Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the ‘‘latest and greatest’’ in shaving technology. Gillette relied on extensive research and development to create a single product for global distribution. The product was supported by a marketing premise that it would be equally valuable to customers globally.

1. Running Head: MARKETING RESEARCH-GILLETTE
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GILLETTE Mach-3
Marketing Research
By Irfan Iftekhar

2. Gillette 2
Introduction
Gillette was founded by King Gillette in 1901, and its headquarter is in Boston, Mass, U.S.A. It
has long been known for innovation in both product development and marketing strategy. In the
highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide
market share. Gillette is the world leader in male grooming products, alkaline batteries and oral
care appliances like tooth brush. Gillette was acquired by Proctor & Gamble (P&G) with $57
billion in stock, its combined market capitalization is of more than 184 billion.
The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor.
Today, innovation in razors and blades is thwarted by a lack of new technology and increasing
consumer reluctance to pay for the ‘‘latest and greatest’’ in shaving technology. Gillette relied on
extensive research and development to create a single product for global distribution. The
product was supported by a marketing premise that it would be equally valuable to customers
globally.
Mach 3-the product
Mach is defined as the ratio of the speed of an object to the speed of sound in the surrounding
medium. Gillette Mach 3 has been particularly produced for close shave and for higher income
consumers. Income segmentation has been the main factor when Gillette decided to segment the
market. Mach 3 has also been successful in those countries where the major segment of the
population considers shaving to be a desirable activity and the means to look clean and
sophisticated for example India and America. Thus, this type of international segmentation has
also benefited Mach 3. Another interesting to note is that, Gillette after seeing the success of the
Mach 3, decided to offer a similar product for women. Thus, Venus Power came into existence.

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So, Gillette also gender segmentation. Gillette Mach 3 market segment has proved to be
extremely attractive and profitable for the company. The segment size is increasing at a rapid
pace globally. Furthermore, the segment is made more attractive because of the fact that there are
no strong and popular competitors of Mach 3 . This has provided Mach 3 with a lot of market
power.
Due to clever marketing by Gillette (and not the actual cost of producing the blades), the Mach3
is more expensive than many other razors, as consumers are willing to pay more for it. The
recent release of the Gillette Fusion with 5 blades is more expensive still, continuing the Razor
and blades business model, or a "loss leader" model, pioneered by Gillette in the early 20th
century. Since the increased price of the newer cartridges creates slower consumer adoption of
each new model, Gillette has heavily discounted the newer models through newspaper and in-
store coupons and in many cases mailed free copies to individuals on purchased mailing lists.
While this practice has accelerated adoption of both, Gillette still has a strong customer base
using their two-bladed razors as evidenced by their wide availability and high sales volume. The
blades used by Mach3 only cost a few cents to produce, but can sell for over $2 each. This shows
that profit margins on Gillette razor blades are typically over 4500%.
Segmentation, targeting and positioning
Market Segmentation
Gillette Mach 3 has been particularly produced for higher income consumers. Thus, we see that
income segmentation has been the main factor when Gillette decided to segment the market.
Mach 3 has also been successful in those countries where the major segment of the population
considers shaving to be a desirable activity and the means to look clean and sophisticated for
example India and America. Thus, this type of international segmentation has also benefited

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Mach 3. Another interesting to note is that, Gillette after seeing the success of the Mach 3,
decided to offer a similar product for women. Thus, Venus Power came into existence. So,
Gillette also gender segmentation.
Target Marketing
Gillette Mach 3 market segment has proved to be extremely attractive and profitable for the
company. The segment size is increasing at a rapid pace in India and America. Furthermore, the
segment is made more attractive because of the fact that there are no strong and popular
competitors of Mach 3. This has provided Mach 3 with a lot of market power.
Selecting Target Segments
Mach 3 marketing strategy was differentiated marketing from the beginning. Gillette wanted to
differentiate it from other shaving products and to target several market segments. Some
segments purchased Mach 3 because of the income factor. Some did because of their preferences
and particular lifestyles. Gillette converted Mach 3 into Venus Power just in order to cater to the
segment of women users. So, Gillette designed separate offers for different market segments.
Positioning
Mach 3 position in the market place is extremely strong and secure. Consumers definitely
consider it a superior shaving product compared to other products. One can definitely say that it
occupies a unique position in the minds of those consumers who want to have an extremely close
and smooth shave.
As far as luxury and performance are concerned, Mach 3 is more inclined towards performance
due to its three blades and other product features. These product features have provided Mach 3
with a strong competitive advantage. The value proposition of Mach 3 is definitely “more for
more”. Extra product features have prompted Gillette to charge a higher price.

