Where will Clean Edge Sales come from ?

a) An increase in overall non disposable category demand

b) Cannibalization of Pro and Avail
c) Consumers switching from competing brands

The following trends indicate that clean edge sales come from an increase in overall non disposable
category demand.

1)From Table A, it is evident that Non disposable razors have experienced around 5% growth per
year from 2007 to 2010.

2)Refill Cartridges witnessed a growth rate of 2% per year from 2007 to 2010 which is slightly less
when compared to Non disposable razors.

3) The study conducted by paramount inferred that the rate at which consumers are purchasing
razors and replacement cartridges was higher than ever in 2009.

4) Consumers interest in trying new products, advertising and sponsored articles have contributed
for the shortening of replacement cycle.

5) To cater to the increase in demand for Non disposable razors and cartridges 22 Stock Keeping
Units (SKU) have been introduced between 2008 and 2009 whose main target is super premium
segment.

6) There has been significant increase total media advertising expenditure for non disposable razers
from 2009 to 2010. It increased from $ 44.3 millions to $ 48.3 millions [Exhibit 2].

7) Distribution also started outside traditional food and drug stores. The shelf space for product
category for Non disposable razors has increased in distributed outlets.

8) In 2000, half volume of sales of razors happened through food stores but in 2009 it is only 42% of
sales [ Exhibit 4]

9) From Exhibit 5, the Paramount Pro ( which is a non disposable razor ) volume sales have increased
from 12% to 17.3% of total volume sales and dollar sales increased from 12.6 % to 18.5 % from 2007
to 2010

10) Cogent Plus volume sales have increased from 0 % to 3.7% of total volume sales and dollar sales
increased from 0.0 % to 4.9 % from 2007 to 2010.

11)Vitric Master volume sales have increased from 0 % to 4.0% of total volume sales and dollar sales
increased from 0.0 % to 5.2 %from 2007 to 2010.

12) Naiv volume sales have increased from 0 % to 2.0% of total volume sales and dollar sales
increased from 0.0 % to 2.6 % from 2007 to 2010.

13) Tempest volume sales have increased from 0 % to 4.6% of total volume sales and dollar sales
increased from 0.0 % to 5.7 % from 2007 to 2010.
Analysis:

Niche Market

1. Positioning Clean Edge Razor in the niche market would minimize the cannibalization effect
and could contribute to product range extension for Paramount in addition to Pro & Avail.
2. From [Exhibit 5], the decreasing trends in the volume and dollar sales of Paramount Vail,
Cogent, Vitric and Vitric Advanced imply that the consumers inclination towards products
which are advanced and caters to their specific needs.
3. Advertising and promotional costs are significantly less when compared to mainstream
market positioning.

Concerns:

1. NO Brand Loyalty: There is a high possibility that consumers witch to a product with more
innovative features because the consumer behavior in niche market is driven mainly by their
preferences.

Mainstream Market:

1. From [Exhibit 7] , it is evident that the market for Paramount Vail has decreased significantly
from 2007 to 2010 . Paramount Pro has been launched 5 years ago and no innovations or
advancements haven’t been made in the last five years.
2. Clean Edge would be a perfect product considering its new features can fill the innovation
void which is there for last five years.
3. There is also paradigm shift in the preferences of the customers to more innovative products
and it is likely that this continue.
4. Will Set a new standard for Non – Disposable razors in mainstream market and also increase
market share and reputation for Paramount.

Concerns:

1. Cannibalization Effect: Positioning Clean Edge in mainstream market could dilute the sales of
Pro & Avail significantly.
2. High Advertising and Promotional Costs