2. • Paramount entered non
disposable razor market in
1962 .
• Market leader by 1992 with
23.3% market share followed
by Prince with 23.1% share.
• Paramount Product: Pro to
moderate segment & Avail to
value segment
• By 2009 – Sales : $13 billion
and $7 billion Gross profits.
3. Non disposable razor market
• 5% growth rate from 2007-2010
• Contributing $170 million in revenue, $92
million in gross profit and $26 million of
operating profit.
• 22 new stock keeping units between 2008-09
• Segment: Super-Premium -25%, Moderate-43%,
Value-32%
• Consumer Group: Social/Emotional shaver-39%,
Aesthetic shaver-28%, Maintenance Shavers-
33%
4. Product
Market Leader Volume :
Value:
Operating profit lagging behind competitors
NO innovation in last 5 years
Promotion
Consumer Promotion
Trade Promotion
Place
Food Stores
Drug Stores
Mass Merchandise
Club Stores
Other
Price
Paramount Pro : $9.50
Paramount Avail: $5.75
5. Paramount
[21.4%]
Prince
[26.2%]
B&K
[21.1%]
Radiance
[2.6%]
Simpsons
[5.7%]
Other
[23%]
Brand :
Vitric : Moderate
Vitric advanced : super
premium
Vitric master :Super
premium
Brand :
Cogent : : super premium
Cogent Plus : Super premium
New competitor
Aggressive advertising
of $16.1M
Brand :
Naiv: Super premium
Similar to clean shave
Market Share 2010 E
New competitor
Increasing advertising
budget
Brand :
Tempest: Super premium
Paramount
Brand :
Avail: Value
Pro : Moderate
6. Positioning strategy for the Clean-Edge
Brand Name for new product
Market budget for promoting Clean-Edge
7. Target Markets
◦ Males between 22-55 years
◦ Emotional/Social and aesthetic Shavers
◦ Positioning – First new release in 5 yrs
Mainstream Product(lower range) or
Niche Product (higher range)
◦ Brand Name
Mainstream PARAMOUNT CLEAN EDGE
Niche CLEAN EDGE by Paramount “ We Care”
Market Budget
Niche $15 Million
Mainstream $42 million
8. Timing to enter
Super premium
Introduction to
super premium
market
New entries to the
non disposable
market
Non disposable
market is changing
Product Analysis
Target Market A
Analysis
Competitive
Analysis
9. SWOT Analysis
(Niche Market)
THREATS
Cannibalizing of existing product.
Launch of Naive by Radiance.
Test market response is positive for Naive
Huge media advertising planned by Radiance
OPPORTUNITIES
Non disposable razor sales grew by 5%
between 2007-10
67% of target consumer in form of
involved shavers
High acceptance for super premium
segment
First mover advantage
WEAKNESS
Volume sales are low
Not enough space for new entrants
High operating and advertisement
cost
STRENGTH
Highly technologically advanced
product
Create a new market segment
Brand loyalty
Low cannibalizing impact
10. SWOT Analysis
(Mainstream)
THREATS
22 new stock keeping units introduced
between 2008-09
Cannibalizing impact is high
OPPORTUNITIES
Non disposable razor sales grew
by 5% between 2007-10
67% of target consumer in form of
involved shavers
Pro in matured stage of product
cycle
WEAKNESS
No technological innovation in
past 5 years
Congestion of products in
mainstream segment
STRENGTH
Increase product diversity
Market leader with largest volume in
non disposable market
Innovative product
with great mass appeal
11. Customer :
Positioning our product
to get the maximum
profitability we must
know the target market
Cost:
Affordability , Satisfaction
and Value
Price offered , benefit and
valued added
Communication
Engaging customer
through meaningful
communication builds
Customer should know
“what is in for me”
Convenience
Offering product through
multiple outlets , reducing
barriers customer might
face while purchasing
product
Customer service
12. Niche market is the way to go!!
Profit and Loss analysis of both niche and mainstream market shows clear profit in
niche market.
Impact of cannibalizing is less in niche market.
Loyal customer base and hence less advertising & promotional expense.
Low threat in niche market
Changes to marketing Mix
Advertise to College students
Facebook and other social networking sites Ads
Distribution Place / convenience