Essay about The Merger Between Gillette and Procter and Gamble

2269 Words 10 Pages
"This merger is going to create the greatest consumer-products company in the world … It's a dream deal." Warren Buffett

"This was two companies with great products, strong management and terrific business models coming together to create arguably the best consumer product company in the world" Michael Barbaro, Washington
Post[1]

Introduction:

The merger between Gillette and Procter and Gamble is indeed a strategic move on the part of both parties. It is a corporate marriage creating a union between male and female product lines; a contract valued at more than $55 billion dollars. [2] Commanding virtually the entire market, Gillette has been the world leader in the production of razors and other shaving products. In
…show more content…
The blades needed frequent sharpening and after awhile, they became too worn to sharpen.
Gillette realized the tremendous potential for a blade that would simplify the shaving process.

For six years, Gillette attempted to engineer a disposable razor.
Many metallurgists scoffed at Gillette’s idea and asserted that it would be nearly impossible to manufacture steel that was durable yet tenuous, but inexpensive enough for a commercially disposable razor blade. In 1901, Gillette met MIT graduate, William Nickerson, who held a degree in mechanical engineering. In 1901, equipped with
Nickerson’s engineering acumen, Gillette developed a manufacturing process that made the production of inexpensive razor blades economically possible. The razors hit the market in 1903 and by
1905; their first international operation was established in London.

The company ingeniously marketed its self-shaving products by selling shaving kits to the US military during WWI.[5] When the war ended,
Gillette strategically used advertisements to ensure the soldiers did not lose the habit. The company’s advertisements slowly built the brand image and established a clear association between shaving and
Gillette.[6]

During the 1930’s Gillette decided it was time to expand its product mix. They introduced lather shaving cream and pioneered the electric razor. Gillette began to diversify in 1948 with the purchase of Toni
(beauty/personal care

Related Documents