Clean Edge Razors - Marketing Case Study Essay Example
Jackson Randall, product manager for Clean Edge, must decide on his product positioning strategy for Clean Edge, a new, state-of-the-art non-disposable razor to be introduced by Paramount Health and Beauty Company. By culling information on past and future market trends, competitors, branding, available budget and financial forecasts, this paper will attempt to provide recommendation and insights that may assist Mr. Randall with his decision.
This paper supports the launch of Clean Edge razor using a niche-market strategy, at least for the first couple of years. This conclusion is the result of a careful analysis of the executive steering committee’s agenda, the opportunities and trends observed in the razor market, the internal constraints within Paramount and the potential effects on the company’s net income. The following observations should frame any discussion of potential marketing plans: 1. The non-disposable razor market has, and will continue, to show growth in future years. Trends indicate that this growth will be fueled by innovations and new products. Consumer trends, increasing retail shelf-space, media attention and mainstream acceptance of male-grooming support this forecast, and indicates that “Social/Emotional” and “Aeshetic shavers are likely to be a growing segment of the overall market. Exhibit one indicates that these users currently account for 67% of the total market. This bodes well for Clean Edge. 2. Though Paramount currently offers two successful lines of non-disposable razors, it does not yet offer a product that caters directly to the super-premium segment of the market. Introduction of Clean-Edge as a niche product will minimize cannibalization (which has been predicted to be as high as 60% or as low as 35%). Exhibit 5 indicates that Paramount Pro and Paramount Avail products are still showing largely positive growth. With no apparent sign of a decline in these markets, introducing a product that is positioned to potentially
This paper supports the launch of Clean Edge razor using a niche-market strategy, at least for the first couple of years. This conclusion is the result of a careful analysis of the executive steering committee’s agenda, the opportunities and trends observed in the razor market, the internal constraints within Paramount and the potential effects on the company’s net income. The following observations should frame any discussion of potential marketing plans: 1. The non-disposable razor market has, and will continue, to show growth in future years. Trends indicate that this growth will be fueled by innovations and new products. Consumer trends, increasing retail shelf-space, media attention and mainstream acceptance of male-grooming support this forecast, and indicates that “Social/Emotional” and “Aeshetic shavers are likely to be a growing segment of the overall market. Exhibit one indicates that these users currently account for 67% of the total market. This bodes well for Clean Edge. 2. Though Paramount currently offers two successful lines of non-disposable razors, it does not yet offer a product that caters directly to the super-premium segment of the market. Introduction of Clean-Edge as a niche product will minimize cannibalization (which has been predicted to be as high as 60% or as low as 35%). Exhibit 5 indicates that Paramount Pro and Paramount Avail products are still showing largely positive growth. With no apparent sign of a decline in these markets, introducing a product that is positioned to potentially