Gillette Fusion case study: developing a US$1 billion brand - In April 2008, Procter & Gamble's Gillette Fusion was in line to deliver more than US$1 billion in annual sales, making it the fastest P&G brand to reach the billion mark. This case study looks

Gillette Fusion case study: developing a US$1 billion brand - In April 2008, Procter & Gamble's Gillette Fusion was in line to deliver more than US$1 billion in annual sales, making it the fastest P&G brand to reach the billion mark. This case study looks

Introduction

This report on Gillette Fusion forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at the development and marketing of the razor, to find what has enabled it to grow so strongly in a short space of time.

Scope

Highlights

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Gillette Fusion is the latest men's razor from P&G, which has proved to be a major success 2
P&G regularly upgrades its Gillette razors in order to stay ahead of the competition 2
Fusion, the first five-bladed razor on the market, captured 55% of all new razor sales in the US just four weeks after launch 2
Fusion is expected to be P&G's fastest ever brand to reach a US$1 billion in sales 3
P&G has justified a price rise for the Fusion brand with tangible product improvements aiming to make shaving quicker, more effective and smoother 4
Consumer skepticism first surrounded the launch of the Fusion brand 4
But Fusion was the first new Gillette razor brand since 1998, coming in two versions and with its own dedicated grooming products range 4
For the first time, Gillette rolled out two versions of its new razor at once - a manual and battery-powered model 4
P&G concurrently introduced a line of Fusion-branded male-grooming products, to boost a business that has lagged behind its razors 5
Fusion is said to offer improvements over its predecessor in both the handle and blade 5
The Fusion Power handle contains a microchip to improve the system's performance, as well as a better-grip surface 5
The Fusion contains five blades spaced closer together than the Mach3, as well as a trimmer blade and flexible comfort guard 5
P&G has launched an ambitious promotional campaign to achieve its US$1 billion sales target for the Fusion brand 6
Gillette's "18th birthday program" offers youths turning 18 a new Fusion razor, aiming to create brand loyalty in new users 6
Fusion marketing has a sports theme to attract male attention, with a sport-themed website and sports star ambassadors 6
The UK Fusion website received 30,000 hits a day in its first month of launch 6
New advertising for the Fusion in 2008 featured sporting 'superheroes', and was thought to be the most expensive in Gillette's history 7
The company is reportedly set to launch an entirely new razor in six year's time, but is content with Fusion extensions in the meantime 8
A new extension to the Fusion brand aims to get men to trade-up to a US$150 razor 8
P&G remains tight-lipped about any future razor innovations 8
APPENDIX 10
Case study series 10
Methodology 10
Secondary sources 10
Further reading 10
Ask the analyst 10
Datamonitor consulting 11
Disclaimer 11
List of Tables
Table 1: Gillette has been at the forefront of razor innovation since its inception 2
List of Figures
Figure 1: In 2006, P&G launched the new Fusion razor in both battery powered and manual versions, along with a dedicated personal care line 3
Figure 2: Gillette has three new brand ambassadors from the world of sport 7
Figure 3: Gillette Fusion is available in an ultra-premium variety under the Fusion Chrome Collection brand 8