Clean Edge Razor - Splitting Hairs in Product Positioning

Clean Edge Razor:

Splitting Hairs in Product Positioning

1. What changes are occurring in the non-disposable razor category?

There is a 5% significant growth for non-disposable razor category from the year 2007-2010 which proved Men shavers surpassed the growth in women’s beauty market. Innovation has increased the growth of new super premium segment like advanced pivoting head, Vibrating technology and ultra-thin technology. Consumers purchased non-disposable razors and replacement cartridge more adequately. There were 22 new SKU (Store keeping units) being introduced in 2008-2009.

Every store has to allocate certain space for a commodity. Due to product differentiation, there is high competition for the shelf space. So, the distribution has also shifted outside food and drug store to other stores.

Assess Paramount’s competitive position.

In 2009, study shows that the company made $13 billion sales worldwide and made $7 billion in gross profit, the sales of non-disposable razor in paramount company (U.S) was $170 million in revenue and $92 million in gross profit and operating profit of $26 million.

Paramount holds 21.4% of market share. Paramount has highly competitive environment comprising of major players, Prince (26.2%), B&K (21.1%), radiance (2.6%) & Simpsons (5.7%) as well as other private label brands (23%). Competitive position of paramount’s products are categorized into value, moderate, super-premium

What are the strategic life cycle challenges for paramount’s current products as well as for Clean Edge?

Paramount’s avail is in the declining stage and Paramount’s Pro is in the matured state of the product life cycle. Paramount developed a new product (clean Edge) is in introductory stage for the super-premium category. Competitors are introducing products with new technology, as a result it may cause decline of existing products.

Cannibalization may occur if clear edge is introduced in moderate segment, as per research shows that 60% of clean edge sales would likely come from current pro/avail customers in a mainstream positioning and remaining 35% of clean edge sales come from niche positioning.

1. How is the non-disposable razor market segmented?

Non-disposable razor market is classified based on Price & Quality for the categories of Value, Moderate, and Super Premium. Based on research, consumers are classified into three categories i.e., Social/ Emotional (39%), Aesthetic (28%) and Maintenance shavers (33%).

Discuss consumer behavior for non-disposable razors?

Consumer behavior towards non-disposable razors category is volatile & dynamic in nature. As classified above, Social/Emotional shavers are motivated by overall shaving experience. Aesthetic shavers are more interested in cosmetic results. Maintenance Shavers are completely disinterested in product category. Social/Emotional and aesthetic shavers are always willing to experiment new technology products. Maintenance shavers are always willing to switch brands as well as product category. Most of the consumers purchased non-disposable razors from food and drug stores.