November 2019
Supplement
HBS Case Collection

Gillette: Cutting Prices to Regain Share

Format:Electronic
| Language:English

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 cutting 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.

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 Spreadsheet Supplement 720-853, November 2019.