Clean Edge Razor
Vanja Tomić
Professor: Nedim Čelebić
BSAD 350 – Marketing
June 6, 2012
Clean Edge Razor: Splitting Hairs in Product Positioning
Executive summary
Paramount is planing to launch a non disposable razor ‘Clean Edge’. This companyis a market leader in the non disposable razor market. Currently it is offering Paramount Pro and Paramount Avail. Neither pro nor Avail has introduced significant technology innovations in the last five years. The non disposable razor and refill cartridge market is divided into three segments based on price and quality – Moderate, Value and Super premium. The Super premium category has the highest growth among the three categories. Clean Edge was developed after a thorough research and is a technologically superior product. The company is not sure how to position Clean Edge. They have two options, either to position it as a niche product or to position it as a main stream.
Question 1
Paramount is facing not only the traditional, on-going competition from other long term, but faces increasing challenges to its market share from new entrants as well. The market is consisted of disposable and non-disposable razors, but in the last few years, a new trend has emerged. As a result of the increased emphasis on esthetic, or beauty product for men, there has been a growing movement among male consumers. This change has created a niche market, where men are willing to pay a premium for razors with better features and/or quality. Paramount´s main competitors is non-disposable razor category in 2010 are Prince, Benet and Klein, and other substituted products. Paramount commands a 23.3 % share of the non-disposable razor market as of 2009, outpacing both Prince and Benet and Klein at 19.2 %. In dollars, their share of the market is 23.4 %, which is higher than B & K at 22.0 %. It is also interesting to note that Paramount has increased its market share each year since 2007, while the competitors have not increased their market
Professor: Nedim Čelebić
BSAD 350 – Marketing
June 6, 2012
Clean Edge Razor: Splitting Hairs in Product Positioning
Executive summary
Paramount is planing to launch a non disposable razor ‘Clean Edge’. This companyis a market leader in the non disposable razor market. Currently it is offering Paramount Pro and Paramount Avail. Neither pro nor Avail has introduced significant technology innovations in the last five years. The non disposable razor and refill cartridge market is divided into three segments based on price and quality – Moderate, Value and Super premium. The Super premium category has the highest growth among the three categories. Clean Edge was developed after a thorough research and is a technologically superior product. The company is not sure how to position Clean Edge. They have two options, either to position it as a niche product or to position it as a main stream.
Question 1
Paramount is facing not only the traditional, on-going competition from other long term, but faces increasing challenges to its market share from new entrants as well. The market is consisted of disposable and non-disposable razors, but in the last few years, a new trend has emerged. As a result of the increased emphasis on esthetic, or beauty product for men, there has been a growing movement among male consumers. This change has created a niche market, where men are willing to pay a premium for razors with better features and/or quality. Paramount´s main competitors is non-disposable razor category in 2010 are Prince, Benet and Klein, and other substituted products. Paramount commands a 23.3 % share of the non-disposable razor market as of 2009, outpacing both Prince and Benet and Klein at 19.2 %. In dollars, their share of the market is 23.4 %, which is higher than B & K at 22.0 %. It is also interesting to note that Paramount has increased its market share each year since 2007, while the competitors have not increased their market