Clean Edge Razor
What changes are occurring in the non-disposable razor category? Paramount is facing not only the traditional, on-going competition from the other long term, established companies in the market, but faces increasing challenges to its market share from new entrants as well. Traditionally, the market consisted of disposable and non-disposable razors, but within the last few years, a new trend has emerged. As a result of the increased emphasis on esthetic, or beauty products for men, there has been is a growing movement among male consumers who are gravitating toward premium shaving products. Known as the “social/ emotional” segment, it commands 39 percent of the total non-disposable users, which is a greater percentage overall than either the “aesthetic” or “maintenance shavers”. This change has created a niche market, where men are willing to pay a premium for razors with better features and/or quality. The razor industry is addressing this trend with more elaborate and higher end offerings in a bid to capture a greater portion of this emerging segment.
Assess Paramount’s competitive position. Paramount commands a 23.3 percent share of the non-disposable razor market as of 2009, outpacing bother Prince (23.1) and Benet and Klein (B & K) at 19.2 percent. In dollars, their share of the market is 23.4 percent, which is higher than B & K at 22.0 percent, but trail Prince by 7.3 percent. It is also interesting to note that Paramount has increased its market share each year since 2007, while the competitors have not increased their market penetration. An interesting observation to note is that in terms of marketing expense, B & K outspent Paramount by more than 84 percent, while Prince spent 45.6 percent more. This was due, most likely, to the introduction of new products with the requisite need for an intensive introductory marketing campaign. Despite the advertising funds expended, Paramount still has a larger percentage of the market. This
Assess Paramount’s competitive position. Paramount commands a 23.3 percent share of the non-disposable razor market as of 2009, outpacing bother Prince (23.1) and Benet and Klein (B & K) at 19.2 percent. In dollars, their share of the market is 23.4 percent, which is higher than B & K at 22.0 percent, but trail Prince by 7.3 percent. It is also interesting to note that Paramount has increased its market share each year since 2007, while the competitors have not increased their market penetration. An interesting observation to note is that in terms of marketing expense, B & K outspent Paramount by more than 84 percent, while Prince spent 45.6 percent more. This was due, most likely, to the introduction of new products with the requisite need for an intensive introductory marketing campaign. Despite the advertising funds expended, Paramount still has a larger percentage of the market. This