Clean Edge Razor

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Clean Edge Razor
Haifeng Chen

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 product as well as for Clean Edge?

The rate of new-product introductions for non-disposable razors and refill cartridges had accelerated in recent years, with an unprecedented flurry of 22 new stock-keeping units being introduced between 2008 and 2009. Most of these new SKUs were line extensions targeted at the super-premium segment and promoted benefits from advances in technology. Because of the new product introductions and in order to simulate demand, total media advertising expenditures in this category had been rising faster than retail market sales, and this trend was expected to continue. And the distribution of such products has been changed for the increasing shelf space for the product category. And the consumers have changed into more sophisticated in shaving. Paramount has two non-disposable products, which allow the company to capture the unit-volume market-leader position. About the product life cycle, providing a product with good cost x benefit but with a short life cycle for the 33% called “Maintenance users” keeping these users buying their products and interested in their brands. Otherwise, launch the Clean Edge product with a longer life cycle. Also, making this product profitable creating a fidelity from the consumer when they buy cartridges for refill.

2. How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors. Paramount found that the intensity of involvement with the product varied significantly among consumers. There is a group of consumers that Paramount labeled as “Maintenance Shavers” who were almost completely disinterested in the product category. They treat the shaving as a chore and do it inconsistently. “Social/Emotional” shavers were motivated by the overall...
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