Clean Edge

Carlos Alberto Duran Pinilla
International marketing Strategies
Fh-Worms SoSe 2012
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Clean Edge Case Study

Paramountis a beauty & healthy products company specializing in shaving products and accessories. With their last developed product known as Clean Edge, paramount wants to show this as the new generationfor razor blades due to all the improvements they have done in it. However some executives disagree in the positioning strategy they have to follow to place this product in to the marketplace.Paramount already offers products in the segments where Clean Edge could get into, so it take a lot of importance to be able to decide the right positioning strategy.
We can see in the table A that thenon disposable razor market is growing at a 5% rate a year for the last 3 years and at the same time the refill Cartridges market with a 2% per year. Even though the refill market is growing just 2%it's important to notice the larger number in terms of total sales.
In table B we can see that the super premium and moderate market volume is over 70 % of the total market, so it is important forParamount to decide in which segment they are going to place the new Clean Edge.
The competitors have created similar products like The Clean Edge Razor, although they don't have so many features asClean Edge. For this reason we see that Clean Edge has more advantages for the market introduction.
After analysis the Exhibits we can see that the production cost in very higher for the Mainstreammarket, what will cause off course that the % of sales will be less in this mainstream that if they decide to put it into the Niche market. Even tough, the mainstream strategy is able to hold its own,the cannibalization is a very important issue for this. This 60 % cannibalization will make the mainstream strategy to be unprofitable in year one and two.
After this analysis I would recommend to...