Clean Edge Razor Case Analysis

Marketing Management

Case Analysis

Clean Edge Razor: Splitting Hairs in Product Positioning

Group AE1:

Abhinav Singh (14S601)

Anima Tapadiya (14S607)

Dushan Garg (14S616)

Niharika G (14S628)

Raviteja Palanki (14S636)

Prem Sharath (14804)

Q.1. What changes are occurring in the non disposable razor category? Assess Paramount’s competitive position.

Changes occurring in the non-disposable razor category:

Consumers are increasingly becoming aware of technology and are demanding for technologically advanced and innovative razors. The market is growing at the rate of 5% approximately from 2007-10. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. To cater to this increasing demand, 22 new stock keeping units were introduced between 2008 and 2009.

Initially, the distribution of non-disposable razors was limited to traditional food and drug stores. But over the years from 2007 to 2010, the distribution started to shift towards mass merchandisers and club stores.

Paramount’s Competitive position:

Paramount presence is in the moderate and value segments. Paramount’s products Pro and Avail were currently not able to cater to the demand for technologically advanced and innovative products.

Paramount also faced competition from substitute products like disposable razors, electric razors, depilatory creams, waxing and hair removal.

Paramount proved to be a market leader with a 23.3% of market share in retail unit.But, Paramount has no product in the premium market where it can earn a high margin. Competitors like Prince, Benet & Klein, etc., are taking advantage of presence in this market

Q.2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors.

The non-disposable razor market is segmented into three sections namely value, moderate, and super-premium on the basis of price and quality. A 2009 study depicts that the retail sales of non-disposable razors came from 25% volume of super-premium, 43% of moderate, and 32% of value segments. The sale part contributes 34% of super-premium, 44% of moderate, and 22% of value segments to the retail sales of non-disposable razors.

Paramount’s consumer research identified distinct segmentation in terms of product benefits and consumer behaviour. 39% of non-disposable razor users are segmented as Involved Razor users, Social/Emotional Shavers; 28% as Involved Razor users, Aesthetic Shavers, and 33% as Uninvolved Razor users, Maintenance Shavers. Social/Emotional Shavers differentiate among products and search for products based on both functionality and messaging. They perceive shaving as an important part of a daily grooming practice which makes them feel more attractive and confident. Aesthetic Shavers search for products that most effectively remove hair and they consistently shave in order to remove unwanted hair. They perceive shaving as a means to smooth skin they want. Maintenance Shavers are indifferent towards the different products and their shaving routine is inconsistent. They perceive shaving as just another chore which they try to finish as soon as possible.