Clean Edge Razor Case Study

2669 Words Oct 6th, 2012 11 Pages
Clean Edge Razor

MKTG600, Section 233
10/18/2012

Brief case study analysis of Paramount’s newly designed Clean Edge razor

Table of Contents INTRODUCTION 2 PROBLEM STATEMENTS 2 RECOMMENDATIONS & CONCLUSIONS 3 RATIONALE & ANALYSIS 4 APPENDIX & ATTACHMENTS 6 Exhibit A: Select Non-disposable Razor Brand Prices 6 Exhibit B: Non-Disposable Razor Unit & Dollar Market Share by Brand: 2007-2010E 6 Exhibit C: Financial Forecasts: Alternative Positioning Scenarios for Clean Edge 7 Exhibit D: Profit and Loss 7 BIBLIOGRAPHY 9

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INTRODUCTION

Paramount Health and Beauty Company is set to launch a new non-disposable razor, Clean Edge, utilizing a
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Paramount only has a budget totaling $48.3 million on advertising and promotions. This means if Randall requires $42 million to promote Clean Edge in a mainstream strategy, the expense will account for 87% of the company’s annual marketing budget. 3) Paramount Health and Beauty Company would be able to market Clean Edge with a competitive approach in the niche marketplace. To manage the consumer impact and not cause product confusion with Pro and Avail, they would need to keep the price point of the razor between $11.50 and $13, as well as the refill cartridges between $9 and $11. See Exhibit A. The high or low difference in the dollar between the two products may sway a buyer to trade-up without thinking on the lower price point, and/or look to see what added value would be with the Clean Edge priced on the higher price point. If Clean Edge is associated with Pro and Avail in the wrong light, or if it appears to be replacing one of the two to the consumer, adverse purchasing choices will be made which will impact the marketability and sales volumes of Pro and Avail. 4) Paramount’s Clean Edge will compete with Radiance Naiv in test markets in the super-premium category. To compete with Prince, Benet & Klein, Radiance Health Inc., Simpsons and other substitute products,

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