Clean Edge: Groundbreaking Nondisposable Razor Success - Essay Sample

Introduction

Paramount Health and Beauty Company recently launched a new groundbreaking nondisposable razor called Clean Edge. The company is optimistic about achieving its objective with the product, as it will offer the users a great and new feeling. Subsequently, in razor marketing, Clean Edge will offer a lot of competition in the market. Therefore, it is essential to have product positioning and marketing budgeting allocation that is correct and suitable to make it successful in the market. The following paper presented by Jackson Randall will recommend Stuart Quimby based on the proposed Cutting Edge Razor product positioning, brand name and marketing budget allocation.

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The traditional market is composed of both disposable and non-disposable razors, but a new trend has been emerging within the last few years, and this is the appropriate moment for Paramount new Clean Edge Razor to capture the new consumers in the market. Therefore, Paramount is addressing the trend through an elaborate and high-end offering of the product in a bid to capturing a wider portion of this emerging market segment. The U.S. Razor market observed about 5% growth each year from 2007 to 2010. Positioning as an approach for marketing a new product creates a massive change to the mind of the consumer that allows them to change their view (Karadeniz, 2009). Thus, it is essential for paramount to come up with a marketing positioning description that is clearly defined with an artistic and poetic style.

In regards to positioning, the recommended option for Clean Edge from a niche product position is focusing on a target market that is composed of meticulous groomers that are hoping to get a superior shaving experience. Another recommendation for launching Clean Edge razor by niche positioning strategy is to use a name that will appeal to the target market such as 'Clean Edge by Paramount'. The brand name will be an appropriate option for the company, as it will differentiate the razor from other Paramount products through showing a super-premium position that places emphasize on utilizing current technological innovations in the market. Subsequently, the brand name is going to attract a customer base that is highly involved, which distinguishes and is appreciative of the innovative technology of the product. An appropriate brand name should indicate the major benefits of the product and the positive ways it will benefit the user (Pride et al., 2015). Also, an appealing brand name will make it easier to facilitate the marketing of the product in the media through advertisement.

Before the trend of nondisposable razors, the disposable razors merely served as tools for removing hair by the majority of individuals. However, based on Exhibit 1, most people started being concerned with personal image, which was an essential aspect of social life through following a hair removing routine that offers more confidence. Thus, customers have been seeking a nondisposable razor that is effective to remove hair and protect the skin, which offers the clients a sense of luxury through using the best technology. The niche market for Paramount from Exhibit 5 shows that its market share is increasing slightly in comparison to its competitors, some of whom have been experiencing slight fluctuation (Quelch & Beckham, 2011). Hence, it is recommended that this is the perfect time for Paramount to raise its quality of the brand through entering the niche market, which at the same time will slow the competitors down.

Paramount innovated Clean Edge razor to utilize some unique technology as the company has a deep understanding of both the niche and mainstream market with the tendency of clients to demand new and advanced products. The company is confident based on the quality of its products and the competitive position from other firms was not stable. Paramount main competition in the market are Prince and Benet & Klein, which have a wider customer base around the world (Quelch & Beckham, 2011). Subsequently, new competitors are entering the market with some major products that are groundbreaking. Therefore, it is recommended that Paramount introduction of Clean Edge super-premium products will require a substantial marketing budgeting allocation to ensure it has a competitive advantage in the market. The company should implement marketing strategies that will make its brand name widespread in the market, which requires more budget on advertising.

Substantial marketing allocation is widely recommended to ensure the survival of Paramount Clean Edge razor product. For instance, a new competitor in the market called Radiance targeted the market for premium razor through spend up to $16 million on advertising. Thus, it allowed the firm to enter the market successfully and survive the competition. Therefore, the appropriate recommendation for marketing budget allocation is viewed in Exhibit 7, which requires a niche positioning strategy that needs a marketing expenditure of $15 million in the beginning of the year (Quelch & Beckham, 2011). The management at Paramount holds the belief that design is a major breakthrough that will assist in differentiating Clean Edge razors to other nondisposable razors. Therefore, it is recommended for the company to start its marketing with a new brand image. Nonetheless, it is evident that Clean Edge has a unique, innovative design, and advertisement strategy that will promote the business to attract clients that will try the new products.

