Posted: May 24th, 2022

Clean Edge Razor Case Study Analysis

Clean Edge Razor Case Study Analysis

Paramount, a well established and globally recognized personal care product company has developed their latest and highly innovative non-disposable shaving razor called Clean Edge. The Paramount senior executives were sure that Clean Edge would bring great satisfaction for consumers due to the 5% growth in the non-disposable razor product has experienced in the past 4 years (2007-2010). In fact, according to the case study, although with respect to non-disposable razors, price and quality were segmented into three dimensions such as value, moderate and super premium, the senior executives of Paramount unanimously had agreed to price Clean Edge razors in the super-premium segment since the razor industry as a whole has seen dramatic growth in the super premium segment for the past 10 years. In addition, the super premium segment was high in demand due to many new innovative features found in razors such as five blade technology, glide strips and lather bar, thus, innovation and new technological advances were the catalysts for astounding increase in production of 22 new stock keeping units (SKU) between 2008-2009 alone. Moreover, the growth in non-disposable SKU’s also ignited the advertising expenditures, leading to an increased shelf space for this product by the distribution outlets. Yet, at the same time distribution was also beginning to move outside of the traditional food and drug stores with an 8% drop in sales revenue between the years 2000 and 2009.

However, in 2010, Paramount was one of three globally-based giants that dominated the non-disposable and refill cartridge market along with Prince and Benet & Klein. In fact, Prince had been in the non-disposable razor market since 1950’s and currently sold both refill cartridges and non-disposable razors under two brands called Cogent and Cogent Plus-both considered to be super premium. On the other hand, Benet & Klein had entered into the non-disposable razor market 30 years after Prince (in 1985), however its newly created non-disposable razors and refill cartridges were based on innovative technology, possessing lubrication strips, non-slip handles and anti-corrosive blades. In addition, two other new comers Radiance and Simpsons had joined the competition and were considered to be well-established personal care product companies, which added to an already fiercely competitive market. For example, Radiance had launched a new product called Naiv that was very similar in design to Clean Edge — it also featured a vibrating affect and it acquired 13% of the market share in the test markets as well. Indeed, Radiance and Paramount were both very fierce competitors. However, Paramount had managed to stay ahead of the rest by creating products that satisfied all three segments of the market thus appealing to value, moderate and super premium markets yet other competitors simply satisfied one or two of market segments. For instance, Paramount Pro-secured the moderate segment, Paramount Avail targeted the moderate segment, and finally Clean Edge covered super premium segment. In addition, compared to Cogent or even Victric (made by Simpsons) Clean Edge had 25% increase in hair removal, thus clearly demonstrating better overall performance of the product as well as consumer satisfaction in terms of improvement seen in skin tone and textures after product use.

Problem statement

Although Paramount’s innovative flare had shown promising results for its latest invention (Clean Edge), its current products including Clean Edge had some challenges in terms of their life cycle. For instance, both Pro and Avail products were at their mature stage of the life cycle and were as a result of losing product positioning. In fact, in the past 5 years no new product were introduced for either one of these lines. Moreover, due to the fierce competition for new and more innovative and technologically advanced product demand, Paramount not only needed to deal with how to best position and brand its new products (i.e. Clean Edge) during the launch phase, but it also needed keep up to even stay ahead of the competition by introducing new products as well. Thus, in this case, the demand for cutting edge and innovative products certainly shortened the life cycle of their product lines.

Problem analysis

As previously mentioned, the non-disposable razor market has been segmented in three sections: value, moderate and super premium. Indeed, these segments correlate with the type of consumer and consumer behavior that best suits the appropriate category segments in the non-disposable razor market. For instance, those consumers who are considered to be moderate in terms of quality and pricing tend to differ among products and having is considered to be essential part of daily grooming, and in fact may even associate shaving to feeling attractive and confident. Therefore, such users may be inclined to pay a little more than average to avoid getting nicks and cuts by having a relatively durable and better performing product. These consumers are still motivated by cost yet, how they feel about the shaving experience ultimately is the deciding factor. The involved aesthetic shaver are those consumers that search for products that effectively remove hair and thus, such consumers essentially are relying mainly on performance and results as the deciding factor. In this case, premium quality and pricing will be the core components of the decision making process. Indeed, the case study refers to these types of consumers as highly involved groomers looking for a superior experience and ones who seek to have the closest possible shave. Finally, the uninvolved maintenance shaver is the value-based consumer who is not interested in the brand but rather more driven by cost as the ultimate deciding factor. They shave based on necessity and therefore they seek to get the job done with minimal hit to their pocket book. Money is the driver in this case.

