Clean Edge Case Analysis

Owen Carnigie Limarta

Case Brief #1: Clean Edge Case Study

Date: September 26, 2016

1. Problem Statement: 

There is a need for Paramount to consider the Clean Edge’s optimal positioning as a super-premium segment in the context of the entire company and in the market.

2. Situation Analysis:          

Company 

• Paramount is a global consumer product, and a corporate division included Health, Beauty, Cleaning and Grooming.
• In the non –disposable razor and refill cartridges industry, Paramount contributed $170 million in revenue and $92 million of gross profit.
• In both non-disposable razor and refill cartridges, Paramount has both moderate and value segment.
• Paramount sees a need for a segment that focus on technology innovation.
• Paramount created the Clean Edge as a super-premium and technology innovative segmented product. This product includes having a newest design with vibration, and ultra-thin five blades design

Customers 

• There are three categories of shavers, specifically for non-disposable razor users:

• Social/Emotional Shavers (39%): feeling “good” based customers
• Aesthetic Shavers (28%): effectiveness based customers
• Maintenance shavers (33%): products “tuned-out” based customers.

• All of these customers’ categories have the openness to shorten their product cycle.

Competitors 

• Product competitor: waxing, laser for hair removal, disposable-razor, electric shaver, etc.

• There are 4 direct competitors of Paramount’s non –disposable razor products including:

• Prince – market leader for super-premium non-disposable razor market.
• Benet and Klein
• Simpsons
• Radiance-  main competitors of Paramount since they are going to launch the similar products

Context

• Social trend: shaving is a trend in the US culture, there is a believe concept that shaving equals clean and sexy.
• Technology trend: In this globalization era, shavers always try to find the most effective way for hair removal that is not only shave effective, but also cost effective

3. Alternatives

Alternative One: Do Not Launch

Since Paramount is in the great position of market share, it might be a good idea to not launch the product. Moreover, by having Radiance as a direct threat and competitors which is going to launch the same product, it is also supporting to end the plan of Clean Edge in moving forward. However, there are diverse opinions regarding “not launching the products” including: