...in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable razor category? Assess Paramount's competitive position. What are the strategic lifecycle challenges for Paramount's current products as well as for Clean Edge? What changes are occurring in the non disposable...
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...Clean Edge Razor: Case Analysis Cheryl Lam Professor Linda Reeser MKTG 2030 S Tuesday, March 4, 2014 Executive Summary With the U.S. razor market expanding at such a rapid rate, choosing the right strategy to market a product to consumers is critical. A current market leader in the U.S. razor market, Paramount, is facing some difficulty with deciding which marketing strategy to implement in order to maximize profit. The solution that the company must choose should result in an opportunity for growth for their new line, Clean Edge, with as little loss of sales to their other product lines as possible. In order to do this, the company must use a niche marketing strategy. By doing so, they will be able to reach the growing market that is looking for super-premium razors, an area in which they are not currently targeting, and release a product that competes with the most populated segment within non-disposable razors. By doing this, Paramount will be in line to becoming the market leader, not just in unit sales but also in dollars. Paramount must focus on specifically targeting the social/emotional and aesthetic shavers as they represent a large percentage of non-disposable razor users and have beliefs and values that are in line with the image that Clean Edge is trying to portray. This will result in a more loyal consumer base and create more brand loyalty as consumers will feel as though they have a closer relationship with the company and their needs are being fulfilled. By...
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...the non-disposable razor category? Assess Paramount's competitive position (compare profit, positioning, and threats for the competition). What are the strategic life cycle challenges for Paramount's current products as well as for Clean Edge? Changes in Non-Disposable Razor Category: The non-disposable razor category has seen changes in the recent years. A 5% growth per year from 2007 to 2010, attributed to innovations and product introductions, has to be the biggest change that the category has seen. Advertising expenditures increased dramatically for several non-disposable razor companies over the last couple of years because of the need to promote new benefits from advances in razor technologies. Changes in retail channel distribution have also been noted in the category. Male-grooming products seemed to be a bright spot in the industry from 2007 to 2010 and the segment saw more growth because shaving became more than just shaving – it started to include body spray, shower gel, etc. Channel distribution for the razor category has become increasingly important, with the recent re-introduction of Old Spice; there has been quite the demand for male-grooming products. Competitive Position: Paramount has established itself as a global consumer products giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962. Paramount established itself as unit-volume leader in 2009 based on non-disposable razor sales...
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...leading name in consumer’s Health, Cleaning, Beauty and Grooming, is all set to launch a new non-disposable razor with cutting edge technology aims to improve men’s shaving experience. Developed after a thorough research & development, the design is technologically superior, and provides superior performance by the use of a vibrating technology. Being the market leader in the non-disposable razor market segment, the launch is expected to propel Paramount into extending the market leadership. The issue at hand is the decision regarding this product positioning, either to market it as a niche product targeting highly involved fastidious groomers looking for superior shaving experience or as a main stream positioning focusing on the broad advantage of the closet possible shave. The case study leverage on the economic analysis, where a simple pro forma income statement that took into account the effects of cannibalization were produced, coupled with consideration from various marketing methodology including the Porter’s 5 Forces and Strengths, Weaknesses, Opportunity and Threat (SWOT) Analysis, besides outlining the contingency to support various scenarios, in recommending the product positioning, brand name to adopt and budget recommendation, striving towards a sustainability future for Paramount. 2.0 Case Summary The U.S. razor market could be categorized into non-disposable...
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...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 Clean Edge? The non-disposable razor category has seen changes in the recent years. * Advertising expenditures increased significantly for newer and smaller players to grab the market share whereas established players did not increase it significantly. * Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market 2. 5% growth per year from 2007 to 2010, attributed to innovations and product introductions. * Diversified as better margin derived from the product brought in retailers in the form of club stores and other stores. Competitive Position: * Global Consumer Product Giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962 * Respected brand in non-disposable razor market. * 23.3% market share by volume of overall non-disposable razor unit and market leader in moderate non-disposable razor unit both by volume and dollar. * New players with technologically improved products posing a threat to Paramount. Strategic Life Cycle Challenges: Clean Edge Razor – based on superior technology and 5 blade design would give enormous boost in sales provided the product does not cannibalize the existing non-disposable...
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...company specializing in shaving products and accessories, is planning to launch a new non disposable razor “Clean Edge”. The company feels that this would be a revolutionary product Paramount needs to establish themselves as an innovative leader in the market. While the existing products by paramount come under the value and moderate product market segment, the company is planning to launch “Clean Edge” in the super premium segment. The problem that they face right now is the decision on how to position “Clean Edge” (niche market or mainstream market) keeping in mind the position of existing products offered by Paramount, Branding and the marketing budget required to introduce the new product in the market. ------------------------------------------------- Calculation for deciding the positioning of CLEAN EDGE RAZOR | | | NICHE | MAINSTREAM | | | YEAR 1 | YEAR 2 | YEAR 1 | YEAR 2 | Calculation for Contribution of Razor | | | | | | Volume of Razor | Units | 1000000 | 1500000 | 3300000 | 4000000 | Sale price for the company | $ per unit | 9.09 | 9.09 | 7.83 | 7.83 | Production Cost | per unit | 5.00 | 5.00 | 4.74 | 4.74 | Total Sales of Razor | $ | 9,090,000.00 | 13,635,000.00 | 25,839,000.00 | 31,320,000.00 | Total Variable Cost | $ | 5,000,000.00 | 7,500,000.00 | 15,642,000.00 | 18,960,000.00 | Total Contribution (Razor) | $ | 4,090,000.00 | 6,135,000.00 | 10,197,000.00 | 12,360,000...
