Page 171 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes However, as products like the Presto encouraged a large number of trials, they had limited
usage. For instance, analysts point out that buyers in smaller towns used twin-blades as
rarely as Indian consumers use contact lenses—only for special occasions.
There’s another important - but less considered - reason for the lack of enthusiasm for
twin-edged razors. That is the low frequency of shaving by Indian men. According to a
survey conducted by the company, the average shaving frequency of Indians is 1.7 times
a week.

In comparison, the average in countries like Germany is as high as 5.2 times a week. The
preference for stubble affects sales of twin-edged razors for a surprising reason. First,
Indians have a strong beard growth and shaving once every three to four days will mean
that the beard lengths are longer.
That results in hair-clogging between the two blades of twin-blade systems. Gillette
executives point out that clogging of hair leads to a poor quality of shaving. It also results
in faster use-up rates of the blades as customers used various means to clean the blades.
Consequently, two out of three users who had tried twin blades went back to the low-end
double-edged blades.

Flat blades have no such problem: the shaving system ensures that the double-edged
blade can be taken out and washed. “Double-edged consumers are not happy with their
shaves. But hair clogging is the biggest barrier for consumers to upgrade to twins,” points
out Sachin Gopal, general sales director, Gillette India. Gillette could have still taken care
of the hair-clogging issue if running water were available throughout the country.
However, research shows that only 25 per cent of shavers use running water, the rest
shave using a mug as an accessory.

Will Vector be a plus point for Gillette India?

7.2.7 Commercialisation

The decision to commercialise involves the largest costs to a company. Quite often, a new
product replaces an old one that may still have a customer base and mistakes can occur.

Example: This is what happened when Coca-Cola replaced its existing Coke with a new
formulation. There was error in interpreting the results of marketing research and ultimately
the company had to reintroduce the earlier version as ‘Classic’ Coke.
After reviewing the results of test marketing, it is determined if any changes in the marketing
mix are needed before its full-scale introduction. Cyndee Miller reports that only 8 per cent of
new-product projects reach the commercialisation stage. During this stage, the plans for full-
fledged production and marketing must be refined and set, and budgets for the new product
must be prepared. The size of manufacturing facility would be a critical decision. Marketing is
another area of major consideration. To launch packaged consumer products nationwide, the
company needs huge resources to undertake advertising and promotion for at least one year.
Timing of market entry of a new product is also important.

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