Clean Edge - Case Study Example

Due Marketing: Clean Edge What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive positionParamount is investing in the production of a non-disposable razor ‘Clean Edge’. The non-disposable razor market is growing fast. The market recorded a steady 5% annual growth from 2007 to 2010. The situation implies that the non-disposable razor market is expected to grow further. Paramount is positioning itself to reap the benefits of this market by launching its new product ‘Clean Edge.

’ In order to assess the effects of the changes on Paramount, it is important to consider its strengths, weaknesses, opportunities, and threats. Strengths Paramount’s strengths include a strong brand name due to its experience in the industry and various successful products. The company is also experiencing growth in sales of other products implying that customers have confidence in the company’s products. Weaknesses The weaknesses of the company include the inability to reach a consensus in relation to branding and marketing.

Managers are specifically interested in the success of their brand rather than in the good of the company. Opportunities include a growing market for non-disposable razors. Customers are increasingly adopting the new product in the market. Thus, there are prospects for growth and more sales. Threats include substitutes and new entrants. The major competitors in the industry are also producing non-disposable razor products and thus the company must brace itself for stiff competition.

Also, the entrant of new firms will increase the number of substitutes in the market.2. How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors. The market for non-disposable razors has three segments that include value, moderate and super premium. The segments are based on the quality and price of the products. The behavior of the customers in regard to this product is clear. Consumers are gradually changing from replacement razors to non-disposable razor products.

Customers are expecting newer and more advanced technologies that will give them a smoother shave. In this regard, consumers are increasingly choosing the super-premium category.3. What are the arguments for launching Clean Edge as a 1) niche product or 2) a mainstream brand? Which do you recommend? Launching Clean Edge as a Niche product means that the product will focus on a few highly groomed persons who want a different shaving capability. It is the most preferred strategy among company managers.

Launching Clean Edge as a mainstream brand means that the product offers a regular shaving experience. The managers think that the strategy would cannibalize the market of other company products such as Pro. To avoid the cannibalization of other company products, I recommend Clean Edge be launched as a niche product. Launching it as a niche product will also enhance the product’s position as a super-premium product. 4. Based on your positioning strategy, what brand name and marketing budget allocations would you advise?

I would recommend the name Paramount Clean Edge. The name would enhance the company’s name and enhance brand positioning. Launching the product under the name Paramount would reap from the reputation of the company’s products. The name will also boost the visibility of the company’s name hence enabling success in subsequent product releases. Considering that many customers are looking towards the super-premium category, I would invest $15 million in extensive sensitization on the category.

The extensive promotion would involve free samples and trade promotion. The marketing budget for a niche product is expected to be lower. Thus, $15 million will be sufficient.