Gillette, Schick, Fusion, Mach3, Quattro, advertising.

Gillette is convinced that men continually seek a better, closer shave. In the first quarter of 2006, it will launch the Fusion, the first five-blade razor, in both manual and battery-powered versions.

Gillette anticipates spending about $100 million in aggressive advertising to win back market share from Schick, which introduced the four-bladed Quattro two years ago, and which intends to come out with a power-version of the Quattro in the near future. Since 2003, Gillette’s market share has fallen from 86% to 81%, and Schick has picked up that market share, increasing from 10% to 16%.

Gillette has been forced to react to market “needs” more quickly, significantly reducing its product innovation cycle. Gillette went 27 years with only twin blade razors; in 1998 it introduced the Mach3 razor with three blades. In 2003, it introduced the M3 Power, which vibrated over the skin with the help of a battery. However, shortly thereafter, Schick one-upped Gillette by introducing the Quattro, the four-blade razor. Now, seven years later, Gillette leap-frogged over the four-blade razor to push the envelope with the Fusion.

Since its focus groups have indicated that men prefer the five-blade razors to the Mach3 razors by 2-to-1, Gillette has no doubts that people will be willing to pay $10-$15 for a new razor, and $12-$13 for a four-pack of replacement blades.