Market Research for a New Men's Razor Blades Company in London

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SECTOR MARKET BENEFITS &
ATTRACTIVENESS
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Contents
Introduction......................................................................................................................................3
Market segmentation.......................................................................................................................3
Quantitative and qualitative analysis...............................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5
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Introduction
The assignment is to develop market research for a new Men's Razor Blades Company in
London. Thus the aim of the project is to study various market segments and focus on one
segment, in general, to do a small quantitative research to identify the needs of the customer
segment and make effective changes in the process that follows.
Market segmentation
Demographic Segmentation: The demographic segmentation is done on the basis of age,
gender, and income of living. In this case, as the product is Men’s Razor the same can be divided
into the age group of 15 to 70 years of men. At the same time, the earning should be focussed on
a customer segment that is earning more than £40,000. In London, the number of people earning
this amount is in the age of late twenties to fifties. Thus the customer segmentation of new
product is focussed on that. Also for men, there is brand loyalty at a particular age thus to
penetrate that kind of market will need an in-depth strategy (Afuah, 2014).
Geographic Segmentation: In this category, the major target for the company are men in urban
areas as they have good earning and spend a good amount of grooming. The company aims to
develop its geographical market by reaching to emerging markets and those regions with
improvement in living standards and development in purchasing power of the middle-class
population. People living in such areas of London gives a good market to emerging brands, and
help in the development of a better customer base.
Psychographic Segmentation: The industry is targeting people with high personal grooming
needs and interest. The major impact is seen on high maintenance lifestyle and their interest to
look presentable. These people are the one that accepts high priced products with exceptionally
high quality in the products and services in the market.
Behavioral Segmentation: Company researched about the affordability and need of customers
that are interested in a high value razor blade. For those customers who want to shave daily the
razor is needed to work on a long-lasting behavior and make effective outcome from the overall
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brand development of the product. The company believes that customer not only needs long-
lasting shave but also a safe product to use on a regular basis (Rogers, 2017).
Quantitative and qualitative analysis:
Based on the overall market analysis the major segment taken for learning is high-income
customers who are willing to pay for a razor for better grooming of an individual. This segment
was focussed and some questions were asked about their needs and expectations. By applying
the concept of quantitative analysis this has been observed that in order to develop effective
market leadership in the UK there is a need for the hair removal category has been declining in
the last few years. The drop of 3% was initially reported in 2014 that was around £579 million
but the same was reported to decline further in 2018 by 4% to £558 million. This figure has been
reported despite increment in the hair removal process in the UK. The hair grooming among men
has been reported to increase 70% this year as compared to 64% last year. For any new product
development, the study of savvy shopping behavior and encouragement of new brand utility has
been identified in the process (Khandom, 2019).
For the development of brand, the major research was done on the basis of daily expenditure of
men and their need to do so. This brand is different from others due to its long-lasting impact and
selected market segment. The production will be done on a moderate level to develop a market
base and then expand the business. This segment has been showing growing trend as the need to
look professional and well dressed will always there in this segment thus it will give good
revenue in the future. Apart from this market segment, the next level will be upcoming regions in
the UK and the company might think to launch a lower level of the razor to capture relatively
low earning groups as well (Fraiberger and Sundararajan, 2015).
Conclusion
This has been identified in the above brand development that the consumer demands are
relatively moderate in the UK thus in order to cater high-end consumer the brand is needed to be
unique with optimum quality. A slow but steady approach will be effective in covering one
database at time and can be very helpful in further brand expansion.
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References
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Afuah, A., 2014. Business model innovation: concepts, analysis, and cases. Routledge.
Fraiberger, S.P. and Sundararajan, A., 2015. Peer-to-peer rental markets in the sharing
economy. NYU Stern School of Business research paper, 6.
Khandom, R.,(2019). UK SHAVING AND HAIR REMOVAL MARKET REPORT.
Store.mintel. Available at: https://store.mintel.com/uk-shaving-and-hair-removal-market-report
[Accessed on: 30th July 2019]
Rogers, C., (2017). Charlotte Rogers: The razor subscription market is already on the verge of
saturation. Marketingweek.com. Available at: https://www.marketingweek.com/razor-
subscription-economy-saturation-point/ [Accessed on: 30th July 2019]
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Appendix-1
Demographic Segmentation
Need for good brand placement
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Appendix 2
Psychological segmentation
Factors affecting buying behaviour
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Appendix 3
Geographical Segmentation
Shelf placement in Super market
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Appendix 4
Behavioural segmentation
Need of razor blade as per age and utility
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Appendix 5
Market distribution of various brands
Market share of various brands in 2015
Market share of various brands in 2016
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Male grooming category 2017
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