Question

Does Gillette’s strategy make good business sense? Why or why not? Is there an alternative strategy that Gillette might wish to pursue to maintain its share?

Answer 1

Gillette is usually trying to use segmentation strategy in order to position itself in the market and gain high amount of market share by properly communicating its target customers the desired needs of the products and the use of the product so it is trying to target a section of a customer and it is trying to gain maximum from it through market segmentation process and it is the current strategy of Gillette in order to make higher profits and it is making a good sense because it is able to gain a higher amount of market share and it is also a market leader.

Yes, Gillette may be using an alternative strategy by targeting different other segments which are price sensitive so Gillette may reduced in the price of its products in order to attract a larger volume and it would rather be a volume sensitive profit making company rather than market segmentation focused company so it can try to generate high amount of volume in order to capitalise upon the price decrease.