Clean Edge Razor Case Study

1313 Words Apr 26th, 2013 6 Pages
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

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