Marketing analysis of clean edge case study

1. CLEAN EDGE RAZOR: SPLITTING
HAIRS IN PRODUCT POSITIONING
Prepared By:
Group : 6
Sonalika Sharma
Meenu Verma

2. CLEAN EDGE RAZOR: SPLITTING HAIRS
IN PRODUCT POSITIONING
• Paramount entered non disposable razor
market in 1962 .
• Market leader by 1992 with 23.3% market share
followed by Prince with 23.1% share.
• Paramount Product: Pro to moderate segment &
Avail to value segment
• By 2009 – Sales : $13 billion and $7 billion Gross
profits.
Non disposable razor market
• 5% growth rate from 2007-2010
• Contributing $170 million in revenue, $92 million
in gross profit and $26 million of operating profit.
• 22 new stock keeping units between 2008-09
• Segment: Super-Premium -25%, Moderate-43%,
Value-32%
• Consumer Group: Social/Emotional shaver-39%,
Aesthetic shaver-28%, Maintenance Shavers-
33%

3. 4P’S
Product
Market Leader Volume :
Value:
Operating profit lagging
behind competitors
NO innovation in last 5
years
Promotion
Consumer Promotion
Trade Promotion
Place
Food Stores
Drug Stores
Mass Merchandise
Club Stores
Other
Price
Paramount Pro :
$9.50
Paramount Avail:
$5.75

4. Paramount
[21.4%]
Prince
[26.2%]
B&K
[21.1%]
Radiance
[2.6%]
Simpsons
[5.7%]
Other
[23%]
Brand :
Vitric : Moderate
Vitric advanced :
super premium
Vitric master :
Super premium
Brand :
Cogent : : super
premium
Cogent Plus :
Super premium
New competitor
Aggressive advertising
of $16.1M
Brand :
Naiv: Super premium
Similar to clean shave
Market Share 2010 E
New competitor
Increasing advertising
budget
Brand :
Tempest: Super
premium
Paramount
Brand :
Avail: Value
Pro : Moderate

5. MAIN ISSUE
Positioning strategy for the Clean-Edge
Brand Name for new product
Market budget for promoting Clean-Edge

6. CHALLENGES
• Target Markets
• Males between 22-55 years
• Emotional/Social and aesthetic Shavers
• Positioning – First new release in 5 yrs
Mainstream Product(lower range) or
Niche Product (higher range)
• Brand Name
• Mainstream PARAMOUNT CLEAN EDGE
• Niche CLEAN EDGE by Paramount “ We Care”
Market Budget
• Niche $15 Million
• Mainstream $42 million

7. ANALYSIS
Timing to enter
Super premium
Introduction to
super premium
market
New entries to
the non
disposable
market
Non disposable
market is
changing
Product
Analysis
Target Market A
Analysis
Competitive
Analysis

8. SWOT ANALYSIS-NICHE MARKET
SWOT Analysis
(Niche Market) THREATS
 Cannibalizing of existing product.
 Launch of Naive by Radiance.
 Test market response is positive for Naive
 Huge media advertising planned by
Radiance
OPPORTUNITIES
 Non disposable razor sales grew by 5%
between 2007-10
 67% of target consumer in form of
involved shavers
 High acceptance for super premium
segment
 First mover advantage
WEAKNESS
 Volume sales are low
 Not enough space for new entrants
 High operating and advertisement
cost
STRENGTH
 Highly technologically advanced
product
 Create a new market segment
 Brand loyalty
 Low cannibalizing impact

9. SWOT ANALYSIS-MAINSTREAM
SWOT Analysis
(Mainstream) THREATS
 22 new stock keeping units introduced
between 2008-09
 Cannibalizing impact is high
OPPORTUNITIES
 Non disposable razor sales grew by
5% between 2007-10
 67% of target consumer in form of
involved shavers
 Pro in matured stage of product
cycle
WEAKNESS
 No technological innovation in
past 5 years
 Congestion of products in
mainstream segment
STRENGTH
 Increase product diversity
 Market leader with largest volume in non
disposable market
 Innovative product
with great mass appeal

10. 4C’S
Customer :
Positioning our product
to get the maximum
profitability we must
know the target market
Cost:
Affordability , Satisfaction
and Value
Price offered , benefit and
valued added
Communication
Engaging customer
through meaningful
communication builds
Customer should know
“what is in for me”
Convenience
Offering product
through multiple outlets
, reducing barriers
customer might face
while purchasing
product
Customer service

11. RECOMMENDATIONS
Niche market is the way to go!!
 Profit and Loss analysis of both niche and mainstream market shows clear profit in niche market.
 Impact of cannibalizing is less in niche market.
 Loyal customer base and hence less advertising & promotional expense.
 Low threat in niche market
Changes to marketing Mix
Advertise to College students
Facebook and other social networking sites Ads
Distribution Place / convenience

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