The Case Analysis for Clean Edge Razo free essay sample

We will discuss from two aspects, one is the U. S. razor market and another is from the product itself. The paper through a series of economic analysis, including the background the razor market, razor market segments, consumer behavior, competition between producers, the feature of Clean Edge Razor and so forth, to got a positioning recommendation, brand name and budget recommendation to help product manager of company, Randall, find the right answer. The body paper will round some special questions to analyze what is the right way for put the Clean Edge Razor in the market. Some economic research and individual opinion will comprise the whole analysis. Eventually, we will got a conclusion and do some special recommendations. Question 1: a. What changes are occurring in the nondisposable razor category? There are two major changes are occurring in the nondisposable razor category. Firstly, the nondisposable razors experienced more growth, approximately 5% form 2007 to 2010, and most of the growth due to the innovations and new product introductions. We will write a custom essay sample on The Case Analysis for Clean Edge Razo or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The customer is more want to trying new products than before. Secondly, industry experts divided the nondisposable razor market into three segments based on price and quality, super-Premium, moderate, and value. The first change of nondisposable razor category was in the segment of super-Premium. According the case paper, the volume and dollar of Super-Premium in 2009 nondisposable razors and refill cartridge retail sales were 25%, and 34% respectively. And in the last decade, there was experienced significant growth in the super-premium segment. Many innovations appeared in the super-premium segment to make this part a huge growth. . Assess Paramount’s competitive position. What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? The challenge of strategic life cycle is the replacement cycle had been shortened. According the case paper, consumers purchased razors and replacement cycle more frequently in 2009 than previous years. It is mean that customer want to try the different pro ducts, and their demand is change to more flexible. Moreover, advertising and sponsored articles that introduced some razor let customer change their demand more easily. That is a huge challenges for Paramount’s current products as well as for Clean Edge that they must continuous provide different kinds of products and let customer to use their products in a relative long life cycle. It is also mean the Paramount’s must use lots of money, technology, and work to design much kinds and much quality products. Question 2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors. The nondisposable razor market was divided three segments based on price and quality: super-premium, moderate, value. According the case paper, the volume and dollar of Super-Premium, moderate, value in 2009 nondisposable razors and refill cartridge retail sales were 25%, 34%; 43%, 44%; 32%, 22% respectively. The super-premium segment has significant growth in recent 10 years due to the innovation and new products. The moderate still has a main position in amount of both volume and dollar. There are also three segments of nondisposable razor of consumer behavior: 39% Involved Razor Users (Social/Emotional Shavers), 28% Involved Razor Users (Aesthetic Shavers), 33% Uninvolved Razor Users (Maintenance Shavers). The kinds of Social/emotional shavers are the customer who will consider the different products of razor. They like shaking everyday, because to do this can make them more confidence. Aesthetic Shavers are the customers to consider which razor are the more effectively remove hair. And the last one Uninvolved razor uses, maintenance shavers, they think the entire razor are the same, and they have no interest to consider which razor is more better. Question 3. a. What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream brand? The supporters that supporting the Clean Edge as a mainstream brand think that nowadays, the customer need a more sophisticated and expect more advanced technology products. The Pro does not provide this but Clean Edge can. More and more people want to get an advanced product and abandon normal one. And Pro is in the mature phase of the product lifecycle and it has no excess extra space to develop. They think now it is best time to lunch the Clean Edge in dominant position in the razor market. On the other hand, the objector think it should be make Clean Edge as a niche product. Rosenberg said that he couldn’t believe they are even considering a mainstream positioning strategy. He thinks Clean Edge will siphon off consumers from Pro. Moreover, making Clean Edge as a mainstream brand will dilute the brand power for their bread-and-butter product, Pro. The company will just be cannibalizing itself. The niche strategy makes more sense. According the pro and con, I conclude that the main arguments are how to rational allocate the share for different type products, which one will become the main products of company, and how combine the different product will get maximize profit for company. b. Which would you recommend? What are the strategic implications of your recommendation? We recommend that make Clean Edge as a mainstream brand. We think that the most important thing of company is profit. Selling products can get profit. So how much selling products decide how to profit company can get. And what does decide how much products can be sold, the share of market. So, if you have very great products, let it to dominate marker. For example, Apple Company is the fastest push the newest products, and makes it become the mainstream product to dominate market share. But Nokia just makes their advanced products as a niche product that fail to dominate market. So, Now the Apple is more success than Nokia. Question 4. Based on your positioning strategy, what brand name and marketing budget allocations would you advise? According our positioning strategy that makes Clean Edge as a mainstream brand, we advise the brand name would be â€Å"Clean Edge by Paramount†. The reason to make the Clean Edge name is that it can make the brand stand out and differentiate other product form Paramount. As its great quality and all new style to dominate market share. The company must improve the maximize budget allocations for Clean Edge to dominate market share. Conclusion