Changes that occur in non disposable razor and the assessment of Paramount's competitive position along with the market segmented.
Innovation defined as a relationship between the idea of any product or the service and process of developed, manufactured and how to market it (Reinartz & Ulaga 2008). In order to improve its product and after three years of development, Paramount has developed the latest innovative non disposable razor that called “Clean Edge”. The new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin and allowing for a closer shave. I believe that this innovation will give an effective way to create sustained competitive advantage for a company in the market because
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Competed on price, lack of technology and innovation are related to new entrants in the market. In the market, ''Positioning is defining as the foundation of marketing strategy and brand's position differentiates it from its competitors on attributes considered important by target customers and gives it a distinctive identity in their minds''(Ansari et al., 1994). First competitor Prince which had sold non disposable razor in super premium and gained first position in market share corresponding to retail dollar sales in 2009. The second competitor, B&K company managed to get third position in market share and unit volumes by superior technology and releasing super premium products. Other new entrants were introducing to market with super premium products, technology and more advertising dollars to reach market share. On the other hand, Paramount's clean edge could compete with Radiance Naïve because it provided a product that is similar to Clean Edge's. Also, it had gained 13% of market share. In order to get into market share, Paramount should launch a new design of technology in super premium segment. According to case stusdy, Paramount was exist in the moderate and value segments and other products Pro and Avail were not able to satisfy the demand of latest innovative technologically products. Also, market share of 23.3% in …show more content…
First phase starts with product development which collected information based on the idea that required to create the product. Then, introduction phase would launch and face significant impact during first time. Next, growth phase that give new latest design of Clean Edge to easily gain market share. After that, maturity phase which depends on the market growth and highest market share . Thus, highest return will be notice during this stage. According to the case study, Paramount pro is in the mature phase of life cycle. Therefore, to match other competitor the marketing strategy suggests diversification of model, brand and pricing. Finally, declining stage which means the end life of the product and the product should be stop produce and withdraw from market. The case study showed that the Paramount's Avail is in the declining phase. Therefore, Paramount should withdraw weak product. Moreover, it had seen that Cogent ( Prince ) and Vitric ( Benet & Klein ) are in a decline stage. Thus, I think it is the best time to introduce Clean Edge based on superior technology and five blade design in market. Finally, Clean Edge is appropriate non disposable razor which has a longer life cycle ( Komninos,
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
A price skimming strategy is recommended for Genicone for Brazilian market to minimize the payback time investment and to thwart other foreign players from entering the market. Market entry mode for Genicon should be licensing or joint venture rather than exporting. This is because licensing and joint venture provides much more control of the operations which is essential in healthcare equipment industry. A global product strategy should be adopted because international standards are similar for surgical instruments. Marketing strategy should be sales promotion for Genicon because this industry is characterized by push-factors of distribution channel, rather than pull-factors of demand. It is anticipated that Genicon will be able to capture a significant market share in a short period of time by following above mentioned strategies and tactics.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
The traditional way of marketing this product was to have the sexy appeal and DSC took a different route and in a way, made fun of the razor market. DSC first put out a YouTube video that got over twenty million views getting their product known and seen my the mass media. This really got their business going as it was something different that people have never seen before. DSC made it more convenient for the customer as razors go dull quickly but are expensive to buy replaceable razors. Other razor companies are trying to add new features for their products to stand out when DSC is making it cheap and easy for customers to use their business
18m units of systems blades. Gillette’s market share is expected to be 50% in 1996, so
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
The five forces are the bargaining power of suppliers, the bargaining power of customers, threat of new entrants, threat of substitute products and competitive rivalry within an industry. The various care products are not made with anything rare so the suppliers do not have significant power in this case. So the threat here is low. However, there are many variations of these products so the threats from substitute products, competitive rivalry and new entrants are high. For the same reason, since the customer has a lot of options with regards to these products, loyalty is not guaranteed. So the threat there is very high. Overall, four of the five forces are serious threats so these industries are not attractive.
Gillette's $9.2 billion global business began on September, 1901 by the name of "American Safety Razor Company. In 1902 it was names Gillette Safety Razor Company. The Gillette Company today is the global market leader in nearly a dozen major consumer products categories, principally in the grooming, alkaline battery and oral care businesses. It is the largest known company for producing razors and other shaving products. The five different business units Gillette focuses on are Blades & Razors, Duracell, Oral Care, Braun and Personal care. This project deals with the production of a disposable razor with incorporated gel. Gillette is the largest well known company for producing razors. The company receives the greatest profits from that operation. Gillette sells products in over 200 countries and has approximately 28,700 employees, 70& from which are outside of the US. Manufacturers operate at 31 facilities in 14 countries and 40% of sales come from NEW products for 11 consecutive years.
Alan G Lafley, the former CEO of Procter & Gamble, once said “Let’s execute along this strategy, but know that we’ll probably get some of this wrong, so be open to changing it (AZQuotes.com). Procter and Gamble has undergone many strategic changes in the last 15 years which have had a profound impact on the company’s profits and market share. The strategic changes that Procter & Gamble has undergone have been both positive and negative. While it is important to document the financial impact of the changes under Alan Lafley, it is also important to track the changes and growth under the current CEO David S. Taylor, while also showing Procter & Gamble’s competitive advantage.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
As part of its innovation strategy, Colgate Palmolive (CP) decided to manufacture a new product-toothbrush in the early 90s. This was after some extensive research was done to determine consumer purchase behavior and the extent of competitive rivalry in the industry. According to Allprojectsmba.com (2010), research can be done by using a number of methods to collect the data that are analyzed to draw conclusions. Such methods include interviews, focus group, questionnaires and online research. Interviews can be done either one on one or via the telephone where the researcher/interviewer selects a sample that is representative of the whole consumer population. The interviewer asks and interacts with each person in the sample to pick up the information he needs. Alternatively, questionnaires can be produced and mailed to respondents who fill them and ...
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.
There are many elements affecting to the success of a launching. The basic factor is to develop product that satisfies consumers’ demands and maintain the brand promise. However, consumers are not only looking for the quality of product but also concerning about the price, the promotion and so on.