Clean Edge Razor

Topics: Marketing, Brand, Generally Accepted Accounting Principles Pages: 5 (1477 words) Published: April 21, 2012
Marketing Case Analysis
- Clean Edge Razor Case -

Team members
* Min Woo Song
* Yang-hee Park
* Yekaterina Li
* Onofre C. Mateo
* Khanan Pinnoi

Clean Edge Razor Case
1. What changes are occurring in the non-disposable razor category? What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? Assess Paramount’s competitive position. (1) Market growth in super premium segment

Non-disposable razor experienced approximately 5% growth per year from 2007 to 2010, especially super premium market’s growth rate was higher than other segments. (2) Innovative product and increased media advertising expenditure Innovative and new products increased total market size and took bigger market share, especially in super premium market. Accordingly the portion of media advertising expenditures in promotion budget has increased continuously to deliver the value of new and innovative products to customers. But there wasn’t any change in Paramount current products. (3) Consumer’s attitude change

The industry participants tried to change the consumers’ attitude. They stimulated consumers to replace cartridges more frequently than before as delivering the benefit of frequent cartridge-change. As a result, the industry introduced 22 new stock-keeping units(SKUs) with advanced technology between 2008 and 2009. (4) Diversified distribution channel

Distribution channels increased their shelf space for refill cartridge SKU and refill cartridge’s retail margin was higher than others personal care items. And distribution channels have diversified from conventional food stores and drug stores to mass merchandisers, club stores and others. (5) Paramount’s competitive position

Paramount Avail was losing its market share increasingly but Paramount Pro took significant market share from competitors and shifted its customers in value to moderate

[Graph 1 : Market Share Change]
market. But it faces plateau situation with low growth during 2009 and 2010. Because Prince’s new product Cogent Plus and B&K’s new product Vitric master took market share with replacing their own current products. Considering the portion of social/emotional shavers and aesthetic shavers, Paramount Pro’s competitive position was very weak. It was required to introduce new product to respond the consumers, especially in super premium segment.

2. How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors. Non-disposable razor market is segmented into 3 consumer groups by its consuming behavior as below. Social/Emotional shavers are interested in both functionality and messaging of the products. And aesthetic shavers are more interested in functionality. Those 2 groups tend to use new and innovative products and accounts for 67% of total razor market. Maintenance shavers are not interested in new products comparably. We recommend to aim at both social/emotional shavers and aesthetic shavers. Involved Razor UsersSocial/Emotional Shavers| Involved Razor UsersAesthetic Shavers| Uninvolved Razor UsersMaintenance Shavers| (39% of Nondisposable Razor Users)| (28% of Nondisposable Razor Users)| (33% of Nondisposable Razor Users)| Differentiate among products.Search for products based on both functionality and messaging.| Search for products that most effectively remove hair.| View products as the same. Lack of interest in product category.| Shaving as as essential part of a daily grooming ritual.| Shaving is consistently done to remove unwanted hair.| Shaving routine is inconsistent.| Shaving makes them feel more attractive and confident.| Shaving is a means to smooth skin they desire.| Shaving is a chore they try to finish as quickly as possible.|

3. What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream brand? Which would you recommend? What are the strategic implications of...
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