This case study (attached) assignment will reinforce concepts related to market segments, targeting, and positioning. In addition to these strategic components, the case will bring pricing strategy into the strategic planning process.
Clean Edge Razor is a ‘wet shave’ company that sells nondisposable razors (i.e., consumers buy replacement razors), very much like Gillette Fusion blades.
NOTE – Please answer the questions (below) in place of the case analysis method we used for Starbucks.
After reading the case, please answer the following 4 questions for your analysis this week (don’t use the case analysis method).
What are the dynamics of the non-disposable razor category? Is it stable, growing, or declining? Include numbers from the case. What is Paramount’s (company that sells Clean Edge) position in the industry (i.e., market share leader, etc.)
Be sure to identify, describe, and discuss the three price/quality price tiers (value, mainstream, premium). Notice the different names. What is happening in each of those price tier segments (i.e., growing, stable, declining)? In addition to the price/quality price segments, please discuss the ‘benefits sought’ segments (e.g., aesthetic shavers) in your discussion – these segments need consideration for assessing growth trends and whether to target the mainstream or premium segment.
The central issue, in this case, is how to position Clean Edge (the newest razor technology) in the mainstream vs. premium segment. Discuss the pros/cons of targeting the mainstream segment; do the same for the premium segment. Discuss the potential profits for both segments (premium vs. mainstream) – this will require using pricing, estimated sales volume (units), and costs (variable and fixed).
Make a recommendation based on your analysis. Be sure to include potential short-term consequences and long-term consequences of your decision. Marketing managers usually put more emphasis on short-term results over long-term results (short-term sacrifice with long-term growth). Please include these considerations in this case.
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