Clean Edge Razor

Marketing Management

In this case “Clean Edge Razor: Splitting Hairs in Product Positioning” January 19, 2011, describes a conflict generated in Paramount Health & Beauty Company to introduce a new product into the market. Clean Edge was the name given to a non-disposable razor that had an improved designed and could revolutionize the market. The razor design utilizes a technology that simulates hair growth that allows a superior shaved.

Consider the positioning strategy for this product was a dilemma, all executives at Paramount agree that Clean Edge should be priced in the super-premium segment of the market. But there was no consensus to how launch the Clean Edge razor, some executives believed that should be launched as a conventional entry within super-premium segment with an attractive Package designs that state being the most effective razor available on the market. Others executives felt that the release should be more remarkable a niche strategy, targeting the most intensely involved super-premium consumers would be optimal. Ultimately the company launched the product into the men’s market first, where the company had the strongest presence followed shortly after in the market of women.

The US market could be fragmented up into various categories, including non-disposable, razors, refill cartridges, disposable razors, shaving cream and depilatories. Characterize the non-disposable razors with a 5% growth during the years 2007 to 2011 and the refill cartridge with a growth close to 2% per year during the same period. The industry is also divided into different segments base on price and quality, which are including value, moderate, and super-premium, outperforming in recent years the superior-premium segment. Investigations made by Paramount’s indicate additional segmentations depending on the product's benefits and consumer behavior. Maintenance Shavers who is completed unbiased in the product category, the Involver Razor user which is fragmented into two categories: Social/Emotional shavers and Aesthetic shavers both groups were enthusiastic to experience with new technology, Social/Emotional shavers were driven by the overall shaving experience, while Aesthetic shavers were more interested in cosmetic results.

Paramount was a global consumer products giant with $13 billion in worldwide sales and seven billion in gross profits for 2009. Paramount corporate divisions included Health, Cleaning, Beauty and Grooming. The company went into the non-disposable razor market in 1962 and rapidly became a reputable brand in the business. Paramount offered two lines of non-disposable razors and refill cartridges; Paramount Pro that was positioned in the moderated segment of the product and the Paramount Avail, which was considered a value offering. The company obtained market share with these two products, which positioned the company as one of the leaders in 2009.

The rate of new product

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