1110 Gillette Mailer 3/12/04 2:44 PM Page 1

introductions and superior products. Being ‘the first to...’ can bring their reaction, the product can then be refined and developed until
advantages known as ‘first mover advantages’. These include it is as good as it can be.
being able to generate initial consumer interest via both media
Within the original research and analysis, there is also another vital
investment and accompanying press and PR coverage. This then
leads to the main retail stores displaying the products in-store and question which needs to be asked. "Will this proposed new venture
supporting the products with powerful promotional campaigns. generate profits for the company?" Many businesses have come
unstuck by wrongly believing the answer to be "Yes". Usually,
Developing new products For so long as products remain the only one of their kind
available, the 'first mover' can establish loyalty and reputation such businesses either underestimated the investment levels
in its brands before potential competitors get going or catch up. required for research and development, or the cost of setting up
A Brand is thus created. and operating the production process, or both.
There are risks to being the innovator, however. To be successful, Generally speaking, any business must be careful in estimating
the innovation process has to be conducted thoroughly. This usually potential sales; some organisations may get into financial
involves a great deal of research, and in more than one form. difficulties if they are overly optimistic in their planning which
may result in them going bankrupt or being acquired by a better-
03_Researching and developing a new managed rival. Ironically, the rival may not be as creative but are
product better at managing their overall business.
Properly conducted market research will identify the kinds of new,
A successful product will generally attract competition. Patents can
improved products that consumers would switch to if they become
protect products, but it is impossible to prevent other firms coming
available. That involves asking the right questions of the right people,
up with their own interpretation and application of the original
and also placing a proper interpretation on their answers. In the past,
good idea e.g. for self-adhesive labels, shavers, or subsonic
manufacturers produced products and then tried to sell them to
aircraft. In essence, the fact that competitors bring out products to
consumers. Successful organisations find out what the consumer wants
challenge the original idea, is generally good for that category
and then produce this product for them. This is done via Research.
because the market becomes stimulated and total sales can
There are two main approaches to market research. increase. This is why product improvement through innovation in
both concept and design has to be ongoing. This is also why
• Qualitative research. e.g. working with several small focus
Gillette have remained at the forefront of the shaving industry for
groups comprising, for example, people who shave, and
the last century.
discussing with them what they look for in a razor/blades/shaving
system. This generates a core understanding of HOW consumers
use razors and what they think about the
experience.

• Quantitative research. e.g. using a

questionnaire with a large,
representative sample of people; this
data gives a broad view of the
01_Introduction 02_First mover: advantages and risks information, looking more at the
Mr King C. Gillette devised and marketed the first safety razor in The Gillette Company has a long history of being ‘the first to numerical objective data rather than the
1901. In a short space of time, Gillette converted his idea into a highly market...’ in its own areas of operation. Its achievements include more subjective data acquired via
successful, marketable product. Speed to market has been a producing the first successful: qualitative research. For example, how
characteristic of the famous company, which still bears his name • safety razor 1901 many people shave, what do they use to
today. The Gillette Company continues to recognise the importance of
• twin bladed razor 1972 shave, what products do they buy ?
‘being ahead of the field’ in a competitive market in which consumer
• twin bladed disposable razor 1976
requirements are becoming increasingly diverse and demanding. From consumer research the company
• pivoting head razor 1979
Rather like batteries, razors and shavers are a means to an end – • pivoting head disposable razor 1980 moves into technological research and
it’s what they produce that really matters. Looks and style are • razor designed specifically for women - Sensor 1992 development. This involves converting
increasingly important, but to the person looking for the perfect • triple blade razor - Mach 3 1998 a good idea into a product design and
shave it is the razor’s performance that matters most of all. • battery powered razor - M3Power 2004 then discovering whether modern
Market research suggests that most people who shave find it a chore
As well as being first to market, Gillette has also continuously technology is able to reproduce it to the
– many resent the time they devote to it. So they want a product
which not only shortens the time spent shaving but which also does produced products which feature improvements to existing high specifications required and in the
the best job and makes the experience pleasurable and fulfilling. technologies, including 3 bladed disposables and ergonomically quantities needed. Usually a firm will
For a manufacturer, these requirements represent a tough challenge. superior handle developments, including Sensor, Venus Divine and produce prototypes that can be test-
M3Power. marketed on a representative sample of
Meeting this challenge involves Gillette coming up with good ideas
for product improvement and then taking advantage of modern This timeline above also demonstrates how the speed of innovation potential consumers. In the light of
technology to convert them into economically viable products. has accelerated with shorter and shorter gaps between new