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SWOT Analysis
Strengths
Market Leader
Fortified Brand Image
International Presence
Competitive price
Integrated marketing
Branded stores in emerging markets
Successful and strategic promotions, In U.S the Celebrity promoters – David Beckham
Very competitively priced hence maintains market share.
To customers, this brand provide direction and reassurance
Weaknesses
Deterioting income levels making the power of purchase weaker
Recent trend of job cuts
Not evenly priced in most parts of Asia due to volatile dollar rates
Gillette only sells premium razors while competitors hit high and low-tier segments
Market share at already 70 percent, it is very difficult to exceed market share anymore, hence
little room for growth
Profitability comes mainly from Mach3
Gillette’s current pricing disqualifies Mach3 from variety of other channels of distribution
Opportunities
Quality & Innovation

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No.1 in quality, more innovative products always expected
Highly diversified geographically with strong position in most countries
High capacity manufacturing
Realigned manufacturing processes to reduce costs
Threats
Mediocre position in rapidly growing markets like Bangladesh, India etc.
Rapid increase in the price of raw materials
Uncertainty in oil prices
Political instability in various emerging market
Currency fluctuations
Patents protect brands, greater sunk costs for protecting brands and spend on legal battles
Competitors
Gillette’s three main competitors are Wilkinson Sword, Feather, and Bic razors. Using a series of
Hall’s Primary Message Systems and Hofstede’s Dimensions. When it comes to men’s shaving
products, there are four competitors: Wilkinson Sword and Feather razors, as well as Bic and
Philips-Nivea razors. Considering all four companies, Bic, Wilkinson Sword, and Feather are the
main competition for Gillette in the disposable-heads razors category. Bic originated in France in
1945 and has the competitive advantage of being the first company to introduce disposable
razors in 1975. In addition. According to Bic, they sell over ten million shavers every day, and
are a world market leader for razors. The company specializes in disposable razors and offers
many different types to meet diverse consumer needs such as single-blade , twin-blade, and
triple-blade razors. Furthermore, Wilkinson Sword has the competitive advantage of being a

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European company that originated in England in 1772. Its headquarters are currently. One of the
company’s main strengths is that its razors are very sharp and keep their edge
for an unbelievable long time.
Xtreme 3. This razor is designed with a dual comfort system that has lubrication strips lined with
aloe-vera and jojoba oils for an ultra-smooth shave. In addition, the Xtreme 3 has flexible blades
for a close shave on the various contours of one’s face. Wilkinson Sword also offers women’s
razors, gels, foams, soaps, and brushes. On the other hand, Feather is a Japanese company with a
competitive advantage of extreme innovation The company has been around for 70 years and has
produced razor blades, surgical precision blades, gardening tools, etc. Feather's shaving system is
a Japanese product at its best: precision, quality and thoughtful details.37 Its products are a real
alternative to the shaving systems used today. The most recent innovative razor they have is the
Feather MR3 Neo, but they also have women's razors and single blade disposable razors as well.
Gillette’s Recent Marketing Strategies
Rather than continue the razor wars by producing a six- or seven-blade razor, Gillette focused on
releasing complementary products, enhancing its existing product lines and expanding its
intensely successful marketing strategy. To complement its already successful razor and blades
division, Gillette sought to expand its product portfolio inside the shower doors to create the full
‘‘shower experience.’’ For example, the launch of Gillette Hair Care and Body Wash for men, as
well as its Clinical Strength deodorant, represented the most significant Gillette brand extensions
outside of the razor and blades division, and aimed to reinforce the brand’s standing as the
world’s leading male-grooming authority. Because Gillette is in the maturity stage of its product
life cycle, focusing on these complementary products allows the company to increase its share of
customer which was made possible by Proctor & Gamble. In addition to complementary

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products, Gillette’s primary focus has been on the extension of its core business and the
marketing programs that support it. Going beyond simple brand advertising, many of the
initiatives and activities introduced by Gillette created a synergy between product development
and marketing strategy.
Consumer reach
When consumers like a product or service, and in our case Gillette Mach3, it can be said the
brand resonates. The ways through which an individual gathers, processes, and interprets
information from the environment, is perception (Jaju el al., 2006; Machado et al., 2012).
Consumer perception has two views. the Sensory perception and the Gestalt theory of perception
The Sensory perception is governed by the five human senses: sight, smell, sound, touch, and
taste. While the Gestalt perception theory is based on the principle that 'the whole adds up to
more than the sum of its parts'. People perceive “form” above all else. In the case of Gillette
Mach3, it is the consumers' sensory perception which plays its role in making this product, ‘the
product of choice' (McDonald et al., 2001), because a perceptual outcome generated from
processing Gillette Mach3 quality, durability, ease of use, versatility and prestige. It is this
perception by the five human senses that leads to consumers':
Learning
Cognitive Theory of learning states:
Emphasis is on thinking rather than the doing aspects of learning.
It has four stages:
Formulation of hypotheses (specific testable assumptions) about products or brands
Exposure to evidence (passive or active)
Encoding of the evidence

