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Case Study Clean Edge

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MBA 812 Marketing Management Case Analysis

Clean Edge Razor
Splitting Hairs in Product Positioning

Shiwei Hua (Vivian)
Fall 2012
September 20, 2012

Paramount Health and Beauty Company, a global consumer products giant, operates in health, cleaning, beauty and grooming divisions. The Paramount Pro and Paramount Avail are two lines of nondisposable razors and refill cartridges, and currently share a respectable market share in the industry. Recently, Paramount is set to launch a new nondisposable razor which named Clean Edge with a vibrating, ultra-thin blade design to improve men’s shaving experience. The Clean Edge is to be launched in the Super-premium segment of the market, which experienced significant growth in the industry. The company can either position the product in the niche or mainstream market. The problem at hand is how to position the new product to maximize the company’s profits. This paper analyzes the changes in the nondisposable razor market by evaluating competitors, customer behaviors, and advantages and disadvantages between launching in a niche market or a mainstream market. Finally, it provides financial forecasts to attempt to give insight about which strategy will best for the overall company.

Five Changes occurred in the nondisposable razor category First, many new technologies were applied to the nondisaposable design such as vibrating technology, anti-corrosive technology, and a pivoting head. And the 5% growth per year from 2007 to 2010 is partially due to innovation and new product introductions (John & Heather, 2011, p.2). Second, this category experienced a significant growth in the super-premium segment (John&Heather, 2011, p.2).Third, many newer and smaller companies spend a large share of their budget on advertising and product innovations to grab...

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