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Clean Edge Razor Case Study

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Clean Edge Razor Case Study
Clean Edge Razor Splitting Hairs in Product Positioning

MBA8145-Marketing Management Alpharetta, Summer-2011 GSU

Individual Case Analysis

Situation at Paramount
Paramount had established itself as a global consumer products giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since it’s entry in the market in 1962. In 2009, Paramount had established itself as unit-volume market leader in 2009 based on non disposable razor product sales. The Non disposable razor category market is entering a new phase with technology products and new entrants posing a threat to capture Paramount’s Market Share. From the target market positioning perspective the challenges can be broken down as below:


Competition: Paramount’s main competitor in non disposable razor category in 2010 are Prince, B&K, Radiance health and other substituted products. Prince sold non disposable razors in super-premium category. Prince had gained #1 spot in terms of retail dollar sales up until 2009. Notable feature of B&K another competitor was that they entered the market in this non disposable razor category only in 1985. However, they managed to reach #3 in market share and unit-volumes by superior technology and releasing superpremium products. New entrants were coming to market with super premium products, technology and greater advertising dollars to gain market share. Paramount’s clean edge should compete with Radiance Naiv in test markets. Naiv had already acquired 13% market share in test markets. Radiance and Paramount were fierce competitors and Paramount had to launch a new technology in Super Premium segment to regain market share and continue to exist as a global leader in this category.



Product Positioning: While Paramount had established as a unit-volume leader in 2009, the non disposable razor market had a significant growth only in Super-Premium segment. The rate of increase in total media advertising expenditures in this category is greater

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