05-04-2012, 03:38 PM
Clean Edge Razor Splitting Hairs in Product Positioning
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Situation at Paramount
Paramount had established itself as a global consumer products giant with over $13 billion in
worldwide sales and $7 billion in gross profits for 2009 since it’s entry in the market in 1962. In
2009, Paramount had established itself as unit-volume market leader in 2009 based on non
disposable razor product sales.
Analysis of Alternative Solutions
The evaluation of alternative solutions was based on the following criteria:
· Research and analysis studies by Paramount.
· Marketing and sales data across Paramount and its competitors.
· Key Product differences and similarities between Paramount its competitors in non
disposable razor category.
· Feasibility of implementing an alternative solution suggested.
· Costs involved in implementing an alternative solution.
· Costs such as manufacturing, production, advertising, marketing and any cannibalization
that could result with marketing strategy adopted by Paramount.
Recommendation
Based on my analysis, I recommend a strategy that will launch the new product with
tremendous success to reach #1 position in terms of product sales, revenue and operating profits
for Paramount. This strategy will also retain Paramount Pro & Avail existing products and go
after “Maintenance users” that make up 33% of consumers. The branding concept launched with
this product will make Paramount a house hold name and give the necessary return on
investment for Paramount.
APPENDIX B- Evaluating Alternative Solutions
1) Launch “Clean Edge” as a “mainstream” technology product to be a market leader.
PROS:
· Increased profits and market share.
· Opportunity for higher profit margin with new “premium” product launched across
larger percentage of user segment.
CONS:
· Potentially could result in elimination of Paramount Pro and Avail products from
paramount product offering.
· Opportunity to utilize existing products and gain increased sales by rewards and
incentives is lost.
· Paramount will not be focusing “Maintenance users” with new product lines.