...11/12/14 Clean Edge Razor Case [pic] Table of content 1. Executive Summary………………………………………………………………….3 2. Problem/Issue Statement………………………………………………………..4 3. Situation Analysis…………………………………………………………………….4 4. Alternatives……………………………………………………………………………..8 5. Evaluation of Alternatives………………………………………………….…….8 6. Recommendation(s), Action Plan/Implementation…………………..9 7. Appendix…………………………………………………………………………………11 1. Executive summary As a marketing advisor, my role is to analyse the Clean Edge Razor Case in terms of the inner and external situation, the alternative solutions and assess each solution, then give recommendations on which alternative solution to choose, what the advantages and disadvantages are. Finally, suggest implementations that should be taken in order to achieve the goal. www.termpaperwarehouse.com/print/Clean-Edge-Razor-Case/244312 1/9 11/12/14 Clean Edge Razor Case As a leader in the heath product and grooming manufacturer company, Paramount is introducing a more technologically revolutionary nondisposable razor into the super-premium market to maintain market share. However, there are many competitors in this segment and Paramount is considering the proper the positioning method to choose to gain the most market shares. Both niche positioning and mainstream positioning have pros and cons. Niche positioning focus on specific group of male that are very concerned with the functionality and the messaging of the razor. They seek...
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...Alternatives……………………………………………………………………………..8 5. Evaluation of Alternatives………………………………………………….…….8 6. Recommendation(s), Action Plan/Implementation…………………..9 7. Appendix…………………………………………………………………………………11 1. Executive summary As a marketing advisor, my role is to analyse the Clean Edge Razor Case in terms of the inner and external situation, the alternative solutions and assess each solution, then give recommendations on which alternative solution to choose, what the advantages and disadvantages are. Finally, suggest implementations that should be taken in order to achieve the goal. As a leader in the heath product and grooming manufacturer company, Paramount is introducing a more technologically revolutionary nondisposable razor into the super-premium market to maintain market share. However, there are many competitors in this segment and Paramount is considering the proper the positioning method to choose to gain the most market shares. Both niche positioning and mainstream positioning have pros and cons. Niche positioning focus on specific group of male that are very concerned with the functionality and the messaging of the razor. They seek superior shaving experience and consider shaving as daily grooming ritual. Mainstream positioning focus on a broad market and target at the consumers that have ordinary shaving needs. However, the key issue is that mainstream positioning may cause cannibalization effect, triggering decline in sales of...
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...Clean Edge Razor Case Analysis 1. The Non Disposable Razor Market The non disposable razor market can be segmented by 2 ways. Firstly it can be segmented into traditional price/quality segments of “Super Premium’, “Moderate” and “Value’. Secondly it can be segmented by consumer behaviour into “Social/ Emotional”, “Aesthetic” and “Maintenance” shavers. These 3 segments vary in consumers’ intensity of involvement with the product, and the Social and Aesthetic segments consist of involved users who are open to new technology in the market. 33% of the market is made up off “Maintenance” shavers, who view all products as similar and display a lack of active interest in these products. Shaving is thus viewed as a chore to complete whenever necessary. “Social/ Emotional” users make up 39% of the market. These users actively differentiate between available products and make purchase decisions based on the overall experience- the product’s functionality and brand messaging. They see shaving as part of a daily routine that helps increase their confidence and attraction levels. The remaining 28% of the market is made up of “Aesthetic” users that view consistent shaving as a means to their desired smooth skin. These users actively search for products that actively remove hair to satisfy cosmetic motivations. 2. Launch Decisions Niche Product A niche product positioning would focus on highly involved, fastidious groomers that want a superior shaving experience. This...
