Clean Edge Razor
Background/Situation
A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market.
1. What changes are occurring in the nondisposable razor category? Assess Paramounts competitive position. What are the strategic life cycle challenges for Paramounts current products as well as for Clean Edge?
Consumers are becoming more sophisticated and looking for new technologies. In other words, they are willing to invest more money and buy products that satisfy the necessity of a smooth shaving experience. In other hand, observing the Exhibit 1, there is a category of consumers called “Maintenance users” that made up 33% of consumers; they were not interested in buying products with superior technology. These consumers cannot be ignored.
Based on that, the strategic life cycle challenges for Paramount’s would be:
First, providing a product with good cost x benefit but with a short life cycle for the 33% called “Maintenance users” keeping these users buying their products and interested in their brands.
Second, launch the Clean Edge product with a longer life cycle. Also, making this product profitable creating a fidelity from the consumer when they buy cartridges for refill.
1. What changes are