Clean Edge Razor: Splitting Hairs in Product Positioning Essay

A well- cognize health and mantrap company, predominant is entryway a high-technology frozen razor, Clean acuity. They ar searching for the most efficient way to gain trade dower. Their concerns come down to three main(prenominal) problems whether they should target niche market place and price the harvest-tide in the super-premium segment, or aim mainstream market and gain broad compendium, whether they should just emphasize the product name Clean boundary or add prevailing at the front to broaden cross out imagewhether they should sustain current market all(prenominal)ocations and focus on niche market or increase the market budget for extensive advertisement in the mainstream market.AnalysisIn the past, nondisposable razors merely served as bull removing tool for the vast majority of the population. However, consort to Exhibit 1, as personal images became important in kind life, hair removing routine became a means of gaining confidence for some people. For t his reason, customers started to seek nondisposable razor that non only effectively removes hair exclusively alike protects skin, and further gives them sense of luxury by utilizing the best technology. Understanding customers lean to always search for radicalest and ripe products, dominant developed Clean perimeter using their unique technology. Although they were confident about quality of their product, their competitive note was not stable. They had ii big competitors, Benet & Klein and Prince which already had liege customers throughout the world, not to mention early(a) sore competitors that started to threaten Paramount with their groundbreaking products. Moreover, because Benet & Klein and Princes expenditures in advertising exceeded those of Paramount, it was difficult for Paramount to take away the market share and brand recognition. Using 4P strategy to analyze Paramounts potential was helpful.Clean sharpness is a very competitive and advanced product that o ffer attract a lot of men of all ages. They also take on increasing retail channels that allow them to divvy up Clean Edge in a diversityof venues. The problem occurs when determine the price of this product and finding promotional outlets. If the price of Clean Edge is debase than peeled(prenominal) existing nondisposable razors, it certainly would gain broader appeal, but will not be welcomed by customers who are looking for high-end products. This possibly would bring about cannibalization, eating out their own brand image. On the other hand, if the price is higher than other existing nondisposable razors, it whitethorn successfully enter niche market, but customers who are already true to Paramount may be wooed away to seek for other brands. Their finis on a proper price point also influences their promotional strategies. If they decide to remain in the niche market they only require to target a specific customer group who would be intrigued by their products, thus, the ir expenditures in advertising would likely decrease.This is more 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 build 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 involved, from advertisements using media to discount promotions. This can be clearly seen in Exhibit 7. Although in niche positioning, return unit cost is higher and unit volume is much dispirit than in mainstream positioning, advertising and promotion costs are more than two times lower. Their effort of reaching out to more people is revealed in promotion costs.RecommendationNiche Market From Exhibit 5, it is clear that Paramounts market share is steadily increasing while other competitors mark et shares are slightly move. This is definitely the perfect timing for Paramount to improve their brand quality by entering to the niche market, at the same time slowing down strong growth of new competitors. According to financial data (see appendix 1), it is true that net dinero is much higher in mainstream positioning, due to higher volume 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 degrading Paramount as a cheap brand. Do not find by the Paramount label Considering that Prince 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 widespread in the market, especially when they are spen ding less budget 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 title of super-premium brand.On the other hand, because Paramount originally started with mid-low priced value products, it is difficult to predict customers reaction when they unveiling 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 weigh design is the major breakthrough that will differentiate Clean Edge from other nondisposable razors, Paramount can start off with a whole new image, without having to attach their brand name. A good instance is Lexus, the luxury vehicle division of Japanese automaker Toyota Motor Corporation. whizz of the biggest reasons why Lexus gained worldwide profit was because they did not emphas ize the quotidian brand of Toyota. Sustain current allocations but partially increase advertising budget- advert is a necessity when it comes to launching new product. 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. Promotions much(prenominal) 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 seeking for high-end luxury products that would generate social and emotional satisfaction. Traditional TV and Newspaper advertisements 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 assist in making them feel special is essential to the niche market. specially because involved razor users believe shaving is a way of astir(p) 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 bang-up approach to win over customers mind. Allocating budget in customer service therefore, is another way to gain loyal customers.