Gillette
Gillette
Gillette
Gillette
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Gillette
products
Markets Worldwide
Website www.gillette.com
Contents
History
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The key figures of the Gillette Safety Razor Company's first years, from left to right: King Camp Gillette, William
Emery Nickerson, and John Joyce
The Gillette company and brand originate from the late 19th century, when salesman
and inventor King Camp Gillette came up with the idea of a safety razor that used
disposable blades. Safety razors at the time were essentially short pieces of a straight
razor clamped to a holder. The blade had to be stropped before each shave and after a
time needed to be honed by a cutler.[7] Gillette's invention was inspired by his mentor
at Crown Cork & Seal Company, William Painter, who had invented the Crown cork.
Gillette
Painter encouraged Gillette to come up with something that, like the Crown cork, could
be thrown away once used.[8][9]
While Gillette came up with the idea in 1895, developing the concept into a working
model and drawings that could be submitted to the Patent Office took six years. Gillette
had trouble finding anyone capable of developing a method to manufacture blades from
thin sheet steel, but finally found William Emery Nickerson, an MIT graduate with a
degree in chemistry. Gillette and other members of the project founded The American
Safety Razor Company on September 28, 1901. The company had issues getting
funding until Gillette's old friend John Joyce invested the necessary amount for the
company to begin manufacturing.[10][8][9] Production began slowly in 1903, but the following
year Nickerson succeeded in building a new blade grinding machine that had
bottlenecked production. During its first year of operation, the company had sold 51
razors and 168 blades, but the second year saw sales rise to 90,884 razors and
123,648 blades. The company was renamed to the Gillette Safety Razor Company in
1904 and it quickly began to expand outside the United States. In 1905 the company
opened a sales office in London and a blade manufacturing plant in Paris, and by 1906
Gillette had a blade plant in Canada, a sales operation in Mexico, and a European
distribution network that sold in many nations, including Russia. [8][11]
First World War and the 1920s
Due to its premium pricing strategy, the Gillette Safety Razor Company's razor and
blade unit sales grew at a modest pace from 1908 to 1916. Disposable razor blades still
weren't a true mass market product, and barbershops and self-shaving with a straight
razor were still popular methods of grooming. Among the general U.S. population, a
two-day stubble was not uncommon. This changed once the United States declared war
on the Central Powers in 1917; military regulations required every soldier provide their
own shaving kit, and Gillette's compact kit with disposable blades outsold competitors
whose razors required stropping. Gillette marketed their razor by designing a military-
only case decorated with U.S. Army and Navy insignia and in 1917 the company sold
1.1 million razors.[12]
The Khaki Set, the safety razor set produced by Gillette for the U.S. Army during the First World War [13]
In 1918, the U.S. military began issuing Gillette shaving kits to every U.S. serviceman.
Gillette's sales rose to 3.5 million razors and 32 million blades. As a consequence,
millions of servicemen got accustomed to daily shaving using Gillette's razor. After the
war, Gillette utilised this in their domestic marketing and used advertising to reinforce
the habit acquired during the war. [12]
Gillette's original razor patent was due to expire in November 1921 and to stay ahead of
upcoming competition, the company introduced the New Improved Gillette Safety Razor
in spring 1921 and switched to the razor and blades pricing structure the company is
known for today. While the New Improved razor was sold for $5 (equivalent to $72 in
2019) – the selling price of the previous razor – the original razor was renamed to the
Old Type and sold in inexpensive packaging as "Brownies" for $1 (equivalent to $14 in
2019). While some Old Type models were still sold in various kinds of packaging for an
average price of $3.50, the Brownie razors made a Gillette much more affordable for the
Gillette
average person and expanded the company's blade market significantly. From 1917 to
1925, Gillette's unit sales increased tenfold. The company also expanded its overseas
operations right after the war by opening a manufacturing plant in Slough, near London,
to build New Improved razors, and setting up dozens of offices and subsidiaries in
Europe and other parts of the world.[14]
Gillette experienced a setback at the end of the 1920s as its competitor AutoStrop sued
for patent infringement. The case was settled out of court with Gillette agreeing to buy
out AutoStrop for 310,000 non-voting shares. However, before the deal went through, it
was revealed in an audit that Gillette had been overstating its sales and profits by $12
million over a five-year period and giving bonuses to its executives based on these
numbers. AutoStrop still agreed to the buyout but instead demanded a large amount
of preferred stock with voting rights. The merger was announced on October 16, 1930,
and gave AutoStrop's owner Henry Gaisman controlling interest in Gillette.[15]
1930s and the Second World War
In 1947 Gillette introduced the Gillette Super Speed razor and along with it the Speed-
pak blade dispenser the company had developed during the war. The dispenser allowed
the blade to be slid out of the dispenser into the razor without danger of touching the
sharp edge. It also had a compartment for holding used blades. [24][25]
In 1948 Gillette bought the home permanent kit manufacturer The Toni Company[26] and
later expanded into other feminine products such as shampoos and hair sprays. In 1955
the company bought the ballpoint pen manufacturer Paper Mate.[24][27] In 1960 Gillette
brought into market the Right Guard aerosol deodorant and bought the disposable
hospital supplies manufacturer Sterilon Corporation in 1962. [28]
Television advertising played a big part in Gillette's post-war growth in the United
States. The company began TV advertising in 1944 and in 1950 it spent $6 million to
acquire exclusive sponsorship rights to the World Series for six years. By the mid-
1950s, 85 percent of Gillette's advertising budget was used for television advertising.
