1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? 2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors. Non-disposable razor has been experiencing 5% growth per year with refill cartridges growth of 2% per year. The market segments are super-premium (34%), moderate (44%) and value
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MEMO To: Dr. Marlys Mason From: Alyssa Cortez Data: October 5, 2014 Re: Clean Edge Razor-Splitting Hairs in Product Positioning Background Since 1962 Paramount has been regarded worldwide as a respectable and well run company. With major competitors such as: Prince (Cogent and Cogent Plus), Benet (Vitric), The Tempest and The Naiv, it is extremely impressive that they continue to improve within the market. After $13 billion in global sales and over $7 million in profit
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“niche” and “mainstream” strategy will help Paramount to raise its market share in super-premium non disposable razor segment. But the “niche” strategy will enables Clean Edge Razor to contribute profit and at the same time, limit the effect of cannibalizing Paramount’s existing products. Two reasons Randall should use the strategy are presented below: After quantitative analysis, from Exhibit 7 we see the total estimated profit generated by mainstream strategy in Year 1 & 2 is $64 million,
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Business School Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market
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BUSINESS SCHOOL BRIEF CASES 4249 JANUARY 19, 2011 JOHN A. QUELCH HEATHER BECKHAM Clean Edge Razor: Splitting Hairs in Product Positioning On August 9, 2010, a group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount's newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority
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Clean Edge Razor Case Analysis 1. The Non Disposable Razor Market The non disposable razor market can be segmented by 2 ways. Firstly it can be segmented into traditional price/quality segments of “Super Premium’, “Moderate” and “Value’. Secondly it can be segmented by consumer behaviour into “Social/ Emotional”, “Aesthetic” and “Maintenance” shavers. These 3 segments vary in consumers’ intensity of involvement with the product, and the Social and Aesthetic segments consist of involved users
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Product and Market Analysis for the Gillette Fusion ProGlide Disposable Razor Industry/Market The Gillette Fusion Proglide Blade is a product that is positioned in the men’s hair removal niche. This product is primarily targeted at males age 18-50, in other words any male that is of age to grow facial hair. They are marketed for individuals in the middle income range due to it not being a one-use disposable blade. Gillette is not a high end single blade razor either. These razors do not have a specific
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Group # 11 Gillette Mohammad Ali Mughal Sidra tul Muntaha Haider Ahmed Zubairi Ibrahim Ahmed Overview The global razor market appears to be cutthroat, with – according to Gillette – a reservoir of around 1.6 billion men in the habit of shaving. For Gillette however, the opportunity to sharpen its proposition on grooming represents only part of its global brand strategy. So if you thought that Gillette was a business somewhat limited by growth opportunities, prepare yourself for
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Arguments for launching Clean Edge as a niche product A primary of launching the Clean Edge as a niche product is that the company would incur a lot less cannibalization of its Pro and Avail product lines, which allowed Paramount to capture the unit-volume market-leader position in 2009. Though a cannibalization rate of 35% is expected with the launch of Clean Edge as a niche product, the rate is significantly lower than the 60% expected if Clean Edge was positioned as a mainstream brand. As Rosenberg
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Lindo Enterprises is one of the small-scale industries which has established and positioned their product in the market. They are in the business of processing raw seafood into a packed-snacks. Their financial data had shown an increasing sales and profit year after year since 1998. However, they are faced with a challenge of maintaining their competitive advantage and market position through a sustainable 10% annual growth rate for the next five years. Achieving this target would require the considerations
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