Pricing strategy gillette razor

Place: Following is the distribution strategy of Gillette: Gillette is a multinational brand and is spread across America, Asia, Europe, Africa and Oceania.

gillette marketing strategy case study

To foster that stream, he sold razors at an artificially low price to create the market for the blades. Companies may thus attempt to maintain their consumable monopoly and maintain their margin by preventing competitors from selling products that match with their durable goods.

Pricing strategy gillette razor

These consumer promotions in turn increases the demand for the product by creating or increasing awareness about the extra benefits the product offers.

The term was coined by Neil H. The 'marketing mix' is probably the most famous phrase in marketing.

Gillette market research

In , Gillette Fusion razors were launched in both power and manual modes. Intellectual property protection and contracts give firms a competitive advantage as competitors are inhibited from mimicking their consumable goods process. As a part of its marketing mix promotional strategy, Gillette has been aggressively advertising through different media. In , the first 3 blade technology razor was launched. In , he received two patent on razor, blade and the combination of two. To foster that stream, he sold razors at an artificially low price to create the market for the blades. Main article: King Camp Gillette The urban legend about Gillette is that he realized that a disposable razor blade would not only be convenient, but also generate a continuous revenue stream. In , Gillette Fusion ProShield was created to provide lubrication before and after the blades. Wide range of deodorants, antiperspirants and body washes are offered by Gillette 4. There is also a shave club, which shares offers, rewards, and opportunities to fit the lifestyles of youth. Keurig is a good example of a company that capitalized on this model by preventing competitors from selling complementary products. In , M3Power was introduced, and it used battery technology for wet shaving. Therefore in the short term, marketers are limited to working with only half their tool kit. Another method entails completely disabling the printer when a non-proprietary ink cartridge is placed into the machine, instead of merely issuing an ignorable message that a non-genuine yet still fully functional cartridge was installed.

Example of a Razor-Razorblade Model The video game industry provides another example of the razor-razorblade model pricing strategy. Game console makers have a track record of selling their devices at cost or at a low-profit-margin by planning to recoup the lost profits on the high-priced games, which consumers buy far more often over a long period of time.

The strategy was: Invest in a base product by selling that product for very low prices or even giving them away for free and then sell the related product at higher prices to cover up the prior investment.

Gillette was the only high end razor product available in the segmented market of the razor blade industry.

Gillette marketing strategy

This in turn helps in boosting the sales of the product. In , Gillette body razor was launched for men. In recent times, video game consoles have often been sold at a loss while software and accessory sales are highly profitable to the console manufacturer. Place: Following is the distribution strategy of Gillette: Gillette is a multinational brand and is spread across America, Asia, Europe, Africa and Oceania. All cakes contain eggs, butter, flour, and sugar. Price: Decide on a pricing strategy - do not let it just happen! A bit of lateral distribution : thinking here might reap rewards for your business. In , he received two patent on razor, blade and the combination of two. Mach 3 for high class segment has differential prices due to its added features like 3 blade technology with high definition edges and lubricant strips both on top and bottom of the blade. Lawsuits to block Activision were unsuccessful. But nowadays marketers feel that double positioning may be more distinctive i. Others will increase the mix to 'Seven Ps', to include physical evidence such as uniforms, facilities, or livery and process i.

Another common example comes from how cable and satellite TV providers contract with content producers. Thus these are some of the pricing strategies followed by Gillette which has helped them gain the maximum market capitalization in the shaving products industry.

gillette strategy
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Gillette Marketing Mix (4Ps) Strategy