Gillette
The company also advertised the Toni product line by sponsoring the TV show Arthur
Godfrey and His Friends and the 1958 Miss America contest and its winner.[29][30]
Although Gillette's immediate priority after the war was satisfying U.S. demand and later
diversifying its domestic business, the company pursued expansion in foreign markets
that showed potential for growth, such as Latin America and Asia. However, the Cold
War restricted Gillette's operations in many parts of the world and closed entire markets
the company would've otherwise entered in Russia, China, Eastern Europe, Near East,
Cuba, and parts of Asia. More and more countries demanded local ownership for
foreign enterprise in exchange for continued operation or entry into their markets.
Outside the U.S. and European markets, Gillette spent time and money building
manufacturing facilities and distribution networks in anticipation that the markets would
eventually be opened up and nationalistic restrictions lifted. Some of Gillette's joint
ventures included a 40 percent Gillette 60 percent Malaysian mini-plant operation that
began production in 1970, and an Iranian manufacturing plant with 51 percent
government ownership. The Iran plant was one of Gillette's largest and most modern
factories until the Iranian Revolution of 1979 when Ayatollah Khomeini rose into power
and American businesses were targeted as enemies of the new government, forcing
Gillette to abandon the operation and withdraw from the country. [31]
Super Blue and the Wilkinson shock
In 1960, Gillette introduced the Super Blue blade, the company's first coated blade and
the first significantly improved razor blade since the Blue Blade of the 1930s. The new
blade was coated with silicone and in Gillette's laboratory testing produced much more
comfortable and close shaves by reducing the blade's adhesion to whiskers. Super Blue
was a success and sold more than the Blue Blade and Thin Blade combined. By the
end of 1961, Gillette's double edge blade market share had risen to 90 percent and the
company held a total razor blade market share of 70 percent. [32]
In 1962, roughly two years after the introduction of the Super Blue blade, Wilkinson
Sword introduced the world's first razor blade made from stainless steel. According to
users, the blade stayed sharp about three times longer than the best carbon steel
blades – including Gillette's. Wilkinson's introduction took Gillette by surprise and the
company struggled to respond as its smaller rivals, Schick and the American Safety
Razor Company, came out with their own stainless steel blade. However, during the
development of the silicon coating for the Super Blue blade, Gillette had also discovered
Gillette
the method of producing coated stainless steel blades that Wilkinson Sword was using
and managed to patent it before Wilkinson did. The English company was forced to pay
royalty to Gillette for each blade it sold.[33]
Gillette hesitated in bringing its own stainless steel blades to market as Super Blue had
been a huge success and replacing it with a longer-lasting blade would've reduced
profits. The company eventually brought the Gillette Stainless blade to the market in
August 1963, about a year after Wilkinson's stainless blades. As a result of the affair,
Gillette's share of the double-edge blade market dropped from 90 percent to about 70
percent.[33]
Two years after the introduction of the Gillette Stainless blades, the company brought
out the Super Stainless blades – known in Europe as Super Silver – that were made
from an improved steel alloy. Gillette also introduced the Techmatic, a new type of razor
that used a continuous spool of stainless blade housed in a plastic cartridge. [34][35]
The success of the coated Super Blue blades marked the start of a period when
chemistry became as important metallurgy in Gillette's blade manufacturing. The Super
Blue's coating was a result of teamwork between the Gillette's British and American
scientists.[36] As a result of the Wilkinson ordeal, Gillette's then-chairman Carl Gilbert
increased the company's spending on research and development facilities in the U.S.,
championed the building of a research facility in Rockville, Maryland, and encouraged
further expansion of R&D activities in England.[37]
Trac II: The move to cartridge razors
Patent drawing of the abandoned Atra razor and a picture of a Deluxe model Trac II razor
The development of Gillette's first twin-blade razor began in early 1964 in the
company's Reading laboratories in England when a new employee Norman C. Welsh
experimented with tandem blades and discovered what he called the "hysteresis effect";
Gillette
a blade pulling the whisker out of the hair follicle before cutting it, and enabling a second
blade cut the whisker even shorter before it retracted back into the follicle. For six years
afterwards, Welsh and his colleagues worked on a means of utilizing the hysterisis
effect, almost exclusively concentrating on what would later be known as the Atra twin-
blade system. The Atra razor featured two blades set in a plastic cartridge with edges
that faced each other. Using the razor required the user to move it in an up-and-down
scrubbing motion, and whiskers were cut on both the up and down strokes. Another
twin-blade system with blades set in tandem, codenamed "Rex", also existed, but it had
too many technical problems and was behind Atra in development. [38]
In consumer tests, the Atra razor had outperformed existing razor systems, but Gillette's
marketing executives feared the razor would meet resistance among shavers due to the
unfamiliar scrubbing motion required to use it. Even though the Atra project was so far
along in mid-1970 that packaging and production machinery was nearly ready for a full
market introduction, Gillette decided to start a development drive to finish Rex instead
as it didn't require learning a new way to shave. The project succeeded, Atra was
abandoned, and Gillette announced the first twin-blade razor – now renamed to Trac II
– in fall of 1971. The Trac II captured the premium shaving market and came out in time
to counter Wilkinson Sword's Bonded Blade system that utilised single-blade cartridges.
