PEGASUS SHAVE MASTER

Pegasus Shave Master (Product invented) Target Colombia

Table of Contents

Executive Summary3

Appendix A- Price Breakdown15

Appendix B- CIF Price Calculations16

Appendix C- Advertising & Promotions Costs17

Appendix D- Income Statement18

Appendix E- Break Even Analysis19

Bibliography20

Executive Summary

Overview

The company's vision is to build total brand value by innovating to deliver consumer value and customer relationship faster, better and more effectively than its competitors.This vision statement has led to the development and introduction of various newer products especially in male grooming division and adoption of a more customer oriented approach.

The Colombian blade market consists of four broad segments

Flat blades

Disposables

Twin blades

Triple blades.

With this understanding of the basic classification of the Colombian blade market, let us now see the tools that help a company, in general, and also us in understanding the environment.

It is indeed enjoying greater supplier power due to its sole presence in the organized, premium technology shaving razors market in Colombia. Also there are no close substitutes to their razors. The only substitutes in terms of the product per se are in fact very poor on the technology and quality fronts.

The world's third largest shaving products maker, the American Safety Razor (ASRCL), is planning to spread its wings in Colombia through a distribution tie-up with the Salora group. The $279m company has a large repertoire, but at the moment, it wants to focus on disposables and shaving systems priced 15-25% cheaper than that of Pegasus Shave Master

The product

This product is designed for the space and weight conscious traveler. It is a combination six blade razor with a shave cream dispenser built in the handle. The Pegasus Titan 6 (for men) is gray and the Diana 6 (for women) is pink. The design is modern, clean, and saves weight and space. Average usage before replacement is two weeks.

Competitors

Gillette

Schick

Target Market

Pegasus Shave Master has always remained the technological, market leader in the razor division of the men's grooming segment. Its high brand awareness, market acceptance as a technological leader for hi-performance razors and high brand equity were compelling reasons to penetrate and develop the entire value chain of the men's grooming industry (razors, after shave and shaving gel/foam).

Market segmentation is dividing a larger market into submarkets based upon different needs or product preferences. These common characteristics allow developing a standardized marketing mix for all customers in a particular segment

Segmentation needs to be undertaken for the following reasons:

Better serving customers needs and wants

Higher Profits

Opportunities for Growth

Sustainable customer relationships in all phases of customer life cycle

Targeted communication

Stimulating Innovation

Stimulating Innovation

Higher Market Shares

Once market has been divided into segments, a process of identifying market segment opportunities (basis the attractiveness of the segment and the company's resources and objectives) takes place.

The approach of Pegasus Shave Master to market segmentation is in line with the above mentioned. Pegasus Shave Master follows a strategy known as Geoclustering which involves combining several variables in order to define better -defined target groups. This is thus a multi attribute segmentation technique.

Primarily, Pegasus Shave Master has identified gender, age, income, occupation, generation (demographic variables) and lifestyles ...