Position Statement:
Paramount Health and Beauty wants to launch a new razor into the market currently referred to as “Clean Edge.” The project team recommends that the company should position the product as a distinct mainstream product, dubbing it “Clean Edge by Paramount” in order to produce growth in sales from new product innovation. The importance of placing the product in a mainstream position is to successfully launch an innovative product creating more market share for Paramount and for Clean Edge to become the most sought out razor in the industry. Failing to take this route and deciding to position the product in a niche would only give the new product a limited amount of consumers, preventing Clean Edge from reaching its
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Clean Edge by Paramount gives customers a clear perception of the advantages of the product without being concerned about other product categories.
Critique of Rejected Options
There are several reasons why the project team should reject the first option in positioning Clean Edge in a niche. The first reason concerns the pricing strategy. Placing the product in a niche position would make the razor more expensive in the retail sense. Catering to the more involved groomers places the product at a suggested retail price at $12.99. Placing the product at a higher price in the niche position could only lead Clean Edge Razor to a limited market. Rosenberg suggested placing the product in the niche position for a year or two; however, this could lead to prevention in attracting a wider customer base for the product during that time frame.
Another reason Paramount should not place in the niche position is their significantly low marketing budget compared to their competitors. In just media advertising alone, Radiance spent $16 million on Naiv. For Clean Edge, the cost for advertising for the niche position would only be $7 million. Because Radiance is spending more than twice as much on their advertising compared to what Paramount would spend in the niche position, Radiance would gain an advantage in covering more ground to promote its product.
As far as product naming is concerned, “Paramount
2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?
This leads into the next issue their organization faces, which is their lack of informing the consumers of their product benefits. The Fantastik cleaners are the only ones on the market that are 100% safe for the environment. With such a competitive advantage over their competitors, they have to be able to bridge this communication gap they currently have with consumers, because many of them are unaware of Fantastik’s triple bottom line goals. In order to help build brand awareness, they have to advertise more to their target segments. But one of the issues is Fantastik’s advertising budget has decreased from $1,375,000 in 2005 to $825,000 in 2006. Fantastik also has the problem of lacking diversity in their product line. Although they have five different cleaners, all of them are fairly similar and many consumers would not be able to tell their differences other than the price.
The case opens with an 8:15 AM meeting among several key people at the Danbury, Illinois plant of the Floor Care Products Group of Atlas Industries Worldwide. The group consisted of the following persons:
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
Experiencing challenging situations that make us feel mentally or physically uncomfortable enable us to grow from our comfort zones and experience our learning. Edgework expresses an array of emotions and allows for personal freedom, growth and failure within our personal and professional lives. These experiences may take on different meaning for anyone but the overall learning concept should be expressed in the overall experience.
On the other hand, prices are the most insignificant buying criterion in High End, Performance and Size segments. No matter how high the prices are, customers in these segments are more preferable to high-tech product. In particular, for the High End and Size segments, ideal position occupies 43% and products’ ideal age is 29%. Furthermore, reliability is the most important consideration to customers in Performance segment. Hence, Niche Differentiation is a proper alternative for these three segments.
So her specific task was to prepare a marketing plan for P&G mouthwash business for the next 3 years. In preparing the 3 year plan for Scope, a team has been formed within P&G to examine various options, the team included individuals from product development, manufacturing, sales, finance, market research and advertising operations. The team was faced by two options that are: 1- Launching a new line extension positioned against Plax as a recent entry into the market. 2- Looking at claims other than “breath” that might be used by scope such as plaque reduction.
The positioning strategy should be driven by the market, rather than by the ambitions of the product champions. The source of the problem is failure to understand how consumers' value product attributes. In all, over-appreciating a breakthrough or new technology that
* Money spent on advertising. Based on the pro forma; it would cost roughly $12million more to advertise to the mass market. This is risky if the Clean Edge Razor doesn’t do as well as forecasted.
The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.
For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by
Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.
This situational analysis includes industry forces, company statistics and financial information, a list of environmental factors that deal with how the company operates, and competitor information.
In the highly competitive Japanese skin-care market, P&G¡¦s new SK-II product has proven its success as a premium and prestige offering. P&G has gained significant knowledge transfers from SK-II development and further, has successfully tapped the fickle Japanese market and has devloped a loyal user-base in Taiwan and Hong Kong. With its phenomenal success, it is only logical that P&G consider rolling-out the SK-II product-line to the international market. However, while there is significant worldwide growth potential within the $9 billion prestige skin-care industry, based on recent organizational changes, new corporate priorities, and thorough market assessment, P&G must base its decision on current resources and capabilities to
Product quality and efficient marketing are the core value propositions that set the pace for Gillette’s success. With continued innovation in both product development and marketing strategies Gillette has been able to retain a commanding