- Published: October 1, 2022
- Updated: October 1, 2022
- Level: College Admission
- Language: English
- Downloads: 31
Marketing Marketing is a which is very vast in nature, and it has an origin and destination for the operation of a business in a profitable manner. Gillette fusion razor is the first electronic weapon used for wet shaving. It has certain advanced technological aspects to attract customers. The product aims at customer satisfaction as the basic factor. The main feature of Gillette is that it boasts of a five blade surface technology.
Product Life Cycle- The product life cycle of Gillette fusion razor is described below:
New Product Development Stage:
During this stage, it is essential to conduct a market research about the fusion razor, which is necessary to evaluate whether the customers will accept this product, or whether it is possible to capture a wide market share in a stable manner. It also seeks to estimate customers’ response to the product. With the help of proper research, it is possible to obtain a clear idea about the future proceedings of the company. ” As the Fusion is developed, Gillette will have to invest in market analysis, research, production, marketing etc. This will be an expensive phase. Since no sale revenue will be achieved, losses may be incurred. Fortunately for Gillette, M3Power still has a market that will allow it to absorb losses over a short time.” (Altaf 2007).
Market Introduction Stage:
This stage involves the following process:-
1. Explain how marketing objectives and marketing-mix strategy, and costs and other company factors affect pricing decisions.
2. List and discuss factors outside the company that affect pricing decisions.
3. Explain how price setting depends on consumer perceptions of price and on the price-demand relationship.
4. Compare the four general pricing approaches and describe the major strategies for pricing new products.
5. Explain how companies find a set of prices that maximises the profits from the total product mix.
6. Explain how companies adjust their prices to take into account different types of customers and situations. (Pricing Considerations and approaches. 2007).
During this stage it becomes crucial to give an appropriate focus on price and promotion concept. The company can choose between float or skim pricing strategy. Apart from this, it is necessary to give emphasis for promotional method, especially advertising of the product, for the purpose of creating awareness about the new product in the market and among the consumers. There exist chances of competition. Some times the company may incur some loss during this stage. The cost will be higher due to the sales promotional activities and the quantum of sales will be normal or at a lower level. The important fact during this stage is to analyze whether the customers will be ready to accept the technology of five blade surface or not.
The growth stage is the third stage in the product lifecycle. At this stage the Gillette Fusion razor gets widely accepted in the market. Increased popularity accelerates the further movement of the product in the market. ” Customer awareness will increase and competition will begin to enter the emerging market and offer equally good or even better and innovative products.” (Altaf 2007). This stage features increase in the sales volume. More advertisement should be done during this stage, in order to capture more and more market. The company must improve the quality of the packaging and that of the product as there are more chances for the market to be reduced by way of competition.
This stage of the product will be marked by a stable market for the product. The general public would already have been aware about the product and as a result not much of advertisement and publicity would be required at this stage. The company can also go in for a reduction of price at this stage as sales volume would have increased manifold. The company should focus on reducing the price of fusion razor in comparison to its major competitors. The reduction in price will be compensated by more profits from the stable market. At this stage also Gillette should focus on making fewer modifications in the product. It should also make sure to provide incentives to the distributors in order to gain better acceptability by them.
This stage of the product lifecycle is characterized by decline in the sales volume. One option for the company is to further reduce the price so that the market gets enhanced. The company should also focus on introducing newer version of the product to avoid it becoming obsolete. A newer option of the product with replacement blades can be introduced in order to retain the market further. The company can also think of giving its other product free of cost for further promotion. For example: it can give a small shaving gel tube with two packets of Gillette Fusion Razor.
Altaf, Naveed. New Product development stage. Gillette-Launching the Fusion. Brand synario. Product Life Cycle. 2007. 7 Nov, 2007 Pricing Considerations and approaches. Objectives. Pearson Education, Inc. 2007. 7 Nov. 2007