Clean Age Razor

CLEAN EDGE RAZOR CASE STUDY

Synopsis of the Case

This product marketing plan proposal has been prepared in accordance with Paramount Health & Beauty Company, known as Paramount, is a global consumer products giant with four corporate divisions including Health, Cleaning, Beauty and Grooming. - Paramount entered the non-disposable razor market in 1962 and quickly became a market leader. - Paramount offers two products, the Paramount Pro in the moderate segment of the product market and the Paramount Avail, which was considered the value offering market. - With these two products the company enjoys 23.3% (2009) of the retail share.

By 2009, the company realized $13 billion in worldwide sales and $7 billion in gross profits, with the non-disposable razors and refill cartridges in the U.S. contributing $170 million in revenue, gross profit of $92 million, and operating profit of $26 million. - The company has developed their newest non-disposable razor, Clean Edge, which is currently undergoing review by market testers.

Situational Analysis

Industry Segment

Paramount, a global consumer products company, including Health, Cleaning, Beauty, and grooming divisions, had its worldwide sales $13 billion and gross profits $7 billion in 2009. Paramount has been producing non-disposable razors since 1962 and become a leading brand. There are two lines of Paramount non-disposable razor market: Paramount Pro and Paramount Avail, which generated revenue of $170 million, $92 million in gross profit, and $26 million in operating profit during 2009 in the U.S. Paramount Pro was positioned in a moderate segment, and Paramount Avail was considered as a value segment.

Market Overview

The U.S. razor market includes several categories, and Clean Edge belongs to the non-disposable razor and refill cartridge category. The non-disposable razor market is in a rapid growth stage (approximately 5% per year from 2007 to 2010), while the refill...