• Current and Previous Case Studies • Downloads

• Quizzes • Company Info • Theory
1110 Gillette Mailer 3/12/04 2:44 PM Page 1

introductions and superior products. Being ‘the first to...’ can bring their reaction, the product can then be refined and developed until
advantages known as ‘first mover advantages’. These include it is as good as it can be.
being able to generate initial consumer interest via both media
Within the original research and analysis, there is also another vital
investment and accompanying press and PR coverage. This then
leads to the main retail stores displaying the products in-store and question which needs to be asked. "Will this proposed new venture
supporting the products with powerful promotional campaigns. generate profits for the company?" Many businesses have come
unstuck by wrongly believing the answer to be "Yes". Usually,
Developing new products For so long as products remain the only one of their kind
available, the 'first mover' can establish loyalty and reputation such businesses either underestimated the investment levels
in its brands before potential competitors get going or catch up. required for research and development, or the cost of setting up
A Brand is thus created. and operating the production process, or both.
There are risks to being the innovator, however. To be successful, Generally speaking, any business must be careful in estimating
the innovation process has to be conducted thoroughly. This usually potential sales; some organisations may get into financial
involves a great deal of research, and in more than one form. difficulties if they are overly optimistic in their planning which
may result in them going bankrupt or being acquired by a better-
03_Researching and developing a new managed rival. Ironically, the rival may not be as creative but are
product better at managing their overall business.
Properly conducted market research will identify the kinds of new,
A successful product will generally attract competition. Patents can
improved products that consumers would switch to if they become
protect products, but it is impossible to prevent other firms coming
available. That involves asking the right questions of the right people,
up with their own interpretation and application of the original
and also placing a proper interpretation on their answers. In the past,
good idea e.g. for self-adhesive labels, shavers, or subsonic
manufacturers produced products and then tried to sell them to
aircraft. In essence, the fact that competitors bring out products to
consumers. Successful organisations find out what the consumer wants
challenge the original idea, is generally good for that category
and then produce this product for them. This is done via Research.
because the market becomes stimulated and total sales can
There are two main approaches to market research. increase. This is why product improvement through innovation in
both concept and design has to be ongoing. This is also why
• Qualitative research. e.g. working with several small focus
Gillette have remained at the forefront of the shaving industry for
groups comprising, for example, people who shave, and
the last century.
discussing with them what they look for in a razor/blades/shaving
system. This generates a core understanding of HOW consumers
use razors and what they think about the
experience.

• Quantitative research. e.g. using a

questionnaire with a large,
representative sample of people; this
data gives a broad view of the
01_Introduction 02_First mover: advantages and risks information, looking more at the
Mr King C. Gillette devised and marketed the first safety razor in The Gillette Company has a long history of being ‘the first to numerical objective data rather than the
1901. In a short space of time, Gillette converted his idea into a highly market...’ in its own areas of operation. Its achievements include more subjective data acquired via
successful, marketable product. Speed to market has been a producing the first successful: qualitative research. For example, how
characteristic of the famous company, which still bears his name • safety razor 1901 many people shave, what do they use to
today. The Gillette Company continues to recognise the importance of
• twin bladed razor 1972 shave, what products do they buy ?
‘being ahead of the field’ in a competitive market in which consumer
• twin bladed disposable razor 1976
requirements are becoming increasingly diverse and demanding. From consumer research the company
• pivoting head razor 1979
Rather like batteries, razors and shavers are a means to an end – • pivoting head disposable razor 1980 moves into technological research and
it’s what they produce that really matters. Looks and style are • razor designed specifically for women - Sensor 1992 development. This involves converting
increasingly important, but to the person looking for the perfect • triple blade razor - Mach 3 1998 a good idea into a product design and
shave it is the razor’s performance that matters most of all. • battery powered razor - M3Power 2004 then discovering whether modern
Market research suggests that most people who shave find it a chore
As well as being first to market, Gillette has also continuously technology is able to reproduce it to the
– many resent the time they devote to it. So they want a product
which not only shortens the time spent shaving but which also does produced products which feature improvements to existing high specifications required and in the
the best job and makes the experience pleasurable and fulfilling. technologies, including 3 bladed disposables and ergonomically quantities needed. Usually a firm will
For a manufacturer, these requirements represent a tough challenge. superior handle developments, including Sensor, Venus Divine and produce prototypes that can be test-
M3Power. marketed on a representative sample of
Meeting this challenge involves Gillette coming up with good ideas
for product improvement and then taking advantage of modern This timeline above also demonstrates how the speed of innovation potential consumers. In the light of
technology to convert them into economically viable products. has accelerated with shorter and shorter gaps between new

