Monday, November 23, 2009

Segmentation, targeting and positioning of Gillette Mach 3 Turbo

Market Segmentation

Gillette Mach 3 Turbo has been particularly produced for higher income consumers. Thus, we see that income segmentation has been the main factor when Gillette decided to segment the market. Mach 3 Turbo has also been successful in those countries where the major segment of the population considers shaving to be a desirable activity and the means to look clean and sophisticated for example India and America. Thus, this type of international segmentation has also benefited Mach 3 Turbo. Another interesting to note is that, Gillette after seeing the success of the Mach 3 Turbo, decided to offer a similar product for women. Thus, Venus Power came into existence. So, Gillette also gender segmentation.

Target Marketing

Gillette Mach 3 Turbo’s market segment has proved to be extremely attractive and profitable for the company. The segment size is increasing at a rapid pace in India and America. Furthermore, the segment is made more attractive because of the fact that there are no strong and popular competitors of Mach 3 Turbo. This has provided Mach 3 Turbo with a lot of market power.

Substitute products like shaving machines are not considered as suitable enough to replace Mach 3 Turbo. The high price of Mach 3 Turbo proves that customers do not have enough power to reject the product and that the company is in a far stronger position than its suppliers and its customers. The company’s objective that Mach 3 Turbo should be considered by the customers as the best shaving product has been complimented by the investment of a lot of money in the product in terms of increased promotion and advertising.

Selecting Target Segments

Mach 3 Turbo’s marketing strategy was differentiated marketing from the beginning. Gillette wanted to differentiate it from other shaving products and to target several market segments. Some segments purchased Mach 3 Turbo because of the income factor. Some did because of their preferences and particular lifestyles. Gillette converted Mach 3 Turbo into Venus Power just in order to cater to the segment of women users. So, Gillette designed separate offers for different market segments.

Positioning for Competitive Advantage

Mach 3 Turbo’s position in the market place is extremely strong and secure. Consumers definitely consider it a superior shaving product compared to other products. One can definitely say that it occupies a unique position in the minds of those consumers who want to have an extremely close and smooth shave.

If we analyze the position of Mach 3 Turbo on a positioning map, we will see that due to its higher price, it will be situated on the upper portion of the map. As far as luxury and performance are concerned, Mach 3 Turbo is more inclined towards performance due to its three blades and other product features. These product features have provided Mach 3 Turbo with a strong competitive advantage. The value proposition of Mach 3 Turbo is definitely “more for more”. Extra product features have prompted Gillette to charge a higher price. Finally, I think that Mach 3 Turbo’s positioning statement should be:

“To those people who want to get up in the morning with a desire to succeed in this world, Mach 3 Turbo is a three blade shaving product with extra features that allows you an extremely smooth and close shave which lasts for the whole day”.