Clean edge razor for many years, personal health care and shaving for men was seen as a routine maintenance issue the us razor market has recently seen an upswing in sales and overall interest in multiple categories of products offered in the past five to ten years. Clean edge razor segment market comparations niche • create a one strong brand • avoid cannibalization • lower marketing investment than mainstream • higher gross profit than mainstream mainstream • replace paramount pro (cannibalization) • higher marketing investment • lower gross profit. The clean edge razor has the following properties - 1 revolutionary product - vibrating, ultra thin 5-blade design that needs just 1 aaa battery that provides the vibrations to simulate hair follicles 2. One strategy is to release clean edge as a niche product, targeting the high-end market of fastidious groomers looking for superior skin care products another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available.
Essay on clean edge razor should use the niche market positioning concept as the case points out, both niche and mainstream strategy will help paramount to raise its market share in super-premium non disposable razor segment. Clean edge razor: new product positioning paramount health and beauty company (paramount) is a multiproduct company specializing in shaving products and accessories. Either it can position itself as niche product catering to the needs of highly involved groomers who demand excellent shaving experience or as a mainstream product with the vision to make it the most favorable and demanding brand.
After deducting the cannibalization effect, the profit come from paramount's new consumers who buy clean edge razor under niche strategy scenario in the first two years is $30 3 million, bigger than $25 million under mainstream strategy scenario. The niche positioning strategy would enable clean edge razor to contribute profit and at the same time, limit the effect of cannibalizing paramount's existing products and paramount would have an opportunity to still capture the unit-volume market leader position in 2009. Clean edge razor- case analysis introduction paramount health and beauty company has developed a new razor called clean edge paramount needs to decide between launching this razor in a niche or mainstream position. Niche value clean edge razor profit and loss forecasts for clean edge under niche and mainstream scenarios niche search for product that. Tapmi clean edge razor: splitting hairs in product positioning group 23-w1 8/3/2012 clean edge razor: splitting hairs in product positioning about paramount paramount was a global consumer products giant with $13 billion in product sales.
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) if niche is successful, positioning could be later broadened test and invest. Write up #1 clean edge razor: splitting hairs in product positioning problem a well-known health and beauty company, paramount is launching a high-technology nondisposable razor, clean edge they are searching for the most efficient way to gain market share. 2) launch clean edge as a niche revolutionary technology product to be a market leader below are my alternatives that can be used to develop a market strategy that will position paramount as a market leader in non disposable razor category with clean edge product launch: 1) launch clean edge as a mainstream.
Clean edge is a very competitive and advanced product that can attract a lot of men of all ages they also have increasing retail channels that allow them to sell clean edge in a diversity of venues. Clean edge razor: splitting hairs in product positioning • paramount entered non disposable razor market in 1962 • market leader by 1992 with 233% market share followed by prince with 231% share. Based on the data in the case and my analysis, below are my alternatives that can be used to develop a market strategy that will position paramount as a market leader in non disposable razor category with clean edge product launch: 1) launch clean edge as a mainstream technology product to be a market leader.
Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. As we are releasing the clean edge as a niche product, we need to make sure that consumer identify this product as unique this can be achieved by placing a relative emphasis on the words clean edge by placing them at the beginning of the full product name.
The problem occurs when determining the price of this product and finding promotional outlets if the price of clean edge is lower than other existing nondisposable razors, it certainly would gain broader appeal, but will not be welcomed by customers who are looking for high-end products. It will be difficult to change the perception that clean edge is a niche product with a limited target market even after launching into the mainstream market there will be less financial returns for the two years after launching as a niche product because of a limited consumer reach of high end consumers. A razor manufacturer company has developed a groundbreaking non-disposable razor, the clean edge razor and is trying to decide the market position for this new product clean edge is a cutting edge technology vibrating razor with which, according to test subjects, provides the closest, cleanest, and smoothest shave experience they. The importance of placing the product in a mainstream position is to successfully launch an innovative product creating more market share for paramount and for clean edge to become the most sought out razor in the industry.