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...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 Clean Edge? The non-disposable razor category has seen changes in the recent years. * Advertising expenditures increased significantly for newer and smaller players to grab the market share whereas established players did not increase it significantly. * Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market * 5% growth per year from 2007 to 2010, attributed to innovations and product introductions. * Diversified as better margin derived from the product brought in retailers in the form of club stores and other stores. Competitive Position: * Global Consumer Product Giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962 * Respected brand in non-disposable razor market. * 23.3% market share by volume of overall non-disposable razor unit and market leader in moderate non-disposable razor unit both by volume and dollar. * New players with technologically improved products posing a threat to Paramount. Strategic Life Cycle Challenges: Clean Edge Razor – based on superior technology and 5 blade design would give enormous boost in sales provided the product does not cannibalize the existing non-disposable razor segment...
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...market leader in the global non-disposable razor market, a position it has held for more than 50 years. As of 2009, the company had $13 billion in worldwide sales and $7 billion in gross profits and revenues. Of that revenue, non-disposable razors and refill cartridges accounted for $170 million in revenue and $92 million in gross profit, with operating profit of $26 million. Paramount has two disposable razor products, the Paramount Pro, placed in the moderate segment of the product market and the Paramount Avail, a value offering in the market. The two combined make up 23.3% of the company’s share of the industry. Additionally, the shaving market is divided into three categories of “shavers”, each with unique needs from their razor. These are: maintenance shavers, social/emotional and aesthetic shavers. Recently, Paramount developed a new non-disposable razor, Clean Edge. With a new design, the Clean Edge offers scientifically proven, superior performance as it utilizes a vibrating technology to stimulate hair follicles and lift hair from the skin, which allows for a more thorough shave. Paramount is now faced with two options in introducing the Clean Edge razor in the market. With its innovative new features, Clean Edge will be priced in the “super premium” segment of the market. Competitor Overview Paramount’s competition consists of both direct competitors as well as substitute products. Substitute products include disposable razors, electric shavers, depilatory...
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...Clean Edge Razor: Splitting Hairs in Product Positioning Group AE1: Abhinav Singh (14S601) Anima Tapadiya (14S607) Dushan Garg (14S616) Niharika G (14S628) Raviteja Palanki (14S636) Prem Sharath (14804) Q.1. What changes are occurring in the non disposable razor category? Assess Paramount’s competitive position. Changes occurring in the non-disposable razor category: Consumers are increasingly becoming aware of technology and are demanding for technologically advanced and innovative razors. The market is growing at the rate of 5% approximately from 2007-10. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. To cater to this increasing demand, 22 new stock keeping units were introduced between 2008 and 2009. Initially, the distribution of non-disposable razors was limited to traditional food and drug stores. But over the years from 2007 to 2010, the distribution started to shift towards mass merchandisers and club stores. Paramount’s Competitive position: Paramount presence is in the moderate and value segments. Paramount’s products Pro and Avail were currently not able to cater to the demand for technologically advanced and innovative products. Paramount also faced competition from substitute products like disposable razors, electric razors, depilatory...
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...Clean Edge Razor In August 2010, Paramount Health and Beauty Company (Paramount) was faced with a difficult dilemma. Paramount was a global consumer products company which focused their products around health, cleaning, beauty, and grooming. Paramount had spent considerable time and investment into a cutting edge non-disposable razor that was touted to provide the “closest, cleanest, and smoothest shave people had encountered.” Their dilemma was into which part of the non-disposable market they should introduce their “superior” razor into. As we evaluate the environment in which Clean Edge will compete, we identified five key issues to analyze. The issues include new entrants into the market, Radiance’s new razor, the economy, distribution channels, and increased marketing costs. After analyzing these issues, the introduction of the new razor and the increased marketing costs would pose the greatest risk to Clean Edge. Both of the issues have a high impact and high immediacy for Paramount. The new razor that is entering the market has similar technologies that will cause a higher impact for Paramount than any of the other issues. The emerging new entrants into the market, the economy, and the changing distribution channels all have a low impact but high immediacy for Paramount. The changing distribution channels are occurring because of changes in the industry and the increased availability of all the products in this submarket. The products are now being offered at more...
