Clean Edge Razor Splitting Hairs in Product Positioning Essay Example for Free

Clean Edge Razor Splitting Hairs in Product Positioning Essay Paramount’s newest non-disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning, brand name marketing budget allocation for the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non-disposable razors sold by Paramount. It is very important to come up with a suitable strategy to make the product successful in the market. Through a proper economic analysis considering the razor market and the facts available, we have come up with a conclusion that Paramount should position Clean Edge in the Niche Segment. Statement of the Problems Paramount needs to come up with a marketing strategy to effectively position its new line of technologically advanced non-disposable razors. Over the last five year years the industry has seen major advancements in the male grooming industry with the entry of new formidable players turning on the heat for the existing market leaders. Some of the major highlights include * Male specific grooming products seem to have outpaced the growth in women’s beauty market and have become more mainstream * In the male grooming product category, the replacement cycle of razors and cartridges have shortened * Advertising expenditures in the category have been rising faster than retail market sales * The demand has had a cumulative effect on technology as newer advanced products have hit the market resulting in approximately 5% growth per year from 2007 to 2010 * Super-premium segment has experienced significant growth with numerous product innovations By 2009, Paramount had already established itself as a global consumer products giant having expertise in Health, Cleaning, Beauty and Grooming. This helped the company to quickly position itself as a trusted brand in the non-disposable razor market. Capitalising on its reputation it offered its products By 2009, the replacement cycle of non-disposable razor cartridges had shortened due to consumers trying out new products. The challenge with Paramount was that two of its mainstream products – Paramount Pro and Paramount Avail had not introduced any significant technology innovations since 2005. However, its competitors, especially Radiance is on the verge of launching Naiv razor which promises a better shaving experience.