Marketing Case Study: The Non Disposable Razor Category

Marketing Case Study
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Marketing Case Study
Paramount health and beauty Company is a firm that specializes in Clean Edge Razor. Jackson Randal, the product manager for clean edge, was responsible for the product development process and the positioning strategy for the new clean Edge. The verdict for the new product was encouraging to the group of executives at Paramount. The majority of the men felt that the new non-disposable razor had the closest, smoothest, and cleanest shave that they had ever come across. The product was utilizing an improved design that provided a superior performance through a vibrating technology that stimulates the hair follicles. This in turn lifts the hair thus allowing for a thorough shave. The executives in the company were of the opinion that the product should be priced in the super-premium category of the market. The rest were of the opinion that it should be launched as a mainstream entry in the same segment with an appeal of the most effective razor in the market. This paper will look at the overview of the company, its market for razor, competitors, as well as the trend.
Overview of Paramount
Paramount is a global company that had over $13 billion in sales around the world and gross profits of over $7 billion in 2009. It is composed of four divisions that deal with health, cleaning, grooming, and beauty. It is a respected player in the non-disposable razor market since its launch in 1967. The sales of the non-disposable razors and the refill cartridges accounted for $170 million in revenues and $ 92 million in gross profits in 2009. It has two lines of products, that is the paramount pro and the paramount Avail. The paramount pro is positioned in the moderate segment while the Paramount Avail is positioned in the value offering.
Consumer Behavior
The non-disposable market is divided into three categories depending on the quality and price. This includes the value, moderate, and the super-premium. The studies on the consumer behavior from 2009 indicat...