Gillette and Bic Case Study
GILETTE (the defender) AND BIC (the agressor) CASE STUDY
26-b talks about the fact that Gillette has based its strategy on developing products that use refill blades on a permanent handle. Gillette works to give its blades and especially its handles, an aura of class and superior performance.
Gillette protects its industry leadership on the back of intensive expenditure in R&D and the careful recording of the experiences that men have using Gillette razors. Armed with its superior knowledge on shavers and shaving, Gillette manages to outgun the competition by constantly leaping forward with novel products, which therefore have superior quality.
Reportedly, the company has developed new captive systems in which blade cartridges only fit a specific razor handle. The company does not bother with the lower end of the market and it raises prices with every technological leap, believing that status seeking men, who take pride in their appearance, will be happy to spend a little more in order to be that little more confident about their appearance.
WHAT IS THE CHALLENGE MOUNTED BY BIC?
Since the success of the disposables launched by Bic in Canada and Europe, Gillette reverted to introducing its first disposable razor-the Good News- as the first disposable razor in America. It used the track II technology and a funny turn of events has meant that sales in this section have far outgrown those of system razor, yet it must be said that profit margins are obviously much lower.
BIC’s marketing strategy is to turn status products into commodities by finding ways to mass produce the product whilst losing little or no functionality. At this point, the idea is that the previously premium product, loses its allure and therefore the justification for the higher price; this is why the company is committed to the notion of disposability (1975 and 1976 respectively). Bich’s strategy is “maximum service, minimum price”. He argues that once the allure so called status
26-b talks about the fact that Gillette has based its strategy on developing products that use refill blades on a permanent handle. Gillette works to give its blades and especially its handles, an aura of class and superior performance.
Gillette protects its industry leadership on the back of intensive expenditure in R&D and the careful recording of the experiences that men have using Gillette razors. Armed with its superior knowledge on shavers and shaving, Gillette manages to outgun the competition by constantly leaping forward with novel products, which therefore have superior quality.
Reportedly, the company has developed new captive systems in which blade cartridges only fit a specific razor handle. The company does not bother with the lower end of the market and it raises prices with every technological leap, believing that status seeking men, who take pride in their appearance, will be happy to spend a little more in order to be that little more confident about their appearance.
WHAT IS THE CHALLENGE MOUNTED BY BIC?
Since the success of the disposables launched by Bic in Canada and Europe, Gillette reverted to introducing its first disposable razor-the Good News- as the first disposable razor in America. It used the track II technology and a funny turn of events has meant that sales in this section have far outgrown those of system razor, yet it must be said that profit margins are obviously much lower.
BIC’s marketing strategy is to turn status products into commodities by finding ways to mass produce the product whilst losing little or no functionality. At this point, the idea is that the previously premium product, loses its allure and therefore the justification for the higher price; this is why the company is committed to the notion of disposability (1975 and 1976 respectively). Bich’s strategy is “maximum service, minimum price”. He argues that once the allure so called status