Clean Edge Razor Case Analysis – Case Study – cyrilico
Search
Essays
Sign up
Sign in
Contact us
Tweet
Index
/Business
Clean Edge Razor Case Analysis
1. What changes are occurring in the nondisposable razor category? Assess Paramounts competitive position. What are the strategic life cycle challenges for Paramounts current products as well as for Clean Edge?¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†The main strategic life cycle challenge would have to be the continual increased production of new products by competitors. Every time a new product is released there is something better about it such as newer technology and benefits that have never been offered. These constant new innovations may pose a threat for Paramount‚Äôs products, since they are not so ‚Äėbleeding edge‚Äô (no new products for past 5 years). For Clean Edge, perhaps the Naiv may offer a similar threatCompetitive position: Paramount has been growing share each year (others haven‚Äôt), spends a lot less in advertising (use %s – but this may be justified by constant innovative products from others, while Paramount has been stale for 5 years)2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors.price/quality: value, moderate, super-premium¬†¬†¬†¬†¬†¬†¬†¬†consumer behavior (behavioral segmentation): don‚Äôt care, aesthetic & emotional shavers (behavior change -> traditionally first group but trend is for latter two to become the norm – use Tabels and exhibit 1 for numbers)3. What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream brand? Which would you recommend and what are the strategic implications of your recommendation?¬†¬†¬†¬†¬†¬†¬†¬†Niche¬†– more profit per dollar, much less marketing expenses (following Paramount pattern), profit after cannibalization much higher (if cannibalization is correct), Paramount does not have niche products yet (territory marking), easier to shift to mainstream later, doesn‚Äôt cannibalize current products as much, more consist positioning with product‚Äôs marketing message as the current peak in technology and innovation, fits trend (males are invested in searching and spending for the best solutions), more consistent with the launch price (just a little over the competitors to make people think ‚Äėhmm just a little bit more for the latest innovation, might be worth it‚Äô), rapid growth market where competitors are trying to gain profit from – use Exhibit 6 to prove this and previous point -, although both options might make current products (especially Pro) seem outdated, niche might reduce that perception (if positioned in mainstream, it will send out a clear message that Pro‚Äôs time is gone – do we really want to do that? It‚Äôs not declining, yet at least) BUT¬†will sell less. HOWEVER¬†this option might mitigate risks | Strategic implications:¬†Profitability (and other stuff) must be carefully and closely assessed throughout time to check if transition to mainstream market must be done sooner than expected

Mainstream Рmore profit (before cannibalization; if cannibalization estimates are wrong final profit is indeed bigger),  can successfully replace current products (respective life cycles’ peak may be soon gone Рquote case on this and use Exhibit 5 to prove it with share fluctuations) and be an absolute leader in its segment (not nearly as much competition) BUT requires so much marketing budget (leaves almost nothing for other products which are the current cash cows Рmore risky possibly)WHY CHOOSE NICHE MARKET?The niche market will complement their other products and avoid cannibalism of the existing products.It requires less immediate expenditures in areas of promotions and advertisements expenditures.Since Clean Edge is the first product that Paramount has in the niche market, Paramount will have market shares in both mainstream and niche positions which will diversify its income from multiple sources.BUT: There will be fewer sales, and suggested price will be a dollar higher than if it’s in the mainstreamWHY CHOOSE MAINSTREAM MARKET?Mainstream market is projected to sell three times more units as niche strategy in the first year.Since the current premium brand, Paramount Pro, is at its mature phase, the perfect replacement is Clean Edge to retain loyal customerBUT: It requires more advertising expenditures to promote the product in order to set it apart from its competitors. Cannibalism and elimination of the existing products in the mainstream will be occur.        4. Based on your suggested positioning strategy, what brand name and marketing budget allocations would you advise?

Continue for 3 more pages ¬Ľ
Read full document
Download as (for upgraded members)
Citation Generator
MLA 7
CHICAGO
(2018, 12). Clean Edge Razor Case Analysis. EssaysForStudent.com. Retrieved 12, 2018, from
“Clean Edge Razor Case Analysis” EssaysForStudent.com. 12 2018. 2018. 12 2018 < "Clean Edge Razor Case Analysis." EssaysForStudent.com. EssaysForStudent.com, 12 2018. Web. 12 2018. < "Clean Edge Razor Case Analysis." EssaysForStudent.com. 12, 2018. Accessed 12, 2018. Essay Preview By: cyrilico Submitted: December 8, 2018 Essay Length: 949 Words / 4 Pages Paper type: Case Study Views: 288 Report this essay Tweet Related Essays Waterford Crystal - a Case Analysis Waterford Crystal HISTORY OF WATERFORD CRYSTAL Waterford Glass was started by two brothers, George and William Penrose, in 1783. It was the most notable of 3,391 Words¬†¬†|¬†¬†14 Pages Saturn Case Analysis Case: _____Saturn_____ Case Abstract Form _____ Problem Statement: Saturn's sales are down, and market share needs to be increased. Also, the product line is too 1,538 Words¬†¬†|¬†¬†7 Pages Subway Marketing Management Case Analysis Marketing Management Case Analysis Subway¬ģ Sandwich Shops Abstract Subway¬ģ Sandwich Shops was founded in 1965, and has been franchised into the hearts and stomachs of 1,199 Words¬†¬†|¬†¬†5 Pages Clean Edge Razor Case Analysis Marketing Management Case Analysis Clean Edge Razor: Splitting Hairs in Product Positioning Group AE1: Abhinav Singh (14S601) Anima Tapadiya (14S607) Dushan Garg (14S616) Niharika G 803 Words¬†¬†|¬†¬†4 Pages Similar Topics Starbucks Case Analysis Land Rover Case Analysis Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up ¬© 2008‚Äď2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

Get Your Essay

Cite this page

Paramounts Current Products And Clean Edge Razor Case Analysis. (April 3, 2021). Retrieved from https://www.freeessays.education/paramounts-current-products-and-clean-edge-razor-case-analysis-essay/