Clean Edge Razor Case

1601 Words Apr 7th, 2013 7 Pages
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 *

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