Case Study: Paramount Health And Beauty Company

2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?

CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014.

Paramount was a global consumer products giant with $13 billion in worldwide sales and $7 billion in gross profits for 2009. Paramount’s corporate divisions included Health, Cleaning, Beauty and Grooming. Paramount entered the nondisposable

This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.

In business marketing, market segmentation and targeting specific markets aids organizations by reducing the risks involved in decisions of how, where, when, and with whom the brand, product, or service will be advertised, directed, or promoted to. Positioning the product or service to the accurate target while controlling the marketing budget are tactics used by marketing professionals to assure reaching the largest target group and controlling costs (Boundless, 2014). Attracting the right customer is the ultimate objective of targeting specific markets by directing the research and efforts in a manner

Paramount is facing not only the traditional, on-going competition from the other long term, established companies in the market, but faces increasing challenges to its market share from new entrants as well. Traditionally, the market consisted of disposable and non-disposable razors, but within the last few years, a new trend has emerged. As a result of the increased emphasis on esthetic, or beauty products for men, there has been is a growing movement among male consumers who are gravitating toward premium shaving products. Known as the “social/ emotional” segment, it commands 39 percent of the total non-disposable users, which is a greater percentage overall than

Paramount Health and Beauty Company is set to launch a new non-disposable razor, Clean Edge, utilizing a

1. What changes are occurring in the non-disposable razor category? What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? Assess Paramount’s competitive position.

Paramount studies showed that consumers purchased razors and replacement cartridges more frequently than ever before in the history of Non disposable razors. Also, Paramount’s consumer research indicated that one category of consumers called “Maintenance users” that made up 33% of consumers were not interested in Superior technology. A very important finding that cannot be ignored for Paramount. Based on the data in the case and my analysis, below are my alternatives that can be used to develop a market strategy that will position Paramount as a market leader in Non Disposable razor category with “Clean Edge” product launch:

In this understanding of the positioning statement, an important focus falls on the product and customer segment choice in promoting the positioning statement. More precisely, economic agents are presented with the possibility of creating and forwarding a positioning statement focused on one product addressing one specific customer segment. On the other hand however, they could also devise and promote positioning statements that address more products or more customer markets. Each of these approaches is characterized by advantages and disadvantages, as would be revealed below:

On August 9, 2010, a group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. Clean Edge’s improved design provided superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough

During the launch of their new product, the brand had to communicate the right message to the target markets. After qualitative analysis, the firms decided to focus on 3 main targets:

In the non-disposable razor segment, Paramount’s competitors are Prince, Benet & Klein, new entrants Radiance Health and Simpsons.

Prince had been market leader in the non-disposable razors since the 50’s and held the #1 position in terms of retail dollar sales in 2009, with a 26.2% of Market Share. Products: Cogent and Cogent Plus – super-premium products. (Quelch, J. page 4).

Competitor Analysis: The non-disposable razors market players face competition from direct competitors, who provide similar products and also from competitors who provide substitute products like disposable razors, electric shavers etc. However, as of the latest, the non-disposable razor and refill cartridge market is dominated by three major players: Paramount, Prince and Benet & Klein. Prince sells non-disposable razors and refill cartridges under the brand name Cogent and Cogent Plus, both of which are positioned as superpremium brands. It has been a market leader in non-disposable razors since the 1950s and held the top spot in terms of dollar sales in year 2009. Benet & Klein (B&K) sells non-disposable razors and refill cartridges under the brand name Vitric Advanced and Vitric Master, both of which are positioned as super-premium brands. Apart from them, there have also been new entrants into the market like Radiance and Simpsons, both of which are well established personal care products companies. In August 2009, Simpsons launched a new non-disposable razor under the brand name Tempest in the superpremium segment. Also