Clean Edge Essay

1630 Words Apr 16th, 2012 7 Pages
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 indicated, a niche positioning strategy would be a better fit to the company’s existing product portfolio.

Furthermore, the niche positioning strategy would incur considerably lower marketing expenses than the mainstream positioning
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The niche positioning strategy’s lower marketing costs and rate of cannibalization make it the less risky option. As opposed to fully committing vast amounts of company resources into a mainstream launch, the niche option would allow Paramount to test the market first. A few years after launching the Clean Edge in the niche market, the company would be in a better position to assess whether the higher marketing expenditures required to make the Clean Edge a mainstream brand is justifiable.

Another argument for the niche positioning strategy is that the Clean Edge is just not suitable for the mainstream market. The Clean Edge encompasses highly technical features that can only be communicated to and appreciated by a highly-involved market segment, and therefore, is more appropriate for users in the niche market. In addition, the Clean Edge’s key benefits – 25% increase in hair removal, more even skin tone and improved skin texture – appeal to a minority segment of aesthetic shavers, which compose only 28% of nondisposable razor consumers. It would be unrealistic to assume that the Clean Edge could achieve “true market dominance” based on this market segment alone.

Intensifying competition in the super-premium segment makes Clean Edge’s chance at market dominance a lot less likely. Moreover, the Clean Edge’s relatively late January 2011 launch into the super-premium market compared to existing competitors and new entrants

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