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. Will this product displace competitors’ brands or just replace Paramount existing sales from its other lines? Positioning the product as a super premium product with premium pricing seems to insulate the company from market cannibalism. Market research done by Paramount indicates that if the Clean Edge is introduced into a mainstream scenario, 60% of new sales would come from Paramount