Clean Edge Razor
Clean Edge Article response
1. What changes are occurring in the non-disposable razor category? The non-disposable razor category has experienced tremendous growth in recent years, boasting a steady 5% growth per year from 2007 to 2010. This growth can be attributed to introduction of new innovative products; 22 between 2008 and 2009. There is increased competition for shelf space, which was forcing distribution to shift outside traditional food and drug stores. In 2000, food stores sold over half of all razors, but by 2009 they represented only 42% of sales.
As a result of the rising product introduction, the non-disposable razor category also experienced rising advertising expenditures. Between 2009 and 2010, advertising expenditures increased by 39%; faster than overall sales which only saw a 5% increase. Due to the heavy emphasis on advertisement, consumers in this category have become well informed making it easier for consumers, shavers to switch across brand in order to evaluate new products. There is an increasing shift towards super premium products especially among “involved” shavers.
There has also been a shift in men’s grooming routine’s which now went beyond “shaving and after shave” to other products like body spray, fragranced shower gel, and skin care line. Male-specific personal care products have outpaced the growth in the women’s beauty market as these products have become more mainstream. This trend is due to more media attention on grooming issues and also a reduction in stigma associated with men’s preening.
Assess Paramount’s competitive position.
Paramount entered the non-disposable razor market in 1962 to become one of the leaders in the industry. This is evident from the fact that paramount has maintained the unit-volume market-leader position for 2 years straight boasting a 23.3% share in 2009 and 22.2% in 2010. However, Paramount’s operating profits are lagging behind that of one it’s closest competitors
1. What changes are occurring in the non-disposable razor category? The non-disposable razor category has experienced tremendous growth in recent years, boasting a steady 5% growth per year from 2007 to 2010. This growth can be attributed to introduction of new innovative products; 22 between 2008 and 2009. There is increased competition for shelf space, which was forcing distribution to shift outside traditional food and drug stores. In 2000, food stores sold over half of all razors, but by 2009 they represented only 42% of sales.
As a result of the rising product introduction, the non-disposable razor category also experienced rising advertising expenditures. Between 2009 and 2010, advertising expenditures increased by 39%; faster than overall sales which only saw a 5% increase. Due to the heavy emphasis on advertisement, consumers in this category have become well informed making it easier for consumers, shavers to switch across brand in order to evaluate new products. There is an increasing shift towards super premium products especially among “involved” shavers.
There has also been a shift in men’s grooming routine’s which now went beyond “shaving and after shave” to other products like body spray, fragranced shower gel, and skin care line. Male-specific personal care products have outpaced the growth in the women’s beauty market as these products have become more mainstream. This trend is due to more media attention on grooming issues and also a reduction in stigma associated with men’s preening.
Assess Paramount’s competitive position.
Paramount entered the non-disposable razor market in 1962 to become one of the leaders in the industry. This is evident from the fact that paramount has maintained the unit-volume market-leader position for 2 years straight boasting a 23.3% share in 2009 and 22.2% in 2010. However, Paramount’s operating profits are lagging behind that of one it’s closest competitors