Clean Edge Razor: Splitting Hairs in Product Positioning
Clean Edge Razor: Splitting Hairs in Product Positioning
Case Analysis
Marketing Concepts
Problem/Decision Identified
This case is about ‘strategic positioning’ decision dilemma of a newly developed technologically advanced product. The product manager Randall of Paramount Health and Beauty Company- a Global player in health and beauty industry is faced with an intriguing question of how to best position the new product so as to have a right market fit. There are several factors which would play an important role in the making the right decision like cannibalization effect on the company’s current product line, rapid technological advancement in the non disposable razor industry, marketing mix, budget constraints and market competition. However, making the right decision is not the only issue here, coming up with the right brand name followed by the right execution of the marketing strategy are also the essential components of the decision dilemma.
This paper will address the decision dilemma with the help of detailed analysis of the key issues followed by the analysis of the possible alternatives for positioning strategy and an actionable recommendation.
Analysis of the Issue
Current Positioning: The Company is a global player in health and beauty industry contributing revenue of $170 million and gross profit of $92 million (page 3). In the non disposable razor market it offered two lines of non disposable razor and refill cartridges namely Paramount Pro positioned in moderate segment and Paramount Avail positioned in value segment. Cumulatively, the company has dollar market share of 21.4% (Exhibit 5) in the non disposable razor industry. There has been no technological advancement in these two product line since past five years. Hence, it is very important for Paramount to introduce a technologically advanced product with accurate positioning strategy in the market
Case Analysis
Marketing Concepts
Problem/Decision Identified
This case is about ‘strategic positioning’ decision dilemma of a newly developed technologically advanced product. The product manager Randall of Paramount Health and Beauty Company- a Global player in health and beauty industry is faced with an intriguing question of how to best position the new product so as to have a right market fit. There are several factors which would play an important role in the making the right decision like cannibalization effect on the company’s current product line, rapid technological advancement in the non disposable razor industry, marketing mix, budget constraints and market competition. However, making the right decision is not the only issue here, coming up with the right brand name followed by the right execution of the marketing strategy are also the essential components of the decision dilemma.
This paper will address the decision dilemma with the help of detailed analysis of the key issues followed by the analysis of the possible alternatives for positioning strategy and an actionable recommendation.
Analysis of the Issue
Current Positioning: The Company is a global player in health and beauty industry contributing revenue of $170 million and gross profit of $92 million (page 3). In the non disposable razor market it offered two lines of non disposable razor and refill cartridges namely Paramount Pro positioned in moderate segment and Paramount Avail positioned in value segment. Cumulatively, the company has dollar market share of 21.4% (Exhibit 5) in the non disposable razor industry. There has been no technological advancement in these two product line since past five years. Hence, it is very important for Paramount to introduce a technologically advanced product with accurate positioning strategy in the market