Clean Edge Razor: Splitting Hairs in Product Positioning
BUS 152A
September 18, 14
Case Write Up #1 Clean Edge Razor: Splitting Hairs in Product Positioning
Problem
A well-known health and beauty company, Paramount is launching a high-technology nondisposable razor, Clean Edge. They are searching for the most efficient way to gain market share. Their concerns come down to three main problems: whether they should target niche market and price the product in the super-premium segment, or aim mainstream market and gain broad appeal, ;whether they should just emphasize the product name “Clean Edge” or add “Paramount” at the front to broaden brand image;whether they should sustain current market allocations and focus on niche market or increase the marketing budget for extensive advertisement in the mainstream market.
Analysis
In the past, nondisposable razors merely served as hair removing tool for the vast majority of the population. However, according to Exhibit 1, as personal images became important in social life, hair removing routine became a means of gaining confidence for some people. For this reason, customers started to seek nondisposable razor that not only effectively removes hair but also protects skin, and further gives them sense of luxury by utilizing the best technology. Understanding customers’ tendency to always search for newest and advanced products, Paramount developed Clean Edge using their unique technology. Although they were confident about quality of their product, their competitive position was not stable. They had two big competitors, Benet & Klein and Prince which already had loyal customers throughout the world, not to mention other new competitors that started to threaten Paramount with their groundbreaking products. Moreover, because Benet & Klein and Prince’s expenditures in advertising exceeded those of Paramount, it was difficult for Paramount to take away the market share and brand recognition.
Using 4P strategy to analyze Paramount’s potential was helpful. Clean
September 18, 14
Case Write Up #1 Clean Edge Razor: Splitting Hairs in Product Positioning
Problem
A well-known health and beauty company, Paramount is launching a high-technology nondisposable razor, Clean Edge. They are searching for the most efficient way to gain market share. Their concerns come down to three main problems: whether they should target niche market and price the product in the super-premium segment, or aim mainstream market and gain broad appeal, ;whether they should just emphasize the product name “Clean Edge” or add “Paramount” at the front to broaden brand image;whether they should sustain current market allocations and focus on niche market or increase the marketing budget for extensive advertisement in the mainstream market.
Analysis
In the past, nondisposable razors merely served as hair removing tool for the vast majority of the population. However, according to Exhibit 1, as personal images became important in social life, hair removing routine became a means of gaining confidence for some people. For this reason, customers started to seek nondisposable razor that not only effectively removes hair but also protects skin, and further gives them sense of luxury by utilizing the best technology. Understanding customers’ tendency to always search for newest and advanced products, Paramount developed Clean Edge using their unique technology. Although they were confident about quality of their product, their competitive position was not stable. They had two big competitors, Benet & Klein and Prince which already had loyal customers throughout the world, not to mention other new competitors that started to threaten Paramount with their groundbreaking products. Moreover, because Benet & Klein and Prince’s expenditures in advertising exceeded those of Paramount, it was difficult for Paramount to take away the market share and brand recognition.
Using 4P strategy to analyze Paramount’s potential was helpful. Clean