www.tt100.biz
1110 Gillette Mailer 3/12/04 2:44 PM Page 3

05_Identifying consumers’ needs and convinced that consumer satisfaction with its products leads them
to continue to buy its products when they are ready to trade up to
wants: Gillette
more sophisticated market segments. It is therefore an entry-level
04_Beating the competition and Gillette’s research shows that in 2002, more than 1.7 billion men product in the same way for example, a smaller BMW 3 Series
growing the business over 15 years old remove hair daily, with over 80% using a blade represents the first rung on the BMW ladder.
In order to guide itself and ensure the entire company is aligned in and razor. From this, Gillette has calculated that the world market
its objectives, an organisation often develops a vision statement. A for blades, razors, shaving creams and gels in 2002 was in excess 06_Conclusion
vision statement is intended to convey what the organisation ‘is all of £5 billion a year.
about’. It is important to internal audiences i.e. Gillette’s staff, so Gillette has a long, distinguished history. It remains innovative.
they all know in which direction to pull. It is also important to Gillette's research has also revealed that the primary factors that Its scientists, technicians and product engineers are continually
external audiences such as the retailers who buy from Gillette and consumers look for include: trying out new features and
sell the products to consumers. Gillette’s vision statement reads: production techniques with a
‘To build total brand value by innovating to deliver consumers Gillette’s overall emphasis is on providing premium performance view to improving product
value and customer leadership faster, better and more completely via the best value for money shaving experience, whether this is a performance e.g. how to:
than our competitors.’ system razor for the discerning customer seeking the best in shaving
• get the closest and most
The component words really do matter. technology, or a high quality disposable product for people looking
comfortable shave
for a good quality shave with the convenience of a disposable
‘Delivering value’ to consumers is not necessarily about being the
cheapest, but about earning a reputation for high quality products Many businesses look to expand into related areas that offer • make longer-lasting batteries,
that represent good value for money. That’s true of many opportunities for growth and also an element of protection through which meet the changing
industries, and particularly those in which consumers believe there market diversity. needs of the consumer
is a direct relationship between price and quality. Gillette has four core business areas. • produce increasingly
‘Customer leadership’ involves discovering what customers most
• Personal grooming a range of products using the Gillette brand, effective and best in class
want and then finding ways to fulfil those wants. It also involves
including razors, razor blades, shaving creams. Brands include Through its market research, Gillette has identified two main electric and manual
helping customers to obtain maximum value out of their purchases
Gillette, Gillette Series, Right Guard, Right Guard Extreme, Natrel segments of the male shaving market - Systems and Disposables. toothbrushes
e.g. by providing supporting literature, sound advice and a good
after sales service, including product guarantees. • Portable power the full range of batteries and torches sold Within the systems segment, we can identify two sub segments • design the ultimate user-
‘Faster, better and more completely’ represent key targets. As under the Duracell brand name friendly ear thermometer,
suggested earlier, speed of response to changing market conditions • premium shaving systems, such as Sensor Excel, Mach3, Mach3
• Oral care dental and oral care products e.g. Oral-B manual or the most technically
can be vital to success. Aiming to be ‘faster’ recognises that being Turbo and M3Power
toothbrushes and Braun Oral-B electric toothbrushes advanced shaver.
‘second to ...’ can lead to poor sales and low market share. Being
