Gillette: Shaving off market share (A)

Villanueva, Julián; Capizzani, Mario; Iniesta, Francisco

Product #:M-1411-E

Supplier:IESE Publishing

Discipline:Marketing

Setting:United States, 2017

Details:Case (PDF) • 9 pages • 2024-11-18 (Rev: 2023-08-20)

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Geography:

United States North America

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n 2017, David Taylor, CEO of Procter & Gamble (P&G) in the United States, was facing a challenge in the shaving market with the Gillette brand, which accounted for 11% of sales and 15% of the company's profits. Despite having been a leader with innovations such as FlexBall and Fusion ProShield technology, Gillette saw its market share decline, falling from 71% in 2010 to 56% in 2016, affected by competition from low-cost brands and subscriptions such as Dollar Shave Club and Harry's. P&G considered strategies such as reducing prices and introducing products for sensitive skin in an effort to regain its position in an increasingly competitive market.

Learning Objectives

The Gillette case is suitable for both master's and executive programs, and focuses on the following key pedagogical objectives: Competitive strategy and brand positioning: analysis of how a leading company faces emerging competition and repositions its brand in a changing marketplace. This objective includes discussion of strategies for maintaining relevance and customer loyalty in a competitive environment. Innovation management and product development: exploration of the role of continuous innovation and new product development in a company's long-term competitiveness and success. Includes the study of how innovations can drive growth and market share. Pricing analysis and pricing strategies: reflection on the importance of pricing strategy and how it affects market share and profitability. Focuses on evaluating different pricing approaches and their impact on consumers. Distribution strategies and sales channels: consideration of distribution and sales strategies, including direct and online sales, subscriptions and their impact on retailer and consumer relationships. This objective addresses how distribution decisions can influence accessibility and brand perception. Brand portfolio management: analysis of how to efficiently manage a portfolio of brands, balancing the needs of retailers and consumers.