CLEAN EDGE RAZOR -
CASE ANALYSIS
GROUP 7
B Sanjay Kumar 230101059
Divij Chawla 230101070
Kinjal Khandelwal 230103105
Parv Mittal 230101142
Rishi Gupta 230103168
Sakshi Singh 230103193
Current Trends in the US Razor Market
Market Growth
Market Growth and
and Segmentation
Segmentation Changing Consumer Preferences
Non-disposable razors and refill
Shifting consumer preferences
cartridges experienced steady
towards advanced technology and
growth from 2007 to 2010. Shift in
superior shaving experience. Efforts
distribution channels, with a
to appeal to evolving preferences
decrease in traditional food stores
through marketing and new
and drugstores. Consumer Behavior
product introductions.
Segment Differentiation Categorization of consumers into
Segmentation into super-premium, involved (social/emotional, aesthetic) Expansion of Male-Specific
moderate, and value segments and uninvolved (maintenance) razor Grooming Products
based on volume and dollar sales. users. Shortened replacement cycle
Growing market for male-specific
driven by factors like new product
Marketing & Promotion Strategies grooming products beyond razors,
introductions and advertising
Significant investment in including body sprays, fragranced
campaigns promoting frequent blade
advertising and promotion shower gels, and skincare lines,
replacement.
expenditures. Rising media indicating a shift in men's grooming
expenditures and intense routines.
Competition and Innovation
competition in the market.
Presence of multinational players,
driving competition. Development of
technologically advanced products
(e.g., Clean Edge) to differentiate and
capture market share.
Clean Edge Razor Case | Group 7 | Section B
Implications of These Trends on Paramount
Marketing & Diversification
Continuous Consumer of Product
Innovation Education Portfolio
Paramount should
Paramount must Paramount needs to expand its product
prioritize investment educate consumers portfolio beyond
in research and about the benefits of razors to capture
development to frequent blade additional market
maintain its replacement and the share in the male
competitive edge by superiority of grooming segment
introducing new
features and
Focus on technologically
Segmentation through products
advanced razors like such as skincare
enhancing existing Super-Premium Clean Edge through and Targeting lines or grooming
products.. effective marketing
Segment accessories.
campaigns.
Paramount should
Paramount should utilize consumer
allocate resources research to tailor
towards this growing marketing strategies
segment, potentially and product
by introducing new offerings to different
products tailored to consumer segments,
meet the needs of ensuring maximum
discerning resonance with its
consumers. target audience.
Clean Edge Razor Case | Group 7 | Section B
Niche Positioning - Pros
Slightly lesser competition - Only Naiv Razor
stands as a possible competitor in terms of the
vibrational feature offered by Clean Edge.
Lesser Marketing and Advertising Budget
Allocation - $15m for Year 1 & $16mil for Year 2. Niche Positioning - Cons
Lower Capacity Costs - Cost incurred when Relatively smaller demand - Might yield lower
planning to expand will be lower in this returns to the demand arise due to smaller mass
positioning. segment,
Lower risk of cannibalization - The targetted
Underutilization of the Market Potential - In the
segment gets narrowed down due to the unique
case of Clean Edge a considerable amount of
pricing and marketing strategy, not leading to
market under the super-premium segment is not
high fluctuations in the Pro/Avail segment.
leveraged
Threat of Premium Pricing - Under the super-
premium segment the higher number of competitions
like Cogent, Naiv, Vitric etc are charging less than
$12.99 unlike Clean Edge, this might not make any
Clean Edge Razor Case | Group 7 | Section B
sense to the consumer.
Mainstream Positioning - Pros
1. High market potential utilisation - Through
mainstreaming the existing super-premium market
can be maximised.
2. Relatively lesser efforts to penetrate the market - Mainstream Positioning - Cons
As Clean Edge has established it's products as
technologically advanced. Lesser efforts are
required to leverage on the actively razor using 1. Risk of cannibilsation, due to production in high
market. capacity there is a fear of losing sales in Pro/Avail
segment.
3. Pricing: The suggested pricing of non disposable
razors and refill cartridges are competive with the 2. Relatively higher capacity costs - If planning to
existing players in the super-premium segment increase the production the expenses incurred are
unlike the niche positioning scenario. relatively higher.
3. Fear of generating returns for high marketing and
advertising budget, considering the number of
competitor products in the super-premium segment.
Financial Comparision of markets
Financial Data Niche Positioning Mainstream Positioning
Sales Volume (units) 1.0 million + 4.0 Million 3.3 million + 9.9 million
Selling Price per Unit $12.99 + $10.50 $11.9 + $8.89
Total Revenue $93.96 million $124.838 million
Variable Costs per Unit $5.00 + $2.43 $4,74 + $2.24
Total Variable Costs $14.72 million $37.818
Fixed Costs $15.61 million $43.71 million
Operating Profit $63.63 million $43.31 Million
To compare both the markets we have calculated the following data for both
1. Total revenue = (Unit sales of razors * Suggested price of razor) + (Unit sales of cartridges *
Suggested price of cartridge)
2.Total variable costs = (Unit sales of razors * Production cost per razor) + (Unit sales of
cartridges * Production cost per cartridge)
3.Total fixed costs = Capacity costs + Advertising costs + Consumer promotions costs + Trade
promotions costs
4.Operating profit = Total revenue - Total variable costs - Total fixed costs
Alternate Brand Name
Analysis | Pros & Cons
CLEAN EDGE BY PARAMOUNT CLEAN
PARAMOUNT EDGE
Pros Cons Pros Cons
1 1
Highlights product innovation + Placing Paramount at the
Maintains association with
1 forefront reinforces the strong 1 Offers less distinction in the
Sub-brand confusion may arise
Paramount’s Brand Equity brand value and trust built over
if Paramount introduces more market for Paramount’s
the years.
products under the “Clean Product.
2 2
“Clean Edge” before Paramount Edge” category Paramount’s placement aligns
differentiates it from other razor with the Corporate Strategy |
2 Strengthens Paramount Brand 2
lines by Paramount. Placing Paramount at the start
Placing Paramount at the end across all product lines can overshadow the innovative
can dilute consumer’s brand
3 aspect of “Clean Edge.” ~
Potential for Strong Brand association and its equity. 3 affecting the USP of the product.
Recognition ~ Clean Edge could Signifies a clear Brand
become synonymous for high- Hierarchy - Clean Edge as a
quality shaving tech. product of Paramount
Clean Edge Razor Case | Group 7 | Section B
It effectively highlights the innovative aspect of
the product while still maintaining its association
with the Paramount brand.
Preferred Brand Name
It offers clear differentiation from existing product
“Clean Edge by lines and has the potential to establish "Clean
Edge" as a recognizable and distinct brand in the
Paramount” market.
Additionally, it minimizes the risk of diluting
Paramount's overall brand equity while
capitalizing on the opportunity to establish "Clean
Edge" as a market leader in shaving technology.
Clean Edge Razor Case | Group 7 | Section B
Brand Name Options
ProEdge
This name implies that the razor is preferred by
individuals who seek the finest in grooming, since it
combines elements of professionalism and great
performance.
SmoothGlide
This name focuses on the smooth shaving
experience.
UltraShave
The name highlights how closely the
razor shaves.
NovaBlade
This name suggests a new and innovative
blade technology.
Clean Edge Razor Case | Group 7 | Section B
Clean Edge Razor Case | Group 7 | Section B
