Interesting positioning. Of course depends on the category of product that we are talking about, and what kind of experience exists today in their Moments of Truth (MOT) ... (Market, Choose, Use) for given demographics of demand. I like the points being made. Continuing to think in terms of this.
Product is No Longer King by Robert Hetu in the Gartner Blog
The old saying “product is king” is no longer true for retail. Experience is king, and product is a critical component of experience, but consumers increasingly determine the value provided by the associated experience. This is seen by the transition toward click and collect, home delivery, auto-replenishment, in-store entertainment and the growing use of subscription services.
Gillette has lost U.S. market share for six straight years. Its share of the men’s-razors business fell to 54% in 2016, down from 59% in 2015 and more than 70% in 2010 (http://www.foxbusiness.com/markets/2017/04/04/gillette-bleeding-market-share-cuts-prices-razors.html). This was driven by low cost subscription services Dollar Shave Club, Harry’s Razors, and others.
Cost plays an important role in this shift, and quality remains a key element, but experience is a major driver and was a well known problem in the industry. I recall having a discussion back in the 1990’s with someone from one of the major blade manufacturers. At that time it was explained to me that men used the first 3 razors from a 4-pack in rather short order. They however tended to use the 4th razor longer than the combined usage time from the first three. The problem they faced was how to get men to use the 4th razor for a similar time span and then to purchase the next 4-pack, representing a huge sales opportunity. They never solved the problem. .... "
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