Clean Edge Razor: Splitting Hairs in Product Positioning

JaCorvis Cobbs
Section I: Summary of the background and facts.

In August of 2010, Paramount Health and Beauty Company, a titan in the international

consumer products industry, conducted a research study about its new non-disposable razor,

Clean Edge. Boasting corporate divisions in health, cleaning, beauty, and grooming, Paramount

Health and Beauty Company has successfully and historically capitalized the market, accruing

approximately $13 billion in worldwide sales and $7 billion dollars in gross profits in 2009

alone. During the aforementioned study, the test subject group shaved with new razor, then

discussed the shave. The study yielded positive results, as majority of the subjects indicated that

it was the “closest, cleanest, smoothest shave they had encountered” (Quelch & Beckham, 2011).

The superior design and efficiency of the razor created a discrepancy among the executives in

terms of product positioning. The execs agreed to initially market the product to men, but also

understood the presence of female members in the market. They agreed to price the product in

the super-premium market segment, but were divided on the most optimal market entry strategy,

mainstream or niche. Clean Edge’s product manager, Jackson Randall, was charged with making

a recommendation for product positioning, brand name, and budget allocations.

In the United States, the razor market is comprised of non-dispensable razors, refill

cartridges, disposables, shaving cream, and depilatories. Of the five categories, Clean Edge had

sales in both the non-dispensable and the refill cartridge category. Razors in the non-disposable

category achieved a 5% growth between 2007 and 2010, while the refill cartridge section

experienced a 2% growth during the same time period (Quelch & Beckham, 2011). The market

for refill cartridges and non-disposable razors is split by sector into three cost and performance

sections: value, moderate, and super-premium. The super-premium segment has grown
substantially in the past ten years due to the development of products and product features such

as 5-blade technology, glide strips, lather bar, low resistance blade coating, etc.

Consumers for this market are divided into the following three categories: maintenance

shavers, social/emotional shavers, and aesthetic shavers. Maintenance shavers held no plausible

interest in the product category, but consist of 33% of the non-disposable razor group. They view

products as the same and have an inconsistent shaving routine. To them, shaving is a hassle. The

overall shaving experience motivated social/emotional shavers. This group makes up 39% of the

non-disposable user group. They choose products based on functionality and the messaging

channel. Shaving, for them, is simply a means of grooming and is used to foster a sense of

confidence. The deciding factor for this group is price. Aesthetic shavers make up 28% of non-

disposable razor users. The group’s main goal is to search for products that remove hair in the

most effective manner. Their interests depend, heavily, upon the superficiality of the results,

which is the deciding purchase factor for this group.

Section II: Statement of the “core” problem(s) of the case

Positioning is the main problem for Paramount Health and Beauty Company. They had

developed the new Clean Edge razor and didn’t know how to position it in the market, which

attributed to the razor’s superiority. The priority of this issue is indicated in the division of the

company’s execs on the issue of market entry and positioning.

Several advantages are available if Paramount chooses to operate in the niche market.

For example, niche marketing enables you to target your desired clients directly, thus savings

dollars on advertising on the wider market. Less expenditures in terms of advertising means a

bigger budget for other aspects of product positioning. For example, it is far more advantageous
and economical to put an ad in local or regional trade publications (Poehler, 2018). Secondly,

choosing the niche market option would prevent the cannibalization of its other products. The

concern was that the new Clean Edge razor would negatively impact the sales of other

Paramount products, such as the Paramount Pro and the Paramount Avail. Clean Edge would

require $15 million to launch if it was concentrated on the niche market. Adversely, it would cost

$42 million if they focused on the mainstream alternative. Rosenberg, the Paramount Pro product

manager, wished to guarantee that Pro's marketing distribution stayed consistent. According to

Randall, Paramount managers would need to raise the general marketing budget for Randall.

