Marketing Issue Concerning Positioning Strategy of Clean Edge - Essay Example

Problem The case tries to show the actual scenario Clean Edge is facing particularly in its launching as a mainstream product niche in the super premium segment. The said idea is not going to be straightforward for implementation as the Paramount Health and Beauty Company (Paramount) needs to consider some important issues such as probable competition Clean Edge might cause to its other product offerings such as Paramount Pro and Avail. In this case, there is a need to consider optimum positioning strategy in the context of Paramount, which at some point would try to protect branding strategies and brand identity of its other relevant product offerings.

Considering this problem, Randall, the one given the authority to take charge of positioning strategy of Clean Edge has to find alternative courses of actions then analyze them well and choose the probable best among them. Analysis the problem The entire problem highlights the idea about marketing issue concerning positioning strategy of Clean Edge. It talks about the point whether it is good to pursue its launching in the market knowing that it could somehow compete with company’s bread and butter such as Paramount Pro and Avail.

The company might be a bit hesitant to pursue on this issue as there are required data needed to be unearthed prior to actual decision-making process. Thus, it is not enough to rely on the point that the customers are becoming sophisticated, knowing what they exactly need in the advent of technological advancement. For this reason, Randall, in behalf of the Paramount should consider investigating alternative courses of actions. One alternative course of action is to launch Clean Edge as a niche product within a year or two, which has to be the indicated period of market trial.

For this reason, he has to consider conducting economic analysis in order to be sure about the output. This particularly would take into account some probable impacts such as the cannibalization effect. So a profit-loss pro forma is necessary in order to find out Clean Edge’s performance and its potential impact on the current profit Paramount’s top products are generating. Decision It is not easy to decide right away. What Randall requires is a thorough market research on this issue taking into account the associated economic analysis and a benefit-loss analysis.

In order for Paramount to grow more, it has to significantly analyse the product life cycle of its top products and the extent to which customers are becoming sophisticated with the latest innovations in technology. Paramount has to consider understanding about change if it would want to grow and cover remarkable market share in the future. Thus, Randall in behalf of the Paramount needs to consider investigating all necessary information prior to the actual decision-making process. What Randall therefore needs to initiate is a combined market research and economic analysis concerning the remarkable potential of Clean Edge as a fresh innovation of Paramount.

At this point, it would be remarkable to find out whether Clean Edge would be making a significant market share and contribution in the profit. Based on Table A, Clean Edge as a non-disposable razor may have potential market share, but disposable ones are making it on top of the list. Now, it would be remarkable to study customers’ behaviors towards non-disposable razors. The data are shown in Exhibit 1. In general from 28% to 39% of non-disposable razor users with positive demand for new innovative products, Clean Edge will basically make a potential market within this segment.

Table A: US Shaving and Hair Removal Products ($ in Millions) 200520062007200820092010Non-Disposable Razors $ 178 $ 212 $ 188 $ 198 $ 208 $ 218 Refill Cartridges $ 763 $ 801 $ 802 $ 815 $ 832 $ 853 Disposable Razors $ 440 $ 456 $ 477 $ 490 $ 504 $ 522 Shaving cream $ 271 $ 275 $ 269 $ 266 $ 263 $ 260 Depilatories $ 104 $ 101 $ 106 $ 100 $ 94 $ 88 Source: "Shaving and Hair Removal Products - US - May 2008" Figure 5, Mintel International Group2008 figures are mid year projections; 2009-2010 figures are estimatesExhibit 1: Behavior Segmentation of Non-disposable Razors ConsumersInvolved Razor UsersInvolved Razor UsersUninvolved Razor UsersSocial/Emotional ShaversAesthetic ShaversMaintenance Shavers(39% of Non-disposable Razor Users)(28% of Non-disposable Razor Users)(33% of Non-disposable Razor Users)Differentiate among products.

Search for products based on both functionality and messaging.Search for products that most effectively remove hair.View products as the same. Lack of interest in product category.Shaving as an essential part of a daily grooming ritual.Shaving is consistently done to remove unwanted hair.Shaving routine is inconsistent.Shaving makes them feel more attractive and confident.Shaving is a means to smooth skin they desire. Shaving is a chore they try to finish as quickly as possible.Information is fictional