A niche product position or a mainstream product position?
HOW?
WHY?
Case analysis-Michael Porter's Five Forces Analysis
Radiance extended its deodorant brand name, Naiv, which threatened CE to a large degree. Such threatening also came from other brands. Different consumers have different views towards the product. With the plenty of promotions, consumers will pay a great attention on the products. At the same time, the high quality of CE will reduce the bargain of consumers.
Niche or Mainstream?
Both!
Contents 1 Background
2
Question Rising
3
Case Analysis
4
Alternative Plans
5
Plan Implementation
6
Forecast
Background
Paramount is a global consumer products giant whose corporate divisions included Health, Cleaning, Beauty and Grooming. Paramount entered the nondisposable razor market in 1962 and quickly became a respected brand in the industry. The U.S. Razor market could be broken up into several categories, including nondisposable razors, refill cartridges, disposable razors, shaving cream, and depilatories.
Clean Edge is faced with the fierce competition from other corporations.
How to make the Clean Edge stand out in the competition and never effect the whole interests of Paramount?
Market Positioning
Paramount is a fully reinforced company with the top research and development team and brain powers, the brand is famous and it holds large part of the market share. Therefore, in order to enlarge the brand effect, the company make its market strategy focus on the target customers. The Clean Edge product is on the introduction stage and has many strong competitors, that is ,Pro and Avail, so the market location of the Clean Edge is to try its best to exceed the competitors and make a minimum effect to the other company's Brand Portfolios.
Disposable razors make a large part of the market because of the low price and convenience. Besides, threatening from shaving cream and depilatories should be taken into consideration either.
• If Clean Edge takes the niche
portfolio perfectly.
position strategy, it will complement the existing product
•At the beginning, the cost will be
low while the profit is high.
Market Segmentation Nondisposable razors and refill cartridges Moderate Super-Premium Value Other substitute products
Trends：In theRazor Market, the quotient of nondisposable razors and refill cartridges has increased gradually from 2005 to 2011.Nondisposable Razors experienced approximately 5% growth per year from 2007 to 2010, with refill cartridges capturing growth of approximately 2%. Market situation is good.
mass merchandisere
Conclusie can expand the sales volume of club stores, it also can catch the loyal consumers of our company. Meanwhile, the sale of food stores and drug stores can reduce appropriately.
Target users
Expect to capture the market
by sales promotions.
Others
The rate of using the nondisposable razors
social/emotio nal shavers Aesthetic Shavers Maintenance Shavers
22 new stockkeeping units has emerged in 2008 and 2009. The whole market is short of these products, which decreases the bargaining power.
Paramount has a lot of advantages in the competition. Paramount has occupied a great status and has become a respected brand in the industry. Goal: Improve the competitive advantage and strengthen the best place in market.
Capital cost
• The Paramount Pro and Avail are
facing with the mainstream
market.
Producing cost Advertising cost Consumer promotion cost Trade promotion cost
The rate of the occupied market
43%
25% 32%
Market Targeting Emotional Shavers
Behavior Segmentati on of Nondispos able Razor
Consumes
Target users
Aesthetic Shavers
Average Profit rate 41.8%
The mainstream position stategy
Capital cost
The mainstream position strategy
Producing cost
• With the advanced technology，
CE will seize the market very well.
Paramount’s Products
Paramount Avail
Paramount Pro
Clean Edge
Question raising
Clean Edge is the revolutionary achievement of Paramount which is expected to be an innovation leader.
Volume Rate in the Market
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2007 2008 2009 2010e 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%