Okay, this may be a stupid question. If Gillette's marketing strategy was the loss leader--sell razors in order to sell blades--why constantly innovate the razor? Why are there so many models and design changes in the razor? Also, a razor like the Gold Aristocrat sold for $5 in 1951, which would be about $45 in today's money. That's not a loss leader.
Great question! First let's address "loss leader." Sell an item at a loss, to make the money back and then some. Gillette didn't actually follow this plan. It's been pretty well documented that they sold their razors at cost or actually made a little bit. A true loss leader would be...the Xbox 360 when it was introduced. Cost $800-900 to make, but sold for $499 or $599. I can't remember. So many models...so little time. They are still doing it. The reason for it is patents. If the patents on the DE blades hadn't expired, the world might still be full of wet shavers. When the patents expire, other people can copy them. That's why there are so many different brands of DE blades out there. Anyone can make them. Same thing happened with the DE razors. If Gillette had their way, I'm sure they would have rather kept churning out DE blades with no competition. How would you like to pay 7-8 bucks for a 10 pack of DE blades? When the DE blade patent expired, Gillette was ready and rolled out the Atra, followed by the Trac II, Mach III, etc. as the patents expire and companies start making generic cartridges, Gillette turns on the marketing campaign to lure you to the "next greatest innovation" in shaving technology.
Thanks. Your explanation makes sense. But still, Gillette was making design changes long before the patent of the blades expired, no?
That's a two-parter. Gillette also had patents on it's razors. As those expired, they had to make new razors that incorporated new patentable elements. They also were not above churning out a new model to raise brand awareness. Gillette had relatively few razor head styles over the course of 100 years. The handles, cases and platings were the main tools Gillette used to make new razors. Major razor head changes came when patents started getting close to expiring. The basic head designs: The Old, The New, The Tech/Ranger, 40's + 50's Super Speeds. At the end of the fifties there was an explosion of razor head designs. The flare tips, light, regular, and heavy, and several models of adjustable razors. by the late sixties, Gillette had figured out what worked and the super adjustable was dominating the market. You also have to remember that beginning in the fifties, other companies were really fighting Gillette for market share. If one company produced a razor, the other had to respond with a "better" razor. The Schick Krona and Gillette Knack is a good example.
Thanks again. I feel enlightened. What I really love about shaving with my gold Aristocrat is that I never touch anything plastic throughout the entire process. That and the great shave.
I've only used my Mach 3 a few times in the past 6 months. That was for someone shaving the back of my neck and for me shaving other places that a DE is no good for.
I know my limits. If not, I'll take the correction and not make the mistake again. My Mach 3 will stay in the drawer unless someone breaks into my house and steals my razors.
Right. The other thing to keep in mind is that among a single-market community, there are several demographics. The guy that buys his $2 SS is not the wife buying her husband the $20 Aristocrat to celebrate his promotion. Markets shift and acclimate, producers have to continue to both lead and respond.
I feel that I should point out that my answers barely scratched the surface of the OP's question. In many ways they were overly simplistic, and to really understand Gillette's marketing plans requires a lot of digging and research. Maybe one of these days when I can sit down and double check the facts instead of typing this information off the top of my head, I'll write an article on the subject. I think it would be a rather dull and boring article though.
Aha! I found it. I posted a thread a while ago that had a very interesting link I found. Check it out, I think this will answer any questions you have on Gillette's past and current marketing strategies. It will take a while to get through, but it is perhaps the best treatise on the subject available anywhere. Enjoy. http://theshaveden.com/forums/threads/the-future-of-blade-production-in-india.28454/
