Case study: Clean Edge Razor- Splitting Hairs in product positioning
* Radhika Nadkarni
* Rishi Ranjan
* Sujoy Chakrabortty
* Sumanta Chatterjee
* Suresh Panigrahi
‘Paramount Health and Beauty ‘ Company is launching a new non-disposable razor, Clean Edge that boasts about superior performance by utilizing a vibrating technology that stimulates hair follicles and lifts the hair from the skin allowing a thorough shave. This is a cutting edge technology that is expected to take the market by storm. This product Paramount has two existing products in the market – Paramount Pro and Paramount Avail. Neither of them has introduced significant technology innovations in the last five years. Yet, Pro was the market leader in 2009. Up till now, the non-disposable razor and refill cartridge market was dominated by three multinational players: Paramount, Prince and Benet & Klein. New entrants, Radiance Health Inc. and Simpsons have recently intensified the competition in this space. The market can be segmented into three categories based on price and quality – value, moderate and super-premium. Paramount Pro is positioned in the mainstream moderate market while Avail sells in the ‘value’ market. As far as the company is concerned, it had not yet tapped the niche ‘Super-premium’ market. Based on consumer behaviour, the market can be divided into ‘Maintenance shavers’ and ‘Involved shavers (Social/emotional, aesthetic)’. This product is planned to be launched in the male specific personal care products market before it can be positioned for the women’s beauty market. Based on this, product manager in Paramount, Randall is faced with the following questions – a. What is the target market for launch? (Involved social/emotional shavers or the aesthetic shavers) b. Which segment is ideal for the positioning of Clean Edge considering the product price and proposed sales price? (Value, Moderate or...
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