CLEANSPLITTING

EDGE
RAZOR
HAIRS IN PRODUCT POSITIONING

CASE SOLUTION

BY GROUP C2
Anubandh 14F112
Leela Mohit Chivukula 14F129
Moumita Dutta 14F132
Sai Alekya Edara 14F147
Sanjit Kumar Moharana 14F148

PARAMOUNT HEALTH AND BEAUTY COMPANY

Global consumer products giant (Health, Cleaning,Beauty and Grooming)
$13 billion worldwide sales and $7 billion in gross profits.
Entered non-disposable razor market in 1962 and current revenue- $170
million, gross profit-$92 million and operating profit-$26 million
Products(non-disposable razors and refill cartridges)
Paramount pro in moderate segment and paramount avail in value segment.
Proposed product in super premium segment Clean Edge which gives
closest, cleanest and smoothest shave.

Clean Edge: Attributes and Benefits

COMPETITORS
MARKET SHARE ($)

Brand Categories
Super-Premium

Companies

Prince
Benet and Klein

Moderate

Cogent Plus,
Cogent
Vitric Advanced,
Vitric Master

Value

23%

0%

PARAMOUNT

23%

PRINCE

BENET AND KLEIN

1%

SIMPSON

Vitric

22%

31%

OTHERS
RADIANCE

Simpsons

Tempest

Radiance

Naiv

Analyzing completion
Market Share

NDR Brands

Volume(%)

$(%)

Unit Price($)

Cogent Plus
Cogent
Vitric
vitric Advanced
Vitric Master
Paramount Pro
Paramount Avail
Tempest

1
22.1
17.8
0.7
0.7
16.9
6.4
0.9

1.3
29.4
20
1.1
0.9
18.5
4.9
1.1

12.5
11.19
8.89
11.2
10.85
9.5
5.75
10.99

Naiv(Expected)
Clean Edge

2.6

11.8
11.19

Product Features

Product Benefits

Super premium products

Advance lubrication strip,
non slip handle, superior
anti-corrosive technology
No significant
technological innovation.
Advanced pivoting head. Smoother shave
Pulsing feature(vibrating
technology).

MARKET SEGMENTS EXISTING

BEHAVIORAL SEGMETS

value

32% volume
22% dollar

moderate

43% volume
44% dollar

Aesthetic shavers

Super premium

25% volume
34% dollar

Maintenance
shavers-un involved

Social/emotional
shavers

39% non disposable

razor users
28% non disposable
razor users
33% non disposable
razor users

SYMPTOMS
Segment positioning of clean edge razor:
Niche segment
Main stream
Brand name positioning
How to associate paramount to clean edge

NICHE POSITIONING
Pros:

Cons:

Positioning Clean Edge as niche will

complement companys existing product
portfolio perfectly.

limited consumer base

consistent profit margins

risk involved in the form of cannibalization
will be less.
Less marketing expenditures-$15 million
compared to main stream.

the company may lose their loyal customer

base which is there with Pro and Avail, who
were used to non-technological products.

MAIN STREAM POSITIONING

Pros:

Cons:

Pro ,the main product was in the

mature phase of the product lifecycle
so there is a possibility of decline.

There is the possibility of diluting the

brand power leading to cannibalization.

Technological advancement can resist

the new innovative markets and
competitors

More marketing support will be needed to

reach the target masses.
The company would require an extensive
advertising campaign considerable
consumer promotions and thus the
expenses will be huge, costing almost $42
million

Profit & Loss Statement

Niche
Year 1

Unit sales Razors (millions of units)

Dollar sales - Razors ($ in millions)
Unit sales Cartridges (millions of units)
Dollar sales cartridges ($ in millions)
Total dollar sales
Production costs - Razors ($ in millions)
Production costs Cartridges ($ in millions)
Capacity costs
Advertising and Promotion ($ in millions)
Total costs
Operating Profit ($ in millions)
Profits as % of sales
Cost of cannibalization ($ in millions)
Profit after cannibalization ($ in millions)

1
12.99
4
42
54.99
5
9.72
0.61
15
30.33
24.66
44.84
19.2465
5.4135

Mainstream
Year 2
1.5
19.485
10
105
124.485
7.5
24.3
0.87
16
48.67
75.815
60.90
43.56975
32.24525

Year 1
3.3
36.927
9.9
88.011
124.938
15.642
22.176
1.71
42
81.528
43.41
34.75
74.9628
-31.5528

Year 2
4
44.76
21.9
194.691
239.451
18.96
49.056
2.45
39
109.466
129.985
54.28
143.6706
-13.6856

LAUNCH DECISION
Launching in niche market :
Lower cannibalization costs
Lower advertising costs
Although lesser profits compared to mainstream without
considering expenses, after the above expenses niche will result
in better net results

Launching in super-premium segment and social/emotional shavers

segment

BRAND NAME OF THE PRODUCT

The clean edge will be positioned in the name of
CLEAN EDGE BY PARAMOUNT
Reasons:
Focusing product rather than company
Differentiating from other brands and also Pro and Avail models helps in
reduction of cannibalization