U.

S Razor Market
Major Categories in Shaving
NonRefill
Disposab Shaving Depilato
Industry
disposab Cartridg
le
es
Razors

le Razors Cream

ries

Revenue
Compari
son

2007- $188 2007- $802 2007- $477 2007- $269 2007- $106
m
m
m
m
m

Growth(i
n
Revenue
)

15.95%

2010- $218 2010- $853 2010- $522 2010- $260 2010- $88
m
m
m
m
m

6.36%

9.43%

-3.35%

-16.98%

Market
Non-disposable
growth26.89%
rate approx.
5% every
year
11.23% Razors
43.94%
13.39%
4.53%
from(in
2007-2010.
Share
2010)
Refill Cartridges growth rate 2% every year in same period.

Market Segments in Non Disposable

Razors and Refill Cartridges
Volume

32% 25%
43%

Dollar

22% 34%
44%

Super-Premium
Moderate
Super-Premium
Moderate
Value
Value
Significant growth in Super-Premium segment in Last
decade.
Innovation (5-blade technology, glide strips etc.) fueled
the growth.
Advertising and Media campaigns has increased the

Consumer Behavior

More brand switching and new product

Replacement cycle shortened
Frequent blade replacement
Maintenance
Shavers
No differentiation
Disinterested in
Product Category
Price-Quantity
behavior
Inconsistent Shaving
Routine
A chore that is to be
completed quickly
39% of Nondisposable shavers

Social/Emotional
Shavers
More product and Brand
switching
Willing to experiment
Price-Quality Behavior
Motivated by overall
shaving experience
Essential part of daily
grooming ritual
Differentiate among
products
28% of Non-disposable
shavers

Aesthetic
Shavers
Interested in most
effective product
Deeply involved in
product
Interested in
cosmetic results
Consistent Shavers
33% of Nondisposable shavers

Company Overview Paramount

Global
Consum
er
Product
Giant
Entered
Nondisposa
ble
razor
market
in 1962

Revenue of $13 billion from world wide Sales in

2009
Gross profit of $7 billion for the year 2009
Respected brand in Industry
Sales from Non-disposable Razors & Refill
Catridges - $170 million
Gross Profit of $92 Million and Operating profit
of $26 Million for 2009
Captured unit-volume market leader position in
2009 with 23.3% share
Offered 2 lines of non-disposable razors and
refill cartridges
Paramount Pro positioned in moderate
segment (Cont. - $2.80)
Paramount Avail a value offering product
(Contribution - $1.76)

Competition in Industry
35
30
25
20
15
10
Revenue

5
0

Volume
Paramount

Prince

Benet & Klein

Radiance

Volume

Simpsons

Others

Revenue

Competition from Direct Competitors as well as

Substitute Products
Dominated by 3 multinational players Paramount,
Prince and Benet & Klein
New entrance - Radiance Health Inc. And Simpsons has

Problem Statement
Positioning Strategy Niche or
Mainstream
Brand Name for new product
Market Budget for promoting Clean
Edge

4Ps Vs 4Cs
Clean Edge Razor in
Super Premium
Segment

Priced at $10.5 with a

Niche Positioning

Available in all major

stores across the
country
Media and Print
advertising to promote
the product in super
premium segment

Provides cleanest,
closest and smoothest
shave.
Provides best saving
experience with 25%
increase in hair removal
(Premium Segment
Product)on
Emphasis
Social/Emotional shavers
and Aesthetic Shavers
who are deeply involved
in product (Specialty
Product) the
Communicate
customer of the best
available Razor with
promotional campaigns.
(Generate Curiosity)

Product Portfolio Management: MARKET

SALES BY VOLUME
40
35
30
25
20
15
10
5
0

PARAMOUNT

PRINCE

B&K

RADIANCE

SALES BY VALUE
35
30
25
20
15
10
5
0

PARAMOUNT

*Exhibit 5

PRINCE

B&K

RADIANCE

2007

2008

SIMPSONS

2007

2008

SIMPSONS

2009

2010 (E)

OTHER

2009

2010 (E)

OTHER

Product Portfolio Management:

MARKET

CLEAN
EDGE

AVAIL
PR
O

Product Portfolio Management:

MARKET

CLEA
N
EDGE

PRO

AVAIL

PRO has medium attractiveness and business strength . They can only target to
defend its market share. It can be cannibalized by its own new product, if CLEAN EDGE is
launched in mainstream.
Strong R$D and distribution channels, new revolutionary product after 5 years ; so;
business strength is high.

Product Portfolio Management:

PRODUCT
PRODUCT INTERRELATIONSHIPS:

Pro, Avail,
Clean Edge are having Positive Complementarity.

PRODUCT WIDTH :

By Volume, Paramount had nothing to

offer in Super-premium segment wherein it contributes 25% total
volumes.
2009 PRINCE B&K
PARAMOUNT

SUPERPREMIUM
MODERATE
VALUE

25%
43%
32%

100%
0
0

7%
95%
0

0
73%
27%

AT THE FIRM:
PRO : Moderate value : Middle Range
AVAIL : Value Offering : Basic Range
CLEAN EDGE : Super-premium : High Range

Clean
Edge

SEGMENTATION AND TARGETTING

SEGMENTATION

Maintenance Shavers; 33%

TARGETTIN
G

Social/Emotional Razers; 39%

Aesthetic Razors; 28%

FINANCIAL ANALYSIS

Understanding Niche decision

through PLC

Product Stage MATURITY

Sales Target Peak Sales
Customers Majority
Competitors- Me too rivals
Marketing Objective Maximize profit while
defending market share
Product Clean Edge is differentiator
Price 10.5$ through NICHE positioning
Place- Distribution has to be more intensive
PromotionPackaging-

MARKETING STRATEGIES

CLEAN
EDGE