Clean Edge Razor: Splitting Hairs in Product Positioning
Duanyi Feng 02/13/2013 1. What changes are occurring in the non-disposable razor category? * In US razor market, nondisposable razors experienced approximately 5% growth per year from 2007 to 2010. * Super-premium segment of nondisposable razor grew significantly. * Different kinds of product innovation appear in the market. * Replacement cycle has been shortened. * Media advertising expenditures rose faster than retail market sales. * Among all retail channels of nondisposable razor, percentage of sales of food stores decreased a little bit while of mass merchandisers increased.
Assess Paramount’s competitive position. Name | Paramount | Prince
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However, the data resource of this research is based on the Paramount’s consumer. As we know, Paramount targets its product on moderate segment, whose price is lower than other brands. We can tell most of Paramount’s current consumers are also price sensitive. Besides, whether the women would behave the same as men is doubted since women don’t need to shave hair every day. 3. What are the arguments for launching Clean Edge as (a) a niche product; (b) a mainstream brand? | Niche Product | Mainstream | Pros | Complete existing product portfolioAttract more customers in social/emotional segmentLess side-effect on existing product | Prevent loyal customers switching to other brandsBroad appeal of being the most effective razor available on the market | Cons | New customersStrong competition Loyal customers lost to Naiv | Dilute brand powerCannibalize existing product |
Which would you recommend? What are the strategic implications of your recommendation? I would recommend posit the Clean Edge as the niche product.
As a long history company Paramount is and lots of new entrants appear, maintaining the exiting customers is a really important strategy.
We can assume most of the customers are price-sensitive. For a long time Paramount is perceived as lower price for the main stream product. Since the price of Clean Edge has been set as Super-Premium category, it is not easy for customers to accept this high priced product as Mainstream
3) What are the arguments for launching Clean Edge as: a) a niche product; and b) a mainstream brand? Which would you recommend? What are the strategic implications of your recommendation?
Taking in consideration the attrition rate during the past nine years, it seems to be more convenient try to convert the customers as early as possible; indeed
1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge?
This will not only retain the existing customers but will also attract new ones to increase the customer base to optimal level.
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. The marketing strategy of company is not so convincing because they can extend their product range with good
The case points out that Gillette’s competitors were quick to copy new products. The launch of Sensor will be a breakthrough in the market and will introduce a new product category the “cartridge laser cut razor with superior quality”. Therefore it is essential for Gillette to protect their new product by pursuing patent enforcement, as they already have. This way will Gillette retain its competitive advantage and will re-introduce and position itself as a technology leader.
keep an existing customer than finding new ones. A major part of the customer service, especially in a retailing
* How to maintain existing clients so that Best Financial’s existing client base (600) will be loyal and stable.
* 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.
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.
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
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.
Just like it is told in the case, word of mouth is the most classical marketing tool for direct selling. But the company took a risk and get in the TV advertising business, which had great conclusions for them. So I believe that they should definitely keep going with TV ads since the