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Changes in Non-Disposable Razor Category:: 22 New SKU's Introduced Between 2008-2009

Paramount has established itself as the leader in the non-disposable razor market with 23.3% unit market share in 2009. However, the market is experiencing changes with 22 new SKUs introduced between 2008-2009, increased competition for shelf space, and more brand switching. Paramount's current products Avail is declining while Pro is increasing, and a new competitor Naiv poses a threat. Paramount developed Clean Edge for the super-premium category using new 5 blade technology, but the increasing introduction of competing products with new technologies shortens product life cycles for all brands.

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Raja Sunder
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45 views2 pages

Changes in Non-Disposable Razor Category:: 22 New SKU's Introduced Between 2008-2009

Paramount has established itself as the leader in the non-disposable razor market with 23.3% unit market share in 2009. However, the market is experiencing changes with 22 new SKUs introduced between 2008-2009, increased competition for shelf space, and more brand switching. Paramount's current products Avail is declining while Pro is increasing, and a new competitor Naiv poses a threat. Paramount developed Clean Edge for the super-premium category using new 5 blade technology, but the increasing introduction of competing products with new technologies shortens product life cycles for all brands.

Uploaded by

Raja Sunder
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. What changes are occurring in the non-disposable razor category?

Assess Paramount's
competitive position. What are the strategic life cycle challenges for Paramount's
current products as well as for Clean Edge?
Changes in Non-Disposable Razor Category:
22 new SKU's introduced between 2008-2009

Total media advertising expenditures > retail market sales

5% growth per year from 2007 - 2010 due to innovations and new products

More competition for shelf space

Brand switchin has increased

Competitive Position:

Paramount has established itself as a global consumer products giant with over $13 billion in
worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962.

Paramount established itself as unit-volume leader in 2009 (23.3% Unit market share) based on
non-disposable razor sales. It also had the second highest dollar market share of 23.4% after
Prince.

Paramounts current positioning is in the Value and Moderate segments.

Prince sold super-premium non-disposable razors and was a fierce competitor.

Radiances Naiv, which was due for launch in September 2010 posed a threat to Paramount as it
used a technology similar to the one used in Clean Edge.

The non-disposable razors market faced competition from direct competitors as well as
substitute products (depilatories, waxing, etc.)

Strategic Life Cycle Challenges:

It is seen that the market share for Paramount Avail has been declining, while market share for
Paramount Pro experiences a steady increase.

Paramount has developed a new product for the super-premium category Clean Edge, which
is based on superior technology and 5 blade designs. Paramount could milk the profits from Pro
to fund Clean Edge.

The increasing introduction of new products with superior technology and benefits, by
competitors, tends to shorten the product life cycle

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