Clean Edge Case

Paramount’s product manager for Clean Edge, Jackson Randall, is faced with the challenge of developing a positioning strategy for the release of an upcoming new product, the Clean Edge Razor. A large part of the indecisiveness and struggle stems from the market segmentation of the product and determining if Clean Edge Razor should be launched as a mainstream entry that is more readily available to the public or should target super-premium consumers using a niche strategy.

After creating a unique blade design that is able to provide an ultra-close shave, Clean Edge’s marketing executives must decide on an appropriate product position that will maximize profits for Paramount. While a mainstream position would capture a broad audience, advertising costs would be high and require extensive marketing support to create a good buzz. Another concern is that Clean Edge may cause a cannibalization effect in that sales for the revolutionary new product could come at the expense of their value and moderate products, such as Paramount Pro and Avail.

To test the waters of this new product, Randall should first launch the Clean Edge Razor in the super-premium segment, targeting the 25% of the market that value high quality and luxurious products. Since this new razor boasts a vibrating, ultra-thin five-blade design, the introduction of Clean Edge into the super-premium segment is likely to be successful, since it appeals to what the consumers want most – a highly innovative product that delivers superior results, even if it comes at a higher price. While the mainstream market may also appreciate a razor that can provide the closest shave, those consumers may be unwilling to pay the extra five to seven dollars or care less about the results and are more focused on snatching a low price. Prince’s razors, Cogent and Cogent Plus, which are comparable to Paramount’s Paramount Pro and Paramount Avail, have had higher market shares from 2007-2010; while Paramount Pro had an...