Clean Edge Analysis Essay - 1749 Words

Position Statement: Paramount Health and Beauty wants to launch a new razor into the market currently referred to as â€Å"Clean Edge.† The project team recommends that the company should position the product as a distinct mainstream product, dubbing it â€Å"Clean Edge by Paramount† in order to produce growth in sales from new product innovation. 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. Failing to take this route and deciding to position the product in a niche would only give the new product a limited amount of consumers, preventing Clean Edge from reaching its†¦show more content†¦Clean Edge by Paramount gives customers a clear perception of the advantages of the product without being concerned about other product categories. Critique of Rejected Options There are several reasons why the project team should reject the first option in positioning Clean Edge in a niche. The first reason concerns the pricing strategy. Placing the product in a niche position would make the razor more expensive in the retail sense. Catering to the more involved groomers places the product at a suggested retail price at $12.99. Placing the product at a higher price in the niche position could only lead Clean Edge Razor to a limited market. Rosenberg suggested placing the product in the niche position for a year or two; however, this could lead to prevention in attracting a wider customer base for the product during that time frame. Another reason Paramount should not place in the niche position is their significantly low marketing budget compared to their competitors. In just media advertising alone, Radiance spent $16 million on Naiv. For Clean Edge, the cost for advertising for the niche position would only be $7 million. Because Radiance is spending more than twice as much on their advertising compared to what Paramount would spend in the niche position, Radiance would gain an advantage in covering more ground to promote its product. As far as product naming is concerned, â€Å"ParamountShow MoreRelatedClean Edge Case Analysis1457 Words   |  6 PagesCASE ANALYSIS OF CLEAN EDGE RAZOR Submitted by BrandMasters Fatima Dilruba (B13085) Bhavya Singla (B13080) S Jayaram (B13110) Case Analysis of Clean Edge Razor Problem Statement Paramount Health and Beauty Company developed the Clean Edge Razor, a technologically advanced non disposable razor. The company now has to study and segment the market environment and find a suitable target to successfully position and launch their product. 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