Men’s Shaving Gel, Beer, Shampoo, Shredded/Grated Cheese, Refrigerated Orange Juice, Men’s Razor-Blades, Women’s Razor-Blades, Toothpaste, Canned Soup, Coffee, Potato Chips, and Alkaline AA Battery are among the twelve studies that have attempted to analyse the competitive profile of US consumer markets.
Porter associates a large market share with a cost leadership strategy, which is based on competing on a lower price than the competitors. Customer perception of quality, rather than low cost, should be the foundation of competitive strategy, since it is considerably more important to long-term competitive position and profitability than any other element. As a result, a superior alternative is to provide greater quality in comparison to the competition.
In most consumer markets, a company seeking market share leadership should target the middle class by competing in the mid-price segment and providing quality that is superior to that of the competition: at a slightly higher price to convey a sense of quality and to ensure that the strategy is profitable and long-term sustainable.
Quality, on the other hand, is a tough term for most people to grasp. As a result, people frequently utilise relative price and a brand’s reputation as indicators of quality.
In 2008, the overall sales of men’s gel in the United States were $ 131 million. We discovered that the 7-oz Gel was the most popular size, with $116 million in sales in 2008. As a result, we’ve concentrated our investigation on this bundle.
We evaluated two hypotheses using Hierarchical Cluster Analysis: (1) that the market leader is likely to compete in the mid-price group, and (2) that its unit price is likely to be greater than the nearest competitor.
For 2008 and 2007, the results supported both Hypothesis I and II. The mid-price segment included both the market leader Edge and the runner-up Gillette Series. Furthermore, the unit price of Edge was higher than that of Gillette Series, as we have hypothesised.
We found that relative price was a strategic variable, as hypothesised.
We also discovered five strategic groups in the industry.
Author (S) Details
College of Business, Northern KY University, Highland Heights, KY 41099, USA.
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