Clean Edge Razor Brief

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Clean Edge Razor – Brief * By Neha Chinchanikar 1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? There are rapid incremental changes in the non-disposable razor market. There is 5% growth from 2007 – 2009. 22 new SKU’s introduced from 2008-2009. The new SKU’s are trending to be higher priced and placed in the super premium segment. The product advances were based on technical performance rather than visual modifications. Advertising expenditures have been rising, leading to the increase in shelf space for non-disposable razors in the distributors. An interesting trend of distribution shifting out of food and drug stores to mass merchandisers is observed. Consumer behavior was also changing. Increased marketing expenditures, expecting to rise to 39% from 2009 to 2010(Refer Exhibit 2). There is high competition for retail prices. The most important, there are continuous innovations in the product category. Retailers are understanding that razors offer high profit margins. Food and drugstores are still the biggest retail channels. Sales from mass merchandising is steadily increasing. Paramount is facing direct competition from the following companies: Benet & Klein- Are the market leaders and have been in the industry since 1985. With three products in line – Vitric (Moderate segment, declining product), Vitric advanced (Super premium segment, decline stage), Vitric Master (Super premium segment, growth stage). Prince- Are also market leaders and have been in the industry since 1950. With two products in the market- Cogent (Super premium segment, declining stage), Cogent Plus (Super premium, growth stage) Radiance – New entrant, launched Naiv in 2010. Radiance is giving fierce

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