Profit and loss forecasts for clean edge under niche and mainstream scenarios ($ in millions) niche mainstream year 1 year 2 year 1 year 2 1 unit sales - razors 10 15 33 4 2 dollar sales - razors $ 909 $ 1364 $ 2584 $ 3132 3 unit sales - cartridges 40 10 99 219 4 dollar sales - cartridges $ 2940 $ 7350 $ 6158 $ 13622 5 total. However, considering that paramount’s nondisposable razor market share is continuously increasing from paramount pro and avail, which are not super-premium products, suddenly introducing clean edge in the mainstream market to get mass appeal would cannibalize paramount’s existing brands, potentially degrading paramount as a ‘cheap brand.
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. Key highlights from profit and loss forecast for clean edge in two (2) different brand positioning cannibalisation rate ($’ million) marketing solutions to launch clean edge as niche technology product for the first two years, and subsequently as a mainstream product this will benefit paramount to: 1 tap higher profit margin 2. Clean edge razor: splitting hairs in product positioning to release clean edge as a niche product, targeting the high-end market of fastidious groomers looking for superior skin care. Products to target the niche market therefore, if clean edge could position into niche market, paramount will have product lines in each market segments, especially, niche market is less saturated, and has potential growth in the future.
Jackson randall, the product manager for clean edge, struggles with how best to position the product for the launch 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. 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 unit volume of razors sold is expected in increase by 50%, however if paramount positioned the razor as a mainstream product, the unit volume sold is expected to increase by only 22% recommendation disadvantages of positioning the clean edge razor as a niche product: supplying the product to all retail channels does not support the concept. Marketing for clean edge in the niche market would require $15 million while marketing in the mainstream market would be considerably 4 higher at $42 million although, mainstream razor markets are expected to capture three times that of the niche market, it would require approximately three times the marketing expense over the niche market. Case analysis clean edge razor splitting hairs in product positioning executive summary paramount’s newest non-disposable razor, clean edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Jackson randall, the product manager for clean edge, struggles with how best to position the product for the launch 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.
2) launch “clean edge” as a “niche” revolutionary technology product to be a market leader 3) create a new strategy to market “clean edge” as a revolutionary technology product and gain market share in super-premium segment. Nonetheless clean edge has a groundbreaking design, without the support of advertisement, it is impossible to attract customers to try new products it is reasonable to put more budget allocations, but using a completely different approach from mainstream positioning.
Transcript of clean edge razor - case study presentation strategy recommendation - clean edge razor - problem on hand product release challenges the first new release in 5 years niche (higher price) or mainstream (lower price) the overall wellbeing of the company product analysis. Edge there might be more interest in paramount’s other razors and products also, the volume sales are higher in mainstream market compare to niche market and clean edge has relatively.
Clean edge razor: splitting hairs in product positioning case solution 1 what are the arguments associated with launching clean edge as a: a) niche product b) a mainstream brand. Transcript of clean edge razor - case study presentation strategy recommendation niche market strategy mainstream market strategy consumer behavior - more brand switching (mainly to super-premium) - clean edge razor - problem on hand product release challenges the first new release in 5 years. With the introduction of “clean edge” as a new product89 for cartridge in mainstream positioning50 for cartridge in niche positioning 6) establish contracts with the new retail channels such as mass merchandisers and club stores so that paramount non disposable razors can be placed at the right eye level for the users to choose paramount products.