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Clean Edge Razor Splitting Hairs In Product Positioning Case Solution
Mainstream positioning strategy: supporters for this strategy based their arguments on consumer research and behavior. They argued that non-disposable razor users were becoming savvier and looked for advanced technology for shaving purposes. Introducing the product as a mainstream brand will further lock the loyalties of the existing Pro users with Paramount only. This will prevent their loss to competitors with more innovative products.
Following questions are answered in this case study solution
What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position.
How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors.
What are the arguments for launching Clean Edge as (a) a niche product; and (b) a mainstream brand? What would you recommend and why? What are the strategic implications of your recommendation?
Based on your positioning strategy (i.e., niche vs. mainstream), what brand name and marketing budget allocations would you advice?
Case Analysis for Clean Edge Razor Splitting Hairs In Product Positioning
1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position.
The non-disposable razor category is experiencing increasing innovation and new product development. This includes not only product types but also different SKUs. As a result, consumers have been more prone towards the usage of non-disposable razors and are more willing to try the new products. As a result, the growth of the non-disposable razor category has shown a marked increase. Similarly, companies have started to invest in the marketing and advertising activities for non-disposable razors. This means that companies now spend quite a share of their budget in devising and planning promotional campaigns. As a result, there has again been an increase in awareness of these products as well as an increase of their retail visibility owing to increased shelf-space. This has also contributed towards the increased usage and sales of non-disposable razors, as an increasing number of people have been inclined to try them, at the least once.
Paramount is one of the leading players in the non-disposable razor category. Paramount operates with two different brands in the marker: Paramount Pro and Paramount Avail. Paramount Pro is a player in the moderate segment while Paramount avail was offered as a value-offering product in the market. These two products have allowed Paramount to stay in the top three brands over time and had also led it to capture a 23.3% of the market share in 2003. It is, therefore, safe to state that Paramount is amongst the top three players – the others being Prince, and Benet & Klein. There are also new entrants like Simpsons and Radiance in the market. The new players also offer substantial competition to Paramount in the personal care product categories as well as in their marketing spend and activities. The market is also filled with other smaller players and private label brands who occupy a smaller space.
2. How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors.
The non-disposable razor category is divided into three segments based on the products that consumers use: Super-Premium, Moderate, Value. Within these segments, consumers are further segmented behaviorally so that it becomes easier for the companies and brands to target their desired consumer profiles with various product categories and innovations.
Behaviorally, consumers are segmented into three categories: Involved razor users who are social/emotional shavers: this makes up 39% of the non-disposable razor users’ category. These users are particular about the brand and the product type they pick up for shaving and look for functionality as well as an emotional appeal in a razor. They have a keen eye for differentiating between products, and they can tell the small differences that may exist between different brands and products, so as to choose one which they like the most. They feel that shaving is an essential part of daily grooming, and a day without shaving is incomplete especially for stepping out doors. They believe that shaving makes them more confident as well as attractive.
Involved razor users who are aesthetic shavers: this makes up 28% of the non-disposable razor users’ category. These users look for functionality more and search for products that are most effective for hair removal. For them, shaving is a means of removing unwanted hair and is done consistently as a means to smoothen their skin as per their desire.
Uninvolved razor users who are maintenance shavers: this makes up 33% of the non-disposable razor users' category. These users look at all products in the category as being undifferentiated and serving the same purpose. They are indifferent to product innovations and developments and lack an interest in the category all together. For them, shaving is a consistent pattern of actions and routine and is viewed as a chore that they want to get done with as soon as is possible.
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