Problem Statement:
Paramount has become a market leader in global consumer products; but knows that innovation is vital to continue success. Paramount has used technology to create an innovative razor, but wants to make sure that it is positioned effectively.
Situation Analysis: * Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before. * Competitors: Competition
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Position the Clean Edge Razor to the Mass Market
Pros * More people will be exposed to the product. This will lead to greater sales. This will also improve brand equity. Through this positioning strategy Paramount will have a razor in each segment. * Although not as profitable, this positioning strategy will still make a profit and build brand equity.
Advantage * Paramount will be viewed as innovative and keeping up with competition. A company that is stagnant falls behind. Through marketing this razor to everyone, Paramount will be viewed as taking the next step to create the best razor. Currently Paramount isn’t working on any other innovative razors so this technology will have to be available to all different types of customers.
Cons * One con is that not everyone will know how the vibration will help prevent a better shave. There are also a lot of people who don’t need a superior razor; they are content with the razor the way it is. * Another con is that the razor will have to be priced lower than if it were a niche position due to competition. * 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. Disadvantage *
2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?
* Male grooming product seemed to be a bright spot in the industry with the advent of male-specific personal care products that outpaced the growth in women’s beauty market
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.
At this time there would be no direct competition for the Tub-Scrubbie. As the sales of this item rise, competitors will start to develop their version of this product, if we patent our item that will reduce
The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale.
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.
The biggest pro is that you are able to get the hairstyle you've been dreaming of and you won't have to wait forever for the length you've been wanting.
Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.
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.
The Indonesian economy has constantly grown within the last 20 years. However, the shaving market is still underdeveloped compared with Western markets. Hence, Gillette should provide more information to spread widely concept of shaving. Moreover, it should introduce new products to facilitate the introduction of shaving products to non-shavers and increase the frequency of shaving in current shavers.
In addition to not breaking the bank, most people first learn to shave with a disposable razor and may not ever upgrade to an electric razor. Shaving is cost-effective and familiar.
Compliment current leading product lines that keep consumers happy. Promoting Christmas, Father’s day and Mother’s day gift grooming kits that meets more of the consumer’s needs will also introduce consumers to other product lines Gillette has to offer. Focus marketing potential growth opportunities globally by challenging resistance in product awareness and interests.
For SF, the other problem is that the company has developed many new products are not considering the desires of customers. SF might need a market research to know the customers need which will help the company to adjust their decision. SF needs a full market research to understand customer needs, which will help companies adjust their decisions. In addition, a good market research can help maximize corporate profits, increase sales, and expand the market. For a profitable company, producing unwanted products is pointless. As a priority target, the customer's willingness is important for the company's better development. Although a lot of SF’s new customers require discount pricing, SF is worried about their brand image will get erode. As a company focused on "the high level market", this move is much more clever, because the company will maintain its market value and its reputation. Mirror & Smoke stated that “ The idea of branding is to make sure that you create a positive experience and back it up with quality processes and technology.” (n.d.). As the company which already has brand value, it is easy to ruin it, but it is difficult to get it back. The customer will always choose the brand which they think is good. Discount pricing might get more
Information Technology is a crucial part for any business. It plays a critical role in realizing goals and objectives of an entity. For UMUC haircuts the IT will help in being more competitive in the market. Customer satisfaction will be high since they will get the best service that adds value to the final product. Once implemented IT will help the business will also enjoy high levels of customer attraction and awareness which enables management to reach the target market (Murimi, 2015). That is a move which can raise the branding levels of the business and acts as a barrier to new entrants. Increased profitability makes the business to attain high levels of financial stability and can acquire other players in the industry or invest in a successful products or projects in the market.