Essay Sample on US vs India Income: Low-Income Consumers Shifting to Unsafe Razors

Introduction

The United States and India have different income levels. Research provides that India is ranked among the low-income states compared to the United States. For this reason, low-income Indian consumers tend to be more conscious of spending their money. Since most of them cannot purchase Gillette high prices, they tend to shift into using double-edged and outdated shaving techniques, which require minimal prices; this consequently exposes them to razors that are not safe (Sebastian, 2013). On the other hand, US high-income razor buyers tend to be cautious about razor features and conveniences, making them more willing to purchase Gillette premium products regardless of their higher prices.

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Similarly, while shaving, razor buyers in the United States use a lot of running water compared to razor users in India who mostly lack running water and, therefore, use less water as they shear sitting on the ground sometimes with no mirror.

Also, the United States men tend to prefer shaving regularly unless those interested in growing a mustache compared to Indian razor users who mostly don’t shave regularly.

In the United States, most of the consumers spend on status symbols compared to Indian consumers in which their purchase isn’t based on status.

How did Gillette’s product development process differ from the Gillette Guard compared to its previous product development processes?

The technique implemented towards Gillette Guard development differed from earlier processes of production. In this case, the reverse innovation procedure was implemented. Research holds on the notion that while Gillette makes improvements on previous models to create newer products, there are consequent improvements in the developmental processes, therefore, giving the company a competitive advantage over other firms with similar products. An example includes, “the Gillette Fusion Pro Glide” (Sebastian, 2013). Similarly, Gillette Guard development acted as a pathway through which Gillette could begin building cost-effective products for Indian consumers. It was developed as an innovative way for families with lower incomes to purchase razors at an affordable price. Research reveals that in 2010, roughly 50% of Indian consumers adopted the use of Gillette Guard in approximately six months. In this case, the company studied Indian male consumers and their preferences, which helped ensure the products' accessibility in targeted markets. The Guard was modified towards offering hassle and cut free shaves for Indian consumers at a cost-effective price since most of them are price-conscious.

Should Gillette release the Gillette Guard in the U.S.? Should it release the product in other low-income countries besides India?

Gillette Guard's introduction into the American razor business would present more harm than good to the company and should, therefore, not be released in the United States. For instance, due to its reduced price, more consumers will be willing to use Gillette Guard, which would stagnate the high margin merchandise sales example, the Pro Glide and Mach 3. Similarly, research holds that most American consumers have high expectations from brands such as Gillette, and most consumers would, therefore, be unwilling to stop using high-quality merchandise (Michael, 2016). The Gillette Guard may also not be effective in meeting the quality needs of consumers in the US. In such cases where consumers do not embrace the newer razor, Gillette's image can be damaged.

However, the Guard should selectively be released in other low-income states, for instance, Indonesia and China. This will help do away with irritations and discomfort associated with traditional shaving techniques used by consumers in such low income countries. Similarly, the lower price of the Gillette Guard is affordable by most individuals, which guarantees its progress in such countries.

How has the internet enabled new competitors like Dollar Shave Club? Why doesn’t Gillette just replicate the model of low cost razors similar to the ones it is selling in India?

The internet acts as a pathway through which Dollar Shave Club can offer monthly replacement of four razors among other male grooming merchandise. In this case, consumers subscribe to the firm's social media platforms through which they can view and order products, which is not only simple but also fun. Similarly, the internet has contributed to DSC’s success by making it easier for the firm to reach a greater number of consumers directly through media platforms, for instance, consumers can receive ordered products through mails without necessarily going to stores (Sebastian, 2013). In turn, this makes consumers reluctant to shop in other companies providing similar products, which gives DSC a competitive advantage. Similarly, through the internet, the DSC Company can easily pay attention to their subscribers and their complaints. After which issues can be addressed, the shaving products are cheaper, and the company offers other bonuses such as shaving cream, among others, which are appealing to consumers.

As a result of increased competition, research provides that over the years, Gillette has reduced razor prices by approximately more than 15%, which threatens its rank as a master brand. However, Gillette does not replicate the model of low cost razors due to the fact that the lessons observed in India's markets do not necessarily apply or act as a guarantee for progress in other low-income countries.

Gillette just launched a new Barber like Shave at Home at CES 2019 (Consumer Electronics Show) in Las Vegas. Below is the new ad campaign highlighting that its product is one of the Best of CES 2019, and here is a VIDEO that explains how the new razor works.

The introduction of allowances and discounts by the company, including lowering the product's price by a certain percentage for a short time. This will, in turn, allow more consumers to buy and familiarize themselves with the new product, therefore, making the product popular.

The marketing channels should be expanded. For instance, e-commerce which involves selling to consumers directly via online platforms and also reaching out to consumers through wholesalers and retailers throughout India (Michael, 2016). This ensures easy and quick accessibility of the product to consumers regardless of their locations. Similarly, movie stars and bloggers, among other influential individuals skilled particularly in using persuasive methods, can also be hired to help in advertising. This increases the acceptability of the products by consumers, which further guarantees its progress.

Its social media platforms should be user-friendly, which includes allowing consumers to observe the merchandise from different angles. When buyers become satisfied with the services provided by certain firms, they become more willing to buy products. Similarly, the firm should analyze consumer’s feedback and make changes where need be.

Works Cited

Bruno, Michael Hal. "Blade support for multi-blade razor cartridges." U.S. Patent No. 9,308,657. 12 Apr. 2016.
https://files.transtutors.com/cdn/uploadassignments/545569_2_gillette.pdfhttps://www.youtube.com/watch?v=iu6lQS5GAy4

Eagleton, Christopher Raymond, and Christopher Martin Hawes. "Razor Cartridge Guard Structure." U.S. Patent Application No. 14/948,982.

Sebastian, John. "Gillette: The 11-Cent Razor, India, and Reverse Innovation." (2013).