Clean Edge Razor - 758 Words

Case Brief #1 : Clean Edge Razor October 29, 2013 1. Problem Statement: Paramount Health and Beauty Company having difficulty to choose position their new product (Clean Edge) in the market. 2. Situation Analysis: Company (Paramount Health and Beauty Company) * Paramount is a respected brand in the industry since 1962 * Paramount offered two lines of nondisposable razors and refill cartridges. The Paramount Pro for moderate segment and the Paramount Avail for a value offering * Paramount is ready to launch newest nondisposable razor, Clean Edge * Clean Edge is improved by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin * Paramount would be the first company to†¦show more content†¦Context * Nowadays, consumers are becoming more sophisticated and they tends looking for new technologies (innovation and creation). They invest more money to buy the products that would satisfy their needs. The old law of business said that a satisfied customer brings ten more. 3. Alternatives: Option One : A Niche product A niche product is made and marketed for use in a small capacity and specialized, but very profitable. Niche strategy targeting the most intensely involved super-premium consumers who look for superior skin care products. Option Two : A Mainstream Brand A mainstream brand require a higher marketing budget in order to reach larger target. Conclusion: This option which using mainstream brand assumes that Paramount will get higher revenue rather than using niche strategy. On the other side, Paramount still thinking to use this strategy because of the high cost and given that the strategy using more marketing support and $42 million marketing budget would be needed for one year. Paramount should pursued this strategy, unless the cost of marketing budget could not be cover by sales revenue of Clean Edge. 4. Recommendation: After review the information on past and estimated in the future, company, products, competitors and branding, I recommend the following strategy: * Paramount should taking mainstream brand * Maintain a lower price than competitiveShow MoreRelatedClean Edge Razor2030 Words   |  9 PagesWhat changes are occurring in the non-disposable razor category? Paramount is facing not only the traditional, on-going competition from the other long term, established companies in the market, but faces increasing challenges to its market share from new entrants as well. Traditionally, the market consisted of disposable and non-disposable razors, but within the last few years, a new trend has emerged. As a result of the increased emphasis on esthetic, or beauty products for men, there hasRead MoreClean Edge Razor4329 Words   |  18 Pages4249 JANUARY 19, 2011 JOHN A. 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ThisRead MoreQuestions on Clean Edge Razor1062 Words   |  4 PagesClean 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 brokenRead MoreClean Edge Razor Case1601 Words   |  7 Pagesto create an innovative razor, but wants to make sure that it is positioned effectively. Situation Analysis: * 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 cartridgesRead MoreClean Edge Razor Case967 Words   |  4 PagesParamount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor â€Å"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. ItRead MoreClean Edge Razor Ca se Study834 Words   |  4 Pages Clean Edge Razor Case Study Summary of the Background and Facts This case explains the fictional struggle of a razor company, Paramount Health and Beauty Company (Paramount), who has been lagging behind in its industry to release innovative products. In result, its competitors are able to gain leverage by releasing niche products and catch up to Paramount in the super-premium arena. In 1962, Paramount entered the non-disposable razor industry with a spark and immediately entered into a class