Clean Edge Razer
SUMMARY:
Paramount is planning to launch a new nondisposable razor ‘Clean Edge’ which has an improved design and provides a superior performance by utilizing a vibrating technology that that stimulates hair follicles lifting them from the skin and allows a more thorough shave.
CURRENT MARKET SITUATION:
Launching a nondisposable razor in the super premium market is a brilliant move as:
a) Paramount has a respected brand image in the razor market through its two already existing brands
1) Paramount Pro
2) Paramount Avail
Paramount Pro was positioned in the moderate segment of the product category while Paramount Avail was among the value offerings and sales from both brands contributed 170 million USD revenues, 92 million USD gross profit and an operating profit of 26 million USD in 2009 in the United States, with both these brands Paramount was able to capture the position of unit-volume market leader in 2009 with 23.3% of retail unit share.
b) Also among different categories of US Razor market the nondisposable razor segment grows at a rate of 5% from 2007 to 2010 while refill cartridges grow at slighter lesser market share of 2% per year over the same
c) The US nondisposable razor market is divided into 3 segments on the basis of price and quality. i.e.
1) Super-premium
2) Moderate
3) Value
Super-premium segment experienced the most growth because consumers favor product innovation. Also the buying frequency of razors has increased of the current customers because of novelty in the products, the advertisement campaigns and increased awareness level among the customers regarding the benefits of frequent blade replacements.
MARKET TRENDS:
Market trends are promising for the launch of a nondisposable razor with a novelty in its basic design as:
a) 22 SKUs were introduced between 200 and 2009, the rate is significantly higher and most of them are either product line extensions or products with technological advances.
b) Firms set a greater chunk of
Paramount is planning to launch a new nondisposable razor ‘Clean Edge’ which has an improved design and provides a superior performance by utilizing a vibrating technology that that stimulates hair follicles lifting them from the skin and allows a more thorough shave.
CURRENT MARKET SITUATION:
Launching a nondisposable razor in the super premium market is a brilliant move as:
a) Paramount has a respected brand image in the razor market through its two already existing brands
1) Paramount Pro
2) Paramount Avail
Paramount Pro was positioned in the moderate segment of the product category while Paramount Avail was among the value offerings and sales from both brands contributed 170 million USD revenues, 92 million USD gross profit and an operating profit of 26 million USD in 2009 in the United States, with both these brands Paramount was able to capture the position of unit-volume market leader in 2009 with 23.3% of retail unit share.
b) Also among different categories of US Razor market the nondisposable razor segment grows at a rate of 5% from 2007 to 2010 while refill cartridges grow at slighter lesser market share of 2% per year over the same
c) The US nondisposable razor market is divided into 3 segments on the basis of price and quality. i.e.
1) Super-premium
2) Moderate
3) Value
Super-premium segment experienced the most growth because consumers favor product innovation. Also the buying frequency of razors has increased of the current customers because of novelty in the products, the advertisement campaigns and increased awareness level among the customers regarding the benefits of frequent blade replacements.
MARKET TRENDS:
Market trends are promising for the launch of a nondisposable razor with a novelty in its basic design as:
a) 22 SKUs were introduced between 200 and 2009, the rate is significantly higher and most of them are either product line extensions or products with technological advances.
b) Firms set a greater chunk of