Marketing - Positioning Your Brand
Clean Edge Razor
Splitting Hairs in Product Positioning
1
Index
1. Synopsis ……………………………………………………………………………………………….. 3 2. Situation Analysis…………………………………………………………………………………. 3
3. Alternative Evaluation………………………………………………………………………….. 4
4. Position Strategy, with explanation……………………………………………………… 5
5. Marketing mix………………………………………………………………………………………. 6
6. Expected Outcomes……………………………………………………………………………… 8
7. Appendices…………………………………………………………………………………………… 9 - 22
2
Synopsis: Based on the financial analysis as shown 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 technology in the US razor market at an initially higher price. Looking at the level of competency in the market, it can be understood that Paramount will eventually face strong competition down the line as this new technology will be cloned by its competitors too and thus, this factor will not stay as the Paramount Clean Edge’s core competency for too long. Thus, after one or two years when this new feature becomes relatively common and there is increased competition in the market, Paramount can then accordingly set the pricing and placement of its product in order to match the new market trends.
Situation Analysis: Paramount Health & Beauty Company (Paramount) has come up with their latest and so far the most innovative and effective shaving razor, the Clean Edge. The test results declared, guarantee great satisfaction for consumers. The senior executives have already decided that Clean Edge would be priced in the super-premium
Splitting Hairs in Product Positioning
1
Index
1. Synopsis ……………………………………………………………………………………………….. 3 2. Situation Analysis…………………………………………………………………………………. 3
3. Alternative Evaluation………………………………………………………………………….. 4
4. Position Strategy, with explanation……………………………………………………… 5
5. Marketing mix………………………………………………………………………………………. 6
6. Expected Outcomes……………………………………………………………………………… 8
7. Appendices…………………………………………………………………………………………… 9 - 22
2
Synopsis: Based on the financial analysis as shown 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 technology in the US razor market at an initially higher price. Looking at the level of competency in the market, it can be understood that Paramount will eventually face strong competition down the line as this new technology will be cloned by its competitors too and thus, this factor will not stay as the Paramount Clean Edge’s core competency for too long. Thus, after one or two years when this new feature becomes relatively common and there is increased competition in the market, Paramount can then accordingly set the pricing and placement of its product in order to match the new market trends.
Situation Analysis: Paramount Health & Beauty Company (Paramount) has come up with their latest and so far the most innovative and effective shaving razor, the Clean Edge. The test results declared, guarantee great satisfaction for consumers. The senior executives have already decided that Clean Edge would be priced in the super-premium