What are advantages of Paramount’s product
The paramount is preparing to launch a clean edge design that provides excellent performance. This innovative design stimulates the hair follicles lift the hair from the skin that allows for a closer shave. Paramount has strong presence in the men’s market. The company has distinct segmentation based on the product's benefits and consumer behavior, which is the main reason of becoming a global consumer products giant in 2009. Paramount entered the nondisposable razor market in 1962, and since it has become a respected brand in the industry. The pro and avail products have enabled paramount to capture the unit volume market leader position with a 23.3 percent retail unit share.
What changes are occurring in the non-disposable razor category
The nondisposable razors category has changed significantly in recent years. The unprecedented flurry of 22 new stock keeping units (SKUs) has been introduced between 2008 and 2009. Most of these were line extensions that targeted super premium segment and promoted gains from technological development. In order to stimulate demand, total media advertising cost of nondisposable razors has increased faster than retail market sales, which is expected to continue further. Similarly, distribution outlets have responded to the growth in nondisposable SKUs, which has increased shelf space for this brand category. Retail margins related to this category has increased considerably compared to other personal care items, which indicate a great change in retail channel distribution for nondisposable razors.
How is the non-disposable razor market segmented
The non-disposable razor market is segmented into three segments based on price and quality, value, and super premium. In the last years, the industry has faced considerable growth in the super premium segment due to numerous product innovations on the segment. The company research indicates that consumers purchased razors and replacement cartridges more often than had prior years. The replacement cycle has decreased because consumers tend to try new products. The price and quality segments greatly influenced the consumer behavior on the nondisposable razors.
Describe main characteristics of consumers’ behavior in this category
These market segments show the true behavior of both men and women toward the product. The capacity of involvement with the nondisposable product varies significantly among consumers. For instance, there is a group of consumers that labeled the product as maintenance shavers and were almost completely disinterested in this product. The users were grouped into social/emotional and aesthetic shavers. Both groups were willing to use the product on the basis of the new technology. However, social/emotional consumers were motivated by the overall shaving experience while aesthetic consumers were interested in cosmetic outcomes.
Assess the pros and cons of each strategy
Niche Strategy
Launching Clean Edge as a niche product could target the high end market of fastidious groomers searching for excellent skin care products. Niche strategy could complement the existing product portfolio properly. However, this strategy could affect overall performance of the company because it does not capture the consumer behavior who advocate for more advanced technology.
Mainstream strategy
Launching Clean Edge as a mainstream brand could introduce the product into the highly competitive market where the product can be positioned as the most effective razor available. This strategy will help to prevent loyal Paramount customers from shifting to more innovative brands. However, this strategy could discourage consumers from Pro brand and diminish the brand power of Pro, which was the best selling product. It required significantly more marketing support, which means more costly.
Based on the above analysis, what would you recommend
I could recommend for the mainstream strategy because it intend to release the product in a highly competitive market and position the products as the most effective.
What are the strategic implications of your recommendation
However, this could have effects of cannibalization because the products are not in same development stage, which could affect the brand power of some product. The strategy could be extremely expensive because it requires extensive marketing support.
