4249 JANUARY 19‚ 2011 JOHN A. QUELCH HEATHER BECKHAM Clean Edge Razor: Splitting Hairs in Product Positioning On August 9‚ 2010‚ a group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor‚ Clean Edge‚ and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the
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Case Analysis Clean Edge Razor Splitting Hairs in Product Positioning Executive Summary Paramount’s newest non-disposable razor‚ Clean Edge‚ has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning‚ brand name & marketing
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Clean Edge Article response 1. What changes are occurring in the non-disposable razor category? The non-disposable razor category has experienced tremendous growth in recent years‚ boasting a steady 5% growth per year from 2007 to 2010. This growth can be attributed to introduction of new innovative products; 22 between 2008 and 2009. There is increased competition for shelf space‚ which was forcing distribution to shift outside traditional food and drug stores. In 2000‚ food stores
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Clean Edge Razor MKTG600‚ Section 233 10/18/2012 Brief case study analysis of Paramount’s newly designed Clean Edge razor Table of Contents INTRODUCTION 2 PROBLEM STATEMENTS 2 RECOMMENDATIONS & CONCLUSIONS 3 RATIONALE & ANALYSIS 4 APPENDIX & ATTACHMENTS 6 Exhibit A: Select Non-disposable Razor Brand Prices 6 Exhibit B: Non-Disposable Razor Unit & Dollar Market Share by Brand: 2007-2010E 6 Exhibit C: Financial Forecasts: Alternative Positioning Scenarios
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Case Analysis of Clean Edge Razor Product Characteristics In 2007‚ Paramount developed a technological breakthrough in non-disposable razor segment called Clean Edge. It had a vibrating‚ ultra-thin five blade design and worked on AAA battery. A heavier handle allowed for better balance‚ grip and control while shaving and ultra-thin razor blade design reduces irritation. Clinical trials indicate that Clean Edge achieved a 25% increase in hair removal versus other leading non disposable razor
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Clean Edge Razor Haifeng Chen 1. What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position. What are the strategic life cycle challenges for Paramount’s current product as well as for Clean Edge? The rate of new-product introductions for non-disposable razors and refill cartridges had accelerated in recent years‚ with an unprecedented flurry of 22 new stock-keeping units being introduced between 2008 and 2009. Most of these new SKUs were line
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Clean Edge Razor Splitting Hairs in Product Positioning MBA8145-Marketing Management Alpharetta‚ Summer-2011 GSU Individual Case Analysis Situation at Paramount Paramount had established itself as a global consumer products giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since it’s entry in the market in 1962. In 2009‚ Paramount had established itself as unit-volume market leader in 2009 based on non disposable razor product sales. The Non disposable razor
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Clean Edge Razor: Splitting Hairs in Product Positioning Duanyi Feng 02/13/2013 1. What changes are occurring in the non-disposable razor category? * In US razor market‚ nondisposable razors experienced approximately 5% growth per year from 2007 to 2010. * Super-premium segment of nondisposable razor grew significantly. * Different kinds of product innovation appear in the market. * Replacement cycle has been shortened. * Media advertising expenditures rose faster than
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Positioning Clean Edge razor as niche would go nicely with the company’s current portfolio. Looking at the exhibits‚ it is clear that using this marketing strategy would lead to consistently high profit margins. Furthermore‚ Niche positioning will only require $15 million in marketing costs as opposed to $42 million in mainstream. There are some disadvantages to using this market position‚ such as the fact that this would limit the consumer base and there have not been any innovations in their
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million to use mainstream strategy to promote Clean Edge Razor‚ the expense will account for 87% of the company’s annually marketing budget‚ which will definitely squeeze the budget of Paramount’s other cash cow products‚ and thus cause the tremendously potential risks on other product’s competitiveness in Moderate and value market. Secondly‚ after deducting the cannibalization effect‚ the profit come from “Paramount’s new customers” who buy Clean Edge Razor under niche strategy scenario in Year 1&
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