How important and applicable do you feel segmentation was for Gillette
Any market in terms of marketing consists of buyers who differ in their tastes, desires, needs, and, most importantly, buy goods based on different motivations. Therefore, the entrepreneur must understand that in diversity of demand, especially in a competitive environment, each person will react differently to the goods or services offered. Very difficult to satisfy all customers, because each of them has some differences in the requirements. Production and sale of a limited number of types and models of products, designed only to a certain average level, without differentiation needs may not be the best strategy to use the potential of the company. For example, some …show more content…

As a result, the company reached an estimation that the world market was in excess of GBP 5 billion/year. Using the results outcome of the market research, Gillette has been able to identify the features and benefits that are being sought by consumers in each at the relevant segments. They are then able to create the products and marketing mix appropriate to each segment. Hence, Gillette segmented the market into two main segments, and within each of these main segments two sub-segments which can be illustrated as follows:
- Main segment 1: Systems:
Sub-segment-a: premium systems
Sub-segment-b: standard systems
- Main segment 2: Disposables:
Sub-segment-a: premium disposables
Sub-segment-b: standard disposables
Elements of the Marketing Mix are likely to differ according to the segment. For instance, premium segments will command premium prices on the extra benefits offered. Advertising will also focus on the extended benefits, and the luxury and quality of these premium products.
As per the following table (Scribd 2010), it can be illustrated how Gillette was able to cluster the heterogeneous market into homogeneous groups:
Benefit segments
Demography
Behavioristic
Psychographics
Favoured Brands
Quality of shave
Executives, working men
Regular and heavy users
High autonomy value oriented
Gilette
Convenience
Employees
Regular and heavy users
Hedonistic high self-involvement
Gilette
Technology/fashion
Teens/youth, mid-level executives
First