Gillette- Product Innovation
Question 1 : Evaluate product innovation at Gillette throughout its history.
Gillette has invented the first safety razor with disposable blades in year 1901 which is one of the new-to-the-world products. This safety razor serves as a basic product, for the market segment of men who shave regularly, providing them high quality shaving experience. The safety razor differentiates itself from the razor used at that period of time-- the straight razor with an open blade, with its cover over the two edged blades, make it easier to handle and prevent cuts while shaving. This safety razor can be evaluated as a successful product, with its outstanding market performance of 50%-70% over the next 7 decades, and achieving $6.80 profit per share.
However, due to the lack of focus on product development, Gillette lost its market edge to Wilkinson Sword-Schick’s Stainless-steel blade, a new entry to the shaving market with a significant reduce in market share to 49% in 1962. However, Gillette didn’t realize the importance of product innovation and it took them 12 years to introduce the world with another product, the Trac II razor , a safety razor with two blades whereby the second blade cut the number of strokes required & reduced facial irritation. Trac II is an improvement and revision of Gillette’s disposable safety razor. However, although being capable to continue its dominance in the razor segment, Gillette is unable to regain its past glory of high profit per share performance, and remained at the range from $1.33 to $2.83 in 1974.
Later in year 1976, Gillette continued to innovate and introduced other products with improved performance, such as the Atra razors with a pivoting head which enable men to shave their neck. Other new products which continue to lengthen Gillette’s product line are the Good News! disposable double-blade razor, which is more convenient for men to use and Daisy razor, which serves the segment of women who shave regularly. These new product
Gillette has invented the first safety razor with disposable blades in year 1901 which is one of the new-to-the-world products. This safety razor serves as a basic product, for the market segment of men who shave regularly, providing them high quality shaving experience. The safety razor differentiates itself from the razor used at that period of time-- the straight razor with an open blade, with its cover over the two edged blades, make it easier to handle and prevent cuts while shaving. This safety razor can be evaluated as a successful product, with its outstanding market performance of 50%-70% over the next 7 decades, and achieving $6.80 profit per share.
However, due to the lack of focus on product development, Gillette lost its market edge to Wilkinson Sword-Schick’s Stainless-steel blade, a new entry to the shaving market with a significant reduce in market share to 49% in 1962. However, Gillette didn’t realize the importance of product innovation and it took them 12 years to introduce the world with another product, the Trac II razor , a safety razor with two blades whereby the second blade cut the number of strokes required & reduced facial irritation. Trac II is an improvement and revision of Gillette’s disposable safety razor. However, although being capable to continue its dominance in the razor segment, Gillette is unable to regain its past glory of high profit per share performance, and remained at the range from $1.33 to $2.83 in 1974.
Later in year 1976, Gillette continued to innovate and introduced other products with improved performance, such as the Atra razors with a pivoting head which enable men to shave their neck. Other new products which continue to lengthen Gillette’s product line are the Good News! disposable double-blade razor, which is more convenient for men to use and Daisy razor, which serves the segment of women who shave regularly. These new product