Clean Edge Razor

Paramount Health and Beauty Company had established itself as important global consumer products with $13 billion in worldwide sales and $7 billion (year 2009). During 2009 Paramount had become a leader of the non-disposable razor product sales.

After three years of a product development process, Paramount gave birth to a top of the line razor called Clean Edge. This new design provides superior results by stimulating the hair follicles to lift the hair from the skin, giving a closer shave. This product has been created for men and later on will be launch for women market too.

The product manager of Clean Edge Razor is Jackson Randall. The company want him to develop a product positioning strategy, brand name and marketing allocations for the launch of this sophisticated product. He encountered many problems on how to position this product on the market because Paramount already have two lines of non-disposable razors and cartridges, that will compete in the same market , these are Paramount Pro and Paramount Avail. Paramount Pro which has been positioned for many years in the moderate segment of the product category. This product has been considered as a “cash cow” product. Customers recognized the brand easily and sales are relatively constant. The other competing internally with Clean Edge is Paramount Avail, which its most significantly attribute is its value offering. Both products (Pro & Avail) have not been challenged technologically during five years, not innovations of the products at all. If Clean Edge Razor will be launch as a mainstream product it will cannibalized the other two lines that Paramount produces. The second alternative (focus strategy) is to launch Clean Edge as a “niche” product, focusing on the high end market of involved razor users (social/emotional & aesthetic shavers), who will pay a premium price for its high tech quality razor.

Paramount wants to take advantage of the new trends on the non-disposable and refill...