Clean Edge Razor Case Study Summary of the Background and Facts This case explains the fictional struggle of a razor company, Paramount Health and Beauty Company (Paramount), who has been lagging behind in its industry to release innovative products. In result, its competitors are able to gain leverage by releasing niche products and catch up to Paramount in the super-premium arena. In 1962, Paramount entered the non-disposable razor industry with a spark and immediately entered into a class of its own by offering two different lines, Paramount Avail and Paramount Pro. The company’s profits really soared in 2009 with $13 billion in sales and $7 billion in gross profits worldwide. Currently Paramount is experiencing a major hurdle as the company has yet to release an innovative product or extension to their product in the last five years. Presently, the shares for non-disposable razors are growing approximately 5% per year but most of the growth in the market is contributed by innovative products. This outcome has also impacted Paramount’s sales. In hopes of discovering a solution, Paramount began testing a new razor with a unique function called Clean Edge that would be launched in January of 2011. Paramount felt that this new razor would be revolutionary in the market place, as it is the first of its kind. The Clean Edge razor includes a vibrating feature that stimulates the follicles to achieve a closer shave. The Clean Edge razor is intended to rebirth and reshape the
2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?
* Paramount will be viewed as innovative and keeping up with competition. A company that is stagnant falls behind. Through marketing this razor to everyone, Paramount will be viewed as taking the next step to create the best razor. Currently Paramount isn’t working on any other innovative razors so this technology will have to be available to all different types of customers.
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?
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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
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. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry
Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.
The Gillette Company has effectively entered the razor blade market in the main parts of Indonesia. Even though there is still a lot of potential for growth, it faces stiff competition, as well
Early in 2013, I was leading marketing and product development for the market-leading provider of braces to orthodontists. The product was seemingly unsexy to me, but my customers were passionate about the product category and the associated technique required for using a
3) Capitalize on the renewed strength on the brand name by extending it to other mens’ grooming products.
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
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.
Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass
In the constitution and criminal justice system in the united states the death penalty is us used only for the most heinous of crimes. Some of these crimes include treason,espionage, murder, large scale drug trafficking a rape. The constitution states that it is a reasonable punishment and it is also necessary and justified in punishment of crime and the justice system. And truth be told america needs the death penalty. Here are the reasons why capital punishment are good it can save money in the prison system, it deters crime and repeat offences and it also brings a feeling of relief to the victims and the family of the victims.
The war has first started around 1962 with Schick introducing the first stainless steel blade by this decreasing Gillette's market share. Yet Gillette was lucky because Schick couldn't exploit the niche it has created and Schick ended up in selling its blades to Gillette. Another technology was introduced by Schick in 2003, the Quattro four-bladed razor to gain market share from Gillette. The battle of one-upmanship is aggressive between Gillette and Schick and this is leading to all technology advancements in the wet-shaving industry. Gillette has always dominated the shaving market since its founding in 1901. Currently, Gillette controls 70% of the wet-shaving market. Schick claims roughly 18%. I think Gillette must always be cautious of schick and fair competition is always healthy for companies since it keeps them on edge with advancements to gain more market