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Integration of earlier hypotheses with new information into beliefs.
The relationship between marketers and consumers often resembles a negotiation
Several behavior modification principles (BMPs) are used by marketers to induce consumers to
buy their products and services. Pavlov and his salivating dogs: a conditioned stimulus (the
ringing bell before each feeding) results in a conditioned response (salivation)
Marketing applications
Higher order conditioning and celebrity advertising
Strength of the unconditioned stimulus
Number of pairings
Forward versus backward versus simultaneous conditioning
New versus existing products.
Generalization – the tendency to respond in similar ways to similar stimuli.
Discrimination – the process through which consumers restrict their range of responses and
attach themselves to a particular brand.
Modeling – the process through which an individual learns a behavior by observing the behavior
of others and the consequences of this behavior.
Memory
Two sources of product information:
External environment: packaging, labels, POS displays, prices, other marketing information
Memory: past experiences, word-of-mouth, family preferences
Associative network of nodes (concepts) and links (connections)
Scripts: information organized in memory around different types of events or episodes (e.g., a
restaurant script).

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Retention
It refers to the amount of material previously learned that is remembered
Forgetting – the loss in retention of material previously learned
Retention affected by:
Incoming information
The person receiving the information
Cognitive Theory and Marketing
This theory states: Strategies for market leaders (top dogs)
Reinforcement
Blocking
Explaining
Strategies for market underdogs
Disruption
Facilitating trial
Familiarity, ambiguity, motivation
Motivation, which gives birth to an attitude
Product value, which leads to decision making
Perception
It is created when all five senses act in unison due to some motivation. Gillette has left no corner
abandoned when it comes to promotion and advertising. Mach3 has been well equipped with
strong and sustained advertisement all throughout.
Gillette brand has high recognition

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Strong influence, recall and salience
Successful MACH3 advertising campaigns
Focus on brand values, innovation
AIM- to educate consumer on product advancements
No hypothesis can claim to be as powerful as the five human senses which lead to all decision
making process. Every aspect of consumer behavior and attitude is dependent on his five senses.
Above all the value proposition for Mach3 is very compelling, and it took two years for the
company to create this. Asking the consumer to try a new product and offering a "reason to
believe" has been a melody for Gillette, well-orchestrated.
Promotion
Gillette product promotions usually consist of a number of strategies. First, Gillette promotes
experimentation and trial. Therefore, for the first six months, Gillette was seen giving away
Fusion Power Razors, free of charge after consumers register their information on the Gillette
website. This approach gives the consumer the shaft of the razor and one free razor head. Then,
the consumer has the option of purchasing future replacement heads as needed. In order to
facilitate this promotion, Gillette promoted its Fusion Power on the Internet. One of Gillette’s
main online advertisers that targets a similar market is Facebook.com. This website employs
Gillette Fusion Power banner ads that illustrate the details of the promotion. The Banner ads
contain a link to the Gillette website where the consumer can order a free razor after registration.
Recommendations
Earlier Gillette used a character, now also it would be more fitting as it could be designed in
alignment with the brand’s personality which is transferable through future growth of this brand.
The use of a character would have been a contributing factor in the brand's success

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Gillette URL has not been put to use. Only the bloggers share their views, which is not enough,
the URL should be made interactive and should be promoted
Gillette Mach 3 is a high end user product, with incomes either stagnant or going down even in
the white collar jobs, with Barclays announcing the cutting of 20,000 of its work force by 2016 it
would be better to reduce prices, this is a shaving razor not an Rolls Royce.
References
Jaju, A., Joiner, C., & Reddy, S. K. (2006). Consumer evaluations of corporate brand
redeployments. Journal of the Academy of Marketing Science, 34(2), 206-215

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McDonald, M. H. B., Chernatony, L., & Harris, F. (2001). Corporate marketing and service
brands: Moving beyond the fast-moving consumer goods model. European Journal of
Marketing, 35(3/4), 335-352.
Machado, J. C., Lencastre, P., Carvalho, L. V., & Costa, P. (2012). Rebranding mergers: How
attitudes influence consumer choices? Journal of Brand Management, 19(6), 513-524.