Clean Edge Analysis
Evan Roy
December 9, 2014
BUS 360
Clean Edge Analysis The decision at hand is should Paramount position its new innovative Clean Edge razor in the mainstream market or possibly position the razor as a niche product? In addition, the company also must decide on the brand name and marketing budget for the product launch. Paramount product manager, Jackson Randall is faced with some very difficult decisions that involve many differing opinions from company executives. All Paramount executives believe that since the product has so many innovative features like its five ultra-thin blades and vibrating technology that it should be priced as a super-premium segment of the market, but some thought the product should be launched as a mainstream entry within the segment, while others believed that Clean Edge should be launched as a niche product. Option 1 would involve Paramount positioning Clean Edge in the mainstream razor market. There would be many pros to going with this option. One of the most recognizable would be a large sales volume and high profit levels due to the large market size. The mainstream razor market is significantly bigger than the niche market, so if paramount were looking for sale volume this would be the perfect option. Another pro to this option would be that the production costs are quite a bit lower. It would cost Paramount $5.00 per unit for niche positioning, compared to $4.74 for mainstream positioning. The 26 cents may not seem like much, but when you’re producing millions of razors it can really add up in the long run. In addition, using mainstream positioning for Clean Edge would also make the product appeal to a much wider consumer base. It is also important to note that Paramount’s research shows that their consumers are becoming more sophisticated and are expecting more advanced technology. The Pro brand does not provide these kinds of innovative features, so Clean Edge could greatly appeal to these consumers
December 9, 2014
BUS 360
Clean Edge Analysis The decision at hand is should Paramount position its new innovative Clean Edge razor in the mainstream market or possibly position the razor as a niche product? In addition, the company also must decide on the brand name and marketing budget for the product launch. Paramount product manager, Jackson Randall is faced with some very difficult decisions that involve many differing opinions from company executives. All Paramount executives believe that since the product has so many innovative features like its five ultra-thin blades and vibrating technology that it should be priced as a super-premium segment of the market, but some thought the product should be launched as a mainstream entry within the segment, while others believed that Clean Edge should be launched as a niche product. Option 1 would involve Paramount positioning Clean Edge in the mainstream razor market. There would be many pros to going with this option. One of the most recognizable would be a large sales volume and high profit levels due to the large market size. The mainstream razor market is significantly bigger than the niche market, so if paramount were looking for sale volume this would be the perfect option. Another pro to this option would be that the production costs are quite a bit lower. It would cost Paramount $5.00 per unit for niche positioning, compared to $4.74 for mainstream positioning. The 26 cents may not seem like much, but when you’re producing millions of razors it can really add up in the long run. In addition, using mainstream positioning for Clean Edge would also make the product appeal to a much wider consumer base. It is also important to note that Paramount’s research shows that their consumers are becoming more sophisticated and are expecting more advanced technology. The Pro brand does not provide these kinds of innovative features, so Clean Edge could greatly appeal to these consumers