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...Clean Edge Razor: Case Analysis Cheryl Lam Professor Linda Reeser MKTG 2030 S Tuesday, March 4, 2014 Executive Summary With the U.S. razor market expanding at such a rapid rate, choosing the right strategy to market a product to consumers is critical. A current market leader in the U.S. razor market, Paramount, is facing some difficulty with deciding which marketing strategy to implement in order to maximize profit. The solution that the company must choose should result in an opportunity for growth for their new line, Clean Edge, with as little loss of sales to their other product lines as possible. In order to do this, the company must use a niche marketing strategy. By doing so, they will be able to reach the growing market that is looking for super-premium razors, an area in which they are not currently targeting, and release a product that competes with the most populated segment within non-disposable razors. By doing this, Paramount will be in line to becoming the market leader, not just in unit sales but also in dollars. Paramount must focus on specifically targeting the social/emotional and aesthetic shavers as they represent a large percentage of non-disposable razor users and have beliefs and values that are in line with the image that Clean Edge is trying to portray. This will result in a more loyal consumer base and create more brand loyalty as consumers will feel as though they have a closer relationship with the company and their needs are being fulfilled. By...
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...Clean Edge Razor Case Analysis Luiz Dantas Marketing Management Professor MaryJo Radosevich Background/Situation A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market. 1. What changes are occurring in the nondisposable razor category? Assess Paramount's competitive position. What are the strategic life cycle challenges for Paramount's current products as well as for Clean Edge? Consumers are becoming more sophisticated and looking for new technologies. In other words, they are willing to invest more money and buy products that satisfy the necessity of a smooth shaving experience. In other hand, observing the Exhibit 1, there is a category of consumers called “Maintenance users” that made up 33% of consumers; they were not interested in buying products with superior technology. These consumers cannot be ignored...
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...success. Paramount has used technology to create an innovative razor, but wants to make sure that it is positioned effectively. Situation Analysis: * Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before. * Competitors: Competition includes direct competition as well as substitutes for Nondisposable razors. In 2010 the three major players were Paramount, Prince, and Benet & Klein (B&K). Prince mainly focuses on super-premium products. B&K entered the Nondisposable market in 1985. There are also new entrants which account for the rest of the market. In 2010 Paramount is expected to have a 21.4% dollar market share. * Company: Paramount is a large consumer products company with $7 billion in gross profit in 2009. The current Nondisposable razor line has products in both the market and value customer segments. The Clean Edge Razor is the first Nondisposable razor produced by Paramount that has a technological innovation. Paramount is relying on the Clean Edge Razor to increase sales and earn more market share in the Nondisposable razor category. * Context: In 2011 the effects of a recession...
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...Executive Summary We are 3+2 group，introduce team member Timber， Jie，Penny ，Helen ， and Stella. We’ll present the marketing strategy for the innovative product Clean Edge razor. Now let’s begin. Our presentation outline are： Paramount Health and Beauty Company Ultra thin five blade and vibrating technology- technology leading position 2011 - Introduce new Clean Edge target at niche market 2012 - Sunset Avail 2013 - Cut Clean Edge price to occupy mainstream market 2013 - Introduce Clean Edge Plus target at niche market to increase market share 2014 - Technology leading position in market, to achieve 472million annual revenue, and 32% market share in US non-disposable razor market. Our 推出新产品定位niche 2年后降价定位主流市场 并推出plus a new non disposable razor Clean Edge with cutting edge technology to improve men’s shaving experience by the use of leading vibrate technology in the super premium segment. 1. 我们的新产品有CE ultra thin five blade and vibrating technology， technology leading position 2. 我们将于2011推出CE，target at Niche market 3. 我们将于2013 cut CE price，to occupy mainstream market。 4. 同时我们将推出CE Plus，我们的客户是（高端客户），在市场保持领先地位share。 5. 我们的总体目标是2014年达到XXX. Our principle is technology leading, 1. 现在市场中super占最大。 2. 同时social是最大的消费群体。 3. 所以，我们决定将我们的主要客户定位在xxxx上。 1. 我们现在主要的竞争对手有XXXX。 ...
