Clean Edge Razor: Splitting Hairs in Product Positioning Harvard Case Solution & Analysis

Clean Edge Razor: Splitting Hairs in Product Positioning Case Solution

Case Overview:

Paramount has established two innovative brands; one of them being Paramount Avail, which is value segmented and is in a declining stage due to less segmentation in private labeled market and small competitors. The other is Paramount Pro, which is moderate segmented and it is in a growth stage.

This case shows that new technology has been used in order to launch the new stock keeping units (SKU) and 22 new SKU have been launched to attract the super-premium segment, which will increase the market share and as a result, make the company more competitive.

The non-disposable razor and refill cartridge market was divided into three segments on the basis of price and quality such as; value, moderate and super-premium. However, growth has been seen in the super-premium segment along with several innovations.

1.      What changes are occurring in the non-disposable razors category? Assess Paramount's competitive position.

Changes occurred in non-disposable razor category:

  1. It is analyzed that with the advent of male-particular personal care products, male grooming products have been developed in the industry and it is also considered that the growth in this segment has overtaken women’s care products.
  2. 5% development every year from 2007 to 2010, due to advancements and product presentations.
  3. Differentiated and diversified in terms of margin, which is generated from the sales of the products at club stores and other stores.

The Competitive Position:

The company has the competitive advantage in making clean edge razor, which provides smooth skin condition and skin care, as well as advanced technology has been used, which makes the product highly competitive in the non-disposable market. The direct competition is with non-disposable razors as the other line of razor products requires less technical innovation, low priced products, and take low market share.

The main competitors of the company are Prince, Benet & Klein, and new entrants (Simpsons). Prince uses cogent plus as non-disposable razor, which achieved high market share with high retail sales. Benet & Klein launched Vitric and Simpsons and Tempest. Both are distributed in super premium category.

2.      How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors

Market segmentation of non-disposable razor:

The non-disposable razor and refill are segmented in terms of price and quality, and they are categorized as value, moderate, and super premium. The super-premium is positioned in mainstream and niche market segment. The market is segmented in terms of consumer segmentation and it is based on demographics, behavior, and consumer preference. Technical segmentation performance shows that super premium category is highly priced and has a market share of 25%, moderate’s market share is 43%, whereas,value has 32% of the market share.

Consumer Behavior of non-disposable razor:

It is observed that the consumers’ behavior is segmented in terms of three categories; which include social/emotional shavers, aesthetic shavers (both involve razor users), and maintenance Shavers (involved razor users). The consumers are willing to differentiate and search for the products that are unique and effective in their function. The social shavers are 39%, who search for better functioning and are more concerned in getting a good shaving experience. Aesthetic shavers take up to 28% of the market and they require for better results from non-disposable clean edge razor and focus on removing only unwanted hair. Lastly, the maintenance shavers take up to 33% of the market share and they consider the product without involving any other category or making any comparison.................

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