CLEAN EDGE BY

PARAMOUNT
CLEAN
EDGE
 AGENDA

A. Market Situation of Non Disposable Razor and Implications & Challenges for Paramount

B. Segmentation of Non Disposable Razors

C. Clean Edge Market Share Volume

D. Clean Edge Positioning as a NICHE brand

E. Marketing Mix and Budget Allocation

F. New Competitor Analysis

G. Market Cannibalization

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Market Situation of Non Disposable Razor and Implications &
Challenges for Paramount
Discussing The Changes in The Market 1 3
Changes in the Market
• Sale of non disposable razors are growing 5% per year
• New SKUs and line extensions are being added
• Advertisement budgets are growing YoY
• Shelf space for non disposable razors are increasing
• Men are more concerned about grooming than earlier
• Enhanced product innovation
Implications for Paramount
• A product in the super premium category will attract new customer base
• Increase in revenue and greater market share
• Influence in all categories and among all types of customers
• Greater competition and competitive market environment

4
Segmentation of Non Disposable Razors
Looking at available options 2 5
 Price and Quality

Value Moderate Super- Premium

(6.4%) (34.7%) (25.4%)

Consumer Behaviour &

Benefits

Social-emotional Aesthetic Maintenance

(39%) (28%) (33%)

6
Clean Edge Market Share Volume
Potential sources of volume 3 7
• There are two options of generating sales volume for Clean Edge.
• Niche Positioning: Percentage Profit would be greater
• Mainstream Positioning: Exact sales figure would be greater
Performance Niche Mainstream
Sales Year 1 Year 2 Year 1 Year 2
1. Unit Sales - Razors 1000000 1500000 3300000 4000000
2. Dollar sales - Razors $ 90,90,000.00 $ 1,36,35,000.00 $ 2,58,39,000.00 $ 3,13,20,000.00
3. Unit sales – Cartridges 4000000 10000000 9900000 21900000
4. Dollar sales - Cartridges $ 2,94,00,000.00 $ 7,35,00,000.00 $ 6,15,78,000.00 $ 13,62,18,000.00
5. Total dollar sales $ 3,84,90,000.00 $ 8,71,35,000.00 $ 8,74,17,000.00 $ 16,75,38,000.00
Cost
6. Production costs – Razors $ 50,00,000.00 $ 75,00,000.00 $ 1,56,42,000.00 $ 1,89,60,000.00
7. Production costs – Cartridges $ 97,20,000.00 $ 2,43,00,000.00 $ 2,21,76,000.00 $ 4,90,56,000.00
8. Capacity cost $ 6,10,000.00 $ 8,70,000.00 $ 17,10,000.00 $ 24,50,000.00
9. Advertising and Promotion $ 15,00,000.00 $ 16,00,000.00 $ 42,00,000.00 $ 39,00,000.00
10. Total cost $ 1,68,30,000.00 $ 3,42,70,000.00 $ 4,37,28,000.00 $ 7,43,66,000.00
Profit
11. Operating Profit $ 2,16,60,000.00 $ 5,28,65,000.00 $ 4,36,89,000.00 $ 9,31,72,000.00
12. Profits as % of sales 56.27% 60.67% 49.98% 55.61%
13. Profits as % of Cost 128.70% 154.26% 99.91% 125.29%

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Clean Edge Positioning Strategy
Why NICHE? 4 9
• Allow for lesser competition in the super premium category
• Less chances for cannibalization of existing products
• Increase profit percentage as compared to mainstream
• Reduced marketing budget
• Helps in establishing a new product for a later mainstream launch
• Loyal customer base
• Greater margin per units
Some Strategic Implications:
• Might lose out on a major market share in the super premium
• Reduced impact of a new product launch
• Lesser product awareness
• Reduced overall revenue

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Marketing Mix and Budget Allocation
What, Why and How Much? 5 11
Brand Name: Clean Edge by Paramount

Trade
$ 3 Mil
Promotions Pricing
Marketing
Advertising $ 7 Mil
Mix
Razor Cartridge
Consumer
$ 2.5 Mil
Promotions $ 12.99 $ 10.50

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 New Competitor Analysis
Impact of the new competitor 6 13
 Emotional Connect needs to Focusing on the R&D and
be established with the amount of time invested to
Similar product will impact customer and profit on the develop the technology to
Clean Edge’s exclusivity image of Paramount deliver authenticity and trust

1 3 5

2 4 6

Customer’s will have more
options to choose from.
Monopoly will be removed.
Intensive customer centric
marketing and aggressive
sales approach for intensive
shelf space
Competitive pricing and
product differentiation on
the basis of aesthetics and
loyalty
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Market Cannibalization
If and How Much? 7 15
The case facts are insufficient to make an educated estimation
of cannibalisation but the below factors can play a role:

Consumers are aware about the different

AWARENESS offerings and their differentiating factors
They will be made aware about the
EVALUATION speciality of Clean Edge
Sales strategy to focus on equal shelf
DISCOVERY space for all models and products
Based on the category of consumer and
INTENT their behaviour
Will purchase as per their requirement
PURCHASE and pocket size
All brands might have loyal customers but
LOYALTY consumers look for newness and innovation

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 THANK YOU
CLEAN
EDGE