Clean Edge Razor

1027 Words Mar 4th, 2013 5 Pages
Case Analysis
Clean Edge Razor
Splitting Hairs in Product Positioning

Executive Summary
Paramount’s newest non-disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning, brand name & marketing budget allocation for the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non-disposable razors sold by Paramount.
It is very important to come up with a suitable strategy to make the
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| 5.89 | | | | | | | | Net Profit Margin | | | 21.20 | | | 6.74 |

Exhibit 2 M/s Paramount | Product - Clean Edge | Profit/Loss Pro-forma for 2012 | | Niche | Mainstream | Capacity | Units in Million | Rate | Amount | Units in Million | Rate | Amount | | | | | | | | | | | | | | | Product - Razor | | | | | | | Production Cost | 1.50 | 5.00 | 7.50 | 4.00 | 4.74 | 18.96 | Manufacturer Value | 1.50 | 9.09 | 13.64 | 4.00 | 7.83 | 31.32 | Suggested Value | 1.50 | 12.99 | 19.49 | 4.00 | 11.19 | 44.76 | | | | | | | | Product – Cartridge | | | | | | | Production Cost | 10.00 | 2.43 | 24.30 | 21.90 | 2.24 | 49.06 | Manufacturer Value | 10.00 | 7.35 | 73.50 | 21.90 | 6.22 | 136.22 | Suggested Value | 10.00 | 10.5 | 105.00 | 21.90 | 8.89 | 194.69 | | | | | | | | Capacity Cost | | | 0.87 | | | 2.45 | Advertising | | | 7.00 | | | 17.00 | Consumer Promotion | | | 6.00 | | | 14.00 | Trade Promotion | | | 3.00 | | | 8.00 | | | | | | | | | | | | | | | Revenue | | | 87.14 | | | 167.54 | Variable Expenses | | | 31.80 | | | 68.02 | Fixed Expenses | | | 0.87 | | | 2.45 | Operating Profit | a | | 54.47 | | | 97.07 | | | | | | | | Marketing expenses | b | | 16.00 | | | 39.00 | Net Income | a - b | | 38.47 | | |

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