Date – Aug 9, 2010

Company

 Paramount Health & Beauty Company

 Sales - $ 13 Billion with $7 billion profits (2009)
 Entered Non disposable market in 1962
 Two Products
o Paramount Pro – Moderate Segment
o Paramount Avail – Value offering
 Product – “Clean Edge” Razor
 Product Category – Non Disposable Razor & refill cartridge category
 Experience – Closest, Cleanest, and smoothest shave
 USP
o Vibrating Technology – to stimulate hair follicles
o Ultrathin 5 blade design – reduced irritation
o Larger and heavier handle – Better balance, grip and control
o 25% increased hair removal V/s other brands
o Even skin tone and texture
 Will be launched in Super Premium Category and Launch in January 2011.

Problem – How to position the new product, brand name, and marketing budget allocations for
the launch

 Introducing in Men’s market first

Competition for non-disposable razor

 Prince (Cogent & Cogent Plus – Super Premium) – Value Market Leader in 2009
 Benet & Klein (Vitric Brand, Vitric Master)
 Radiance Health Inc. (Naiv) – similar to Clean Edge Vibrating Technology – Launch due in Sep
2010
 Simpsons (Temptest)

US razor Market

 Growth of Non Disposable razor – 5% per year (from 2007 to 2010)

 Growth of refill cartridge razor – 2% per year (from 2007 to 2010)

Market Segment (sales)

 Super Premium (Volume – 25%, Dollar – 33%)

 Moderate (Volume – 43%, Dollar – 44%)
 Value (Volume – 32%, Dollar – 22%)

Consumer Behaviour

 Involved Razor Users

o Social/Emotional Shavers – 39%
o Aesthetics Shavers – 28%
 Uninvolved Shavers
 o Maintenance Shavers – 33%

Trends

 Flurry of new SKUs mostly in super premium category & to create demand --> growth in
Media Advertising spend greater than sales growth.
 High SKUs lead to greater shelf space

Distribution Channels

 Food Store
 Drug Store
 Mass Merchandise
 Club Stores
 Others

Positioning Options

 Niche Product Position – Highly involved – looking for a superior shaving experience
 Mainstream Position – Broad advantage – closest possible shave

Niche Product SWOT

Strength

 Highly technologically advanced product

 Create a new market segment
 Brand loyalty
 Avoid cannibalizing impact
 Lower Marketing Spend
 Higher Gross profit than mainstream

Weakness

 Volume sales are low

 Not enough space for new entrants
 High operating and advertisement cost

Opportunities

 Non disposable razor sales grew by 5% between 2007-10

 67% of target consumer in form of involved shavers
 High acceptance for super premium segment
 First mover advantage (if launched before Naiv)

Threat

 Cannibalizing of existing product

 Launch of Naive by Radiance
 Test market response is positive for Naïve
 Huge media advertising planned by Radiance
Mainstream SWOT
Strength

 Increase product diversity

 Market leader with largest volume in non-disposable market
 Innovative product with great mass appeal

Weakness

 No technological innovation in past 5 years

 Congestion of products in mainstream segment
 High Marketing investment
 Lower Gross Profit

Opportunities

 Non disposable razor sales grew by 5% between 2007-10

 67% of target consumer in form of involved shavers
 Pro in matured stage of product cycle

Threat

 22 new stock keeping units introduced between 2008-09

 Cannibalizing impact is high

Positioning Statement

Paramount’s Clean Edge provides a caring and superior shaving experience to the people for whom
shaving is much more than a self-maintenance activity.

For Men to whom shaving is more about experience than a maintenance activity, Paramount’s Clean
Edge Razor is a Super premium brand of non-disposable and refill cartridge razors, that provides
Closest, Cleanest, and smoothest shave with its vibrating technology and ultrathin blades. The brand
character is innovative, care &

Vaseline intensive care

Target - dry, scaly skin

Brand - Vaseline

brand character - Health, care

deeply moistureizer, smooth skin, clinincally

Support – Clinically proven, micro droplets of Vaseline jelly

To women dealing with dry and scaly skin, Vaseline Intensive Care is the brand of Body Lotion that
deeply moisturizes the skin and keeps it restored and smooth for up to three weeks because we care
about your skin’s health. The brand character is of care & support.