Paramount Must Develop A Marketing Strategy

1034 Words Oct 26th, 2015 5 Pages
Problem Statement: Paramount must develop a marketing strategy to decide on positioning their new product “Clean Edge” in niche or the mainstream market and avoid cannibalization of their own line of products.

2. Situation Analysis:

Company

• Global company with worldwide sales of $13 billion and $7 billion gross profits for 2009.
• Entered the market of non-disposable razors in 1962 and quickly became a respected brand.
• Paramount currently offers two lines of non-disposable razors and refill cartridges – Paramount Pro positioned in the moderate segment and Paramount Avail in the value segment.
• Paramount was the unit-volume market-leader position in 2009 with a 23.3% retail unit share.

Customers
• Currently customers can be classified into three categories: social/emotional shavers, aesthetic shavers, and maintenance shavers.
• Social/emotional shavers (39%) care about overall experience, aesthetic shavers (28%) care about effectiveness and cosmetic results and maintenance shavers (33%) view all products as the same.
• Changing markets study shows that customers across these categories are more open to buying new razors to reap the benefits of short replacement cycle of replacing blades.

Competitors
• Direct competitors for non-disposable razor in the market are disposable razors and electric shavers.
• In the non-disposable razor segment, Paramount’s competitors are Prince, Benet & Klein, new entrants Radiance Health and Simpsons.
• Radiance is…
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