Clean Edge Razor: Splitting Hairs in Product Positioning
Name: Yuanxu He (Jason)
Semester: Fall, 2012
Course Number: MBA 812A
Date of paper: September 25th, 2012
Executive Summary
The Clean Edge which is Paramount’s newest nondisposable razor has powerful influence in the market since 2010. It was improved design and used the new skills to make the razor’s properties become better than before. Lots of men like it and consider it was the closest, cleanest and smoothest.
The article analysis the Paramount’s situation, competition, product positioning, marketing strategy through the U.S. razor market, market segments and consumer behavior and the trends of nondisposable razors and refill cartridges. After the company
…show more content…
Because Rosenberg said that they will siphon off consumers if he considered a mainstream positioning strategy. A niche strategy will make more sense.
4. | Niche | Mainstream | Planned capacity Razor (Year 1) | 1.0 | 3.3 | (Year 2) | 1.5 | 4.0 | Razor: Production per unit cost | $ 5.00 | $ 4.74 | Razor: Manufacturer price | $ 9.09 | $ 7.83 | Razor: Suggested price | $ 12.99 | $ 11.19 | Revenue (Year 1) | 9.09 | 25.84 | (Year 2) | 13.64 | 31.32 | Production Costs (Year 1) | 5 | 15.64 | (Year 2) | 7.5 | 18.96 | | Planned capacity Cartridge (Year 1) | 4.0 | 9.9 | (Year 2) | 10.0 | 21.9 | Average Production unit cost | $ 2.43 | $ 2.24 | Manufacturer price | $ 7.35 | $ 6.22 | Suggested price | $ 10.50 | $ 8.89 | Revenue (Year 1) | 29.4 | 61.58 | (Year 2) | 73.5 | 136.22 | Production Costs (Year 1) | 9.72 | 22.18 | (Year 2) | 24.3 | 49.06 | | Capacity
2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?
in the eyes of a typical person they believe that it is unethical to target uninformed consumers
1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge?
Examining the consumer behavior for nondisposable razors, we can observe that consumers are focusing on the premium segment. Also, they are becoming more sophisticated and expecting new technologies to smooth the shaving process. Focusing on that, Paramount should invest in the premium products category. Even though that would create cannibalism for the “pro-products” which is already loosing market.
“ An alternative to using razors is powered surgical clippers. Clippers mechanically trim the hair close to the skin,
The case points out that Gillette’s competitors were quick to copy new products. The launch of Sensor will be a breakthrough in the market and will introduce a new product category the “cartridge laser cut razor with superior quality”. Therefore it is essential for Gillette to protect their new product by pursuing patent enforcement, as they already have. This way will Gillette retain its competitive advantage and will re-introduce and position itself as a technology leader.
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
The Gillette Tri-Glide. Finally, a manual razor that provides the efficiency of an electric razor. With this new innovative product, Gillette can revolutionize the way men shave. The Gillette Tri-Glide combines the three step process of shaving into one simple step. The secret lies within the handle of the razor; it contains two separate compartments, one holding the shaving cream and the other holding the aftershave. As you apply pressure to your face, shaving cream exits below the razor. The razor blade glides over the shaving cream, and the aftershave sprays above the razor. Gillette is the leading brand in the wet shave industry; to stay on top, it must update their razors in order to differentiate themselves from competitors and maintain
For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by
Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.
“Today’s Research for Tomorrow’s Health” is an operating philosophy for Braun Company. This company undertakes designing, development, and manufacturing of small electrical appliances. They want to create some new products for human, especially in body and health management. In 1950, Braun introduced the first reliable electric foil saver in Europe, and it is very popular in Europe. In 1967, Braun brothers sold their company to the American company, Gillette, and this company is famous on their razors, blade. Therefore, Braun has a German soul, American spirit, those two reasons bring this company to a global presence.
As first let's start by having a general information about Paramount, it's a international consumer products company, containing grooming divisions, health, cleaning and beauty segments. in 2009 paramount reached the $ 13 Billion of worldwide sales in addition of $ 7 Billion of gross profit. Since 1962 paramount was producing the non disposable razors and became the leading brand. As per Paramount two lines of products have been shown the Paramount pro and Paramount Avail, which generated a revenue of $ 170 million, with a gross profit of $ 92 million during the 2009 in United States Paramount Pro was positioned in a moderate segment, and Paramount Avail was considered as a value segment.
In the present era of mechanical life, most of the people have turned towards electric razors since manual shaving takes more time than they can afford to invest. This has led to an enormous increase in the trend of using electric razors. However, if you are still ambiguous about choosing one, then you have landed on the right page. We have accentuated the fundamental information and benefits of using the electric razors in order to let you have a better understanding.
Gillette has been successful in convincing the world that more is better, in regards to the number of blades and other features of a razor. To be successful in the
Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.