Early Battles
Early Battles
In their pursuits of disposability, Gillette and Bic have clashed before on other product fronts. First, in the' 1950s, they fought for market share in the writing pen market. Gillette's Paper Mate products, however, were no match for Bic's massmarket advertising and promotion skills. The two firms met again in the 1970s in the disposable eigarette lighter arena, where they again made commodities of what had once been prestigious and sometimes expen sive items. Ahhough Gillette did better in disposable lighters than it had in pens, Ric's lighter captured the dominant market share.
In the most recent skirmish, however, Gillette's Good News! brand is winning with a 58 per cent market share in the disposable razor market. For Gillette, the victory is bittersweet. Good News! sells for a lot less than any of Gillette's older products. The key to commodity competition is price. To stay competitive with the Bic razor and with other disposables, Gillette has to sell Good News! for much less than the retail price of an Atra or Trac 11 cartridge. As many Trac II and Atra users have concluded; why pay more for
a twinblade refill cartridge from Gillette when the same blade mounted on a plastic handle costs half as much? Good News! not only produces less revenue per blade sold, it also costs more because Gillette has to supply the handle as well as the cartridge. Each time Good News! gains a market share point, Gillette loses millions of dollars in sales and profits from its Atra and Trac II products,
The Psychology of Shaving The battle between Bic and Gillette represents more than a simple contest over what kinds of razor people want to use. It symbolizes a clash over one of the most enduring daily rituals. Before King Gillette invented the safety razor, men found shaving a tedious, difficult, timeconsuming and often bloody task that they endured at most twice a week. Only the rich could afford to have a barber shave them daily.
Gillette patented the safety razor in 1904, but it was not until World War
1 that the product gained wide consumer acceptance. Gillette had the bril liant idea of having the military give a free Gillette razor to every soldier. In this manner, millions of men just entering the shaving age were introduced to the daily, selfshaving habit.
The morning shaving ritual continues to occupy a very special place in most men's lives it affirms their masculinity. The first shave remains a rite of passage into manhood. A survey by New York psychologists reported that, although men complain about the bother of shaving, 97 per ecnt would not
Cast' 6: flic Versus Gillette 271
want to use a cream that would permanently rid them of all facial hair. Gillette once introduced a new razor that eame in versions for heavy, medium and light beards. Almost no one bought the light version because few men wanted to acknowledge publicly their modest beard production. Although shaving may require less skill and involve less danger than tt once did, many men still want the razors they use to reflect their belief that shaving is a serious business. A typical man regards his razor as an impor
tant personal tool, a kind of extension of self, like an expensive pen, ciga rette lighter, attache case or set of golf clubs.
Parts
» Book Principles Of Marketin Pleased
» I'hrce considerations underlying the
» The Information Technology Boom
» • False Wants and Too Much Materialism
» There is good reason to search a 2.4
» Levi's Strategic Marketing and Planning
» Analysing the Current Easiness Portfolio
» Conflict Between Departments
» Marketing Strategies for Competitive Advantage
» Principal actors in the company's
» • Persistence of Cultural Values
» McDonald's; Breaking into the South African Market
» Analysis of International Market Opportunity Deciding Whether or Not to Go Abroad
» Understanding the Global Environment
» Procter & Gamble: Going Global in Cosmetics
» Sheba: The Pet's St Valentines Day Pedro Quclhas Brito, Universidade do Porto, Portugal
» Individual Differences in Innovativcncss
» Influence of Product Characteristics on Rate of Adoption
» Selling Business Jets: The Ultimate Executive Toy
» • Systems Buying and Selling
» • Strong Influences on Government Buyers
» TABI.EI GOVERNMENT CODES OF PRACTICE IN VARIOUS COUNTRIES
» Qantas: Taking Off in Tomorrow's Market
» • Defining the Problem and Research Objectives
» CLOSEDEND QUESTIONS NAME DESCRIPTION
» Estimating Total Market Demand
» Estimating Actual Sales and Market Shares
» TimeSeries Analysis technology.
» Segmenting International Markets
» • Selecting Market, Segments
» 2 VOLUME BRAND SHARES (%) BRAND SHARE CoffeeMate total: 55.5
» 7 CONSUMPTION BY HOUSEHOLD SIZE (PER PERSON/WEEK)
» Preview Case Gastrol: Liquid Engineering
» Determine the Competitors'Positions One way of defining competitors is to look at
» Communicating and Delivering the Chosen Position
» The Need for Customer Retention
» The Ultimate Test: Customer Profitability
» 1 POTENTIAL PRODUCT FIELDS FOR AN EXPANSION OP THE UNCLE BEN'S BRAND
» 2 VARIETIES OF UNCLE BEN'S FEINSCHMECKER SAUCE
» Federal Express: Losing a Packet in Europe
» Close or Distant Competitors
» • Expanding the Total Market
» • The Customer Service Department
» What Governs NewProduct Success?
» Lufthansa: Listening lo Customers
» Managing Productivity CU _ C7 ^ •
» Mattel: Getting it Right is No Child's Play
» Internal Factors Affecting Pricing Decisions
» • BreakEven Analysis and Target Profit Pricing
» 1 CAR OWNERSHIP ACROSS THE EUROPEAN UNION
» Mobile Phones: Even More Mobile Customers
» Stena Sealink versus Le Shuttle, Eurostar and the Rest
» Preview Case British Home Stores
» • Selecting the Message Source
» Setting the Total Promotion Budget
» Factors in Setting the Promotion Mix
» Integrated Marketing Communications
» Setting the Advertising Budget
» • Selecting Advertising Media
» Standardization or Differentiation
» Media Planning, Buying and Costs
» IBM Restructures the Sales Force
» • Other Sales Force Strategy and Structure Issues
» 5 per cent sales elite apart from the rest is 'an astounding 60 per cent [are] just there for the
» Britcraft Jetprop: Whose Sale is it Anyhow? 1
» 1 COMMERCIAL SUCCESS OF THE JETPROP AIRCRAFT, 1992 NUMBER OF CONTINENT
» 1 PANEUROPEAN CONSUMER GROUPS
» Analyzing Customer Service Needs
» Defining the Channel Objectives and Constraints
» Identifying Major Alternatives
» Designing International Distribution Channels
» Evaluating and Controlling Channel Members
» • Building Channel Partnerships
» The Growth of Direct Marketing
» Customer Databases arid Direct Marketing
» DirectResponse Television Marketing
» Online Marketing and Electronic Commerce
» Germany, the UK and other countries in Europe 1997 to SI.64 billion or 7.5 per cent of global
» • Creating an Electronic Storefront
» • Participating in Forums, Newsgroups and IVcb Communities
» • The Promise and Challenges of Online Marketing
» Roberto Alvarez del Blanco and Jeff Rapaport*
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