Paramount Health and Beauty Company Case Analysis
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CASE ANALYSIS
Clean edge razor case is about Paramount Health and Beauty Company which is testing their new products i.e. non-disposable razor, clean edge razor and different tests and figures showed that clean edge razors are better than the non-disposable razors. With new technology, Paramount wants to capture the market targeting both males and females but needs to have a good strategy of segmenting and positioning in the market.
The main problem is to position the clean edge razor in the market by advising Randall on positioning recommendation, media vehicles, brand name generation and process of budget planning.
Positioning recommendation
After analyzing the case and looking at the profit and loss statement or at exhibit 7, segmentation can be done into super premium, moderate and value from which we consider super premium as the best option and under super premium, there is niche and mainstream markets. Exhibit 7 talks about niche positioning and mainstream positioning and each positioning has its own pros and cons but after looking at profit and loss statement, more profit can be generated through niche markets and here, risk involved is less. Also, total marketing expenditure under niche positioning is $15million as compared to $42million in mainstream markets. Also, figures showed that only 35% of sales is cannibalized under niche market and 60% under mainstream which is a major drawback.
Media vehicles
There can be many ways of targeting customers through media and there are different media channels for different markets and as we are positioning niche markets, there are different ways like printing a newspaper ad in different newspaper, ads on television. Also, we can conduct a road show or a campaign in some malls where benefits can be explained to customers. Another approach can be looking for a sportsman for advertisement or posting articles in the newspaper about