Gillete: product and marketing innovation

Gillette: Product and Product Innovation Question The case analysis provides a lot of information that isvery helpful when put to the right use in helping Gillette stay ahead of the competition in a rather sudden and unpredictable environment. In this matter Gillette needs to apply a decision making process into its current plans in order to come up with better and improved innovative ideas or marketing solutions. The company may not be facing stiff competition at the moment but judging from its history the likelihood of facing a tougher competition cannot be ruled out for the company. Generally it is assumed that one of its core product-line the razors and blades has reached its maximum meaningful innovation. Therefore the decision-making process put in place should focus on the company’s other product lines and newer diversification strategies or improved marketing techniques. Using the decision making framework the following summary gives an overview of the available opportunities that the company can take in the global marketplace (Kerin & Peterson, 2009).
Step 1: Problem definition
The key issue arising from the case study is that the Gillette Company has reached its limits in product innovation. The company’s main dilemma is on how to stay at the top and continue market domination and how to expand its market share around the world without relying on further research into product innovation.
Step 2: Enumerating decision factors
Just as research suggests the company no longer has to engage in product innovation as any further innovations may not affect their market share. At this stage Gillette’s best alternatives is to focus on strengthening their market share and further penetrating into the untapped market segments. Another best alternative the company can consider is the alternative of electric shavers, they can expand on this line of product which probably can gain them more market share because of its convenience and ease of use. The company needs to also put into consideration the available uncertainties such as their close rival’s (Schalk) actions.
Step 3: Analysis of relevant information
In considering the relevant information the company needs to invest more in research and development so that they can source information on which products to use in their product –line expansion. With a proper system of collecting and analyzing information from the market the company can maintain its market dominance. The company also needs needs to be in constant update of the emerging market trends and its competitive environment.
Step 4: Identifying the best alternative
This step will enable careful analysis of the available alternatives such as better marketing strategies and product expansion. The gathering of the relevant information such as market trend, competition and new market segments the company can decide on whether to expand its product line just strengthen its marketing strategies.
Step 5: developing of a plan to implement best alternative
The chosen alternative needs to be put into effect immediately; this would ensure the uncertainties in the market such as competition do not outdo the company. The company then needs to set up a team that will set up and see through the execution of the decision taken.
Step 6: Evaluation of the decision and the decision process
After the execution of the plan the company needs to evaluate whether the decision was carried out and if it was the right decision. This can be found out depending on how the market responds. This requires assistance of an analyst to make assumptions of the outcome from the decision.
Question 2
Product innovation history at Gillette suggests that before encountering competition the company did not pay much attention into innovation as it was a monopoly in the market niche. Initial product invention in the company was not a necessity as lack of competition made it the best. However, after competition came into the picture the company had to keep up with innovation to the extent of becoming a victim of its own success (Federer, 2009). This is because the company was so focused at countering competition in the razor product line that its products started to cannibalize on its earlier successful products. Product innovation in the wet shaving market is yet to come to an end despite the introduction of electronic shaving products. More and more people across the globe still prefer using wet shaving products compared to the electric rivals. In terms of innovation the products cannot be exhausted especially with the emergence of the current trend where products are being sold depending on the skin type and sensitivity. Probably there will be more innovative products in the wet shaving market as research continues.
Works Cited
Federer, H. W. (2009, November 29). ” The curse of Gillette”. The Independent , pp. 14-15.
Kerin, R., & Peterson, R. (2009). Case Analysis. New York: Prentice Hall.