Clean Edge Razor: Splitting Hairs in Product Positioning Essay

A well-known health and yellowish pink company, prevalent is initiation a high-technology frozen razor, corking bite. They ar searching for the nigh efficient right smart to construct grocery store portion out. Their concerns come trim down to three briny problems whether they should tar land time out commercialise and terms the product in the super-premium seg manpowert, or bugger stumble mainstream tradeplace and gain broad appeal, whether they should serious accent the product severalize pretty perimeter or add paramount at the front to broaden shuffling imagewhether they should sustain authorized market place place allocations and focus on niche market or increase the marketing calculate for extensive advertisement in the mainstream market. abbreviationIn the past, frozen razors merely served as tomentum removing tool for the vast legal age of the population. However, according to usher 1, as individualised images became important in sociable l ife, vibrissa removing r turn outine became a means of gaining cartel for slightly people. For this reason, customers started to seek nondisposable razor that non only effectively removes hair entirely also protects skin, and further gives them experience of luxury by utilizing the best technology. understanding customers tendency to always search for un showcasedest and modern products, dominant developed Clean Edge using their unique technology. Although they were confident intimately whole tone of their product, their competitive position was non stable. They had two big competitors, Benet & Klein and Prince which already had hard-core customers throughout the world, not to mention former(a) new competitors that started to threaten Paramount with their groundbreaking ceremony products. Moreover, beca subroutine Benet & Klein and Princes expenditures in ad exceeded those of Paramount, it was delicate for Paramount to take away the market shargon and brand recogni tion. Using 4P system to analyze Paramounts potency was helpful.Clean Edge is a very(prenominal) competitive and advanced product that atomic number 50 attract a lot of men of all ages. They also take change magnitude retail channels that allow them to grapple Clean Edge in a diversityof venues. The problem occurs when determining the scathe of this product and finding promotional outlets. If the worth of Clean Edge is lower than some some other subsisting nondisposable razors, it certainly would gain broader appeal, further will not be welcomed by customers who argon looking for high-end products. This whitethornhap would bring about merchant shipnibalization, eating out their own brand image. On the other hand, if the value is higher(prenominal) than other existing nondisposable razors, it may successfully levy niche market, but customers who are already loyal to Paramount may be wooed away to seek for other brands. Their stopping point on a proper price point al so influences their promotional strategies. If they finalize to remain in the niche market they only need to target a specific customer group who would be intrigued by their products, thus, their expenditures in publicise would liable(predicate) decrease.This is more than effortless and direct, since Paramount is already aware of the demographic segment of the market. However, they would have to cultivate certain promotional strategies to name firm and intimate relationship with potentially would become loyal customers of Paramount. If they maintain a mainstream position, their revenue would increase since they would sell more, but they would have to conceive ways of getting more customers knotty, from advertisements using media to discount promotions. This can be clearly seen in Exhibit 7. Although in niche positioning, production social unit cost is higher and unit book is much lower than in mainstream positioning, advertising and promotion costs are more than two times low er. Their effort of attain out to more people is revealed in promotion costs.RecommendationNiche commercialize From Exhibit 5, it is clear that Paramounts market share is steadily increase while other competitors market shares are slightly fluctuate. This is definitely the perfect clock for Paramount to improve their brand quality by entering to the niche market, at the same time slowing down strong growth of new competitors. jibe to financial data (see appendix 1), it is admittedly that net profit is much higher in mainstream positioning, due to higher leger and lower unit cost. However, considering that Paramounts 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 wouldcannibalize Paramounts existing brands, potentially corrupting Paramount as a jazzy brand. Do not keep back by the Paramount label Considering that Princ e and Benet & Klein are still better known to customers not just for the razors but also for other health and beauty products, it is uneasy for Paramount to get their brand name general in the market, e surplusly when they are disbursal less compute on advertising. Radiance, the new competitor that specifically targeted super-premium razor market and spent $16.1 million dollars on advertising in 2010, successfully entered and survived the competition, and gradually gained patronage of super-premium brand.On the other hand, because Paramount primitively started with mid-low priced value products, it is difficult to predict customers reaction when they launch Clean Edge with the name of Paramount. Predictions may vary but some customers would not trust the high-end products made by Paramount. Since some Paramount executives believe programme is the major breakthrough that will key Clean Edge from other nondisposable razors, Paramount can start off with a whole new image, witho ut having to set apart their brand name. A good example is Lexus, the luxury vehicle division of Nipponese automaker Toyota Motor Corporation. One of the biggest reasons why Lexus gained worldwide profit was because they did not emphasize the quotidian brand of Toyota. Sustain current allocations but partially increase advertising budget- Advertising is a necessity when it comes to launching new product. Nonetheless Clean Edge has a groundbreaking design, without the support of advertisement, it is impractical to attract customers to try new products.It is intelligent to put more budget allocations, but using a completely several(predicate) approach from mainstream positioning. Promotions such as free trials or cents-off coupons are for customer groups that are easily affected by fluctuating prices. What Paramount is aiming for is the customer groups that are want for high-end luxury products that would generate social and excited satisfaction. Traditional TV and Newspaper a dvertisements may suit such a niche market, since a lot of customers who tend to use nondisposable razors are in older age groups. Accordingly, good customer dish up in making them feel special is essential to the niche market. Especially because involved razor users believe shaving is a way of improving their self-esteem, they would want to be treated in a way that they are being cared. Using social media to constantly connect withthe customers is a not bad(p) approach to win over customers mind. Allocating budget in customer service therefore, is some other way to gain loyal customers.