GILLETTE VS SCHICK

Gillette filed its latest lawsuit against Edgewell Personal Care Co (EPC.N) roughly six
months after slashing razor prices an average of 12 percent to keep rivals such as Schick,
Harry’s and Dollar Shave Club from cutting into its still-dominant market share for men’s
razors and blades.

In a complaint filed in the federal court in New Haven, Connecticut, Gillette said Schick
willfully infringed its 2015 patent for a removable shaving cartridge assembly by designing
Hydro Connect 5 and Hydro Connect 5 Sensitive cartridges to fit Fusion razor handles
.Gillette said this has caused “irreparable harm” and justifies that Edgewell pay royalties and
triple damages .P&G said it also filed a complaint with the U.S. International Trade
Commission seeking to block Edgewell from importing infringing products from China.

Edgewell declined to comment, saying it was still evaluating the complaint, which was filed
in the early afternoon .The case was brought four months after Edgewell launched an online
subscription service to sell Hydro Connect 5 cartridges that could fit Fusion handles, and
Hydro Connect 3 cartridges that could fit Gillette’s Mach3 handles. Gillette separately sued
Edgewell in August 2016, claiming it falsely marketed a line of private label three-blade
razors and cartridges as being “as good or better than Mach3.
 BACKGROUND OF COMPANY

GILLETTE COMPANY : Gillette is a brand of safety razors and other personal care products
including shaving supplies, owned by the multi-national corporation Procter & Gamble
(P&G).Based in Boston, Massachusetts, United States, it was owned by The Gillette
Company, a supplier of products under various brands until that company merged into P&G
in 2005. The Gillette Company was founded by King C. Gillette in 1901 as a safety razor
manufacturer .Under the leadership of Colman M. Mockler Jr. as CEO from 1975 to 1991,
the company was the target of three takeover attempts, from Ronald Perelman and Coniston
Partners. On October 1, 2005, Procter & Gamble finalized its merger with the Gillette
Company.

SCHICK COMPANY : Schick was founded in 1926 by Jacob Schick as the Magazine
Repeating Razor Company.[1] That same year, Schick introduced its highly successful single
blade safety razor system, that stored twenty blades in a steel injector.[2] Schick sold the
company in 1928 to start another unrelated company bearing his name which marketed his
newly invented electric shavers .While second in sales to Gillette globally, Schick is the top
selling brand of safety razors and blades in Japan.[3] The Schick brand is used in North
America, Australia, Asia and Russia. In Europe, Edgewell sells the same products under the
Wilkinson Sword brand. Schick also markets shaving gels.
EXPLAIN THE DECEPTIVE ADVERTISING PRACTICE MENTIONED IN THE CASE
.WHY IS IT CONSIDERED DECEPTIVE?

Deceptive advertising is officially defined by the Federal Trade Commission (FTC) as a

representation, omission or practice that is likely to mislead the consumer and "practices that
have been found misleading or deceptive. Here are some examples of deceptive and unethical
advertising practices and scams

Hidden Fees such as, the advertising is not fully disclosing the true cost of the item. You
may see an ad for a computer or tablet that says "Only $99!" and you can't wait to go into the
store and buy it or order it onlineIn short, bait and switch is when the advertisement entices
you with a product, but makes a significant switch when you go to purchase it.

For instance, suddenly the laptop you wanted is not in stock, but there is a different one that
is lower spec and costs twice as much. Chances are that the original laptop was never in
stock, or at least, not for the price advertised.

Misleading claims use tricky language to make the consumer believe they are getting one
thing when they are in fact getting less (or paying more). A British TV show called The Real
Hustle had a great example of this in action.

Ambiguous or "Best Case Scenario" Photography is a another way of cheating people is to

take photographs of the product being sold, but in a way that makes them seem way better
than they are. Shady hotels have often used this technique to make the rooms look bigger, by
setting up the camera in the corner of the room and using a fisheye lens.
WHAT ARE THE MISLEADING ADVERTISING MESSAGES AGAINST P&G’S
PRODUCT? GIVE EXAMPLES.