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...Clean Edge Razor In August 2010, Paramount Health and Beauty Company (Paramount) was faced with a difficult dilemma. Paramount was a global consumer products company which focused their products around health, cleaning, beauty, and grooming. Paramount had spent considerable time and investment into a cutting edge non-disposable razor that was touted to provide the “closest, cleanest, and smoothest shave people had encountered.” Their dilemma was into which part of the non-disposable market they should introduce their “superior” razor into. As we evaluate the environment in which Clean Edge will compete, we identified five key issues to analyze. The issues include new entrants into the market, Radiance’s new razor, the economy, distribution channels, and increased marketing costs. After analyzing these issues, the introduction of the new razor and the increased marketing costs would pose the greatest risk to Clean Edge. Both of the issues have a high impact and high immediacy for Paramount. The new razor that is entering the market has similar technologies that will cause a higher impact for Paramount than any of the other issues. The emerging new entrants into the market, the economy, and the changing distribution channels all have a low impact but high immediacy for Paramount. The changing distribution channels are occurring because of changes in the industry and the increased availability of all the products in this submarket. The products are now being offered at more...
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...Table of Contents 1.0 Introduction 2 2.0 Case Summary 3 3.0 Case Analysis 5 3.1 SWOT Analysis 5 3.2 Industry Environment Analysis 7 3.3 Product Analysis through the Marketing Mix 11 4.0 Scenario Analysis 13 5.0 Recommendations 15 5.1 Costing and Budget Analysis 15 5.2 Product Positioning 18 5.3 Brand Name Selection 20 5.4 Contingency Plan 21 6.0 Conclusion 23 1.0 Introduction Paramount Health and Beauty Company (Paramount), a leading name in consumer’s Health, Cleaning, Beauty and Grooming, is all set to launch a new non-disposable razor with cutting edge technology aims to improve men’s shaving experience. Developed after a thorough research & development, the design is technologically superior, and provides superior performance by the use of a vibrating technology. Being the market leader in the non-disposable razor market segment, the launch is expected to propel Paramount into extending the market leadership. The issue at hand is the decision regarding this product positioning, either to market it as a niche product targeting highly involved fastidious groomers looking for superior shaving experience or as a main stream positioning focusing on the broad advantage of the closet possible shave. The case study leverage on the economic analysis, where a simple pro forma income statement that took into account the effects of cannibalization were produced, coupled with consideration from various marketing methodology including...
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...leader in the global non-disposable razor market, a position it has held for more than 50 years. As of 2009, the company had $13 billion in worldwide sales and $7 billion in gross profits and revenues. Of that revenue, non-disposable razors and refill cartridges accounted for $170 million in revenue and $92 million in gross profit, with operating profit of $26 million. Paramount has two disposable razor products, the Paramount Pro, placed in the moderate segment of the product market and the Paramount Avail, a value offering in the market. The two combined make up 23.3% of the company’s share of the industry. Additionally, the shaving market is divided into three categories of “shavers”, each with unique needs from their razor. These are: maintenance shavers, social/emotional and aesthetic shavers. Recently, Paramount developed a new non-disposable razor, Clean Edge. With a new design, the Clean Edge offers scientifically proven, superior performance as it utilizes a vibrating technology to stimulate hair follicles and lift hair from the skin, which allows for a more thorough shave. Paramount is now faced with two options in introducing the Clean Edge razor in the market. With its innovative new features, Clean Edge will be priced in the “super premium” segment of the market. Competitor Overview Paramount’s competition consists of both direct competitors as well as substitute products. Substitute products include disposable razors, electric shavers, depilatory creams...
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...[pic] HARVARD BUSINESS SCHOOL BRIEF CASES 4249 JANUARY 19, 2011 JOHN A. QUELCH HEATHER BECKHAM Clean Edge Razor: Splitting Hairs in Product Positioning On August 9, 2010, a group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount's newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. Clean Edge's improved design provided superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave.1 Jackson Randall, product manager for Clean Edge, sat in the darkened observation room considering the positioning strategy for this new product. He had led the new product development process and was now grappling with how to position the product for the upcoming launch. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market. Others felt a more differentiated niche strategy, targeting the most intensely involved super-premium consumers, would be optimal...