When shopping for products, consumers in the 21st often assess the technological features

of the product to make informed decisions about their purchases. This would be no different for

Paramount and its products. The company had already positioned its main product, the

Paramount Pro, in the mainstream market, and it had already reached maturation in the product

life cycle. According to the textbook, Marketing Management, several factors can cause a

product to transition into the decline stage of the product life cycle, including the technological

advances and the introduction of new products (Kotler & Keller, 2019, p. 355). With the

inevitable decline of the Paramount Pro approaching, positioning Clean Edge as mainstream

product will allow Paramount to compete in the market with reference to customer loyalty,

which is influenced by innovation.

Section III: Secondary Problems

Because the Clean Edge Razor was not thoroughly studied its efficacy in the portfolio is

relatively incomprehensible. There’s no evidence that Paramount’s customers desire certain

technological advances or that the advances would be more profitable than current
strategies/products. If this research was present, then Randall would have a better understanding

and judgement on product positioning.

Another problem that Paramount is facing is the questionable lack of control over the

brand image. This is due to not being able to determine how to name the product. Randall must

start analyzing the products of other competitors, such as Prince, Benet & Klein, Radiance

Health, and Simpsons, in order to gain a thorough understanding of how imaging can affect the

product’s overall performance in the market. The division lies in whether to vehemently stamp

the product a Paramount product or to simply name it ‘Clean Edge’. Because other competitors

spend more on advertising and promotions, they are, accordingly, more well-known to

consumers. Not adding the company name to the new product would give the company a fresh

competitive advantage, as customers may not trust high-end products from the brand because of

Paramount’s standard mid-low value products.

Section IV: Constraints and Limiting Factors

Stuart Quimby, who serves as the director of Paramount’s U.S. Grooming Division has

charged Randall with providing a recommendation to the executive steering committee by the

end of the week. In saying that, the main constraint is time. Randall must focus all of his

resources and effort on this project in order to successfully complete this task in the

predetermined allotted time. Consistent with the time constraint, four months before Paramount's

scheduled launch of Clean Edge, Radiance will also launch a comparable blade. Paramount’s

Clean Edge Razor is scheduled to launch in January 2011, while Radiance’s Naiv will be

launched in September 2010.

company has not released a new product in the last few years. Specifically in the super-premium

market segment, approximately two dozen new stock keeping units were added between 2008

and 2009, none of which were from Paramount. Competitors have been capitalizing on this

market segment for the last few years, and Paramount has not.

Section V: Alternative Solutions

An alternative solution would be to allocate funds from the Paramount Pro, which will be

seeing a future decline due to reaching the maturity stage in the product life cycle, to launch the

Clean Edge into the mainstream market segment. Prioritizing the funding of the new super-

premium product over a soon potentially-declining product would be the sensible alternative, as

it focuses majority of the budget on growth and expansion instead of market re-strategizing.

Section VI: “Best” solution

In my opinion, the most effective resolution for Clean Edge is to launch as a niche

product. In consideration of costs, Clean Edge would be profitable as a niche product. We

wouldn’t want Clean Edge to be considered a ‘cheap’ product, so launching it in the niche

market as a super-premium product would be the best option unless we can capture the same

value and profitability launching in the mainstream market. Allocating excess funding to the

launching should be a priority to obtain the best possible launch for the Clean Edge. I think that

because of the lack of marketability behind the Paramount name in the market.
Section VII: Justification

I think that allowing the product to build a sustainable customer base without the

Paramount name would be an ideal solution. The Paramount title should be secondary to the

latest development provided by the Clean Edge to create a niche market and make it the

distinctive commodity. Naming the product Clean Edge would help it do distinguish it from

other Paramount products and separate it from the competition.

Kotler, P., & Keller, K. L. (2019). Marketing management. Harlow: Pearson Education Limited.

Poehler, G. (2018, August 6). Pros and Cons of Niche Marketing. Retrieved from

[Link]

Quelch, J., & Beckham, H. (2011, January 19). Clean Edge Razor: Splitting Hairs in Product

Positioning. Retrieved from [Link]

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