Procter & Gamble Co. filed a lawsuit today alleging that Edgewell Personal Care Co., a rival
of P&G’s Gillette razor division, engaged in false advertising, unfair competition and patent
infringement as well as deceptive acts and practices.

The suit filed in U.S. District Court in New York centers on what the Cincinnati-based
company (NYSE: PG) stated were false claims made against Gillette’s three-bladed Mach3
razor .Multiple patent violations are also alleged in the suit, which focuses on Edgewell’s
three-bladed private label razors. St. Louis-based Edgewell (NYSE: EPC) sells the razors in
major grocery stores, pharmacies and other U.S. retail outlets. Its brands include Schick and
Wilkinson Sword razors

In early July, weeks after the expiration of patents assigned to P&G, men’s razor cartridges
made to fit Mach3 handles were introduced across the country under various different names
that P&G collectively referred to as Schick PL. All were made and distributed by Edgewell,
according to the suit. The labeling included claims that Schick PL “shaves as good or better
than Mach3” and that Schick PL “lubricating gel with vitamin E and aloe (results in)
reduce(d) irritation.”

“These comparative claims are false and misleading as Schick PL does not shave as good or
better than Mach3 and does not result in reduced irritation compared to Mach3,” the suit
stated. Replacement razor cartridges made and distributed by Edgewell contain labels that
note they fit the Mach3 razor handle, the suit stated.
HOW CAN EDGEWEL RECTIFY THE SITUATION? SUGGEST AN ALTERNATIVE
PROMOTION TOOL FOR EDGEWELL.

Edgewell Personal Care Could Attract Buyer With Deep Pockets.P & G’s move to cut prices
on some razors in its Gillette business has put pressure on shares of smaller rival Edgewell
Personal Care, the owner of Schick.

Edgewell’s stock (ticker: EPC) has dropped more than 10% since P&G (PG) announced the
price cuts in February. They took effect about a month ago, and apply to Gillette’s men’s
razors and blades in the U.S.
DISCUSS THE ADVANTAGES OF HAVING A PRESS RELEASE INSTEAD OF AN
ADVERTISEMENT .

1. Increased Sales Potential

Aside from bringing credibility and allowing you to stay in the public eye, press releases can
also boost your profit margins, by highlighting the most remarkable key benefits and features
of your products that position your merchandise on top of any other alternatives currently
available on the market

2.The Opportunity to Brand Yourself as an Industry Expert

Public statements are an extraordinary method to manufacture trust and validity in your field
of action. A phenomenal PR battle will offer you the opportunity to mark yourself as a high-
specialist craftsman/entrepreneur and underline the remarkable qualities of your items

3.You can boost your company’s visibility.

This is particularly significant for independent ventures, however even vast companies need
to battle for purchaser mindshare. By adhering to a long haul public statement appropriation
system, you let clients know your identity, what you do, and why they need you. You
additionally gain the consideration of writers, and after some time, they begin to confide in
you more and give you more media inclusion

4. Investors keep up with the news too

Press releases highlighting the successes and advancements made by your company can be
powerful tools for attracting investors. Make sure to set up an online news room on your
website for investors to browse through.
CONCLUSION

In many ways, Gillette and Procter & Gamble are in an enviable position. Gillette’sproducts
dominate the global wet-shaving market. The company continues to grow,although slowly, in
every worldwide market. Still, many industry analysts wonder ifGillette has reached the end
of its historical innovation in wet-shaving technology.Thus far, Schick has not responded to
the Fusion with a breakthrough innovation ofits own. Given that the wet-shaving market is
mature, Gillette must depend oninnovation to perpetuate its dominance (whether in product
design or marketing),as well as create an appeal that entices customers to try and purchase its
products.By aligning that appeal with what customers value, Gillette has the potential
toestablish a position of long-term product maturity and market dominance. In thatposition, it
won’t matter how many blades a competitor puts on a razor