Gillette fusion

Background

Manufacturer and retailer profits in the shaving category are typically derived more from the sale of replacement cartridges than from the razor itself. Therefore the sooner shoppers upgrade their razor, the greater the period of time they will be buying new, higher-margin cartridges. For Gillette, the task was to upgrade shoppers from the older Gillette MACH3 to the newer Gillette Fusion.

Insight

Men, when shopping for Toiletries, have higher brand loyalty than women. They experiment less with new products unless compelling reasons to change are presented.

When it comes to Walmart razor shoppers, their perception is that new technologies do not offer performance improvement equal to the increased price. They are generally satisfied with their present product and therefore restock rather than scan for anything new, particularly in a category that is relatively expensive.

To disrupt their restocking behaviour and build basket value with higher margin and price products, compelling reason to change have to be provided.

Action

Leverage Gillette relationships with the NFL and EA Sports to deliver a powerful offer that excites shoppers and allows them to ―look their best and play their best― via:

32 UNIQUE NFL TEAM-SPECIFIC RAZOR SKUS CUSTOMIZED BY LOCAL MARKET;
EXCLUSIVE BONUS OFFER TIED TO THE LAUNCH OF THE #1 SELLING VIDEO GAME, EA SPORTS MADDEN NFL 10.

Result

Overall category sales at Walmart increased.

Gillette Fusion sales increased over 20% at Walmart during the period.

Walmart’s share of total Gillette Fusion business increased.

http://www.effie.org/case_studies/case/2039