Clean Edge Razor Case Analysis Essay

909 Words Oct 21st, 2011 4 Pages
Clean Edge Razor Case Analysis
Luiz Dantas
Marketing Management
Professor MaryJo Radosevich

Background/Situation
A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry
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Examine consumer behavior for nondisposable razors.
According to the article the razor market are segmented in three segments based on price and quality: value, moderate, and super-premium segment.
Examining the consumer behavior for nondisposable razors, we can observe that consumers are focusing on the premium segment. Also, they are becoming more sophisticated and expecting new technologies to smooth the shaving process. Focusing on that, Paramount should invest in the premium products category. Even though that would create cannibalism for the “pro-products” which is already loosing market.

3. What are the arguments for launching Clean Edge as (a) niche product, and (b) a mainstream brand? Which would you recommend? What are the strategic implications of your recommendations?
According to Randall’s analysis, to launch “Clean Edge” as a mainstream product would require significantly more market support. Mainstream razor unit volumes were expected to capture over three times niche volumes in the first year, and reaching the masses would require an extensive advertising campaign as we can observe on Exhibit 7. In other hand, launching as a “niche” positioning, would be a lot cheaper. Also, the company could use the market penetrance of the brand to help consumers buy the product.
I would recommend launch “Clean Edge” as a “niche” positioning. This would help paramount to become a revolutionary leader in non-disposable segment, focusing on highly

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