Clean Edge Razor Case Analysis

Paramount Health and Beauty Company’s (Paramount) upcoming introduction of their new product, the Clean Edge Razor, into the non-disposable razor market presents a number of issues and questions that must be answered in order to maximize profit. Paramount already holds two products in the non-disposable market, both the Paramount Pro and the Paramount Avail, with the Pro being positioned in the mainstream segment of the market and the Avail being positioned in the value segment of the market. The decision Paramount faces involves where to position the Clean Edge Razor. The choice of positioning will ultimately determine profit/loss figures as well as Paramount’s market presence as it attempts to maintain a leading position in the non-disposable

Growth in both of these areas is due to innovations and new technology in the non-disposable razor market. Additionally, the non-disposable razor industry as a whole has experienced substantial growth over the last decade. This growth may also be attributed to innovations. New technology in the super-premium segment of the market pushed the growth, which is seen in the speeding up of the razor replacement cycle that is due to the desire and search for new products. The Clean Edge product itself does well in following these trends, providing a major technological change from their previous products. Combating both the issues cannibalization and competition will be done through the choice of positioning.

1. Paramount’s strengths mostly stem from its established position. The company is a giant in global consumer products with multibillion dollar annual worldwide sales and gross profit figures (coming in at $13 billion and $7 billion respectively), and thus, it holds much available financial capital for advertising and promoting the Clean Edge. Upon entering the

The niche positioning strategy would establish the Clean Edge as a niche product, and thus, it should be varied from other products in the non-disposable razor market. Therefore, it would be best to vary the products name by naming it “Clean Edge by Paramount,” stimulating future name recognition for the product as it is in a niche market rather than name recognition for the company as if it were a mainstream product. Competitor’s product’s names as well as Paramount’s other product’s names are defined by the company name. When considering the Paramount Pro, for example, one can note the emphasis on the company name, not so much the product. In a mainstream market, this strategy is more successful. However, in a niche market, the focus is more on the product, not the company that makes it. By using the brand name “Clean Edge by Paramount,” Paramount would focus its attention on pushing the growth of the Clean Edge razor name, not its company name. With the niche positioning strategy, I would recommend the estimated marketing budget of $15 million ($7 million to advertising, $6 million to consumer promotions, and $2 million to trade promotions) over the first year. Unlike the mainstream positioning strategy, there would be less need for consumer and trade promotion. The transition between the Paramount Pro and the Clean Edge would require less extensive