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...manufacturing stationery products, razors, lighters, water-sports equipment, services with promotional products and phones. The company is located in more than 160 countries worldwide and employs over 8400 employees. The Bich family owns 40% of Bic stock and controls 55% of its voting power. Bic’s vision is “we offer simple, inventive and reliable choices for everyone, everywhere, everytime.” Their consumer range therefore, stretches from offices to small children, encompassing ‘everyone’. In order to satisfy this wide spread, Bic tries to gain a balance between reasonably high quality and reasonable price. In performing a strategic analysis of the company, we hope to evaluate its current position and make recommendations of how they can improve in the future. 1.0 – HISTORY: 1945: Marcel Bich bought an empty factory in Paris with his partner, Edouard Bouffard. Bich had substantial knowledge of the writing instrument trade having previously worked as a production manager for an ink maker. Together they started producing fountain pen parts and mechanical pencils, and in 1950 Bich purchased the patent for ballpoint pens. This led to the creation of the disposable pen. 1954 – 1957: the Company entered into foreign markets, such as Europe and South America, by creating subsidiaries and acquiring companies. 1958: the Company expanded to the United States, after realizing the demand for mass-produced disposable ballpoint pens there. Bic...
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...Executive Summary We are 3+2 group，introduce team member Timber， Jie，Penny ，Helen ， and Stella. We’ll present the marketing strategy for the innovative product Clean Edge razor. Now let’s begin. Our presentation outline are： Paramount Health and Beauty Company Ultra thin five blade and vibrating technology- technology leading position 2011 - Introduce new Clean Edge target at niche market 2012 - Sunset Avail 2013 - Cut Clean Edge price to occupy mainstream market 2013 - Introduce Clean Edge Plus target at niche market to increase market share 2014 - Technology leading position in market, to achieve 472million annual revenue, and 32% market share in US non-disposable razor market. Our 推出新产品定位niche 2年后降价定位主流市场 并推出plus a new non disposable razor Clean Edge with cutting edge technology to improve men’s shaving experience by the use of leading vibrate technology in the super premium segment. 1. 我们的新产品有CE ultra thin five blade and vibrating technology， technology leading position 2. 我们将于2011推出CE，target at Niche market 3. 我们将于2013 cut CE price，to occupy mainstream market。 4. 同时我们将推出CE Plus，我们的客户是（高端客户），在市场保持领先地位share。 5. 我们的总体目标是2014年达到XXX. Our principle is technology leading, 1. 现在市场中super占最大。 2. 同时social是最大的消费群体。 3. 所以，我们决定将我们的主要客户定位在xxxx上。 1. 我们现在主要的竞争对手有XXXX。 ...
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...a profit seeking perspective. Furthermore, going with niche positioning for Clean Edge would confer significantly lower cannibalization cost to Paramount, as compared to mainstream positioning. Sustainability The target audience of Clean Edge is mainly social/emotional shavers, ie. super-premium customers, who make up approximately 25% of the non-disposable razor market. With a growth in market share of 11% within the coming two years, there would be a reduction in the growth of market share in the following years due to the limited number of customers. Thus, there would be a need for Paramount to broaden the target audience to include other categories of users (eg. Involved Aesthetic shavers). However, this would require a change in marketing strategy. Referring to the BCG Matrix, Clean Edge would be a “Star” since it is expected to attain high growth and high market share once it is introduced. In addition, given the increase in number of shavers switching to super-premium razors, there is most likely to be a high growth rate. Cannibalization Given that Paramount currently has no other non-disposable razor in the niche market, there would be less cannibalization by introducing Clean Edge as a niche product. As seen in the data provided, there would be only 35% cannibalization if Clean...
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...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 (22%).. The industry experienced a significant growth in super-premium in last decade. Recent studies showed that consumers purchased razors and replacement cartridges more frequently than before. Customers’ behaviors are maintenance shavers (33%), aesthetic shavers (28%) and social/emotional shavers (39%). Customers are moving to highly involved segments. In addition, the rate of new products introductions had accelerated with 22 SKUs introduced between 2008 and 2009. Paramount is a major player in the market. Main competitors are Prince, Benet & Klein and New entrants (Simpsons and Radiance). All of them played in super-premium segments. Paramount’s competitive edge is they are well known brand in the moderate and value segments. In addition, Clean Edge is the most innovative product, a product leader. No products can match it unless Navi which has similar functions offered by Radiance. However, Radiance is a new entrant which might not be able to complete with Paramount. The...
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...Clean Edge Razor Case Analysis Luiz Dantas Marketing Management Professor MaryJo Radosevich Background/Situation 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 of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market. 1. What changes are occurring in the nondisposable 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? Consumers are becoming more sophisticated and looking for new technologies. In other words, they are willing to invest more money and buy products that satisfy the necessity of a smooth shaving experience. In other hand, observing the Exhibit 1, there is a category of consumers called “Maintenance users” that made up 33% of consumers; they were not interested in buying products with superior technology. These consumers cannot be ignored...
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