With a new design, the Clean Edge offers scientifically proven, superior performance as it utilizes a vibrating technology to stimulate hair follicles and lift hair from the skin, which allows for a more thorough shave. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. As the most important objective is to convey the most important message for to the reader. The Paramount Pro and Paramount Avail are two lines of nondisposable razors and refill cartridges, and currently share a respectable market share in the industry. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential.
Words: 1935 - Pages: 8. Their decision on a proper price point also influences their promotional strategies. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. In 2000, food stores sold over half of all razors. Simply disassemble your safety razor and fill your sink with warm, soapy water. This would indicate the company would make more gross revenue and more operating profit by introducing the Clean Edge as a mainstream product if the difference in gains from other niche razor users or in marketing expenses is not taken into consideration.
Their effort of reaching out to more people is revealed in promotion costs. Five Changes occurred in the nondisposable razor category First, many new technologies were applied to the nondisaposable design such as vibrating technology, anti-corrosive. Jackson Randall, product manager for Clean Edge, must decide on his product positioning strategy. Paramount was a global consumer products company which focused their products around health, cleaning, beauty, and grooming. The prime factors for the growth are innovations and new product introductions.
The current Nondisposable razor line has products in both the market and value customer segments. For Niche Pro is a strong mainstream brand, launching Clean edge as a Niche product would aid sales and avoid too much cannibalization only 35% compared to 60% for mainstream launch. It has been designed in a way that could provide overall skin benefits, including improved skin tone and skin texture. Most of the growth has taken place due to innovations and the introduction of new products. The case study leverage on the economic analysis, where a simple pro forma income statement that took into account the effects of cannibalization were produced, coupled with consideration from various marketing methodology including.
Finally, suggest implementations that should be taken in order to achieve the goal. Lots of men like it and consider it was the closest, cleanest and smoothest. Words: 290 - Pages: 2. The positive aspect to launching as a mainstream brand is the profit would be much higher after years one and two. Paramount also faced competition from substitute products like disposable razors, electric razors, depilatory creams, waxing and hair removal. In 2009 consumers razors and replacement cartridges at a higher rate than ever before. In some respects, shaving has progressed from a task or chore to the realm of a pleasurable experience.
However, the new Clean Edge. Paramount is relying on the. This is especially important since Paramount does not have any product in the super-premium category. Predictions may vary but some customers would not trust the high-end products made by Paramount. After introduction, problem statement is defined.
A well-known health and beauty company, Paramount is launching a high-technology nondisposable razor, Clean Edge. But, Paramount has no product in the premium market where it can earn a high margin. Male-grooming products seemed to be a bright spot in the industry from 2007 to 2010 and the segment saw more growth because shaving became more than just shaving — it started to include body spray, shower gel, etc. All executives agree that the brand should be placed in the super - premium segment of the market, however, there are conflicting views that whether the brand should be differentiated by positioning it in the niche market or it should be introduced as a mainstream entry in the market. The non-disposable razor market is made up of three segments: the high end or super-premium, the moderate and the lower cost or value segments.
In 2009 consumers razors and replacement cartridges at a higher rate than ever before. Nonetheless Clean Edge has a groundbreaking design, without the support of advertisement, it is impossible to attract customers to try new products. What changes are occurring in the non-disposable razor category? Clean Edge could be launched as a niche or a mainstream strategy because the market share for Paramount in the super-premium non disposable razor market will increase regardless of which strategy is chosen. Since some Paramount executives believe design is the major breakthrough that will differentiate Clean Edge from other nondisposable razors, Paramount can start off with a whole new image, without having to attach their brand name. Words: 1586 - Pages: 7. This value may create by increasing differentiation in existing product or decrease its price. For this reason, customers started to seek nondisposable razor that not only effectively removes hair but also protects skin, and further gives them sense of luxury by utilizing the best technology.
Niche positioning focus on specific group of male that are very concerned with the functionality and the messaging of the razor. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses. Paramount has used technology to create an innovative razor, but wants to make sure that it is positioned effectively. The executives of the company have come to a. Prince had gained 1 spot in terms of retail dollar sales up until 2009.
Like I mentioned earlier, you probably already have these items lying around. So, what do you need? Keep a regular cleaning schedule to prevent any tarnish or gunk buildup in the first place. Publication Date: January 19, 2011 After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. By introducing another cutting-edge shaving technology into the broad marketing position, it may help to keep those customers who want to stay up to date with the most innovative products. Is your starting to lose some of that original shine it had when you first bought it? It is also interesting to note that Paramount has increased its market share each year since 2007, while the competitors have not increased their market penetration. What are the arguments for launching Clean edge as a a niche product and b a mainstream brand? You can first try vinegar. Prince mainly focuses on super-premium products.