Who is the “Gillette role model” that helped Carlos Slim boost one of his most important businesses?

Business man Carlos Slimbusiness owner like America Movil and Grupo Carsoand is considered the richest person in Mexico, in all of Latin America, and one of the richest in the whole world. And it’s this Slim, who according to the latest list of Forbeshas a fortune of 81 thousand 200 million dollars, has been able to lead its companies on the right path, by implementing Strategies that have worked very well for you.

Slim owns the largest telecommunications conglomerate in Latin America, operating companies such as Phones from Mexico (Telmex) and Telcel.

According to the Mexican tycoon of Lebanese origin, it is precisely the sector of telecommunications where he explored a new business model for him. And it is that by entering this market, Slim has reproduced a technique known as Gillette modelalso called Free marketing.

According to the medium BBChe Gillette’s business model consisted of sell the idea of ​​the beauty shave. Through an advertising strategy, the concept that men were more attractive when they took care of the length of their facial hair. Subsequently, the sales plan would enter the offer them razor blades at the highest possible prices.

Agree with To lose weightthe launch of its prepaid mobile telephone system, was baptized Map of Gillette. On the personal blog of the tycoon, who from 2010 to 2013 was crowned the richest person in the world, stunning Bill Gatesit is reported that to increase cell phone sales, he set his sights on this marketing strategyand during a meeting, he made the plan known to all his collaborators.

As explained, the project consisted of offer mobile phone equipment at very low prices, and by selling them at competitive prices, more people will buy them. After that, the second part of the strategy would come in, which was to keep them as consumers of your balance plans.

“We promoted the mobile phones, subsidizing phones to sell phone cards. That was the concept”, can be read on the personal page of the Mexican tycoon. He added that in addition, he was in charge of design attractive packaging to be able to offer them in department stores. He also touted his strategy as unique in the prepaid phone market.

On the personal blog of To lose weight it is explained that launched the system between 1994 and 1995. At this time, the tycoon recounts, there wasn’t much support for prepaid cell phone systems. He added that in countries like Canada and the United States, there were no such alternativessince they were typical of places with the worst economy.

Arturo Elias Ayub, who is married to Carlos Slim’s daughter, Johanna Slim Domit, and director of Strategic alliances and contents of América Móvil, explained on the site Carlos Slim that they needed to develop prepayment technology in-house. He added that in 1995 the company’s telephone division had 35,000 customers, whereas in 2007 it already had 43 million users.

Slim reported that the advantage of his system was that people could buy phone cards according to your budget, and explained that in countries like China and India, it works the same way, because people have little money to invest in telephony and prefer to buy airtime when needed, instead of opt for fixed income plans.

He Gillette model is very common in marketingand there are many cases of companies offering free or low cost trials to connect with customers and later cross-sell, in order to cross-sell to generate greater profitability.