This case study (attached) assignment will reinforce concepts related to market segments, targeting, and positioning
This case study (attached) assignment will reinforce concepts related to market segments, targeting, and positioning. In addition to these strategic components, the case will bring pricing strategy into the strategic planning process.
Clean Edge Razor is a \’wet shave\’ company that sells nondisposable razors (i.e., consumers buy replacement razors), very much like Gillette Fusion blades.
NOTE – Please answer the questions (below) in place of the case analysis method we used for Starbucks.
After reading the case, please answer the following 4 questions for your analysis this week (don\’t use the case analysis method).
What are the dynamics of the non-disposable razor category? Is it stable, growing, or declining? Include numbers from the case. What is Paramount\’s (company that sells Clean Edge) position in the industry (i.e., market share leader, etc.)
Be sure to identify, describe, and discuss the three price/quality price tiers (value, mainstream, premium). Notice the different names. What is happening in each of those price tier segments (i.e., growing, stable, declining)? In addition to the price/quality price segments, please discuss the \’benefits sought\’ segments (e.g., aesthetic shavers) in your discussion – these segments need consideration for assessing growth trends and whether to target the mainstream or premium segment.
The central issue, in this case, is how to position Clean Edge (the newest razor technology) in the mainstream vs. premium segment. Discuss the pros/cons of targeting the mainstream segment; do the same for the premium segment. Discuss the potential profits for both segments (premium vs. mainstream) – this will require using pricing, estimated sales volume (units), and costs (variable and fixed).
Make a recommendation based on your analysis. Be sure to include potential short-term consequences and long-term consequences of your decision. Marketing managers usually put more emphasis on short-term results over long-term results (short-term sacrifice with long-term growth). Please include these considerations in this case.
Requirements: 1.5 page
1.What are the dynamics of the non-disposable razor category? Is it stable, growing, or declining? Include numbers from the case. What is Paramount’s (company that sells Clean Edge) position in the industry (i.e., market share leader, etc.)
– The dynamic of the non-disposable razor category is that it is in a period of growth. From 2007 to 2010, non-disposable razors saw growth of five percent each year. In 2007, the non-disposable razor category saw retail sales of 188 million dollars while in 2010, the category saw retail sales of 218 million dollars. The growth seen during this time was the cause of the introduction of new products as well as product innovations (Quelch & Beckham, 2011). Between 2008 and 2009 an unprecedented number of twenty-two new SKUs were introduced into the non-disposable and refill cartridge categories. Most of these new SKUs were extensions to existing lines that were targeted toward the super-premium segment (Quelch & Beckham, 2011). The non-disposable razor category is boosting growth, mostly through product innovations and the introduction of new technologies.
In this growth period of the non-disposable razor category, Paramount is positioned as a market leader. Between the Paramount Pro and the Paramount Avail, both non-disposable razors, Paramount was able, “to capture the unit-volume market-leader position in 2009” (Quelch & Beckham, 2011). In 2009, Paramount showcased a unit volume of 23.3% while its closest competitor Prince held just below at 23.1%. For Paramount, 2009 was a peak year, but the company still managed to capture 22.2% of volume in 2010, beating out its competitors (Quelch & Beckham, 2011). From 2007 to 2010, Paramount boasted a great position in the razor industry and managed to maintain a leader in non-disposable razor sales.
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