HBR Paramount Clean Edge
interoffice memorandum to: stuart quimby, albert rosenberg, william kim and Shareholders from: jackson randall subject: paramount clean edge date: 8/16/2010
After extensive and exhausting research for the past few months on our newest product “Clean Edge”, in which many of our internal departments and managers have contributed invaluable knowledge, time and energy in seeing that Clean Edge has an efficacious launch in the super-premium non-disposable razor market, I was appointed by Mr. Quimby to spearhead a recommendation to the executive steering committee on my proposals for the branding, positioning and marketing budget allocation of Clean Edge’s launch. I have included in this memo my proposals as well as the research that supports my conclusions.
Paramount cannot afford in failing to inadequately implement Clean Edge products in the Super-Premium razor market but if we appropriately engineer three factors: Branding, positioning and accurately allocate a marketing budget we can be successful in the launch of Clean Edge. In 2009, Paramount earned $170 million in revenue and $26 million in gross profit in the nondisposable razors and refill cartridges. We currently do not have any razors in the Super-Premium segment. Our biggest competitor Prince, has two razors in the Super-Premium segment and earned $224 million in revenues and $45 million in operating profit. By positioning Clean Edge in a mainstream position, branding Clean Edge as “Paramount Clean Edge” and allocating $4 million dollars of the trade promotion to consumer promotions we would not only stay under our marketing budget for the year but analysis shows we could generate a 20% increase in revenue the first year alone.
The problem to be analyzed is selecting the appropriate methods in which we can ensure the successful launch of Paramount Clean Edge. There are three sectors of the value chain that we will focus on to help launch his new product: Positioning, Branding and Marketing
After extensive and exhausting research for the past few months on our newest product “Clean Edge”, in which many of our internal departments and managers have contributed invaluable knowledge, time and energy in seeing that Clean Edge has an efficacious launch in the super-premium non-disposable razor market, I was appointed by Mr. Quimby to spearhead a recommendation to the executive steering committee on my proposals for the branding, positioning and marketing budget allocation of Clean Edge’s launch. I have included in this memo my proposals as well as the research that supports my conclusions.
Paramount cannot afford in failing to inadequately implement Clean Edge products in the Super-Premium razor market but if we appropriately engineer three factors: Branding, positioning and accurately allocate a marketing budget we can be successful in the launch of Clean Edge. In 2009, Paramount earned $170 million in revenue and $26 million in gross profit in the nondisposable razors and refill cartridges. We currently do not have any razors in the Super-Premium segment. Our biggest competitor Prince, has two razors in the Super-Premium segment and earned $224 million in revenues and $45 million in operating profit. By positioning Clean Edge in a mainstream position, branding Clean Edge as “Paramount Clean Edge” and allocating $4 million dollars of the trade promotion to consumer promotions we would not only stay under our marketing budget for the year but analysis shows we could generate a 20% increase in revenue the first year alone.
The problem to be analyzed is selecting the appropriate methods in which we can ensure the successful launch of Paramount Clean Edge. There are three sectors of the value chain that we will focus on to help launch his new product: Positioning, Branding and Marketing