brand name and marketing budget in order to launch the product. The best course of action for the positioning of Paramount’s new Clean Edge Razor is Niche strategy with an emphasis on “the most intensely involved super-premium consumers” (Clean Edge‚ 2011‚ p. 1) for the first two years the product is in the market‚ then introducing it to a mainstream market. This strategy will produce a successful product launch‚ “curb excessive marketing expenses” (Clean Edge‚ 2011‚ p. 6) and will have a smaller
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primary demand unless stealing sales from existing productsMajor competitors in the super-premium segment: Oral-B‚ Reach Advance Design‚ Crest Complete‚ and Aquafresh FlexDifferential pricing structure: Niche market vs. Mainstream marketDifferent advantages/ disadvantages: Niche market vs. Mainstream marketDramatically change in technology advances: new toothbrushes come out very quickly and frequentlyCannibalization: New Precision toothbrush might taken away positioning of Colgate Plus and Colgate
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CASE ANALYSIS OF CLEAN EDGE RAZOR Submitted by BrandMasters Fatima Dilruba (B13085) Bhavya Singla (B13080) S Jayaram (B13110) Case Analysis of Clean Edge Razor Problem Statement Paramount Health and Beauty Company developed the Clean Edge Razor‚ a technologically advanced non disposable razor. The company now has to study and segment the market environment and find a suitable target to successfully position and launch their product. Situational Analysis General Market Profile
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in the Exhibits 1-9 and taking into account the effects of cannibalization on Paramount Pro and Avail‚ I recommend Paramount to adopt the niche positioning strategy. This strategy would (as per the financial analysis) result in high and consistent profit margins for the company and the risk involved would be lesser than that involved in case of the mainstream positioning strategy. With the launch of Paramount Clean Edge in the super-premium segment‚ Paramount will introduce a completely new and innovative
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With the men’s grooming market segment poised for growth‚ it must figure out where the most profit opportunity lies (i.e.‚ super-premium‚ mainstream‚ etc.) and then proceed with an implementation plan. 2. What alternative courses of action can the protagonist pursue to address the case problem? One option is to release the Clean Edge in the mainstream market – while there’s an overall greater opportunity for more sales‚ especially cartridges (albeit with a lower profit margin)‚ they risk
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Case Study : Clean Edge Razor - The evaluation of Possible Solution Niche Market Launch PROs CONs *Cost for advertising‚ consumer and trade promotion is lower compare to mainstream. *Huge market to explore – Emotional Shaver makes 39% of nondisposable razor user *The advantage of being enter to niche market is by conquering the small portion of market its easier to control the customer buying response and also easy to evaluate customer feedback. By then‚ it also can improve more in the future
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has the highest growth among the three categories. Clean Edge was developed after a thorough research and is a technologically superior product. The company is not sure how to position Clean Edge. They have two options‚ either to position it as a niche product or to position it as a main stream. Question 1 Paramount is facing not only the traditional‚ on-going competition from other long term‚ but faces increasing challenges to its market share from new entrants as well. The market is consisted
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aesthetic features while dividing into two functional segments - value and professional markets in the 1980 ’s. Later on in the 1980 ’s‚ the professional market was further segmented and led to the development of the super-premium niche. In 1992‚ the super premium niche accounted for 35% of toothbrush unit volume and 46% of sales. The three identified market segments are the super-premium segment (price range: over $2.00‚ unit volume: 35% and dollar sales: 46%)‚ professional segment ($1.59-2.09
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expand the product line. If launching it as mainstream product‚ the reasons are that the consumers are becoming more sophisticated and expect more advanced technology. Positioning Clean Edge as a mainstream product will help prevent loyal Paramount customers from being wooed away to more innovative brands. My recommendation is based on the initial financial forecasts for both options and the ROI. The Exhibit 7 indicates that the total cost of launching niche first year is 1*5+4*2.43+15+0.61=30.33m‚
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facing? The main business problem facing Colgate-Palmolive (CP) is deciding the positioning of Colgate Precision. CP has the opportunity to position Precision as mainstream or niche. By our definition‚ mainstream would target engaged brushers (brushing multiple times a day and highly involved in multiple facets of oral hygiene)‚ while niche would focus on customers who have one specific identifiable concern‚ namely gum disease in this case. What are CPs objectives? CP would like to establish Precision
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