Downloaded 977 times
Uploaded byToko Bunga Surabaya
Clean edge razor case study
Paramount Health and Beauty Company, a leader in the non-disposable razor market since 1962, has developed the Clean Edge razor, designed to enhance shaving efficiency with its vibrating feature and advanced ergonomics. The document outlines the market strategy, positioning, and target segments for Clean Edge, recommending a niche approach focusing on social-emotional and aesthetic shavers. Key financial projections and competitive comparisons are discussed, highlighting the product's potential in generating profitable sales.
More Related Content
Clean edge razor case study
- 1. Clean Edge Razor KELOMPOK7 MM KELAS 27C DIAN ATIKA, RAFIKA, RERY INDRA KUSUMA Clean Edge Razor
- 2. Clean Edge Razor CaseSummary Main Issue Problem Statement Analysis Recommendation
- 3. Desk Edge Razor CaseSummary
- 4. Clean Edge Razor -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. - 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% (2009) of the retail share.
- 5. Clean Edge Razor -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 $26 million. - The company has developed their newest non-disposable razor, Clean Edge, which is currently undergoing review by market testers.
- 6. Clean Edge Razor SUPER- PREMIUM 34% MODERATE 44% VALUE22% SALES SUPER-PREMIUM 25% MODERATE 43% VALUE 32% VOLUME NON DISPOSABLE RAZORS AND REFILL CARTRIDGE RETAIL SALES BY SEGMENT FOR US MARKET (2009)
- 7. Clean Edge Razor PARAMOUNT PRINCE B&K RADIANCESIMPSONS OTHER PARAMOUNTCOMPETITORS AND MARKET SHARE (2010 E) Market leader since 1950s, U$ 224 M revenue, U$45 M operating profit, 26,2% market share, brand: Cogent Brand: Vitric, 21,1 % of market share Brand: Naiv, 2,6% of market share Brand: Tempest 5,7 % of market share 23 % of market share 21,4 % of market share
- 8.
- 9. Clean Edge Razor 1.How Should Edge-Razor Enter The Market 2. Positioning strategy for the Clean-Edge 3. Brand Name for new product 4. Market budget for promoting Clean-Edge
- 10. Clean Edge Razor ProblemStatement
- 11. Clean Edge Razor Market Segments Super- Premium MainstreamNiche Moderate Value MARKET SEGMENT
- 12. Clean Edge Razor ALBERTROSENBERG WILLIAM KIM POSITIONING STRATEGY
- 13. Clean Edge Razor BRANDNAME CONSIDERATIONS Paramount Clean-Edge Clean-Edge Paramount
- 14. Clean Edge Razor MARKETINGBUDGET ALLOCATION •$ 15 MillionNICHE •$ 42 MillionMAINSTREAM
- 15.
- 16. Clean Edge Razor VIBRATING,ULTRA-THIN, 5 BLADE RAZOR A LARGER ,HEAVIER HANDLE FOR A BETTER BALANCE ,GRIP & CONTROL VIBRATION FOR STIMULATE HAIR FOLLICLES, 25% INCREASE IN HAIR REMOVAL CLEAN EDGE DESIGN AND TESTING
- 17. Clean Edge Razor COMPARETHE SUGGESTED PRICE (IN MAINSTREAM POSITIONING) WITH COMPETITORS Super Premium Razor Standard Refill Cartridges Cogent Plus $12.50 $10 Cogent $11.19 $8.89 Clean-Edge $11.19 $8.89 Naiv $11.80 $9.45 Vitric Advanced $11.20 $8.99 Vitric Master $10.85 $8.65 Tempest $10.99 $8.75
- 18. Clean Edge Razor NicheMainstream Year 1 Year 2 Year 1 Year 2 unit price dollar unit price dollar unit price dollar unit price dollar Razors sales 1 9.09 9.09 1.5 9.09 13.64 3.3 7.83 25.84 4 7.83 31.32 Cartridge sales 4 7.35 29.40 10 7.35 73.50 9.9 6.22 61.58 21.9 6.22 136.22 Total Sales (1) 38.49 87.14 87.42 167.54 Razors Production cost 1 5 5.00 1.5 5 7.50 3.3 4.74 15.64 4 4.74 18.96 Cartridge Production cost 4 2.43 9.72 10 2.43 24.30 9.9 2.24 22.18 21.9 2.24 49.06 Capacity Cost 0.61 0.87 1.71 2.45 Advertising & Promotion 15.00 16.00 42.00 39.00 Total Cost (2) 30.33 48.67 81.53 109.47 Profit (1-2) 8.16 38.47 5.89 58.07 Profit % from sales 21.20 44.14 6.74 34.66 Profit and Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios
- 19. Clean Edge Razor SEGMENTMARKET COMPARATIONS NICHE • Create a One Strong Brand • Avoid Cannibalization • Lower Marketing Investment than Mainstream • Higher Gross Profit than Mainstream MAINSTREAM • Replace Paramount Pro (Cannibalization) • Higher Marketing Investment • Lower Gross Profit
- 20. Clean Edge Razor BEHAVIORSEGMENTATION OF NON DISPOSABLE RAZOR CONSUMERS Social/Emotional Shavers (39%) Aesthetic Shavers (28%) Maintenance Shavers (33%) Differentiate among product. Search for product based on both functionality and messaging. Shaving as an essential part of a daily grooming ritual. Shaving makes them feel more attractive and confident. Search for product that most effectively remove hair. Shaving is consistently done to remove unwanted hair. Shaving is a means to smooth skin they desire. View product as the same. Lack of interest in product category. Shaving routine is inconsistent. Shaving is a chore they try to finish as quickly as possible.
- 21.
- 22. Clean Edge Razor WEPREFERED “NICHE POSITIONING” TARGETING THE MOST APPROPRIATE SEGMENTS 39% 28% 33% SOCIAL- EMOTIONAL SHAVERS AESTHETIC SHAVERS MAINTENANCE SHAVERS CHOSE 2 SEGMENTS : SOCIAL-EMOTIONAL AND AESTHETIC SHAVERS (TOTAL SEGMENT 67%)
- 23.