Paramount clean edge razor

Clean edge razor case marketing

PGP Page 5. In addition, if we consider advertisement and promotion costs, mainstream involves a larger spend in this segment. Niche positioning: Pros: Positioning Clean Edge as niche will complement companys existing product portfolio perfectly. Trials also showed that use of Clean Edge was beneficial to overall skin condition, tone and texture. PGP Page 2 Case Study Clean Edge Razor Section C Group 11 On Trade - The retail margins associated with the razors is considerably higher and therefore with a large number of new entrants the distributors are responding to the growth by increasing their shelf space for the product category. Besides, this is consistent with the overall corporate strategy of building the Paramount brand name equity. In , Paramount was the unit- volume market leader Pro is in the mature phase and theres a high probability of its sales declining soon. Another opportunity is that for the past five years, Paramount did not introduce any new technologies toward their products; therefore, the breakthrough innovation toward Clean Edge could have a big chance to retain loyalty customers Threats The current non-disposable razor market is highly competitive, especially in the super-premium segment. We would say, Clean Edge, as a revolutionary product, the current market surroundings could be the best fit for it. Paramount Pro was positioned in a moderate segment, and Paramount Avail was considered as a value Segment. The cost of cannibalization is lower for the niche market as compared to mainstream market. Analysing the result, it is evident that launching the product is a profitable venture; however, the cost of cannibalization may change equations. Paramount product lines were not Contributing with any products to the niche market; therefore, if Clean Edge could position into niche market, Paramount will have product lines in each market segments. They care about the overall shaving experience.

Hence, we can derive that positioning the product for niche market is profitable in long run. Main stream razor unit volumes are expected to capture over three times the volumes of the niche market in the first year.

Analysing the result, it is evident that launching the product is a profitable venture; however, the cost of cannibalization may change equations.

Paramounts consumer research identified distinct segmentation in terms of product benefits and consumer behaviour. The company would require an extensive advertising campaign, considerable consumer promotions would be needed and thus the expenses associated with them will be huge.

clean edge razor cannibalization calculation

Since the s, Prince has dominated the non-disposable razor market with the brand name Cogent and Cogent plus, which were considered super-premium product categories. The main reason for super-premium market growth was caused by the new technology and innovation product launches.

Thus, by naming the product Paramount Clean Edge, Randall can leverage the companys positive image in the consumers mind to generate maximum sales. The cost of Cannibalization is calculated using total sales and percentage of cannibalisation given.

clean edge razor contribution margin

Innovations and new product introductions are the prime factors for the growth. Paramounts bread and butter product, Pro was in the mature phase of the product lifecycle so there is a possibility of decline.

Also, in recent years, customers were more willing to try out new products and noticed the advantages of frequent blade replacement, which brought more business to the current market.

Disposable razors are relatively low price but provide less technological innovations on products.

clean edge razor harvard business case answers

In case this cost has to be increased, the profit may reduce further if the investments do not translate into revenue. Especially, Paramount Pro, as the backbone of the company and took the second place of the existing non-disposable market.

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