I love showing that managing product profit growth is not about "raising the price by 5%"

In my view, it's about "how we design the product in the first place"

And here, the story of Gillette's launch in India is almost a textbook case

The folks at Procter & Gamble wanted to grow in India

They sat down, looked at the market, discussed the numbers, and realized a simple thing

If you want a share of the Indian market, you need to reach people with low and middle incomes.

And for that, the premium razor from a presentation with a polished top manager is unlikely to work.

You need one that tough Indian workers are actually willing to pay for


Now pay attention! Watch closely!

The team didn't lock themselves in a meeting room
They didn't brainstorm features on a whiteboard

They spent thousands of hours talking to Indian consumers

Watching how they shave at home
How they choose razors in stores

To..

Break down the future product into two lists:
1) without this, they definitely won't buy
2) nice to have, but not necessary

Then it gets even more interesting!
(I hope)

First, they estimated the target price
(how much money the average Indian is willing to pay for a razor and blades)

And then, based on that target price, the folks at P&G redesigned the razor.

This is the proper approach to pricing:
The product is driven by price and value, not by cost plus margin


To hit the target price, the team reduced the 25 components of the Mach3 to just 4!

(+ they made the handle hollow to reduce cost)

During sprints, they discussed changes that saved thousandths of a cent per unit.

(In IT, we usually wouldn't even create a Jira ticket for such amounts)

Result:

Two years after launch, Gillette Guard captured over 60% of the razor blade market in India and achieved a market share comparable to the US.

The potential market is about 400 million men.

You know what the coolest part is?!

All these customers are now easier to convert to other P&G products - a classic funnel thanks to the cheap "entry ticket"

My applause to the team!

According to recent public data, India is now one of the fastest-growing markets in the shaving category

Procter & Gamble reports double-digit growth rates for the region and specifically emphasizes the strategic importance of the Indian market for Gillette.

They don't disclose exact revenue figures by country, but in reports they directly state the brand's leadership in the mass segment.


The moral for IT is simple:

Instead of endlessly adding features and then propping up a vague product with discounts, start with the segment, target price, and minimal set of "must-have features"

Essentially, you need your own Guard, not another Mach3 for investor presentations.

Don't overcomplicate!
Have a productive weekend