[39]
In 1980, Gillette introduced Atra – known in Europe as Contour – a twin-blade razor with
a pivoting head. The razor became a best-seller in the United States during its first year
and eventually became a market leader in Europe. [45]
Product history
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The Super Speed razor was again redesigned in 1966 and given a black resin coated
metal handle. It remained in production until 1988. A companion model the,"Knack",
with a longer plastic handle, was produced from 1966 to 1975. In Europe, the Knack
was sold as "Slim Twist" and "G2000" from 1978 to 1988, a later version known as
"G1000" was made in England and available until 1998. A modern version of the Tech,
with a plastic thin handle, is still produced and sold in several countries under the
names 7 O'clock, Gillette, Nacet, Minora, Rubie and Economica.
Discontinued products
Trac II was the world's first two-blade razor, debuting in 1971. [47] Gillette claimed
that the second blade cut the number of strokes required and reduced facial
irritation.
Trac II Plus was an identical model but adds a lubricating strip at the top of
the blade. The blades and handles were interchangeable.
The European versions of the Trac II and Trac II Plus were known as
the GII and GII Plus respectively.
The Sensor for Women was released around the same time and was nearly
identical, but had a wider cartridge head.
Mach 3 - the first three-blade razor, introduced in 1998,
[49]
which Gillette claims reduces irritation and requires fewer
strokes. In 2016, P&G upgraded the Gilette Mach 3 razor. [50]
The Mach 3 featured five improved microfins and spring blades, a pivoting head
with greater flexibility and a blue lubrication strip that faded with usage to
encourage users to change their blades more frequently.
Net worth
Gillette
In 1999, Gillette, as a company, was worth US$43 billion, and it was estimated that
the brand value of Gillette was worth US$16 billion. This equated to 37% of the
company's value, which was the same as DaimlerChrysler, one of the world's largest
car manufacturers at the time.[66]
Marketing
1922 advertisement for various New Improved and Old Type razor models
Gillette first introduced its long-time slogan, "The Best a Man Can Get", during
a commercial first aired during Super Bowl XXIII in 1989.[64]
The company has had sponsorships in Major League Baseball and the England national
rugby league team, along with the Rugby League Four Nations.[citation needed] Athletes such
as Roger Federer, Tiger Woods, Shoaib Malik, Derek Jeter, Thierry Henry, Kenan
Sofuoglu, Park Ji-Sung, Rahul Dravid, and Michael Clarke are sponsored by the
company, as well as video gaming personality Dr DisRespect.[67]
In November 2009, Gillette became the subject of a proposed boycott in Ireland due to
its endorsement by French soccer player Thierry Henry; his undetected handball foul
during a FIFA World Cup qualifying match contributed to a game-winning goal by
France, eliminating Ireland from contention. [68] The following month, expanding upon the
controversy, media outlets observed a "curse" associated with top athletes who endorse
Gillette, also citing Tiger Woods (who became the subject of an infidelity scandal in late-
2009), and Roger Federer losing in an upset to Nikolay Davydenko during the 2009
ATP World Tour Finals.[69]
Upon its opening in 2002, Gillette has held naming rights to Gillette Stadium in
nearby Foxborough, home of the New England Patriots of the National Football League.