• Electrical appliances domestic items e.g. dry shavers, hair • standard shaving systems, such as Contour and GII
‘first to ...’ successfully can also generate intense product and The company’s longstanding
brand loyalty from consumers. Leading the way with a firm focus dryers, hair stylers, under the Braun brand name. Personal Within the disposbables segment, we can now identify a further interest in being ‘first to get it
on consumer needs. diagnostic appliances e.g. electronic ear thermometers, under the
two sub segments right’ remains a key element of
ThermoScan brand name. A range of Braun household appliances
Aiming to be ‘better’ recognises that there are no gains from being its continuing prosperity and
including kettles, coffee makers and food processors. • Premium disposables e.g. Sensor 3 Disposables
first with a big breakthrough if the innovative product performs progress.
poorly, fails to meet the claims made for it, earns bad professional • Standard disposables, eg Blue II, Agilite
reviews, disappoints initial purchasers, and is rapidly followed by
a clearly superior product from a rival firm. Consumers’ benefits depend upon which segment they buy into.
‘More completely’ recognises that a razor is just one component of For example, consumers in the premium disposable market may
the much broader market of ‘personal appearance and wellbeing’. be seeking a convenient set of razors to take on holiday, whereas
‘Looking good, feeling good’ is a many-staged process of personal at the top end of the market those consumers buying premium Glossary
grooming, of which shaving is just one aspect. It is no accident that shaving systems are looking for all-round top-quality shaving Benefits Things consumers are looking for when making a
Gillette is heavily involved in the market for deodorants and anti- product choice.
experiences.
perspirants. The company recognised that rising incomes would Innovation Bringing new ideas and products to Consumers.
lead consumers to spend more on a ‘total package’ that enhances Gillette’s advertising focuses on clarifying premium product
Premium Able to command a higher price because of its
personal appearance, personal hygiene and as such developed a benefits. This is because more and more consumers are superior quality.
strategy to expand its position within this expanding market. preferring to move up-market to premium shaving systems.
Segment Part of an overall market comprising a group of
The market for razors is not one uniform market but a market that consumers with common characteristics.
The standard disposable razor is still extremely popular but there
contains different segments, the needs of which have to be met in
carefully targeted, subtly different ways. is a clear trend to system razors, such as M3Power and Venus
Divine. Nevertheless, Gillette has still improved its market share
Gillette recognised that different segments of the market are
seeking different product benefits. So, over the years, it has in this segment because of the quality, value for money, and
sought to develop several product categories ranging from popular reliability of its disposable products. Gillette's philosophy is very For more information about Gillette
Gillette is the market leader in the majority of these areas, and the
disposable razors to elaborate shaving systems. clear in whatever the consumer chooses to shave with, whether a please browse:
company continues to invest in each of these core categories.
In the UK an increasing number of men have switched from
disposable razors to shaving systems which fuels the market
Clearly, Gillette has grown not only by developing its core
business but also by acquiring successful businesses with growth
systems product or disposable, Gillette wishes to give that
consumer the opportunity to shave with the best product possible.
www.gillette.com
demand for handle and replaceable blades. potential in markets related to its core activity. Gillette's Blue II and GII products remain key and the company is
1110 Gillette Mailer 3/12/04 2:44 PM Page 3