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...1. Use “niche market” positioning concept Randall should use the “niche market” positioning concept. As the case points out, both “niche” and “mainstream” strategy will help Paramount to raise its market share in super-premium non disposable razor segment. But the “niche” strategy will enables Clean Edge Razor to contribute profit and at the same time, limit the effect of cannibalizing Paramount’s existing products. Two reasons Randall should use the strategy are presented below: • After quantitative analysis, from Exhibit 7 we see the total estimated profit generated by mainstream strategy in Year 1 & 2 is $64 million, bigger than $46.6 million generated by niche market strategy. However, because Paramount only have the budget totaled $48.3 million on advertising and promotions in 2010, it means if Randall requires $42 million to use mainstream strategy to promote Clean Edge Razor, the expense will account for 87% of the company’s annually marketing budget, which will definitely squeeze the budget of Paramount’s other cash cow products, and thus cause the tremendously potential risks on other product’s competitiveness in Moderate and value market. • Secondly, after deducting the cannibalization effect, the profit come from “Paramount’s new customers” who buy Clean Edge Razor under niche strategy scenario in Year 1& 2 is $30.3 million, bigger than $25.6 million under mainstream strategy scenario. In other words, although the sales volume is evidently large by using...
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...Case Brief #1 : Clean Edge Razor October 29, 2013 1. Problem Statement: Paramount Health and Beauty Company having difficulty to choose position their new product (Clean Edge) in the market. 2. Situation Analysis: Company (Paramount Health and Beauty Company) * Paramount is a respected brand in the industry since 1962 * Paramount offered two lines of nondisposable razors and refill cartridges. The Paramount Pro for moderate segment and the Paramount Avail for a value offering * Paramount is ready to launch newest nondisposable razor, Clean Edge * Clean Edge is improved by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin * Paramount would be the first company to provide scientific testing by a third-party lab * Jackson Randall, the product manager for Clean Edge, is considering the position strategy for Clean Edge Collaborators * Food stores is important partner to support the sales. In 2000, food stores sold over half of all razors. * Drug stores, mass merchandisers, club stores and other stores also partners with Paramount. Customers * Male specific grooming products seemed to be a bright spot in the industry * Electric shavers generally appealed to older consumers * Women’s market Competitors * Prince Prince had been a market leader in nondisposable razors since the 1950s and held the number one position in terms of retail dollar sales in 2009. * Benet &...
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...MBA 812 Marketing Management Case Analysis Clean Edge Razor Splitting Hairs in Product Positioning Shiwei Hua (Vivian) Fall 2012 September 20, 2012 Summary Paramount Health and Beauty Company, a global consumer products giant, operates in health, cleaning, beauty and grooming divisions. The Paramount Pro and Paramount Avail are two lines of nondisposable razors and refill cartridges, and currently share a respectable market share in the industry. Recently, Paramount is set to launch a new nondisposable razor which named Clean Edge with a vibrating, ultra-thin blade design to improve men’s shaving experience. The Clean Edge is to be launched in the Super-premium segment of the market, which experienced significant growth in the industry. The company can either position the product in the niche or mainstream market. The problem at hand is how to position the new product to maximize the company’s profits. This paper analyzes the changes in the nondisposable razor market by evaluating competitors, customer behaviors, and advantages and disadvantages between launching in a niche market or a mainstream market. Finally, it provides financial forecasts to attempt to give insight about which strategy will best for the overall company. Five Changes occurred in the nondisposable razor category First, many new technologies were applied to the nondisaposable design such as vibrating technology, anti-corrosive technology...
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...Clean Edge Razor: New Product Positioning Paramount Health and Beauty Company (Paramount) is a multiproduct company specializing in shaving products and accessories. The company has developed a new shaving product dubbed Clean Edge is seen as the next generation of wet shaving products. Existing shaving products sold by paramount occupy the value and moderate product market segment. Introducing the new Clean Edge product into the market requires decisions on market placement, pricing, advertising and branding. Several potential problems with the product introduction are evident. The first problem to address is how this product should be positioned relative to the other offerings of Paramount. Another question is how this product will fare against similar competitive products from rival companies .Information from Table A in the case study indicates the non disposable razor market growing at roughly 5% per year with refill cartridge growth rate at 2% per year. The refill market is much larger than the razor market in terms of total sales. Table B in the same document on page 2 indicates that the Super-Premium and Moderate market volume and dollar sales are about75% of the total market. The choice for Paramount is which market segment to position the new Clean Edge razor and replacement cartridge sales into for maximum profitability. Competitor shave developed products that have some but not all of the features of the new Clean Edge razor so this becomes a factor on market introduction...
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