Gillette
The original agreement lasted through 2017; in 2010, P&G reached a 15-year
extension, lasting through 2031.[70]
Since the 1990s, the company has used a marketing list to send a free sample of a
Gillette razor in promotional packages to men in celebration of their 18th birthday. The
campaign has occasionally resulted in the samples accidentally being sent to recipients
outside of the demographic, such as a 50-year-old woman (exacerbated by the package
containing the slogan "Welcome to Manhood").[71][72]
In science
In laser research and development, Gillette razor blades are used as a non-standard
measurement used as a rough estimate of a particular device's penetrative ability; a
"four-Gillette laser", for example, can burn through four blades. [73]
In Music
Science isn't the only unusual setting far removed from hygiene in which a Gillette razor
blade has been used. Some music bands have also used Gillette razor blades in order
to achieve a certain sound, most notably English rock band The Kinks. Kinks
member Dave Davies became "really bored with this guitar sound - or lack of an
interesting sound" so he purchased "a little green amplifier ...an Elpico" from a radio
spares shop in Muswell Hiil,[74] and "twiddled around with it", including "taking the wires
going to the speaker and putting a jack plug on there and plugging it straight into my
AC30" (a larger amplifier), but didn't get the sound he wanted until he got frustrated and
"got a single-sided Gillette razorblade and cut round the cone [from the centre to the
edge] ... so it was all shredded but still on there, still intact. I played and I thought it was
amazing."[75] The sound was replicated in the studio by having the Elpico plugged into
the Vox AC30. It was this sound, courtesy of a Gillette razor blade that became a
mainstay on many of The Kinks early recordings, most notably on "You Really Got Me"
and "All Day and All of the Night".[76]
Canadian headquarters
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The research and development process was reinvented to come up with the
product tailored to target customers' needs. Simplified design means 80 per
cent fewer parts are used in production compared to Gillette Vector. This
helps cut manufacturing costs to ensure that the low price does not interfere
with the business model's sustainability. Apart from research and
development, Gillette also built Guard's distribution network across millions
of small local shops, where it was more likely to reach its target customers,
rather than bigger retail chains. This ensured a wide distribution reach.
Unlike the heavy digital marketing strategies used in the developed world, the
campaign for promoting Gillette Guard was based on traditional
advertisements featuring Bollywood actors. Additionally, the success of
changing Indian men's shaving culture played a significant role in marketing
Gillette
Gillette Guard. As the first product designed for men specifically in this
market, Gillette Guard is touted as "one of the most significant product
launches in Gillette history".
Gillette's success in India hinged on its capacity to innovate. Firstly, it used
innovative ways to communicate with its consumers in 2009 in order to
attract a once indifferent segment. Through a creative use of traditional ads
and marketing campaigns that supported the launch of the new Gillette
Mach3, Gillette was able to change consumers' indifference towards shaving
and create a true momentum for its products. In this way, Gillette shifted from
a market-driven to a market-driving approach.
Secondly, in 2010, Gillette did something the Harvard Business Review
described as "reverse innovation" to develop a product that would satisfy the
needs of the lower income customer. After failing to gain significant market
share in India by selling its lower and mid-tier American razors in different
packaging, Gillette adopted a different approach. It went back to the source by
making significant investments in market research to better understand the
needs and preferences of target consumers.
Gillette understood that Indian consumers' needs, culture and attitude
towards shaving were radically different from those of Western consumers.
Rather than lowering performance, Gillette kept the valued customer at the
core of its strategy and introduced an innovative value proposition for the
value-for-money customer. Moreover, Gillette was able to deliver its promise
to customers by putting in place an appropriate value network. In addition to
a customised product, all the elements of the business model were coherent
with the value proposition and mutually reinforcing.
Local manufacturing enabled Gillette to lower its cost structure and maintain
low prices. The distribution model, not based on few large retailers, but on
millions of local shops called kiranas, allowed Gillette to achieve a higher
market penetration. The Gillette Guard case in India is the typical success
story suitable for a marketing strategy book. However, there are some aspects
of the strategy that appear to be controversial. One is related to environmental
sustainability. Guard uses disposable cartridges which makes it not exactly an
environmentally-friendly product.
A mistake that multinationals make is to push global
brands in a one-size-fits-all strategy. Gillette's
strategy of spending time and resources
understanding Indian consumers' needs proved to
be the key to its success.
Secondly, Gillette's business model in India shows some weaknesses.
Emerging markets such as India are known for producing high volumes of
Gillette
generic products. Given the low barriers to entry in the razor business, there
are some doubts about how Gillette will sustain its competitive advantage.
Innovative start-ups (e.g. DollarShaveClub) are growing fast in the US by
selling simple twoblade razors online at a fraction of Gillette's price. A lower
price is made possible by a simple product design and limited marketing and
overhead costs. It is possible a low-cost competitor will enter the Indian
market, challenging Gillette's market share.
To remain competitive, Gillette must keep the valued customer at the core of
its strategy and adapt its business model accordingly.
Other companies can learn from Gillette's case in India. A recurrent mistake
that multinationals make is to push global brands in a one-sizefits-all strategy.
Gillette's strategy of spending time and resources understanding Indian
consumers' needs proved to be the key to its success. This understanding
helped it innovate through developing new products and creative
communication ways to attract and engage Indian consumers.