Chapter 15, Problem 2QFT

To determine

Profitability and innovation in Razor industry and advertising expenditure by Gillette and Schick

Concept Introduction:

Razors’ industry Razors industry presently characterizes an oligopoly market structure, where Gillette holds the majority share with other competitors gradually magnifying in the share command like Schick and Dollar Shave Club leading to the complexity and innovation of the industry.

Advertising- It is an important audio visual form of marketing strategy blueprint to create a market value for the product through consumer persuasion to buy the goods. The campaign serves to encourage the potential consumers to purchase the advertiser’s goods/services. Billboards, websites, television, newspaper, radio etc are means to execute the business strategy imbibing elements like geographic location, demographics and income group of the target group, special offers, market share etc. It is broadly classified into three types- Informative, persuasive and reminder.