on consumers pertaining to different social and national backgrounds. These people were asked to use both Mach3 and SensorExcel and thereby rate the two types based on certain parameters. Mach3 owing to its innovative capability ranked more to its predecessor SensorExcel thereby reflecting a truly different replacement (Bennett, 2010, p.301). Gillette is found to counter a number of marketing challenges both in regards to its advertising and promotional campaign and also in regards to its pricing efforts in relation to the launching of Mach3 in the international market. The advertising campaign taken by the company to launch Mach3 in the international market had to work on a global tone where potential investment of around $200 million was rendered. Larger part of the investment was made in regards to the creation of an effective web page for the product that would help in educating the global consumers about the intricacies and benefits involved in using such an innovative razor. Gillette in addition to working on to enhance the virtual sphere for marketing the razor worldwide also started potentially investing in large scale media activities to gain an effective entry into the world markets. Further the company focusing on different cultural and social bases of consumers residing around the world had to design its marketing and branding image and activities which led to enhanced printing cost. The advertisements containing product information had to be rendered in different languages to capture the consumer mindset (Belch and Belch, 2003, p.669). The second important challenge faced by Gillette in regards to countering its marketing and promotional campaign for its Mach3 products is to work on the price model. It was found that the pricing model incorporated by Gillette in regards to its Mach3 products was around 35 percent higher than the previous model brought out by the company. Gillette rendered such a high price structure for Mach3 in order to counter the huge amount of investments made to commercialise the product in the international market. Estimates reflect that the company had to expend around $750 million in regards to its commercial and patenting activities related to the launching of the new product while around $300 million in relation to marketing and promotional ventures along a worldwide base. Thus in the initial period pertaining to 1998 the company faced potential obstructions from the target market that did not face the urge to go for such high priced models. Henceforth the company again had to work on designing a test model appealing consumers to have a feel for the product. All such activities cost the company a total investment of more than $1 billion to finally gain a solid market acceptance by the close of 2000 (Cravens and Piercy, 2010, p.319-320). Consumer Behaviour in regards to Mach3 Gillette through rendering large amount of investments in regards to both its online and physical promotion and advertising activities helped in creating large amount of consumer awareness in regards to Mach3 razor product. The consumers in the different target markets were relatively made aware by the company through its advertising and promotional ventures about the salient advantages and benefits that they would obtain by dearth of using the innovative razor. Consumers mainly in the developed markets are held to go for the procurement of such razor products owing to its increased efficacy of helping the people get an irritation free shaving activity and also enhanced smoothness in relation to the existing razor products in use. The tendency of consumers to avail the parameters of comfort, luxury and style would thus encourage the people to shift to a more innovative product than using the present ones. Moreover the consumers in the developed markets also desire to go for products that have an enhanced brand image owing to their features and quality of product and service offerings. Herein also the consumers tended to go for the Mach3 products owing to technological advancements rendered in the razors using three blades instead of two. These blades were made highly strong and effective to help the people get the extra piece of comfort for which they were rendering equivalent amounts. Even the use of Mach3 razors helped the male consumers to get a ready shaving advantage by making their faces wet rather than need to depend on application of creams before shaving. In addition to the dimension of comfort, ease and flexibility in regards to the use of Mach3 razors the consumers would also be able to gain on the paradigm of safety in that the developed razor base would help the people suffer from less bruises, cuts and irritability on the skin. Owing to the above advantages the consumers would rightly go for procurement and use of Mach3 razors in regards to the previous razors (Schiffman and Kanuk, 2007, p.528). Positional Analysis of Mach3 The positional analysis of Mach3 would be based in regards to the following parameters. Competitors Mach3 is found to render continuous innovation in its product line through the introduction of razor models built on microchips, and also running through the use of batteries incorporating a trimmer. The innovated model also works on five blades which are built in comparison to four bladed battery run razor models of Wilkinson’s brand Schick (Hooley, Piercy and Nicoulaud, 2008, p.391). Target Market In regards to the target market composed of affluent individuals that generally try on razors of branded companies and also those pertaining to new generation akin to use disposable razors the position of Mach3 would stand high owing to the parameters of innovation and design. Product Class Mach3 in regards to the element of spontaneous innovation rendered unto it creates a differentiated image in every new segment introduced. Thus here also the product stands high in the positional matrix. Price and Quality Mach3 in the light of the consumer sphere using it tends to work on a premium price in comparison to Gillette’s other razor models and also in regards to competitor’s products. However working on a three to five blade system incorporating highly innovative and technical elements the product tends to render significant quality in regards to shaving operations. References Belch, G. E., and Belch, M. A., 2003. Advertising and Promotion, 6/E. New York: Tata McGraw-Hill Education. Bennett, A. G., 2010. The Big Book of Marketing. New York: Tata McGraw-Hill Education. Cravens, D.W., and Piercy, N.F., 2010. Strategic Marketing 8E. New York: Tata McGraw-Hill Education. Hooley, G., Piercy, N.F., and Nicoulaud, B., 2008. Marketing Strategy and Competitive Positioning. New Delhi: Pearson Education India. Schiffman, L. G., and Kanuk, L.L., 2007. Consumer Behaviour. New Delhi: Pearson Education India. Read More