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  • The Razor and Blade Business Model

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    laxman prasad
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    Gillette is a 126 year old company that pioneered the razor and blade business model of selling razors at low cost and making ongoing profits from replacement blade sales. It has grown to be the #26 most valuable brand worldwide with $20.4 billion in brand value, 28,700 employees serving customers in 200 countries through retail channels. The company relies on patents, its strong brand, and IT infrastructure as key resources to implement the razor and blade business model through R&D, marketing, logistics and retail relationships that lock customers into ongoing blade replacement purchases.

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    company overview

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    Gilette

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    Gillette is a 126 year old company that pioneered the razor and blade business model of selling razors at low cost and making ongoing profits from replacement blade sales. It has grown to be the #26 most valuable brand worldwide with $20.4 billion in brand value, 28,700 employees serving customers in 200 countries through retail channels. The company relies on patents, its strong brand, and IT infrastructure as key resources to implement the razor and blade business model through R&D, marketing, logistics and retail relationships that lock customers into ongoing blade replacement purchases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    18 views4 pages

    The Razor and Blade Business Model

    Uploaded by

    laxman prasad
    Gillette is a 126 year old company that pioneered the razor and blade business model of selling razors at low cost and making ongoing profits from replacement blade sales. It has grown to be the #26 most valuable brand worldwide with $20.4 billion in brand value, 28,700 employees serving customers in 200 countries through retail channels. The company relies on patents, its strong brand, and IT infrastructure as key resources to implement the razor and blade business model through R&D, marketing, logistics and retail relationships that lock customers into ongoing blade replacement purchases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 4

    THE RAZOR AND

    BLADE
    BUSINESS
    MODEL l
    COMPANY OVERVIEW
    1901:American Safety Razor Company
    1904:Safety Razor Company First Patent
    1918:U.S government ordered 3.5 million razors
    and 36 million blades to supply all its troops
    2005:Procter & Gamble buy Gillete

    TODAY

    #26 Worlds most valuable brands


    20.4 Billion Dollars : Brand value
    28700 Employees
    200 countries
    60% Market Share Worldwide
    Razor & BLADE MODEL / BAIT & HOOK MODEL

    Invented by
    King.C.Gillette

    499 RS 525- 1690


    RS
    The Business Model Canvas: GILLETTE

    KEY KEY VALUE RELATIONSHI CUSTOMER


    PARTNERS ACTIVITIES
    R&D PROPOSITION PS SEGMENT
    MANUFACTURERS MARKETING
    RAZOR HANDLE LOCK IN
    LOGISTICS MASS CUSTOMER
    RETAILS BLADES
    IT SOCIAL
    MEDIA

    L
    KEY CHANNELS
    RESOURCES
    PATENTS Sales from counter CORE TARGET:
    BRAND Payment by cash MEN (15-65 +)
    IT Payment by Paytm
    INFRASTRUCTURE

    COST REVENUE STREAMS


    STRUCTURE
    Fixed and variable cost of operations
    RAZOR HANDLE PURCHASE
    Marketing cost Publicity and promotion
    Supply chain of goods
    BLADE REPLACEMENTS
    Customization of decor/ambience

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