Gillette had built its business by being able to bring regular improvements to the quality of the shaving experience by making better blades and razors. Not only did they make improvements, they also expected consumers to pay more. With new competition and pricing pressure, it appears the limit has now been reached. If men feel that they are already getting a good experience from the last razor, why would they pay more for a marginal improvement?
Gillette, now owned by the savviest markers of all, P&G, has some serious thinking to do.
They could start segmenting their razors for specific skin types and they can also take a close look at their advertising.
All razor advertising has been obsessed with explaining performance and technical features, they have been selling the latest and greatest version; compete with the usual shtick of scientists and technical drawings. Most ads ended with a hint of the benefit, but it was only a subtle hint.
In the broad category of men's grooming, razor ads now look more than a little dated, especially with Axe changing the communication dynamics. It was Axe who dropped a smart bomb into the category by focusing single-mindedly on the end benefit of sex. They managed to capture the elusive imagination of the young male target and sales quickly followed.
Axe was so successful, that their strategy is now being copied by every one of their competitors.
If Gillette no longer has its technological advances to talk about, will it to decide to join the ranks of Axe and focus on the real benefit of a good shave?
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