05_Identifying consumers’ needs and convinced that consumer satisfaction with its products leads them
to continue to buy its products when they are ready to trade up to
wants: Gillette
more sophisticated market segments. It is therefore an entry-level
04_Beating the competition and Gillette’s research shows that in 2002, more than 1.7 billion men product in the same way for example, a smaller BMW 3 Series
growing the business over 15 years old remove hair daily, with over 80% using a blade represents the first rung on the BMW ladder.
In order to guide itself and ensure the entire company is aligned in and razor. From this, Gillette has calculated that the world market
its objectives, an organisation often develops a vision statement. A for blades, razors, shaving creams and gels in 2002 was in excess 06_Conclusion
vision statement is intended to convey what the organisation ‘is all of £5 billion a year.
about’. It is important to internal audiences i.e. Gillette’s staff, so Gillette has a long, distinguished history. It remains innovative.
they all know in which direction to pull. It is also important to Gillette's research has also revealed that the primary factors that Its scientists, technicians and product engineers are continually
external audiences such as the retailers who buy from Gillette and consumers look for include: trying out new features and
sell the products to consumers. Gillette’s vision statement reads: production techniques with a
‘To build total brand value by innovating to deliver consumers Gillette’s overall emphasis is on providing premium performance view to improving product
value and customer leadership faster, better and more completely via the best value for money shaving experience, whether this is a performance e.g. how to:
than our competitors.’ system razor for the discerning customer seeking the best in shaving
• get the closest and most
The component words really do matter. technology, or a high quality disposable product for people looking
comfortable shave
for a good quality shave with the convenience of a disposable
‘Delivering value’ to consumers is not necessarily about being the
cheapest, but about earning a reputation for high quality products Many businesses look to expand into related areas that offer • make longer-lasting batteries,
that represent good value for money. That’s true of many opportunities for growth and also an element of protection through which meet the changing
industries, and particularly those in which consumers believe there market diversity. needs of the consumer
is a direct relationship between price and quality. Gillette has four core business areas. • produce increasingly
‘Customer leadership’ involves discovering what customers most
• Personal grooming a range of products using the Gillette brand, effective and best in class
want and then finding ways to fulfil those wants. It also involves
including razors, razor blades, shaving creams. Brands include Through its market research, Gillette has identified two main electric and manual
helping customers to obtain maximum value out of their purchases
Gillette, Gillette Series, Right Guard, Right Guard Extreme, Natrel segments of the male shaving market - Systems and Disposables. toothbrushes
e.g. by providing supporting literature, sound advice and a good
after sales service, including product guarantees. • Portable power the full range of batteries and torches sold Within the systems segment, we can identify two sub segments • design the ultimate user-
‘Faster, better and more completely’ represent key targets. As under the Duracell brand name friendly ear thermometer,
suggested earlier, speed of response to changing market conditions • premium shaving systems, such as Sensor Excel, Mach3, Mach3
• Oral care dental and oral care products e.g. Oral-B manual or the most technically
can be vital to success. Aiming to be ‘faster’ recognises that being Turbo and M3Power
toothbrushes and Braun Oral-B electric toothbrushes advanced shaver.
‘second to ...’ can lead to poor sales and low market share. Being
• Electrical appliances domestic items e.g. dry shavers, hair • standard shaving systems, such as Contour and GII
‘first to ...’ successfully can also generate intense product and The company’s longstanding
brand loyalty from consumers. Leading the way with a firm focus dryers, hair stylers, under the Braun brand name. Personal Within the disposbables segment, we can now identify a further interest in being ‘first to get it
on consumer needs. diagnostic appliances e.g. electronic ear thermometers, under the
two sub segments right’ remains a key element of
ThermoScan brand name. A range of Braun household appliances
Aiming to be ‘better’ recognises that there are no gains from being its continuing prosperity and
including kettles, coffee makers and food processors. • Premium disposables e.g. Sensor 3 Disposables
first with a big breakthrough if the innovative product performs progress.
poorly, fails to meet the claims made for it, earns bad professional • Standard disposables, eg Blue II, Agilite
reviews, disappoints initial purchasers, and is rapidly followed by
a clearly superior product from a rival firm. Consumers’ benefits depend upon which segment they buy into.
‘More completely’ recognises that a razor is just one component of For example, consumers in the premium disposable market may
the much broader market of ‘personal appearance and wellbeing’. be seeking a convenient set of razors to take on holiday, whereas
‘Looking good, feeling good’ is a many-staged process of personal at the top end of the market those consumers buying premium Glossary
grooming, of which shaving is just one aspect. It is no accident that shaving systems are looking for all-round top-quality shaving Benefits Things consumers are looking for when making a
Gillette is heavily involved in the market for deodorants and anti- product choice.
experiences.
perspirants. The company recognised that rising incomes would Innovation Bringing new ideas and products to Consumers.
lead consumers to spend more on a ‘total package’ that enhances Gillette’s advertising focuses on clarifying premium product
Premium Able to command a higher price because of its
personal appearance, personal hygiene and as such developed a benefits. This is because more and more consumers are superior quality.
strategy to expand its position within this expanding market. preferring to move up-market to premium shaving systems.
Segment Part of an overall market comprising a group of
The market for razors is not one uniform market but a market that consumers with common characteristics.
The standard disposable razor is still extremely popular but there
contains different segments, the needs of which have to be met in
carefully targeted, subtly different ways. is a clear trend to system razors, such as M3Power and Venus
Divine. Nevertheless, Gillette has still improved its market share
Gillette recognised that different segments of the market are
seeking different product benefits. So, over the years, it has in this segment because of the quality, value for money, and
sought to develop several product categories ranging from popular reliability of its disposable products. Gillette's philosophy is very For more information about Gillette
Gillette is the market leader in the majority of these areas, and the
disposable razors to elaborate shaving systems. clear in whatever the consumer chooses to shave with, whether a please browse:
company continues to invest in each of these core categories.
In the UK an increasing number of men have switched from
disposable razors to shaving systems which fuels the market
Clearly, Gillette has grown not only by developing its core
business but also by acquiring successful businesses with growth
systems product or disposable, Gillette wishes to give that
consumer the opportunity to shave with the best product possible.
www.gillette.com
demand for handle and replaceable blades. potential in markets related to its core activity. Gillette's Blue II and GII products remain key and the company is

www.tt100.biz