The non-disposable razor market is growing and becoming more segmented. Paramount currently holds the leading market share but its products are aging. Clean Edge is Paramount's new innovation, but it is currently in the introductory stage. There are arguments for both niche marketing Clean Edge to complement Paramount's portfolio versus mainstream marketing to make it the new leader. Economic analysis indicates niche marketing is preferable initially. The recommended brand name is Clean Edge by Paramount and the budget matches the niche marketing allocation of $15 million total.

1. What changes are occurring in non-disposable razor
categories? Assess paramount's competitive position .What
are strategic lifecycle challenges for paramount's current
products as well as for clean edge?
The following changes are occurring in non-disposable razor
categories:
 The growth in this category has increased by 5% per year from the
year 2007-2010
 There are new innovations and new products introduction in this
market
 The retail sales has increased from 178$ in 2005 to 218$ in 2010
 The major growth in this category in last decade was in super
premium segment
 The retail sales growth has increased in moderate segment currently
 22 new stock keeping units are being introduced between the year
2008 and 2009
 Total media advertising expenditure on this category has also risen
by 4.5 % in a year (the major player being Benet &Klein )
 Shelf space in the distribution outlets for the product category has
also increased
 The sale of mass merchandiser has increased by 10.5% in the period
of 3 years and food and drug stores has decreased on an average of
7.3%
 Inter purchase interval is shortening
Paramount's competitive position in this industry is:

2.  Paramount is a global consumer product giant with $13 billion
worldwide sales and $7 billion in gross profits in the year 2009
 There are three multinational players in the non-disposable razors
and refill cartridge market - Paramount, Benet &Klein and Prince. The
new entrants are Radiance and Simpson
 Paramount pro and avail has allowed paramount to capture the unit
volume market leader position in 2009 with 23.3 %retail unit share
 There are basically three consumer segments for non-disposable
razors -
1.Value-in this segment paramount is having a monopoly. there are no
direct competitors
2.Moderate-there is only one other brand vitric by B&K so both are
having 50-50 market share
3.Super premium -in this market there is huge competition but clean
edge is unique
Strategic lifecycle challenges are:
 Paramount's existing products are - paramount pro and paramount
avail
 Paramount pro is having increasing sales but there are no new
innovations in this category from the previous 5 years so it is on the
verge of decline
 Paramount avail's sale is declining year by year so it has already
reached the final stage of product lifecycle
Clean edge is a unique product and is having an upper hand of being
one of its kind. But it is in the introduction stage so it will take some time
to earn profits

3. How is non-disposable razor market
segmented? Examine consumer behavior for
non-disposable razors.
Non disposable razor market is segmented into three based on price and
quality :value , moderate and super premium
Super premium segment is always in search of new innovative products
so there are new innovations in this field
Based on product benefit and consumer behavior it is further divided into
two categories - involved users and uninvolved users
Involved users are of further two types-social/emotional shavers (39%)
and aesthetic shavers (28%)
Uninvolved users are also called maintenance shavers (33%)
Involved razor users (social/ emotional shavers) differentiate among
products. Shaving is an essential of their daily routine and they are ready to
try new technology and innovative products. It helps them to look and feel
attractive and confident. they are motivated with overall shaving experience
Another category of involved razor users (aesthetic shavers) wants a
product that helps them to remove hair effectively. they desire to have a
smooth skin and shaving helps them to remove hair on a daily basis these
users are more interested in cosmetic results
The last category is maintenance shavers are completely disinterested in
product category. their shaving routine is inconsistent and wants to finish
shaving as quickly as possible
Consumers are purchasing razors and refills more frequently
Replacement cycle has shortened

4. Consumers are trying out new products(being the effect of excessive
advertisement )
What are the arguments for launching clean
edge as a niche product and a mainstream
brand?
Arguments in favor and against niche marketing of clean edge
Favor
 Mainstream marketing will lead to cannibalization and eat up the market
of existing products of paramount
The technical features of clean edge can only be communicated to some
sophisticated users
Paramount pro is already a mainstream leader
Paramount is already having an edge in value and moderate segment so
niche marketing in only super premium segment will benefit more
Niche marketing will complement existing product portfolio perfectly
Easy to promote niche marketing
Against
It will lead to benefitting only a few customers
The existing products of paramount are already in declining stage if new
innovations are not introduced it will lead to losing existing customers
Arguments in favor and against mainstream marketing of clean edge
Favor
Clean edge is a technical innovation , being one of its kind
Introduction in mainstream will lead to leadership

5.  Paramount pro is already old so clean edge will take its place
Based on your positioning strategy what brand
name and budget allocation would you advice?
The economic analysis of the clean edge production clearly gives an
indication that it is better to introduce the product in niche market (the
economic analysis is in the excel file)
The brand name can be clean edge by paramount the major emphasis
being on clean edge as it is a unique product to be launched first time in
the market so the brand name must also be unique
Paramount being an existing brand and a dominant player so using the
company's name in the brand will attract its existing loyal customers thus it
will enhance the sale of the product. the trust that the customers have in
existing paramount's product will ultimately shift to clean edge
 As it is clear to introduce the product in niche market so the budget
allocation must be as per exhibit 7 that is $15 million in total marketing
expenditure and $14.72 million for production of razors and cartridges and
$0.61 million for capacity cost