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1. Clean Edge Razor
KELOMPOK 7 MM KELAS 27C
DIAN ATIKA, RAFIKA, RERY INDRA KUSUMA
Clean Edge Razor

2. Clean Edge Razor
Case Summary
Main Issue
Problem Statement
Analysis
Recommendation

3. Desk Edge Razor
Case Summary

4. Clean Edge Razor
- Paramount Health and Beauty Company, known as Paramount,
is a global consumer products giant with four corporate divisions
including Health, Cleaning, Beauty and Grooming.
- Paramount entered the non-disposable razor market in 1962
and quickly became a market leader.
- Paramount offers two products, the Paramount Pro in the
moderate segment of the product market and the Paramount
Avail, which was considered the value offering market.
- With these two products the company enjoys 23.3% (2009) of
the retail share.

5. Clean Edge Razor
- By 2009, the company realized $13 billion in worldwide sales
and $7 billion in gross profits, with the non-disposable razors
and refill cartridges in the U.S. contributing $170 million in
revenue, gross profit of $92 million, and operating profit of $26
million.
- The company has developed their newest non-disposable
razor, Clean Edge, which is currently undergoing review by
market testers.

6. Clean Edge Razor
SUPER-
PREMIUM
34%
MODERATE
44%
VALUE 22%
SALES
SUPER-PREMIUM
25%
MODERATE 43%
VALUE 32%
VOLUME
NON DISPOSABLE RAZORS AND REFILL CARTRIDGE RETAIL SALES
BY SEGMENT FOR US MARKET (2009)

7. Clean Edge Razor
PARAMOUNT
PRINCE
B&K
RADIANCESIMPSONS
OTHER
PARAMOUNT COMPETITORS AND MARKET SHARE (2010 E)
Market leader since 1950s, U$ 224 M
revenue, U$45 M operating profit, 26,2%
market share, brand: Cogent
Brand: Vitric,
21,1 % of market share
Brand: Naiv,
2,6% of market share
Brand: Tempest
5,7 % of market share
23 % of market share
21,4 % of market share

8. Clean Edge Razor
Main Issue

9. Clean Edge Razor
1. How Should Edge-Razor Enter The Market
2. Positioning strategy for the Clean-Edge
3. Brand Name for new product
4. Market budget for promoting Clean-Edge

10. Clean Edge Razor
Problem Statement

11. Clean Edge Razor
Market
Segments
Super-
Premium
Mainstream Niche
Moderate Value
MARKET SEGMENT

12. Clean Edge Razor
ALBERT ROSENBERG
WILLIAM KIM
POSITIONING STRATEGY

13. Clean Edge Razor
BRAND NAME CONSIDERATIONS
Paramount Clean-Edge
Clean-Edge Paramount

14. Clean Edge Razor
MARKETING BUDGET ALLOCATION
•$ 15 MillionNICHE
•$ 42 MillionMAINSTREAM

15. Clean Edge Razor
Analysis

16. Clean Edge Razor
VIBRATING,ULTRA- THIN, 5 BLADE RAZOR
A LARGER ,HEAVIER HANDLE FOR A BETTER BALANCE
,GRIP & CONTROL VIBRATION FOR STIMULATE HAIR
FOLLICLES, 25% INCREASE IN HAIR REMOVAL
CLEAN EDGE DESIGN AND TESTING

17. Clean Edge Razor
COMPARE THE SUGGESTED PRICE (IN MAINSTREAM
POSITIONING) WITH COMPETITORS
Super Premium Razor Standard Refill
Cartridges
Cogent Plus $12.50 $10
Cogent $11.19 $8.89
Clean-Edge $11.19 $8.89
Naiv $11.80 $9.45
Vitric Advanced $11.20 $8.99
Vitric Master $10.85 $8.65
Tempest $10.99 $8.75

18. Clean Edge Razor
Niche Mainstream
Year 1 Year 2 Year 1 Year 2
unit price dollar unit price dollar unit price dollar unit price dollar
Razors sales 1 9.09 9.09 1.5 9.09 13.64 3.3 7.83 25.84 4 7.83 31.32
Cartridge sales 4 7.35 29.40 10 7.35 73.50 9.9 6.22 61.58 21.9 6.22 136.22
Total Sales (1) 38.49 87.14 87.42 167.54
Razors Production cost 1 5 5.00 1.5 5 7.50 3.3 4.74 15.64 4 4.74 18.96
Cartridge Production cost 4 2.43 9.72 10 2.43 24.30 9.9 2.24 22.18 21.9 2.24 49.06
Capacity Cost 0.61 0.87 1.71 2.45
Advertising & Promotion 15.00 16.00 42.00 39.00
Total Cost (2) 30.33 48.67 81.53 109.47
Profit (1-2) 8.16 38.47 5.89 58.07
Profit % from sales 21.20 44.14 6.74 34.66
Profit and Loss Forecasts for Clean Edge Under Niche and
Mainstream Scenarios

19. Clean Edge Razor
SEGMENT MARKET COMPARATIONS
NICHE
• Create a One Strong Brand
• Avoid Cannibalization
• Lower Marketing
Investment than
Mainstream
• Higher Gross Profit than
Mainstream
MAINSTREAM
• Replace Paramount Pro
(Cannibalization)
• Higher Marketing
Investment
• Lower Gross Profit

20. Clean Edge Razor
BEHAVIOR SEGMENTATION OF NON DISPOSABLE RAZOR
CONSUMERS
Social/Emotional Shavers
(39%)
Aesthetic Shavers (28%) Maintenance Shavers (33%)
Differentiate among
product. Search for product
based on both functionality
and messaging.
Shaving as an essential part
of a daily grooming ritual.
Shaving makes them feel
more attractive and
confident.
Search for product that
most effectively remove
hair.
Shaving is consistently done
to remove unwanted hair.
Shaving is a means to
smooth skin they desire.
View product as the same.
Lack of interest in product
category.
Shaving routine is
inconsistent.
Shaving is a chore they try
to finish as quickly as
possible.

21. Clean Edge Razor
Recommendation

22. Clean Edge Razor
WE PREFERED “NICHE POSITIONING”
TARGETING THE MOST APPROPRIATE SEGMENTS
39%
28%
33%
SOCIAL-
EMOTIONAL
SHAVERS
AESTHETIC
SHAVERS
MAINTENANCE
SHAVERS
CHOSE 2 SEGMENTS : SOCIAL-EMOTIONAL AND AESTHETIC SHAVERS
(TOTAL SEGMENT 67%)

23. Clean Edge Razor