Clean Edge Razor

4565 Words19 Pages
Schulich School of Business York University MKTG 2030 Introduction to Marketing Winter 2014 Assignment #1: Clean Edge Razor Michael Callejo Dizon March 4, 2014 Professor Linda Reeser Section S 212258265 Executive Summary Paramount, a global consumer products company with corporate divisions in Health, Beauty, and Grooming, currently has no presence in the super-premium market segment of the nondisposable and refill cartridge industry. The company has just developed a unique design for a new nondisposable razor, dubbed Clean Edge, that utilizes vibrating technology to enter the market segment. With men’s grooming becoming more popular and increasing growth in the super-premium segment, conditions are just right for Clean Edge to makes its appearance in the market. There is intense competition in the already crowded high price, high quality quadrant for nondisposable razors from both multinational players and new entrants. With strong competition and consumers actively searching for innovative products, Paramount must act quickly and decide how to position the product – either as a niche or mainstream product – in the super-premium segment of the razor market before competitors can develop and launch similar products. Launching Clean Edge will require high marketing expenditures and the trend of increasing advertising expenses above retail market sales puts the company at potential financial risk. Sales from Paramount’s current lines, Pro and Avail, will be affected by sales from Clean Edge. Paramount must leverage the effects of cannibalization on Pro and Avail when selling Clean Edge, so as not to completely deter sales away from the “bread and butter” products of Paramount. In order to gain dominance in the super-premium market segment and generate high profits for Paramount, the company should
Open Document