Paramount Launch Clean Edge Case Study
Paramount has established itself as a global consumer products giant. Paramount entered the nondisposable razor market in 1962 and has since become the unit-volume market-leader in 2009. While the rate of new-product introductions for nondisposable razors and refill cartridges has accelerated, most new products were targeted at the super-premium segment and promoted benefits from advances in technology. Until this point Paramount had been unable to compete in the super-premium segment, but with the vibrating technology introduced in the Clean Edge razor Paramount now has a super-premium razor to compete. I recommend a strategy that will launch the new product with success. This strategy will also retain Paramount Pro & Avail existing products. The branding concept launched with this product will increase Paramount’s brand loyalty and give the necessary return on investment for Paramount.
Based on the information given in the case, I would recommend Paramount Launch Clean Edge with a niche strategy as a revolutionary technologically advanced razor. Paramount needs to make sure this product is branded as a Paramount product. This branding strategy will increase the brand loyalty for Paramount by gaining customers looking for a technologically superior razor and continue to retain and gain market share with Maintenance users.
There are many possible alternative solutions to Paramount’s positioning and branding problems. One of which would be to launch Clean Edge as a mainstream technology product. That would increase profits and market share and would have the opportunity for a higher profit margin with a new premium product launched across a larger percentage of users. But it could also lead to the elimination of Paramount Pro and Avail products and Paramount will not be focusing on maintenance users with their new product lines which could lead to loss of sales and customers.
If Paramount Launches Clean Edge with a niche strategy as a