Clean Edge Razor

1008 Words Mar 8th, 2013 5 Pages
Case study: Clean Edge Razor- Splitting Hairs in product positioning

2/12/2013
Group 5 * Radhika Nadkarni * Rishi Ranjan * Sujoy Chakrabortty * Sumanta Chatterjee * Suresh Panigrahi *

Problem Statement:
‘Paramount Health and Beauty ‘ Company is launching a new non-disposable razor, Clean Edge that boasts about superior performance by utilizing a vibrating technology that stimulates hair follicles and lifts the hair from the skin allowing a thorough shave. This is a cutting edge technology that is expected to take the market by storm. This product Paramount has two existing products in the market – Paramount Pro and Paramount Avail. Neither of them has introduced significant technology innovations in the
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So, we will be targeting a huge segment. * Entry in the Niche Segment - Till now, Clean Edge hasn 't been a player in the niche market. This will be their first product, thus opening up more business avenues. * Lower advertising budget requirements (Just $15 million in the first year) * In the last decade, this segment has experienced significant growth.
Cons
* 22 new SKUs have been introduced between the year 2008 and 2009 and most of them targeted the Super-Premium or the Niche segment. Most of them promoted benefits from advances in technology. Clean edge is also banking upon the new technology. The plan may back-fire just in case the new technology doesn 't generate enough curiosity/interest in the customers. * The brand ‘Naiv’ launched by Radiance in 2010 is based on a similar technology and is already positioned in the niche market and is gathering share. It is also priced at a slightly smaller price point. ($11.80 for the razor and $9.45 for the cartridge) * Once positioned for the niche market, repositioning and tapping the mass market may be difficult. 3.) Target Super-Premium market first, enjoy Paramount Pro’s returns till they last and then establish yourself in

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