Following three years of growth, Paramount Health and Beauty Company is planning to introduce another technologically propelled and innovative vibrating razor called Clean Edge. The novice blueprint of Clean Edge allows immaculate performance by quickening the movement of the hair follicles such that they life the hair from the skin, enabling a detailed cleansing and shave. The organization has effectively determined to bring Clean Edge into the men's business sector where it has a more influential presence. Jackson Randall, the product manager for Clean Edge, battles with how to optimally design a stance for the product’s launch. One plan is to launch Clean Edge as a "niche" product, focusing on the elite and high class groomers who look for quick, easy and superior performing skin care products. Another plan is to launch the product into the aggressive standard razor market where the item can be situated as the best razor accessible. Randall meets resistance from the internal teams to launch the product into the mainstream market and he must contemplate over how the strategy could harm other company products. Randall must propose a suitable plan and provide facilitating economic assessment of the final decision – not only for Clean Edge, but for the impact it will have on the rest of the organization as well.
1. What changes are occurring in the nondisposable razor category? Assess Paramount’s competitive position. What are the current strategic challenges for Paramount’s current products as well as for Clean Edge?
2. How is the nondispoable razor market segmented? Examine consumer behavior for nondisposable razors.
3. What are the arguments for launching Clean Edge as a) a niche product, b) as a mainstream brand, and c) as a product based on another strategy? Which would you recommend? What are the strategic implications of your recommendation?
4. Be prepared to support your stand with qualitative as well as quantitative reasoning andarguments. Clearly articulate any assumptions that you may have made in your analysis.
5. Suggest a marketing program (at a minimum, the 4Ps) along with a Pro Forma for your chosen strategy and be prepared to defend it, from a strategic perspective as well as from an implementation viewpoint.