Product Analysis on Gillettes’s Razors

Gillette is leading worldwide home applicants, such(prenominal) as shave, battery, electronic and manual toothbrush, manufacturing confederacy. On April 14, 1998, the association introduced the worlds first triple blades razor and begun to carry on July 1, 1998 in the United States and September in the Western Europe. Since Gillette launched new razor in 1998, the political party expected advanced returns in short-term however, the result of the new product has been defined yet.The atomic number 18as of the internal factors ar Finance, Management, Manufacturing, Market position, Personnel, and Research & Development. All these factors can be defined as either strengths or flunk or both. First of all, the political party as a whole gained net sales amount of 10. 1 billion dollars and net income of 1. 4 billion dollars for the 1997 due to acquire leading battery fraternity Duracel in 1996 and grow of Sensor Excel razor. As a result, company could spend 1 billion dollars to throw Mach 3 which is triple blades razor.Even though Gillette had sufficient fund to invent the new product, the company took last risk of financial side that if the new products sale does non endeavor to companys expectation, the company leave alone face shortage of capital resources and can be lead to bankruptcy. only when if Mach3 turn out to be a New Coke or McDonalds Arch deluxe much-hyped new products that were mostly duds and fizzle- the gloom pass on be heavy from Gillettes corporate home in Bostons Back Bay to the South Boston factory that Gillette has overhauled to produce 600 genius million million Mach3 blade cartridges per year, or about half of Gillettes annual 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 Bostons factory. Gillette already spent 300 million dollars for advertising and progression worldwide for the year that company intr oduced new product. The amount is twice as much as the company put for advertising Sensor Excel in 1989. Gillette released the new product to retail throw ins on July 1, 1998, and starts to publicize on TV and the separate media six weeks later however, many mickle went to the companys web site to enumerate at the new product.Even though company spent tremendous amount of fund for the advertising, several(prenominal) people from Asia did not recognize the product correspond to our groups survey. For customers, there are satisfaction and complaints for Mach3. People, who satisfied with Mach3 according to our survey, said there are less irritation and faster shaving time. Customers who complaint about Mach3 plead that they do not want to spend more money on better outlook. According to our survey, one hundred percent of surveyees, who does not satisfy with Mach3, say the price is too steep for the product.Price is comparatively higher than some other products including Senso r Excel which was the most expensive one before Mach3 came out. Its price is 6. 99 dollars per razor with one blade included currently, the company is selling for 7. 29 dollars per Mach3. It is 4 percents increased from pilot program price, and 40 percents higher price than other products. This may lead to decrease in sales and the companys total revenue. The company is trying to reach customers several different ways. Gillette offers Mach3 package product, which included Mach3 itself and touch of extra razors, Shaving cream and deodorant.This package product makes each items unit price trim down 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 reach and get exact the customers. The company give chance to people to win prize without any obligation however, people will recognize the product automatically. Also, Gillette can acquire the Since Gillette is well- agnizen global comp any, many retail 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 unpredictable for increasing stores sales revenue because price is too high so that consumers would not secure. External factors are Competitive, Economic, and Social. Gillettes major rival in the market is Shick. Since Gillette is the first company produce triple blades razor, the company will lead the market however, rival company such as Shick will develop the alike product with higher quality or lower price.Then the result will be unlooked-for unless Gillette improve Mach3s weakness high price. For long time in the United States, peoples income has been growing. As a result, customers purchasing power also increased. However, the companys market is not only the United States barely also overseas, in fact, over sixty percents of sales are make fr om overseas. Consequently, the company has to consider the facts that poor countries consumers are willing to use cheaper product especially the countries in stinting crisis.There are 3 target groups in the market. The first group is disposal razor users that its around 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 second group is regular razor such as Mach3 about 40 percents. The stand up group is electronic squirt users which it takes remaining market share. The customers who use the electronic shaver satisfied with high technology, easy to use, saving time and safety compare to the other two products.The disadvantages of this product are high price and less cleanness when one shaves. The goal of Gillette is trying to acquire customers who use disposal and electronic shaver to Mach3. In order to persuade the customers to change to Mach3, the company should beat ot her 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 feel differentiated from other products.Second of all, men are challengers, always pursue new trend especially on the indubitable items with high technology. Although Mach3 has several strengths, it also has weaknesses. High price makes people think twice to purchase Mach3 the senior generation of the Gillette razor is cheaper than Mach3, that makes people wonder if it is necessary to spend more money on the Mach3. The keystone purpose for Mach3 is to shave beard, but the older generation is also doing comparable job as Mach3 that makes no different between 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 thirty people 22 out of 30 surveyees know the home run from T elevision and magazine, but they have never uses it. This means the advertisement has preached the good news, but it has not reach peoples life. The majority of men do not know why they should spend more money to buy same result. The marketing dodging did not fail the sale of the Mach3, it is price controller. The main point of the marketing 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 mistake 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 match the same price as older generation. Let public buys Mach3 as the same price as older generation, allow public to try out differences between Mach3 and older generation. aft(prenominal) when market demand of the Mach3 is higher than older generation, then increases its price.