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Case Analysis Clean Edge Razors: Ritu Khandelwal DM18C06 CM01

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Ritu Khandelwal

Paramount Health and Beauty Company wants to launch a new non-disposable razor called Clean Edge. They face issues determining how to position the new product in the market, what brand name to use, and how much to budget for promotion. Analysis shows the Clean Edge has an innovative design with 5 vibrating blades. The recommendations are for Paramount to target niche segments rather than compete directly in the mainstream market, in order to avoid cannibalizing existing product sales and focus on higher profits. Paramount should enter the niche non-disposable razor market and target specific consumer segments.

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Case Analysis Clean Edge Razors: Ritu Khandelwal DM18C06 CM01

Uploaded by

Ritu Khandelwal
19 views3 pages
Paramount Health and Beauty Company wants to launch a new non-disposable razor called Clean Edge. They face issues determining how to position the new product in the market, what brand name to use, and how much to budget for promotion. Analysis shows the Clean Edge has an innovative design with 5 vibrating blades. The recommendations are for Paramount to target niche segments rather than compete directly in the mainstream market, in order to avoid cannibalizing existing product sales and focus on higher profits. Paramount should enter the niche non-disposable razor market and target specific consumer segments.

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Paramount Health and Beauty Company wants to launch a new non-disposable razor called Clean Edge. They face issues determining how to position the new product in the market, what brand name to use, and how much to budget for promotion. Analysis shows the Clean Edge has an innovative design with 5 vibrating blades. The recommendations are for Paramount to target niche segments rather than compete directly in the mainstream market, in order to avoid cannibalizing existing product sales and focus on higher profits. Paramount should enter the niche non-disposable razor market and target specific consumer segments.

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19 views3 pages

Case Analysis Clean Edge Razors: Ritu Khandelwal DM18C06 CM01

Uploaded by

Ritu Khandelwal
Paramount Health and Beauty Company wants to launch a new non-disposable razor called Clean Edge. They face issues determining how to position the new product in the market, what brand name to use, and how much to budget for promotion. Analysis shows the Clean Edge has an innovative design with 5 vibrating blades. The recommendations are for Paramount to target niche segments rather than compete directly in the mainstream market, in order to avoid cannibalizing existing product sales and focus on higher profits. Paramount should enter the niche non-disposable razor market and target specific consumer segments.

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Case analysis

Clean edge razors

Ritu khandelwal
DM18C06
CM01
Razor – Case analysis
a) Case synopsis:
Paramount Health and Beauty Company which is known as the Paramount, is a global consumer
products giant with four corporate divisions including:
i) Health,
ii) Cleaning,
iii) Beauty
iv) Grooming.
Paramount entered the non-disposable razor market in 1962 and quickly became a market leader. -
Paramount offers two products, the Paramount Pro in the moderate segment of the product market
and the Paramount Avail, which was considered the value offering market. - With these two
products the company enjoys 23.3% (2009) of the retail share.
By 2009, the company realized $13 billion in worldwide sales and $7 billion in gross profits, with
the non-disposable razors and refill cartridges in the U.S. contributing $170 million in revenue, gross
profit of $92 million, and operating profit of $26 million. - The company has developed their newest
non-disposable razor, Clean Edge, which is currently undergoing review by market testers.

NON DISPOSABLE RAZORS AND REFILL CARTRIDGE RETAIL SALES BY SEGMENT


FOR US MARKET (2009)
 According to the sales –
Moderate compromises of 44%,
super premium of 34% and
value is of 22%
 According to volume –
Moderate compromises of 43%,
super premium of 25% and
value is of 32%
COMPETITORS
i) Prince: Market leader since 1950s, revenue: U$ 224 Mn, U$45 Mn operating profit, 26,2%
market share, brand: Cogent
ii) B & K: Brand: Vitric, 21,1 % of market share
iii) Paramount: 21,4 % of market share
iv) Radiance: Brand: Naiv, 2,6% of market share
b) Case problems and issues:
The major problems identified as per the case of Razor are-
i) How Should Edge-Razor Enter the Market, as they were already into the one category of the
product and coming up with their new product category or type they were facing problem to
how they enter into the market.
ii) Positioning strategy for the Clean-Edge, as they were not having the clear idea about their
positioning strategy. Which part of the market to target and how to position themselves in
such a manner that they can succeed.
iii) Brand Name for new product, what could be the suitable brand name for their new product.
iv) Market budget for promoting Clean-Edge, this was also one of the problem for them to set
market budget.

c) Case inferences and analysis:


Clean edge design and testing for the razors has been done and analyzed that- Vibrating, ultra- thin,
5 blade razor. Also larger, heavier handle for a better balance, grip & control vibration for stimulate
hair follicles, 25% increase in hair removal.

Segment Market Comparison-


 Niche Market: Creating one strong brand, avoiding cannibalization, lowering the marketing
investment that mainstream and increasing gross profit than mainstream.
 Mainstream market: Replacement paramount pro i.e. cannibalization, Higher marketing
investment, and lowering gross profit margin.

d) Recommendations:
As a recommendation to the following case study for the razor –
-They should be going for niche marketing rather and mainstream marketing, that means they must
be targeting the most appropriate segments: can be this way- 39% social emotional shavers, 28%
aesthetic shavers and remaining 33% maintenance shavers.
-They should focus for operating profits.

e) Conclusions:
As they were into the mass segmentation, they wanted to go for the niche category for their product
to capture part of the market. Their USP was their design, cost, and the influence of the company to
go for niche.
By going for mass segment they might face cannibalization too.
Lastly they should be focusing only on a single segment in order to have complete command over it
and to get succeed.

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