'Clean Edge Razor: Splitting Hairs in Product Positioning\r'

' abstemious inch shave: Splitting Hairs in professional personduct lay Name: Yuanxu He (Jason) Semester: Fall, 2012 Course Number: MBA 812A watch of paper: September 25th, 2012 Executive Summary The uncontaminating skirt which is preponderant’s newest nondisposable shave has powerful influence in the market since 2010. It was change design and apply the new skills to make the razor’s properties become conk out than before. Lots of hands like it and consider it was the closest, cleanest and smoothest. The word analysis the dominant’s situation, competition, mathematical product positioning, marketing strategy by the U. S. azor market, market constituents and consumer behavior and the trends of nondisposable razors and refill cartridges. after the company everyplaceview, the analysis of competition, design and testing and equal the marketing budget, Randall think that the low-cal boundary line has the probatory mainstream potential and test ament become the new specimen in men’s graze.\r\n1. Non-disposable razor form has changed a lot these years. The article pointed that nondisposable razors see approximately 5% growth per year from 2007 to 2010. legion(predicate) innovations and product in the super-premium segment has grown a lot.The expenses of advertising change magnitude a lot because of the engage to promote new benefits from advances in razor technologies. Changes in retail channel statistical distribution have to a fault been noted in the category. Male-specific grooming products seemed to be a bright spot in the industry from 2007 to 2010 and the segment saw much more than growth because shaving became more than just shaving †it started to include system spray, fragranced shower gel and skinc ar lines pro spiritednessrated. Channel distribution for the razor category has become increasingly strategic by means of the Exhibit 4. It has been quite demand for male-grooming products.Compet itive status: dominant has been a global consumer products giant with over $13 billion in worldwide gross revenue and $7 billion in gross boodle for 2009 since it entered the nondisposable razor market in 1962. Paramount established itself as unit-volume market-leader in 2009 based on nondisposable razor sales. The nondisposable razor category market is entering a new grade with technology products and new competitors entering the market, it’s a threat to Paramount. Strategic Life Cycle Challenges: Consumers are becoming more experienced and always looking for for new technologies.Namely, they want to spend more silver and buy products which are satisfy the necessity of a smooth shaving experience. In other words, through the Exhibit 1, there is a category of consumers called â€Å" caution users” that made up 33% of consumers; they were not kindle in buying products with superior technology. These consumers cannot be ignored. So, to the challenges, it should c ontribute a product with good cost x benefit but with a short life cycle for the 33% called â€Å"Maintenance users” keeping these users buying their products and fire in their brands. And then, launch the Clean Edge product with a longer life cycle. Meanwhile, fashioning this product profitable creating a high role from the consumer when they buy cartridges for refill.2. The nondisposable razor market is separate to three parts base on outlay and quality which are: value, moderate and super-premium. From 2009, consumers purchased razors and electrical switch cartridges more frequently and they were distinct to â€Å"Maintenance Shavers”, â€Å"Social/ aflame” and aesthetical”. The â€Å"Maintenance Shavers” who almost not interested in the product category. The â€Å"Social/Emotional” shavers were prompt by the overall shaving experience and â€Å"Aesthetic” shavers were interested in cosmetic results.3. Niche| Mainstream| Pro s| Cons| Pros| Cons| development profits and market piece of land| Increased marketing budget cost to launch the new product and provide incentives to â€Å"Maintenance users”| Increase profits| potentially could result in elimination of Paramount Pro| Existing products can be retained and used to target â€Å"Maintenance users”| | Increase market share| Paramount bequeath not be instruction â€Å"Maintenance users” with new product line| mark strategy can be arefully planned and deployed for upper limit success| | Help prevent loyal Paramount customers form being wooed away to more modernistic brands| Opportunity to utilize existing products and gain increased sales| Through the pros and cons, I will advise the Clean Edge for a niche strategy. Because Rosenberg say that they will siphon off consumers if he considered a mainstream positioning strategy. A niche strategy will make more sense.4. | Niche| Mainstream| Planned cogency Razor (Year 1)| 1. 0| 3. 3| (Year 2)| 1. 5| 4. 0| Razor: Production per unit cost| $ 5. 00| $ 4. 74| Razor: Manufacturer price| $ 9. 09| $ 7. 83| Razor: Suggested price| $ 12. 99| $ 11. 19| Revenue (Year 1)| 9. 09| 25. 84| (Year 2)| 13. 64| 31. 32| Production cost (Year 1)| 5| 15. 64| (Year 2)| 7. 5| 18. 96| | Planned cogency Cartridge (Year 1)| 4. 0| 9. 9| (Year 2)| 10. 0| 21. 9| Average Production unit cost| $ 2. 43| $ 2. 24|Manufacturer price| $ 7. 35| $ 6. 22| Suggested price| $ 10. 50| $ 8. 89| Revenue (Year 1)| 29. 4| 61. 58| (Year 2)| 73. 5| 136. 22| Production Costs (Year 1)| 9. 72| 22. 18| (Year 2)| 24. 3| 49. 06| | Capacity costs (Year 1)| $ 0. 61| $ 1. 71| (Year 2)| $ 0. 87| $ 2. 45| ad (Year 1)| $ 7| $ 19| (Year 2)| $ 7| $ 17| Consumer (Year 1)| $ 6| $ 17| (Year 2)| $ 6| $ 14| Trade progressions (Year 1)| $ 2| $ 6| Year 2)| $ 3| $ 8| Subtotal of other Costs (Year 1)| 15. 61| 43. 71| (Year 2)| 16. 87| 41. 45| Total Costs (Year 1)| 30. 33| 81. 53| (Year 2)| 48. 67| 109. 47| Trough the chat above which compares the revenues and costs, it’s easily to find out the Niche is the better one. About the marketing budget, through the comparing, the advertising and promotion of Clean Edge Razor is $15m and $ 16m, and we can take the budget for existing products of advertising.Because the consumers become more civilize and the research shows that these will be the mature formulate of the product life cycle in the future. I consider that if it launch the product to the Niche market, it will flirt a huge profit to Paramount. So, I want to make the brand name called The Clean Edge Razor by Paramount.ConclusionBy the time, consumers really purchased razors and replacement cartridges more frequently than they than in any year previously. It’s no doubt that the Clean Edge has huge potential in the super-premium segment.It should keep create by the Niche strategy and this will bring the biggest benefits and profit to the company and beat the other competitors.Work C ited S. E. Smith, â€Å" nonpareil Tool, Many Uses: Single Edge Razor”, (Aug 02, 2012), http://www. networx. com/article/one-tool-many-uses-single-edge-razorJeremy Pingul, â€Å"Paramount Health & Beauty: The Clean Edge Razor”, (2012, January), http://prezi. com/pjd6evuzfndc/paramount-health-beauty-the-clean-edge-razor/\r\n'