The document discusses positioning strategies for Paramount's new razor product, Clean Edge. It analyzes entering either the mainstream or niche market segments. The niche strategy is recommended, as it has less cannibalization risk than mainstream. A SWOT analysis shows niche has opportunities from growing demand but requires a higher budget. Recommendations include targeting college students on social media, and improving distribution convenience.

1. CLEAN EDGE RAZOR: SPLITTING
HAIRS IN PRODUCT POSITIONING
Prepared By:
Group : 6
Sonalika Sharma
Meenu Verma

2. CLEAN EDGE RAZOR: SPLITTING HAIRS
IN PRODUCT POSITIONING
• 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.
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%

3. 4P’S
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

4. 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

5. MAIN ISSUE
Positioning strategy for the Clean-Edge
Brand Name for new product
Market budget for promoting Clean-Edge

6. CHALLENGES
• 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

7. ANALYSIS
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

8. SWOT ANALYSIS-NICHE MARKET
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

9. SWOT ANALYSIS-MAINSTREAM
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

10. 4C’S
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

11. RECOMMENDATIONS
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

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