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  • November 2019
  • Case
  • HBS Case Collection

Gillette: Cutting Prices to Regain Share

By: Benjamin C. Esty and Daniel Fisher
  • Format:Print
  • | Language:English
  • | Pages:18
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Abstract

After losing market share to low-priced competitors such as Harry’s and Dollar Shave Club for several years, Gillette decided to fight back by launching new products and increasing advertising. When these efforts failed to stem the losses, Gillette decided to cut the prices on its razors and blades in April 2017. Bonnie Herzog, an equity analyst at Wells Fargo, must assess how the recently announced price cuts are likely to affect Gillette’s earnings and its parent company’s earnings (Procter & Gamble owns Gillette). As part of her analysis, Herzog must estimate the price elasticity of demand for Gillette’s razors and blades. The case contains scanner data which allows students to calculate both price elasticities for a sample of Gillette products, and sufficient data to estimate the financial impact.

Keywords

Marketing Strategy; Product Positioning; Business Strategy; Competition; Price; Public Equity; Retail Industry; Consumer Products Industry; United States

Citation

Esty, Benjamin C., and Daniel Fisher. "Gillette: Cutting Prices to Regain Share." Harvard Business School Case 720-378, November 2019.
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • November 2019
    • Faculty Research

    Gillette: Cutting Prices to Regain Share

    By: Benjamin C. Esty and Daniel Fisher
Related Work
  • Gillette: Cutting Prices to Regain Share By: Benjamin C. Esty and Daniel Fisher
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