Case Study Gillette | International Marketing Assignment

Added on - 19 Sep 2019

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GILLETTECase StudyInternational MarketingStudent[Pick the date]
Case Study: Gillette11)What were the major drivers of Gillette’s reverse innovation strategy?Do you think Gillette compromised the benefits of standardization toachieve localization – would you consider this a long term success or ashort term gain strategy? Justify your answer.AnswerReverse innovation is also known as trickle-up innovation. This is that innovation which is seenand used first in the developing world and then it is spread to the industrialized world. Gilletteused this strategy in the country India which is a developing nation and it captured 50% of theIndian shaving market in the time span of 6months from the introduction of Gillette guard(Sebastian, 2013).The major drivers of Gillette’s reverse innovation strategy were:The company researched the Indian market and they found that Indian men purchased and usedthe razors on daily basis. So, they found an opportunity in the market of India where theyplanned to introduce a razor with blades and very effective. The company also found that theIndian men were using a razor which had double edged blades but they lead to frequent cuts asthey got rusted easily. Therefore, the company introduced a comparatively higher price productbut between than the existing products.The company had a good market share in US but the market share was low in India whichmotivated them to capture the market of India by introducing a new and affordable product.Since this new products was a result of the innovation of the company, so it wanted to introduceit in a low income country where the people “need” this type of product and they can also afford
Case Study: Gillette2it. Gillette was confused between introducing it in US or India so the industrial analysis for boththe markets was conducted and India was more attractive in terms of demand, need, targetcustomers etc. (Sebastian, 2013). Therefore, these were the major drivers of the Gillette’s reverseinnovation strategyNo, Gillette did not compromise the benefits of standardization to achieve localization because:When the company customized its product and changed the strategy to suit and meet theneeds of different audiences, it built a reputation in that country. This reputation is notbuilt if the company is offering the same products in all the markets. This is because; thecustomers do not feel associated with the product and the company if they feel that thecompany is not making any effort to satisfy their needs.With localization, the facilities of the company can be developed as per the demands ofthe market. In India, the demand for razor and blades is different from that of USA. So, ifthe company is not localizing and building its facilities as per the Indian market, then itmay lead to wastages, loss of resources etc.This is a long term success strategy. When the company will localize and cater to the markets ofdifferent countries, it will be able to establish its operations and facilities in the entire world.With standardization, if there is problem with any one thing, the operations of the company in allcountries suffer together.
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