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4. Clean Edge Razor
- Paramount Health and Beauty Company, known as Paramount,
is a global consumer products giant with four corporate divisions
including Health, Cleaning, Beauty and Grooming.
- Paramount entered the non-disposable razor market in 1962
and quickly became a market leader.
- Paramount offers two products, the Paramount Pro in the
moderate segment of the product market and the Paramount
Avail, which was considered the value offering market.
- With these two products the company enjoys 23.3% (2009) of
the retail share.
5. Clean Edge Razor
- By 2009, the company realized $13 billion in worldwide sales
and $7 billion in gross profits, with the non-disposable razors
and refill cartridges in the U.S. contributing $170 million in
revenue, gross profit of $92 million, and operating profit of $26
million.
- The company has developed their newest non-disposable
razor, Clean Edge, which is currently undergoing review by
market testers.
9. Clean Edge Razor
1. How Should Edge-Razor Enter The Market
2. Positioning strategy for the Clean-Edge
3. Brand Name for new product
4. Market budget for promoting Clean-Edge
16. Clean Edge Razor
VIBRATING,ULTRA- THIN, 5 BLADE RAZOR
A LARGER ,HEAVIER HANDLE FOR A BETTER BALANCE
,GRIP & CONTROL VIBRATION FOR STIMULATE HAIR
FOLLICLES, 25% INCREASE IN HAIR REMOVAL
CLEAN EDGE DESIGN AND TESTING
17. Clean Edge Razor
COMPARE THE SUGGESTED PRICE (IN MAINSTREAM
POSITIONING) WITH COMPETITORS
Super Premium Razor Standard Refill
Cartridges
Cogent Plus $12.50 $10
Cogent $11.19 $8.89
Clean-Edge $11.19 $8.89
Naiv $11.80 $9.45
Vitric Advanced $11.20 $8.99
Vitric Master $10.85 $8.65
Tempest $10.99 $8.75
18. Clean Edge Razor
Niche Mainstream
Year 1 Year 2 Year 1 Year 2
unit price dollar unit price dollar unit price dollar unit price dollar
Razors sales 1 9.09 9.09 1.5 9.09 13.64 3.3 7.83 25.84 4 7.83 31.32
Cartridge sales 4 7.35 29.40 10 7.35 73.50 9.9 6.22 61.58 21.9 6.22 136.22
Total Sales (1) 38.49 87.14 87.42 167.54
Razors Production cost 1 5 5.00 1.5 5 7.50 3.3 4.74 15.64 4 4.74 18.96
Cartridge Production cost 4 2.43 9.72 10 2.43 24.30 9.9 2.24 22.18 21.9 2.24 49.06
Capacity Cost 0.61 0.87 1.71 2.45
Advertising & Promotion 15.00 16.00 42.00 39.00
Total Cost (2) 30.33 48.67 81.53 109.47
Profit (1-2) 8.16 38.47 5.89 58.07
Profit % from sales 21.20 44.14 6.74 34.66
Profit and Loss Forecasts for Clean Edge Under Niche and
Mainstream Scenarios
19. Clean Edge Razor
SEGMENT MARKET COMPARATIONS
NICHE
• Create a One Strong Brand
• Avoid Cannibalization
• Lower Marketing
Investment than
Mainstream
• Higher Gross Profit than
Mainstream
MAINSTREAM
• Replace Paramount Pro
(Cannibalization)
• Higher Marketing
Investment
• Lower Gross Profit
20. Clean Edge Razor
BEHAVIOR SEGMENTATION OF NON DISPOSABLE RAZOR
CONSUMERS
Social/Emotional Shavers
(39%)
Aesthetic Shavers (28%) Maintenance Shavers (33%)
Differentiate among
product. Search for product
based on both functionality
and messaging.
Shaving as an essential part
of a daily grooming ritual.
Shaving makes them feel
more attractive and
confident.
Search for product that
most effectively remove
hair.
Shaving is consistently done
to remove unwanted hair.
Shaving is a means to
smooth skin they desire.
View product as the same.
Lack of interest in product
category.
Shaving routine is
inconsistent.
Shaving is a chore they try
to finish as quickly as
possible.