Case Brief #1 : Clean Edge Razor
October 29, 2013
1. Problem Statement: Paramount Health and Beauty Company having difficulty to choose position their new product (Clean Edge) in the market.
2. Situation Analysis:
Company (Paramount Health and Beauty Company)
* Paramount is a respected brand in the industry since 1962
* Paramount offered two lines of nondisposable razors and refill cartridges. The Paramount Pro for moderate segment and the Paramount Avail for a value offering
* Paramount is ready to launch newest nondisposable razor, Clean Edge
* Clean Edge is improved by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the ...view middle of the document...
Executives at Paramount had learned the Naiv razor was due to launch nationally in September 2010.
* Nowadays, consumers are becoming more sophisticated and they tends looking for new technologies (innovation and creation). They invest more money to buy the products that would satisfy their needs. The old law of business said that a satisfied customer brings ten more.
Option One : A Niche product
A niche product is made and marketed for use in a small capacity and specialized, but very profitable. Niche strategy targeting the most intensely involved super-premium consumers who look for superior skin care products.
Option Two : A Mainstream Brand
A mainstream brand require a higher marketing budget in order to reach larger target.
This option which using mainstream brand assumes that Paramount will get higher revenue rather than using niche strategy. On the other side, Paramount still thinking to use this strategy because of the high cost and given that the strategy using more marketing support and $42 million marketing budget would be needed for one year. Paramount should pursued this strategy, unless the cost of marketing budget could not be cover by sales revenue of Clean Edge.
After review the information on past and estimated in the future, company, products, competitors and branding, I recommend the following strategy:
* Paramount should taking mainstream brand
* Maintain a lower price than competitive products