Clean

Edge
Razor:
Splitting
Hairs in
Product
Position
Marketing Management
Submitted by: Group Y2
Gyanasagar A 16S514
Himanshu Jha 16S517
Kavleen kaur 16S522
Priyanka Gupta 16S540
Vinay Sharma 16S554

1.

How is the NDR market segmented? Examine consumer

behavior for NDR
On the basis of price and quality The non-disposable razor market is
segmented
into three sections :

Value
Moderate
super-premium

According to a 2009 study, the retail sales of non-disposable razors

came from 25%
volume of super-premium, 43% of moderate, and
32% of value segments. The sale part contributes 34% of superpremium, 44% of moderate, and 22% of value segments to the retail
sales of non-disposable razors. Paramounts consumer research
identified distinct segmentation in terms of product benefits and
consumer behaviour.

Consumer Behaviour:
Non-disposable razor users are segmented as following:

Involved Razor users, Social/Emotional Shavers-39%

Aesthetic Shavers 28%
Uninvolved Razor users/ Maintenance Shavers 33%.

Social/Emotional Shavers differentiate among products and search for

products based on both functionality and messaging. They perceive
shaving as an important part of a daily grooming practice which makes
them feel more attractive and confident.
Aesthetic Shavers search for products that most effectively remove
hair and they consistently shave in order to remove unwanted hair.
According to them, shaving is a means to smoothen skin as they like .
Maintenance Shavers are indifferent towards the different products and
their shaving routine is inconsistent. They consider shaving as just
another chore which they try to finish as soon as possible.

2.

What are the arguments for launching clean edge as a

Niche product / mainstream?

Following are the arguments which explain the pros and cons of
launching Clean Edge as a niche and a mainstream product:

Niche positioning :-

PROS

Positioning Clean
Edge as niche
willcomplement
companys existing
product portfolio
perfectly.
From the exhibits,
its visible that it will
result in high and
consistent profit
margins for the
company and the
riskinvolvedwill be
less. Apart from that
Niche positioning will
require $15million in
total marketing
expenditures inthe
first year as opposed
to $42million in
mainstream.

First of all it has a

limited consumer
base and
secondlythe
companys current
products Pro and
Avail had not
introduced any
innovations in the
last five years. Pro is
in the mature phase
and theres a high
probability of its
sales declining soon.
Therefore by
launching in this
segment, Paramount
will lose their loyal
customer base which
is therewith Pro and
Avail.

PROS

Mainstream positioning:Consumers are

becoming more and
more sophisticated day
by day and expect
more advanced
technology.
Paramounts bread and
butter product, Pro
was in the mature
phase of theproduct
lifecycle so there is a
possibility of decline.
Positioning Clean Edge
as mainstream product
will help prevent
loyalParamount
customers from being
wooed away tomore
innovative brands.
Main stream razor unit
volumes are expected
to capture over three
times the volumes of
the niche market in the
first year. Clean Edge
has the potential for
true market
domination and would
quickly gain mass
appeal.

Paramount already
had product in
mainstream
positioning
-Paramount Pro so
launching it as
mainstream
positioning will dilute
the brand power and
will lead to
cannibalization. More
marketing support will
be needed to reach the
target masses. The
company would
require an extensive
advertising campaign,
considerable consumer
promotions would be
needed and thus the
expenses associated
with them will be
huge. To reach full
sales potential with
this positioning, $42
million marketing
budget would be
neededfor year one..