Duanyi Feng 02/13/2013
1. What changes are occurring in the non-disposable razor category? * In US razor market, nondisposable razors experienced approximately 5% growth per year from 2007 to 2010. * Super-premium segment of nondisposable razor grew significantly. * Different kinds of product innovation appear in the market. * Replacement cycle has been shortened.
* Media advertising expenditures rose faster than retail market sales. * Among all retail channels of nondisposable razor, percentage of sales of food stores decreased a little bit while of mass merchandisers increased. Assess Paramount’s competitive position.
Name| Paramount| Prince| Benet & Klein| Simpsons| Radiance| Year| 1962| 1950s| 1985| New entrants|
Divisions| HealthCleaningBeauty Grooming| Oral careSkin careShavingDeodorants| VitaminsCosmeticsShavingSkin careHair careFragrance| | | Lines of nondisposable razors| Paramount ProParamount Avail| CogentCogent Plus| Vitric Master(2009)Vitric AdvancedVitric| Tempest(Aug.2009)| Naiv (Sep.2010)| Market Share| 21.4%| 26.2%| 21.1%| 5.7%| 2.6%|
Other| Unit-volume market leader| Market leader in nondisposable razors| | | Similar to Clean EdgeFierce competition| Character in BOLD are product lines of Super-Premium.
From the table above and Exhibit 5, we can tell Paramount has a strong competitive power in the moderate segment since fewer competitors in this area. Paramount doesn’t have a product in Super-Premium line, so it is really good to know that they will unveil the Clean Edge. On the one hand, compared to the new entrants, Paramount has a much longer history which would bring it lots of benefit such as brand effect, awareness, experienced team, enough currency, etc. although Radiance has the similar product. On the other hand, compared to the old competitors, Paramount has an important technique breakthrough for the...