In the late 1990s, Gillette, best known for its razors and blades grabbed

1
Marketing Management info_at_casestudyhelp.in91
94220-28822
2

• Marketing Management
•  
• CASE STUDY (20 Marks)
• In the late 1990s, Gillette, best known
  for its razors and blades grabbed 15 market
  share in the US market by launching its Mach 3
  brand. Mach 3 was a three bladed shaving system
  that allowed a shave with less pressure and fewer
  strokes and thus reduced skin irritation. In
  2005, Mach 3 with Mach 3 Turbo and battery
  powered version M3Power captured 34 share in the
  US market. In the same year PG acquired Gillette
  to make its market position stronger overseas. In
  January 2006, PG Gillette merger launched the
  manual and power versions of a five bladed razor
  shaving system named as "Fusion" in the US, UK
  and Canada. Gillette charged 12 to 13 for a
  pack of four Fusion cartridges and the same
  number of Fusion Power cartridges was priced at
  13 to 14.

3

• However analysts estimated that Fusion's
  marketshare had been far weaker than what
  Gillette saw after Mach 3 and Mach 3 Power
  launches and the reason behind this was the price
  structure of Fusion. Analysts predicted that the
  price of the Fusion manual was 80 higher than
  Mach 3 manual and that of Fusion Power was 30
  higher than Mach 3 Power cartridges. Though
  Gillette argued that, since Fusion was a luxury
  brand it was costlier than the previous Gillette
  razors and blades but when the sales of its
  razors and blades fell by 5 in 2006, the company
  planned to cut the price of its Fusion brand.
  This decision was however, not taken for Brands
  and Branding unilaterally by Gillette but the
  company asked its retailers to help it make a
  decision. The company at the same time paid more
  attention to the promotional activities of
  Fusion. Despite this industry observers were
  skeptical about the success of Fusion.

4

• Answer the following question.
•  
• Q1. Give the comparison between the three bladed
  shaving system.
•  
• Q2. Debate the obstacles for the promotion of
  Gillette Fusion, a five bladed shaving system, to
  gain the same popularity like Mach

5

• www.casestudyhelp.in
• info.casestudyhelp_at_gmail.com
• info_at_casestudyhelp.in
• 91 94220-28822