Clean Edge Razor: Splitting Hairs in Product Positioning Case 5 Questions How Paramount used the method of 'choosing market segments: A five-step process' these steps are: Step1: Select Market-Attractiveness and Competitive-Positioning Factors. Step 2: Weight Each Factor. Step 3: Rate Segments on Each Factor, Plot Results on Matrices. Step 4: Project Future Position for Each Segment. Step 5: Choose Segments to Target, Allocate Resources. The U.S. disposable razor market can be broken up into five major market segments. These segments include: Nondisposable razors Refill Cartridges Disposable Razors Shaving Cream Depilatories Further segmentation in the nondisposable razor can offer even better insights into the competitive landscape. There are basically three categories of razors in this segment which include super premium, moderate, and value. The moderate category captures the most revenue (44%) as well as the most volume of sales (43%). Even further segmentation reveals that some consumers are "maintenance shavers" who were completely disinterested in the product's marketing and features. Another type of shopper was identified as the "social/emotional" shaver who could be swayed by marketing and an "aesthetic" shaver who focused on the quality of the shave and the product's performance. Niche Niche Competitiveness Niche Size Niche Growth Total Premium 3 2 3 8 Moderate 5 5 4 14 Value 5 2 2 9 What changes are occurring in the
2) How is the nondisposable razor market segmented? What are the crucial elements of consumer behavior for nondisposable razors?
1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life-cycle challenges for Paramount’s current products as well as Clean Edge?
Examining the consumer behavior for nondisposable razors, we can observe that consumers are focusing on the premium segment. Also, they are becoming more sophisticated and expecting new technologies to smooth the shaving process. Focusing on that, Paramount should invest in the premium products category. Even though that would create cannibalism for the “pro-products” which is already loosing market.
Brand positioning is essential to the success of any firm because it delivers a perception into the consumer’s minds which differentiates them from their competitors. Microsoft began to grow their brand over 20 years ago with Bill Gate’s an underlying vision of “a computer on every desk and in every home”. This resulted in Microsoft developing into a huge multinational company with personal computing at the forefront of their business. Microsoft dominated this industry for many years which is reflected in the high brand recognition of Microsoft products worldwide.
A firm wants to expand its marketing efforts. Which market segmentation criteria should be considered?
The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale.
The Product Manager, Phoebe Masters, at Ms.-Tique Corporation must decide if and how the company will introduce an aerosol can package for its Soft and Silky Shaving Gel, including a determination of product size (5.5 or 10 oz.) and location (personal care or toiletries). Furthermore, the manager needs to decide if a test market is necessary to evaluate the new packaging.
Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.
* Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before.
Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other
Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.
The Indonesian economy has constantly grown within the last 20 years. However, the shaving market is still underdeveloped compared with Western markets. Hence, Gillette should provide more information to spread widely concept of shaving. Moreover, it should introduce new products to facilitate the introduction of shaving products to non-shavers and increase the frequency of shaving in current shavers.
This paper will describe the details of a fictitious company and provided its background and will develop a marketing plan with a focus on segmenting and positioning its product and service. Thirdly, this paper will determine and decide upon at least one (1) foreign market for the product and service.; identify the marketing segment for the product and provide a rationale for this segment and discuss the target market and provide a rationale for this target market. Also, it will perform a SWOT analysis (strengths, weakness, opportunities, and threats) for the
Compliment current leading product lines that keep consumers happy. Promoting Christmas, Father’s day and Mother’s day gift grooming kits that meets more of the consumer’s needs will also introduce consumers to other product lines Gillette has to offer. Focus marketing potential growth opportunities globally by challenging resistance in product awareness and interests.
Gillette has been successful in convincing the world that more is better, in regards to the number of blades and other features of a razor. To be successful in the