Clean Edge Razor

the case study was done by group Y1 of tapmi batch 2012-14.

Case study analysis

Clean Edge Razor

Group Y1

Ankur Goel

Arun Menon

Manasi Kharangate

Neha Agarwal

Saket Khandelwal

Problem Statement:

What market positioning strategy should Randall employ for launching Clean Edge razors in the non disposable razor market?

Randall’s objective:

* Create a P&L statement to understand the effect of different positioning strategies based on the financial forecast and consider the effect of cannibalization on the bottom line to suggest a positioning strategy.

* Come up with a brand name for the razor.

Industry Analysis:- Porter’s Five Force Analysis

1. Threat of intense segment rivalry:

* Significant growth in the super premium segment in the last 5 years with a number of product innovators in that segment.

* Media advertisement expenses increasing at a faster rate than retail sales indicating fierce competition.

* Rate of new product introduction for non disposable razors and refill cartridges with line extensions targeted at the super premium segment.

* Overall growing market for razors and cartridges at 5% and 2% respectively.

* Frequency of purchasing non-disposable razors and refill cartridges is also increasing as the replacement cycle has been shortened.

2. Threat of new entrants:

* New and aggressive entrant with a new product of similar technology set to enter the market in a month.

3. Threat of substitute product:

* Disposable razors.

* Electric razors which 27% of men use.

* Depilatory creams, waxing and laser hair removal.

* Technological innovation in the substitutes can be a threat to non-disposable razor manufacturers.

4. Threat of buyers growing bargaining power:

* Low buyer switching costs.

* Superior offerings from manufacturers can attract the involved razor users (social emotional shavers 39% and the aesthetic shavers 28%)

* Retail channel...