Placing more marketing budget allocation is a viable recommendation, but the company can utilize a rather different approach in mainstream positioning. Therefore, promotion is an appropriate strategy for marketing the new product by offering free trials or offering coupons to target customers. Thus, Paramount opt to seek out a target audience that requires using high-end luxury products that offers emotional and social satisfaction. Also, traditional advertisements on TV and Newspaper can suit such a market niche as a majority of target customers that prefer to use nondisposable razors belong to the older age group. In a niche market, offering good customer services is essential as it makes the target customers to have a special feeling (Lamb et al., 2008). Individuals that use razor view shaving as a way to enhancing self-esteem, and it is vital for Paramount to treat them in ways there are being cared for by the Clean Edge products. Subsequently, the company can use social media to connect all the time with the target audience, which is an appropriate approach to win over the mind of the customers. Therefore, allocating marketing budget is a recommended approach for the company to gain customer loyalty.Paramount can follow the approach of mainstream positioning to allocate funds from Pro razor and utilize it to launching Clean Edge as a product that is super-premium. However, the recommendation will limit severely the marketing funds that are available to market Pro razor. Nonetheless, based on the projections, to launch into the mainstream successfully it is predicted that Clean Edge will require large media, target consumer and massive promotions. Also, Paramount can create a subjective perception of the product that will make the target audience to view it as unique. Thus, Clean Edge can be launched to such a niche market that has less competition and will result in the cannibalization of other Paramount products.

The best recommendation is to position Clean Edge in a market niche that is super premium rather than the mainstream market. In terms of the brand name, the appropriate recommendation was naming the razor as Clean Edge by paramount. New brand name is going to separate Paramount from its various products. In terms of the product, its major products have a current market value that is moderate. Therefore, establishing a niche market requires having a product that is unique, and the name should reach the innovation provided by Clean Edge. Thus, in case the new product does not to perform well as forecasted in the mainstream market, it will cause a 60% cannibalization of the Paramount Pro. However, to position the product in the niche market lowers cannibalism by up to 35% (Quelch & Beckham, 2011). On the other hand, to place the product in the niche market that is super-premium, the Pro products will be able to retain their clients in the mainstream market and have a competitive advantage over other companies.

In marketing management, the strategies that are developed by firms for niche marketing are usually meant to fulfil certain needs of individual consumers. Therefore, it will offer the company a better opportunity to gain more interest to satisfy the needs of its customers through creating, sustaining and growing a profitable customer relationship (Pride et al., 2015). Although a huge corporation owns Clean Edge, niche marketing usually appeals to the target audience that wants to purchase from a small firm. Therefore, Paramount can become more profitable through placing Clean Edge product to the upper super-premium razor market subset. Hence, the company will appeal to a target audience that demands superior shaving products that have been developed through the most innovative ways. Based on the prevailing factors, it will benefit the company to realizing the product in the appropriate position in its first trial of entering nondisposable razor market. Based on the above recommendations, Clean Edge razor will be able to penetrate the market for nondisposable razors. Paramount is a leading on the global level in selling consumer product due to its strong market share, and it has the highest unit volume.

Conclusion

In conclusion, marketing management is a critical aspect that is necessary when introducing a new product on the market. Paramount is trying to penetrate the market for nondisposable razor through its innovative product of Clean Edge razor. Therefore, Paramount should position itself as a niche instead of mainstream market. In the niche market, the product should follow the approach of promoting itself as the most effective razor, which will ensure it meets its target audience. Hence, the company will be able to keep a base of loyal customers satisfied through designing innovative products, which will allow it to gain a competitive advantage.

References

Karadeniz, M. (2009). Product positioning strategy in marketing management. Journal of Naval Science and Engineering, 5(2), 98-110.

Lamb, C. W., Hair, J. F., McDaniel, C., McDaniel, C., & McDaniel, C. (2008). MKTG 2: A new approach to learning principles of marketing built with you in mind. Mason, Ohio: South-Western Cengage Learning.

Pride, W. M., Ferrell, O. C., Lukas, B. A., Niininen, O., & Schembri, S. (2015). Marketing principles. South Melbourne, Vic Cengage Learning.Quelch, J., & Beckham, H. (2011). Clean edge razor: Splitting hairs in product positioning. Brief cases, Harvard Business School. 4229, 1-10.