Mika
VIP Contributor
Gillette was formed in 1901 and soon its razors became an instant hit. However, since its inception, it started facing tough competition.
Reduce the price of the main product
In order to control the market, Gillette reduced the price of its razors and increased the price of blades. People started buying Gillette razors more without realizing that they had to pay more for the blades. Razors lasted long but people had to buy blades again and again. Since Gillette razors were selling, other companies started making blades for Gillette razors. They still make the same kind of razor blades.
Find the new market
Gillette was not very satisfied with its market performance; therefore, in order to increase its market size, it started manufacturing razors for women in 1915. Until then women did not shave, but Gillette started promoting smooth legs, hands, and armpits, and women were attracted to the product. For a company to stay in the business, it should always find new markets.
Reduce the price of the main product
In order to control the market, Gillette reduced the price of its razors and increased the price of blades. People started buying Gillette razors more without realizing that they had to pay more for the blades. Razors lasted long but people had to buy blades again and again. Since Gillette razors were selling, other companies started making blades for Gillette razors. They still make the same kind of razor blades.
Find the new market
Gillette was not very satisfied with its market performance; therefore, in order to increase its market size, it started manufacturing razors for women in 1915. Until then women did not shave, but Gillette started promoting smooth legs, hands, and armpits, and women were attracted to the product. For a company to stay in the business, it should always find new markets.
