MEMO To: Dr. Marlys Mason From: Alyssa Cortez Data: October 5, 2014 Re: Clean Edge Razor-Splitting Hairs in Product Positioning Background Since 1962 Paramount has been regarded worldwide as a respectable and well run company. With major competitors such as: Prince (Cogent and Cogent Plus), Benet (Vitric), The Tempest and The Naiv, it is extremely impressive that they continue to improve within the market. After $13 billion in global sales and over $7 million in profit
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1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge? The non-disposable razor category has seen changes in the recent years. * Advertising expenditures increased significantly for newer and smaller players to grab the market share whereas established players did not increase it significantly. * Male grooming product seemed to be a bright
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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
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profit generated by “new customers” under niche strategy scenario is $4.7 million more than mainstream strategy, it is still necessary to look into the additional profit generated from exist customers who switch from Paramount’s other products to Clean Edge Razor. Unfortunately, the case does not provide the sales volume and margin profit of Paramount’s other products, therefore can not calculate the additional profit due to the switch. But if the additional profit using mainstream strategy is $4.7 million
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MARKETING MANAGEMENT AND VALUE CREATION CLEAN EDGE RAZOR – SPLITTING HAIRS IN PRODUCT POSITIONING QUESTION 1 Consider exhibit 1 and the three different consumer segments. For which segment would the niche strategy be more effective? And for which group would the more mainstream approach be more effective? Considering exhibit 1, social and emotional shavers is the segment where the niche strategy would be more effective. This group has some specific characteristics as: more brand switching
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Group Case Study Case: Clean Edge Razor Three main parts: Case Discussion Questions 1. What changes are occurring in the nondisposable razor category? Assess Paramount’s competitive position. What are the life cycle challenges for Paramount’s current products as well as for Clean Edge? 2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors. 3. Marketing problems or key managerial decisions to be made What are the arguments
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Business School Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market where
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Arguments for launching Clean Edge as a niche product A primary of launching the Clean Edge as a niche product is that the company would incur a lot less cannibalization of its Pro and Avail product lines, which allowed Paramount to capture the unit-volume market-leader position in 2009. Though a cannibalization rate of 35% is expected with the launch of Clean Edge as a niche product, the rate is significantly lower than the 60% expected if Clean Edge was positioned as a mainstream brand. As Rosenberg
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the Gillette Fusion ProGlide Disposable Razor Industry/Market The Gillette Fusion Proglide Blade is a product that is positioned in the men’s hair removal niche. This product is primarily targeted at males age 18-50, in other words any male that is of age to grow facial hair. They are marketed for individuals in the middle income range due to it not being a one-use disposable blade. Gillette is not a high end single blade razor either. These razors do not have a specific race or ethnicity that
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uncommon market. Gillette was also very fortunate to get pop-culture to buy into their vision of a clean shaven India. The power of media and culture cannot be overstated. Gillette faced several issues in 2008, as it attempted to grow the Mach3 brand in India. While there was ample opportunity for growth in India’s market, based on the 400 million men of shaving age, India’s market did not value razor technology as highly as the US market. This was due to the consumer’s risk averse nature and
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