Based on reviewing the cost analysis and in looking at different positioning scenarios for Paramount’s Clean Edge product, launching Clean Edge to a niche market will provide the consumers with a product that is more sophisticated and advanced in terms of technology and performance which fulfills the concept of innovative branding. It also minimizes the financial impact that the company would most likely face should they decide to first go mainstream (see Appendix 1). As shown in appendix 1, the niche market has less negative impact than compared to mainstream market by as much as 15.3% (year 1, 3.2% less than mainstream and year 2, 12.1% less) total for the two years combined! Although the initial profit would be less, the financial impact is also less. However, the overall profit in the long run will be constant and steadily growing. This means that for niche market the profit will be at 33% by second year where as in the mainstream market will be at 35%, thus there is a 2% difference in growth margin between niche vs. mainstream markets, yet the risks are also greater by going mainstream immediately as well. For example, if the Paramount decides to launch the product to the mainstream market instead, this may dilute the brand power for Pro-which essentially may lead to cannibalization by 60%. On the other hand, it also may provide opportunity for Paramount to introduce the Clean Edge product to the value based and moderate-based consumers thus shifting their perception and behavior, ultimately increasing the volume of products sold. Moreover, since Paramount already has distribution channels in place for Pro and Avail, it would serve fruitful when introducing a new product line for example in this case Clean Edge. Indeed, if using promotions as a means to reach masses, the company can increase their profit margins for the premium product line if it is introduced to more consumers. It also increases brand visibility and awareness, thus elevating perceived quality of the product in this face.

Alternatives

Based on the data in the case and the analysis presented above, the following alternatives can be used to develop a market strategy that will position Paramount as a market leader in non-disposable razor category with “Clean Edge” product launch: 1) Launch “Clean Edge” as a “mainstream” technology product to be a market leader. 2) Launch “Clean Edge” as a “niche” revolutionary technology product to be a market leader. 3) Create a new strategy to market “Clean Edge” as a revolutionary technology product and gain market share in Super-Premium segment. 4) Create a new branding strategy that will give consumers a household name called “Paramount” with technology superior product and continue to retain and gain market share with “Maintenance users.” 5) Develop a new incentive and rewards program to target “Maintenance users” and gain market share with this user segment. 6) Establish contracts with the new retail channels such as mass merchandisers and club stores so that Paramount non-disposable razors can be placed at the right eye level for the users to choose Paramount products.

The evaluation of alternative solutions was based on the following criteria: Research and analysis studies by Paramount, marketing and sales data across Paramount and its competitors, key product differences and similarities between Paramount and its competitors in non-disposable razor category, and feasibility of implementing an alternative solution suggested. The evaluation also considered costs involved in implementing an alternative solution, costs such as manufacturing, production, advertising, marketing and any cannibalization that could result with marketing strategy adopted by Paramount, and benefits Paramount will receive by implementing an alternative solution such as increased market share with target customers resulting in increased profitability, enhanced brand name equity for Paramount and utilizing Paramount existing products to gain market share among “Maintenance users.”

Recommendation

Nevertheless, it is recommended to introduce the product to niche market since in the long run this decision yield more constant profits and less financial impact for the company. In fact, by introducing this product to the niche market, it gives Paramount an opportunity for higher profit margins when new premium products are launched within the super premium segment. Also, the existing products can be retained and used to target maintenance users (moderate consumers). Of course, we must keep in mind that by choosing this route, the strategic implementation of a niche market product launch would mean that the product reach would not be as extensive and thus the perceived value of the product brand would not be as robust since we are not introducing it to the masses but rather a specific niche market. Therefore, although this is a less aggressive approach of marketing the product, and indeed yield a much milder growth forecast, the growth span is more predictable and stable with relatively manageable financial impact than the lather.

Based on the chosen positioning strategy in using the niche market route, it is recommended to use “Paramount Clean Edge” as a brand name that lay on Paramount’s recognizable name as well as industry leader in personal care product. Thus, using both Paramount along with Clean Edge, brings a strong brand awareness and the notion of technological innovation to potential first time consumers from other competitive brands as well as mainstream consumers. By adopting this name, the company can continue to retain and gain more market share into mainstream users thus ultimately allowing the establishment of quality innovation and technology as its core image and indeed as part of all of Paramount’s products.

APPENDIX 1 — Impact of niche and mainstream markets

Niche

Mainstream

Year 1 impact

$ (36.01)

$ (56.58)

Year 2 Impact

$11.64

$26.54

Source: Calculations table

---

Get Professional Assignment Help Cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

• Plagiarism free papers
• Timely delivery
• Any deadline
• Skilled, Experienced Native English Writers
• Subject-relevant academic writer
• Adherence to paper instructions
• Ability to tackle bulk assignments
• Reasonable prices
• 24/7 Customer Support
• Get superb grades consistently

 

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

• When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
• We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

• The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
• We will have a different writer write the paper from scratch.
• Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

---