In order to increase total sales and put Gillette Fusion on track to be a $1 billion business in the next few years, Gillette Fusion should launch a new advertising campaign and reduce cartridge package prices by 20% with the introduction of a onetime coupon. Explanation
The media’s reaction to the “blockbuster” advertisement campaign highlights many of the campaign’s flaws. The campaign focused on the product features rather than its benefits. Due to the ad’s product focus, Gillette failed to communicate why the additional blades and elastomer handle coating improved the quality of consumer’s shave. The proposed advertising campaign would address these flaws and focus on the customer experience.
In order to educate consumers, Gillette should employ a mass media campaign similar to Pepsi’s “Pepsi Challenge.” This campaign will include blindfolded individuals testing and comparing the Gillette Fusion with several other razors, and will be hosted by a celebrity who shares similar brand qualities as the Fusion.
The celebrity will be young, sleek and innovative, like Ashton Kutcher or Dwayne Wade. •TV Advertisement: The television advertisements will include a short introduction by the celebrity and clips of customers who have taken the challenge describing why the Gillette Fusion is superior to its competitors. It should be featured during male-focused programing, like sporting events and adult comedies. •Print Advertisement: The print advertisement will feature a picture of the celebrity next to the razor and several quotes from individuals who have taken the challenge.
It should be featured in men’s style magazines (GQ), music magazines (Rolling Stone) and sports magazines (ESPN, Sports Illustrated). •Radio Advertisement: The radio advertisement will begin with an introduction by the celebrity describing why he prefers the Gillette Fusion and then transition to reviews by those who have taken the challenge ( i.e. “The Gillette Fusion is incredible because …
If you don’t believe me, hear what people who have taken the challenge have to say for themselves …”). It should be featured during adult talk shows (Howard Stern Show) and sports programming. In order to encourage users to purchase the product, Gillette should offer a 20% discount on cartridges with the introduction of a one time coupon.
Because 64% of men look at the price of the cartridge before purchasing the corresponding razor, introducing a 20% discount with a onetime coupon will encourage those consumers weary of the high cartridge prices to purchase the razor. Once purchasing and using the razor, it is likely that the consumer will notice a significant difference in the quality of shave, and be willing to pay a higher price for the superior product. This is supported by the fact that of the 9,000 men who tested the new razor, Fusion was preferred 2 to 1 over the competition.
For the few who would usually not be willing to pay the higher price for the cartridges, they will likely continue to purchase the cartridges because of the switching costs associated with purchasing a new razor. The coupon should be displayed at points of purchase and in direct mail outs. The former can be achieved by providing collaborators with display allowance. Alternative Strategies
Unlike the proposed strategy, each of the alternative strategies fails to simultaneously communicate the effectiveness of the product and encourage customers weary of the price to purchase the product. •Lowering the retail price of the razor – This will not encourage customers to purchase the product because (a) 64% of consumers look at the cartridge price before purchasing a razor and (b) a razor is a one-time cost to consumers, with a less elasticity of demand than cartridges.
Also, without a new advertising campaign, they also will continue not to understand why the product is superior, and more expensive, than its competitors. •Reducing cartridge package prices by changing cartridge package size. Reducing the current four cartridge package with three cartridge packages is only effective if consumers fail to register the difference in package size because the price per cartridge will actually increase. Moreover, this strategy fails to educate consumers on why the product is superior, and more expensive, than its competitors.