Pricing:

From the survey we found that though Indian customers are willing to try new products, they are also price conscious. Gillette has to be very careful while deciding upon the price of the product. 77% of the customers are not ready to pay more than Rs.400 for its manual variant. However, it has to be separated from Gillette Mach 3 which comes at Rs.325 in Indian Market. This needs to be done in order to reduce the cannibalisation of Mach 3 market. Fusion also has got more than 60 patents and this would be a sufficient reason for charging a premium. Therefore, we recommend the price of fusion manual variant to be in range of Rs.380 to Rs.400 for Indian market. This price is also justified as Gillette has a tradition of going for captive pricing and hence they can keep price of cartridge a little higher. Battery operated variant would target niche market and would be a premium product. It would cater to a very small segment and hence premium can be charged on this product. It has got additional features and it has to be positioned such that there is no overlap of target market for both the variants. We would recommend the price of battery operated variant to be in range of Rs.500 to Rs.520. This is inline with the price of this product in US market.