Clean Edge Razor Case

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...