Essay About Paramount Executives And Clean Edge Razor

Clean Edge Razor
Main Problem
Paramount, a health and beauty company, has developed a new nondisposable razor called Clean Edge. This new product allows for a closer, more thorough shave by introducing a new vibrating razor. It stimulates hair follicles, and the result is a smooth and clean shave. The majority of men that tested out Clean Edge said it was the closest shave they have ever had, but despite this success there were still unanswered questions about the product. Some Paramount executives wanted to include Clean Edge in the super premium segment, while others wanted it introduced in the mainstream segment. Paramount’s main question was how they should position and market this new product, in regards to their competition and current product lines.

Background
The market for razors has had significant growth in the super-premium market segment with new innovations such as 5-blade technology, glide strips and lather bars added to razors. Paramount’s nondisposable razors added 22 of these new extensions to their product lines and targeted the super-premium segment with these new technologies. Paramount has also seen increased shelf space in stores in the past few years, as well as an increased variety of stores. Food stores are not the only carriers of Paramount products; they have expanded to drug stores and mass merchandisers as well. Recent studies have found that nondisposable razor users are shaving more often, replacing razors sooner, and have brand loyalty but are more likely to switch to the superior product available. There has also been increased publicity on men’s grooming, which has helped draw attention to Paramount’s products and helped the market segment grow.

Analysis
Paramount needs to consider their current product lines before deciding on the positioning of Clean Edge. Paramount has two other existing nondisposable razors, Paramount Pro and Paramount Avail. Avail will not be as affected by Clean Edge because it is in the value segment of the market and has different competitors, as well as being in its declining stage of product life. Pro, on the other hand, is the main product of Paramount, and is in the mature stage of its product life cycle. If Paramount introduces Clean Edge in a mainstream position, its sales will cannibalize 60% of Pro’s sales. This is will greatly affect Paramount ‘s revenue and stance among its competitors. If Clean Edge was to take a niche positioning strategy, it would only take up 35% of sales because of cannibalization which would help Pro.

Also, when deciding on how to position Clean Edge, Paramount should consider the positions of its competitors. Prince, for instance, has a similar product line to Paramount and has been the leader in nondisposable razors since the 1950s. They have two products, Cogent and Cogent Plus. Cogent Plus is in its introduction/growth