Clean Edge Questions

Q1: Discuss the changes occurring in the market for non-disposable
razors and assess their implications for Paramount’s competitive position.

What challenges do they pose for Paramount’s current products, as well
as for Clean Edge? Explain.
Q2: How can the market for non-disposable razors be segmented? Explain

and justify your analysis and discuss the implications.
Q3: Discuss and evaluate the potential sources of volume for Clean Edge;
Support your answer with quantitative analysis of the profits / profitability
of each option.
Q4: What are the arguments for launching Clean Edge as (a) a niche
product and (b) as a mainstream product? Which would you recommend
and why? What are the strategic implications of your recommendations?
Explain.
The arguments for launching Clean Edge as
(a) A niche product

 Clean Edge razor features are unique and different from the other existing
products so if targeted as a niche product it would attract the users who are
specifically looking for such unique features.
 As there are already products of Paramount in the mainstream market the
launch of Clean Edge as mainstream would directly affect the other products.
 As paramount has already targeted a super-premium segment with its other
products so it would be an advantage for paramount to attract that segment
with Clean Edge.
 It could boost up the market for paramount if product like this could be
launched.
(b) A mainstream product

 There are other products in the mainstream which are not at par with the
features as clean edge, so it would be a new innovation which the customer
has been looking for.
 Clean Edge could boost up the declining sales for the paramount as a brand.
 It could target the broader market than being launched as a niche product
and in return benefit more customers.
We would recommend to launch Clean Edge as a niche product due to the following
reasons:
 As per the technical features of the Clean edge, it’s a unique and innovative
product and if we look at the figures given in the excel file it would incur less
cost in advertising, consumer and trade promotions catering the total to $15
mn as compared to mainstream’s $42 mn.
 Paramount product lines were not in the niche market contribution so if
clean edge is being launched there it could segregate the paramount product
lines in each segment.
 As super premium segment is less saturated it may generate profits if liked by
the consumers.
Q5: Based on your recommended positioning strategy above, what brand

name and marketing mix and budget allocations would you recommend?
Justify. I am also attaching a soft copy of the case data to save you the
bother of entering data
We would recommend Clean Edge by paramount as the brand name. It will distinguish Clean
Edge from the other product lines of paramount, and with its enhanced technical and
innovative features will be targeting the new super premium position in the market.
And if we look at the figures given in the excel file it would incur less cost in advertising,
consumer and trade promotions catering the total to $15 mn as compared to mainstream’s
$42 mn cost in these promotion activities.
Q6: In the case there is a reference to a new brand working on launching

a product that is likely to be similar to that of clean edge. How does that
information impact your strategy?
As there will be a competition now from brand launching the similar product as Clean Edge
the following points need to be taken care of:
1. Product Marketing launch should be done through the right platform in order to
reach the targeted customer segment, to stir up their curiosity and build hype.
2. Let your customers know how will this product’s features will benefit them and how
it is unique and incomparable to the other brand’s product.
3. We need to figure out the brand differentiator features effectively and fill the gap.
4. The proper SWOT analysis, evaluation of the competition and determining the ROI.
Q7: What do you make of the case facts about likely

churn/cannibalisation/ Market share depending on price proposition?
1. Marketing Budget Allocations: According to the marketing budget forecast for 2011
and 2012 from Paramount, positioning Clean Edge in the niche market will require
$15 million overall in the year 1, and $16 million in the year 2.
On the other hand, for the mainstream positioning we would need $ 42 million in the
year 1 & $ 39 million for the year 2, this marketing expenditures involve advertising,
consumer sales promotion and trade promotions.
2. Cannibalization: 65% of Clean Edge sales would be from current Pro/Avail

customers for the Mainstream positioning scenario while a 35% only of the Clean
Edge sales would come from current Pro/Avail customers in a Niche positioning
scenario.

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Q1: Discuss the changes occurring in the market for non-disposable

razors and assess their implications for Paramount’s competitive position.

Q2: How can the market for non-disposable razors be segmented? Explain

The arguments for launching Clean Edge as

(a) A niche product

(b) A mainstream product

Q5: Based on your recommended positioning strategy above, what brand

Q6: In the case there is a reference to a new brand working on launching

Q7: What do you make of the case facts about likely

2. Cannibalization: 65% of Clean Edge sales would be from current Pro/Avail

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