A Cheap Shave

Gillette’s Cheap Razor

Every company’s goal is to differentiate itself from others in order to appeal to the target market by creating points of differences. Gillette a unit of Procter and Gamble has done this very successfully. Twenty people from U.S. Gillette’s headquarters visited India in order to talk to consumers and understand their target market’s needs. They came to the conclusion that men in India usually shave less often, have thicker hair, and are more price sensitive than Americans. Indian men are also more worried about cutting themselves. After the visit, Gillette had a better picture of their new target market segment and their requirements. As a result, they were able to create a low-cost razor (Gillette Guard) that would appeal to those in India and in other similar markets. Gillette created a hollow handle and reduced the number of components required to make the razor, and thereby reduced the cost to make the razor. Due to Gillette’s research and careful planning, they were able to increase their market share in India from 37.3% to 49.1% for razors and blades (according to Euromonitor). A message for other multinational firms trying to penetrate India.