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Clean Edge Razor

Decent Essays

4249 JANUARY 19, 2011 JOHN A. QUELCH HEATHER BECKHAM Clean Edge Razor: Splitting Hairs in Product Positioning 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 shave.1 …show more content…

In general, distribution outlets responded to the growth in nondisposable SKUs by increasing shelf space for the product category. Razors were not purchased frequently enough to be a traffic builder for the stores, but retail margins associated with the products tended to be considerably higher than other personal care items (e.g., toothpaste). Distribution was also starting to shift outside traditional food and drug stores. In 2000, food stores sold over half of all razors, but by 2009 they represented only 42% of sales. Exhibit 4 summarizes the changes in retail channel distribution from 2007 to 2010E. Male-specific grooming products seemed to be a bright spot in the industry. Recent trends indicated men’s grooming routines moved well beyond a splash of aftershave. New products such as men’s body spray, fragranced shower gel, and skincare lines proliferated in the last several years. Male-specific personal care products outpaced the growth in the women’s beauty market as these products became more mainstream. With more media attention on men’s grooming issues and less stigma associated with men’s preening, the segment seemed poised for growth. Company Overview 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

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