Braun Case Study

RE: Braun Case Study

Chairman Bernhard Wild stated in his concern regarding the risk for new and true innovations, “When a product is really new it takes courage. People don’t know what they want so Braun needs to create the need and expectation.” At Braun, they were driven by technological innovation, not price competition. This is supported by the core values of Braun design. So pricing is secondary.

Braun needs to think globally when evaluating the introduction of the Syncro Shaver and its accessories. It is obvious there are differentials in what would attract customers in each global market. People’s wishes and expectations differ from one region to another, so Braun has to try and reduce these differences. In defining the type of customer, packaging and positioning of Braun’s Syncro Shaver we must differentiate by market regions. They are identified as follows:

• Japan – The combined shaver/cleaner center would be most attractive to the Japanese consumer. They had taken a liking to the National/Panasonic washable shaver whereas you could hold it under the faucet and rinse the dirt from the head. The popularity produced a sharp increase in sales which caused slippage in Braun’s market share. Braun knew it needed to design a better product, not just match the competition. The target group in Japan is those who currently own washable shavers or own existing Braun shavers. The focal point of the marketing would be one of gaining a close shave without the risk of infection. Pricing should be competitive with Panasonic with the emphasis on value units. Value is what the Japanese want. The positioning of the product will increase back to 1995 and 1996 value and units. It is very difficult to change position in a market where two products compete.

• Germany – Braun first tested the new concept in Germany where Braun was trusted. The research indicated that based on the interviews with high-end users, the cleaning center concept would be purchased by half. Again, due to trust, price would not be a factor. But would the trust be compromised by giving the customer the idea that “you just put the shaver in, that’s all.” There is more to this than just putting the shaver in; the puck will need to be purchased and it is an accessory that has yet to be introduced. I would sell both products separately based on only half saying they would purchase the cleaning center. Otherwise the trust will be compromised leading to lower sales.

• Europe – Europe tends to follow the German market. Again, the competition was between two vendors, Braun and Philips (Norelco). Based on the European market share, Philips and Braun are neck and neck in units and value. Braun must maintain this by introducing the shaver and the cleaner separate and seeing if the shaver innovation gives the them market share edge in Europe and monitor the sales of the clean to see if you could eventually marry the two as one sale item

• US – ah yes, the fickle US. Where it is all about choice and price. Both need to be sold separate and it needs to have an incentive to buy both. So here is my far out idea. Braun is the high end user, no different than Lexus is to Toyota, Acura is to Honda. Millions of men relate shaving to Gillette, more so than to Braun. I will almost guarantee that if Gillette created a two tier shaver market, one high and the other for the average male. Shavers are a market where you have got to “reel the customer in” to try it at least once. If you like the shaver, people will tend to upgrade as they move up in life.

The Syncro shaver can help regain Braun leadership in this industry by sticking to its core values of Braun design. This helped Braun to become the leader in oral care product and small appliances, such as coffee makers. Together with business management