strategy for Gillette as it sought to promote a higher-priced product to consumers who had already become comfortable with purchasing the convenient disposable razors. The risk paid off for Gillette as the company saw sales of the higher-priced shaving systems increase along with their expensive replacement cartridges.
In the United States, the company followed the same strategy that had worked in Europe; that is, the company began emphasizing its shaving systems over its disposable razors. However, the company also introduced the Sensor razor in 1990. The Sensor has 17 patents protecting it, and uses a new technology to produce a smooth shave. The Sensor uses twin blades floating on tiny springs in order to "hug" the contours of the skin. The company priced the razor at $3.30 (compared to an average 40 cents for disposables) and cartridges at 70 cents each (Chakravarty, February 4, 1991, p. 84).
Worldwide sales of the Sensor reached more than 120 million by early 1994, with more than 50 million razors purchased by Americans. Sensor blade cartridges had topped 2.1 billion by the same time, accounting for a considerable contribution to sales and earnings during the early 1990s (Miller, January 3, 1994, p. 25).
Initially a participant in the razor and razor blade industry, the company added businesses that are outside of the personal grooming area. The company acquired Braun from its Germany-based owner in 1967. At that time Braun was essentially a German company with some export business. A consent decree prevented Gillette from bringing Braun's electric shavers into the United States until 1986, although the company's other products could be introduced prior to that time (Chakravarty, February 4, 1991, p. 84). In the meantime, Gillette built up Braun's appliance business by adding coffee makers, coffee grinders, hair dryers and dental hygiene products. Gillette built on Braun's reputation for technology and quality,...