Gillette: Cutting Prices to Regain Share Case Study Solution


The case of Gillette, as explored by Benjamin C. Esty and Daniel Fisher, delves into the strategic challenges faced by the company in a competitive market. Gillette, a renowned player in the razor and blade industry, encountered declining market share due to various factors. This analysis aims to unravel the core issues, dissect the strategic landscape, and provide recommendations for Gillette’s resurgence in the market.

Case Issue

The primary challenge for Gillette lies in its declining market share. Despite being a leading brand, Gillette faced intense competition from both established and emerging companies. Factors such as changing consumer preferences, increased competition, and pricing strategies became significant hurdles for the company. The central issue revolves around devising a strategy that can balance market dominance, profitability, and customer satisfaction.

Case Analysis

Competitive Pricing and Market Positioning
Gillette’s decision to cut prices reflects a strategic move to regain its market share. By offering products at a more competitive price point, Gillette aims to attract price-sensitive consumers. However, this move must be balanced to avoid devaluing the brand perception. Strategic pricing can help Gillette recapture market segments without compromising its premium brand image.

Product Diversification and Innovation
Diversifying the product portfolio and investing in innovation are critical. Gillette should focus on understanding emerging consumer needs and preferences. Introduction of new, innovative products, such as razors with advanced features or environmentally sustainable materials, can capture the attention of modern consumers. Collaborations and acquisitions of tech-driven startups can enhance Gillette’s technological offerings.

Customer Engagement and Loyalty Programs
Building strong customer relationships is vital. Gillette should invest in loyalty programs, personalized marketing, and exceptional customer service. Engaging with customers through social media platforms and gathering feedback can aid in product improvement. Positive customer experiences can lead to brand advocacy, fostering long-term loyalty.


In conclusion, Gillette faces a crucial juncture demanding strategic agility. By focusing on competitive pricing, product innovation, and customer engagement, Gillette can revitalize its market presence and regain consumer trust.

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Strategic Pricing Strategies
Gillette should maintain competitive pricing without compromising its premium brand perception. Data-driven analysis can identify optimal price points, balancing affordability for consumers and profitability for the company.

Innovation and Research
Invest significantly in research and development to create innovative products. Understanding consumer preferences, such as sustainability or personalized grooming experiences, can drive product innovation. Collaborate with research institutions and startups to stay at the forefront of technology.

Enhanced Customer Engagement
Implement a comprehensive customer engagement strategy. Social media platforms can be utilized for interactive marketing campaigns, while customer feedback mechanisms should be integrated into product development cycles. Launch loyalty programs to reward long-term customers, fostering brand loyalty.

Strategic Partnerships and Acquisitions
Explore collaborations with technology companies or startups in the grooming industry. Partnerships can lead to synergies, combining technological advancements with Gillette’s brand strength. Acquisitions of innovative startups can bring niche expertise and products into Gillette’s portfolio.

Sustainable Practices
Embrace sustainability by incorporating eco-friendly materials into product designs and packaging. Transparent communication about sustainable practices can resonate with environmentally conscious consumers. Initiatives like recycling programs for used razors can enhance the brand’s environmental reputation.

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