Clean Edge Razor Case Analysis Essay

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

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

Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products.

Moreover, other alternatives to non disposable razors like electric shaver, disposable razor and other substitutes like waxing, laser treatment and depilatories added onto the existing competition. If Paramount did not come up with the correct positioning and marketing strategy in a short span of time it would run the risk of losing the entire market to a competitor with similar technology and also loss its early movers advantages.

Today 's typical man starts his day with a cheap disposable razor and some goo out of a can. That daily shave is neither the best shave nor the most economical shave possible. Those honors belong to the traditional shaving equipment that is now making a comeback. A beginner will find that a good double edge safety razor, a badger hair brush and some face friendly soap will soon become his best friends in the bathroom.

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 wants to launch a new razor into the market currently referred to as “Clean Edge.” The project team recommends that the company should position the product as a distinct mainstream product, dubbing it “Clean Edge by Paramount” in order to produce growth in sales from new product innovation. The importance of placing the product in a mainstream position is to successfully launch an innovative product creating more market share for Paramount and for Clean Edge to become the most sought out razor in the industry. Failing to take this route and deciding to position the product in a niche would only give the new product a limited amount of consumers, preventing Clean Edge from reaching its

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.

Intro: A product that was finishing trials was to soon end up on the shelf of every major retailer in the world. Paramount, a global market leader in the consumer non-disposable razor industry is planning to launch a new product into the market by the name of Clean Edge. Clean Edge is an innovative, premium priced, new razor whose goal is to increase Paramount’s market share, sales and inevitably profit. As a company, Paramount has a strong history in the industry, entering the market back in 1962 and growing to a $13 billion company in 2009. Paramount specializes in disposable razors, cartridges, shaving cream and depilatories and currently has two razor products already on the market, Pro and Avail. With the launch of Clean Edge, management experiences conflicting ideas; Paramount is unsure of how to best position Clean Edge within the growing market, considering the competition launched a similar product right before the Clean Edge launch. The company is torn between two primary options, a niche position, targeting a small market with a premium razor versus a mainstream position, targeting a broader market by presenting an innovative product. After analyzing marketing budgets, market share, operating profit, branding strategy and allocations for 2008 and 2009, it is concluded that Paramount should engage in a niche position, which as per Appendix C will generate the higher profit of $31.37 compared to the $2.84 in profit generated by a mainstream position. Clean Edge

Razors and blades - 72 percent of womens wet shaving products. ($288 million in 2002)

Therefore, in order to keep the current Pro loyal customers, Clean Edge, with its innovation technology, should position in the mainstream market to prevent current customers to go for other competitive innovation products. That is to say, since Paramount already has a customer base in the mainstream market, when they launch Clean Edge there might be more interest in Paramount’s other razors and products. Also, the volume sales are higher in mainstream market compare to niche market and Clean Edge has relatively fewer competitors in the mainstream market

Mainly people out of school, beginning a career or becoming more established, and are able to make a major purchase like a cleaning equipment and want one that will last them for as long as possible. Promoting ACL clean as the product that will achieve this will increase product awareness, create brand loyalty, and ultimately increase sales. However, as many first-time buyers have been using other cleaning equipment or have used other products related to car care, introducing ACL clean as a premium product will be a daunting task because there is already an established brand loyalty to other products, even though they are not as good as ACL clean. With establishment of the original ACL clean product in the market the opportunities of the line extensions are limitless.

The Cheapskate is the fourth category which is made up by customers whose primary criteria for a purchasing a cosmetics product is the price. This segment is typically made up by the traditional male and less well off female who buy lower end cosmetics such as toothpaste, shampoo and deodorant on the basis of their price alone and the fact that these products are necessities, but need not be an expensive upscale brand, as a cheap alternative would suffice. (Bic vs Gillette – any comments? – A similar example is the disposable razors market, where the trend for cheap razors is alerting the expensive replacement razor manufacturers, such as Gillette, to diversify their marketing strategies in order to keep their customers loyal against the rise in the cheap disposable razors competition (i.e. BIC) ) Similarly, this segment also includes younger women and teenagers who do not yet have the money to

Generation Y are open minded when it comes to the trial of new products. Although Generation X can be open to change as well, it is more profitable and beneficial to target Generation Y due to them being more tech-savvy. In terms of gender, Skarp Razor will initially focus on men in the launch period, and eventually target women. With a price of $289 USD, it will be affordable for consumers with a student income and will be financially beneficial in the long term. The average dollar amount spent on shaving for men per year is $109 . Therefore, after about 2 and a half years, the consumer will get their money’s worth. Even if the price of the Skarp Razor is relatively expensive, due to the willingness of trying new technological product, students will seek interest in this razor. Based on the website Marketing Charts, the average college students owned about seven tech devices.

Gillette is a well-known brand name that has created very popular products throughout the years. The product aspect of the marketing program is a strength that Gillette has created in order to start the online subscription model. A product needs to be appealing to customers as well as meet the needs and wants of the customers and Gillette’s razors and blades have been at the top of the sales for many years. The razors and blades are at the mature stage of development, but customers still need to product to carry out grooming needs. Also, by Gillette developing an online market, the company is essentially marketing a convenience product that is easy to obtain. Therefore, Gillette does not need to try to create a razor with five or six blades just to be above the Schick Quattro, they need to focus their attention on marketing the already appealing and satisfying products they have produced. The marketing team may also offer a trial period for three months. This would allow