Clean Edge Razor
Splitting Hairs in Product Positioning

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?
The non-disposable razor category has seen changes in the recent years. * Advertising expenditures increased significantly for newer and smaller players to grab the market share whereas established players did not increase it significantly. * Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market * 5% growth per year from 2007 to 2010, attributed to …show more content…

According to the article the razor market are segmented in three segments based on price and quality: * Value * Moderate * Super-premium segment

The Non disposable razors constitute of close to 11.23 % of the $ 1.9 billion U.S razor market (based on the 2010 estimates).Also, the refill cartridges which constitute of about 43.94% of total market would continue to keep adding value to the top line and the bottom-line of the company.
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.

The Non disposable segment has three kinds of users: * Maintenance Shavers (33%)
Consider shaving as a chore, lack interest in specific products. * Aesthetic Shavers (29%)
Look for more effective products, shave consistently. * Social/ Emotional Shavers (39%)
Consider shaving as a grooming ritual, differentiate among specific products.

3. What are the arguments for launching Clean Edge as (a) niche product, and (b) a mainstream brand? Which would you recommend? What are the strategic implications of your recommendations?
According to Randall’s analysis, to launch “Clean Edge” as a