Submitted by: Submitted by giss884
Views: 1185
Words: 573
Pages: 3
Category: Business and Industry
Date Submitted: 12/08/2012 02:36 PM
1. SITUATION AUDIT
* A razor manufacturer company has developed a groundbreaking non-disposable razor, the Clean Edge Razor and is trying to decide the market position for this new product.
* Clean Edge is a cutting edge technology vibrating razor with which, according to test subjects, provides the “closest, cleanest, and smoothest shave” experience they have ever had.
Strengths
* Data shows the super-premium market segment is growing in market size and sales value.
* Paramount holds a strong position in the Moderate market segment.
Weakness
* Limited marketing budget compared to competing products being introduced to the Super Premium market segment.
Opportunity
* Positioning strategy for the Clean Edge could target either the Mainstream or Super Premium markets.
* The new product is innovative and has no similar product in the market.
Threat
* Positioning in the Mainstream market could lead to cannibalization.
* Super-premium market segment is highly influenced by market changes.
2. PROBLEM STATEMENT DECISION
In which market segment should paramount position its Clean Edge Razor?
3. ALTERNATIVES
* Launch the product in the super premium niche.
* Introduce the product in the moderate segment of the market.
* One to two years of Super-Premium positioning and future expansion to mainstream market.
4. CRITICAL ISSUES
Super-Premium Market:
* Regardless of strong competition, Paramount´s Clean Edge razor’s innovation provides a unique opportunity to compete excellently in the Super Premium Market.
* In order to go into the Super Premium market, Paramount will need to invest a large amount of money in the Marketing campaign to compete with other new-coming products.
* This would require either syphoning funds away from Paramount´s Pro line, or increasing the Marketing budget as a whole.
Moderate Market:
* On the other hand, should the Clean Edge be positioned in the...