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Clean Edge Razor Case Study
Students: Nancy Clark Gonzalez, Jennifer Frost, Marty Webb
Summary of the background and facts
This case study, while based on real events, is a fictional case that represents a possible scenario managers in today’s business environment may encounter. The individuals and companies used in this case are also fictional.
Paramount Health and Beauty Company, known as Paramount, is a global consumer products giant with four corporate divisions including Health, Cleaning, Beauty and Grooming. Paramount entered the non-disposable razor market in 1962 and quickly became a market leader. By 2009, the company realized $13 billion in worldwide sales and $7 billion in gross profits, with the non-disposable razors and refill cartridges in the U.S. contributing $170 million in revenue, gross profit of $92 million, and operating profit of $26 million.
Paramount offers two products, the Paramount Pro in the moderate segment of the product market and the Paramount Avail, which was considered the value offering market. With these two products the company enjoys 23.3% of the retail share; however, until now, Paramount has not introduced significant technology or new products in the last five years.
The company has developed their newest non-disposable razor, Clean Edge, which is currently undergoing review by market testers. The design of Clean Edge is to provide superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. To back these claims, Paramount enlisted a third party lab to provide scientific testing. Jackson Randall is Paramount’s product manager for Clean Edge; he is responsible for recommending product position, brand name, and marketing budget allocations for the launch.
Statement of “Core” Problem(s) of the Case
The issues Paramount faces are primarily product positioning to remain a market leader in non-disposable razors. The



References: Biasi, A. (2012). Successful niche marketing. Smart marketing solutions. Retrieved from http://www.smartmarketingllc.com/2012/05/07/successful-niche-marketing. Economist. (2013). Razing prices.  Retrieved from http://www.economist.com/blogs/schumpeter/2013/08/male-grooming. Johnson, W. (n.d.). Definition of perceived value. Chron.com. Retrieved from http://smallbusiness.chron.com/definition-perceived-value-23017.html. Keller, K. and Kotler, P. (2012). Marketing Management. 14th ed. Upper Saddle River, NJ: Prentice Hall.

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