Us Razor Market Paramount 3u693c

U.S Razor Market Major Categories in Shaving NonRefill Disposab Shaving Depilato Industry disposab Cartridg le es Razors

le Razors Cream

ries

Revenue Compari son

2007- $188 2007- $802 2007- $477 2007- $269 2007- $106 m m m m m

Growth(i n Revenue )

15.95%

2010- $218 2010- $853 2010- $522 2010- $260 2010- $88 m m m m m

6.36%

9.43%

-3.35%

-16.98%

•Market Non-disposable growth26.89% rate approx. 5% every year 11.23% Razors 43.94% 13.39% 4.53% from(in 2007-2010. Share •2010) Refill Cartridges growth rate 2% every year in same period.

Market Segments in Non Disposable Razors and Refill Cartridges Volume

32% 25% 43%

Dollar

22% 34% 44%

Super- Moderate Super- Moderate Value Value • Significant growth in Super- segment in Last decade. • Innovation (5-blade technology, glide strips etc.) fueled the growth. • Advertising and Media campaigns has increased the

Consumer Behavior • • •

More brand switching and new product Replacement cycle shortened Frequent blade replacement Maintenance Shavers • No differentiation • Disinterested in Product Category • Price-Quantity behavior • Inconsistent Shaving Routine • A chore that is to be completed quickly • 39% of Nondisposable shavers

Social/Emotional Shavers • More product and Brand switching • Willing to experiment • Price-Quality Behavior • Motivated by overall shaving experience • Essential part of daily grooming ritual • Differentiate among products • 28% of Non-disposable shavers

Aesthetic Shavers • Interested in most effective product • Deeply involved in product • Interested in cosmetic results • Consistent Shavers • 33% of Nondisposable shavers

Company Overview Paramount Global Consum er Product Giant Entered Nondisposa ble razor market in 1962

Revenue of $13 billion from world wide Sales in 2009 Gross profit of $7 billion for the year 2009 Respected brand in Industry Sales from Non-disposable Razors & Refill Catridges - $170 million Gross Profit of $92 Million and Operating profit of $26 Million for 2009 Captured unit-volume market leader position in 2009 with 23.3% share Offered 2 lines of non-disposable razors and refill cartridges Paramount Pro – positioned in moderate segment (Cont. - $2.80) Paramount Avail – a value offering product (Contribution - $1.76)

Competition in Industry 35 30 25 20 15 10 Revenue

5 0

Volume Paramount

Prince

Benet & Klein

Radiance

Volume

Simpsons

Others

Revenue

• Competition from Direct Competitors as well as Substitute Products • Dominated by 3 multinational players – Paramount, Prince and Benet & Klein • New entrance - Radiance Health Inc. And Simpsons has

Problem Statement Positioning Strategy – Niche or Mainstream Brand Name for new product Market Budget for promoting Clean Edge

4P’s Vs 4C’s Clean Edge Razor in Super Segment

Priced at $10.5 with a Niche Positioning

Available in all major stores across the country Media and Print advertising to promote the product in super segment

Provides cleanest, closest and smoothest shave. Provides best saving experience with 25% increase in hair removal ( Segment Product)on Emphasis Social/Emotional shavers and Aesthetic Shavers who are deeply involved in product (Specialty Product) the Communicate customer of the best available Razor with promotional campaigns. (Generate Curiosity)

Product Portfolio Management: MARKET SALES BY VOLUME 40 35 30 25 20 15 10 5 0

PARAMOUNT

PRINCE

B&K

RADIANCE

SALES BY VALUE 35 30 25 20 15 10 5 0

PARAMOUNT

*Exhibit 5

PRINCE

B&K

RADIANCE

2007

2008

SIMPSONS

2007

2008

SIMPSONS

2009

2010 (E)

OTHER

2009

2010 (E)

OTHER

Product Portfolio Management: MARKET

CLEAN EDGE

AVAIL PR O

Product Portfolio Management: MARKET

CLEA N EDGE

PRO

AVAIL

• •

“PRO” has medium attractiveness and business strength . They can only target to defend its market share. It can be cannibalized by its own new product, if CLEAN EDGE is launched in mainstream. Strong R$D and distribution channels, new revolutionary product after 5 years ; so; business strength is high.

Product Portfolio Management: PRODUCT • PRODUCT INTERRELATIONSHIPS:

“Pro”, “Avail”, “Clean Edge” are having Positive Complementarity.

• PRODUCT WIDTH :

By Volume, Paramount had nothing to offer in Super- segment wherein it contributes 25% total volumes. 2009 PRINCE B&K PARAMOUNT   SUPER MODERATE VALUE

25% 43% 32%

100% 0 0

7% 95% 0

0 73% 27%

• AT THE FIRM: – PRO : Moderate value : Middle Range – AVAIL : Value Offering : Basic Range – CLEAN EDGE : Super- : High Range

Clean Edge

SEGMENTATION AND TARGETTING SEGMENTATION

Maintenance Shavers; 33%

TARGETTIN G

Social/Emotional Razers; 39%

Aesthetic Razors; 28%

FINANCIAL ANALYSIS

Understanding “Niche” decision through PLC • • • • • • • • • •

Product Stage – MATURITY Sales – Target Peak Sales Customers – Majority Competitors- “Me too” rivals Marketing Objective – Maximize profit while defending market share Product – “Clean Edge” is differentiator Price – 10.5$ through NICHE positioning Place- Distribution has to be more intensive PromotionPackaging-

MARKETING STRATEGIES

CLEAN EDGE