NicheorMainstream?Both!ContentsBackground1QuestionRising2CaseAnalysis3AlternativePlans4PlanImplementation5Forecast6Background

ParamountisaglobalconsumerproductsgiantwhosecorporatedivisionsincludedHealth,Cleaning,BeautyandGrooming.Paramountenteredthenondisposablerazormarketin1962andquicklybecamearespectedbrandintheindustry.TheU.S.Razormarketcouldbebrokenupintoseveralcategories,includingnondisposablerazors,refillcartridges,disposablerazors,shavingcream,anddepilatories.ParamountCleanEdge:Vibrationsstimulatehairfollicles.A25%increaseinhairremovalversusothers.Aultra-thinfive-bladedesignandoneAAAbatteryprovidesmotivationLagerandheavierhandle,bettercontrol,betterbalance.AdvancedbladedesignreducedirritationBenefitstooverallskinconditionwithskintoneandskintexture(Asellingpoint).QuestionraisingCleanEdgeistherevolutionaryachievementofParamountwhichisexpectedtobeaninnovationleader.CleanEdgeisfacedwiththefiercecompetitionfromothercorporations.HowtomaketheCleanEdgestandoutinthecompetitionandnevereffectthewholeinterestsofParamount?Anicheproductpositionoramainstreamproductposition?HOW?WHY?Caseanalysis-MichaelPorter'sFiveForcesAnalysisDifferentconsumershavedifferentviewstowardstheproduct.Withtheplentyofpromotions,consumerswillpayagreatattentionontheproducts.Atthesametime,thehighqualityofCEwillreducethebargainofconsumers.Disposablerazorsmakealargepartofthemarketbecauseofthelowpriceandconvenience.Besides,threateningfromshavingcreamanddepilatoriesshouldbetakenintoconsiderationeither.Paramounthasalotofadvantagesinthecompetition.Paramounthasoccupiedagreatstatusandhasbecomearespectedbrandintheindustry.Goal:Improvethecompetitiveadvantageandstrengthenthebestplaceinmarket.Radianceextendeditsdeodorantbrandname,Naiv,whichthreatenedCEtoalargedegree.Suchthreateningalsocamefromotherbrands.22newstock-keepingunitshasemergedin2008and2009.Thewholemarketisshortoftheseproducts,whichdecreasesthebargainingpower.Conclusion：Accordingtothechangeofretail

wecanexpandthesalesvolumeofclubstores,italsocancatchtheloyalconsumersofourcompany.Meanwhile,thesaleoffoodstores

anddrugstorescanreduceappropriately.

Amountofmoneyearnedinthemarket

NondisposablerazorsandrefillcartridgesSuper-PremiumModerateValueOthersubstituteproductsMarketSegmentationTrends：IntheRazorMarket,thequotientofnondisposablerazorsandrefillcartridgeshasincreasedgraduallyfrom2005to2011.NondisposableRazorsexperiencedapproximately5%growthperyearfrom2007to2010,withrefillcartridgescapturinggrowthofapproximately2%.Marketsituationisgood.MarketTargetingEmotionalShaversAestheticShaversBehaviorSegmentationofNondisposableRazorConsumes

Others

Targetusers

Targetusers

Expecttocapturethemarketbysalespromotions.MarketPositioning

Paramountisafullyreinforcedcompanywiththetopresearchanddevelopmentteamandbrainpowers,thebrandisfamousanditholdslargepartofthemarketshare.Therefore,inordertoenlargethebrandeffect,thecompanymakeitsmarketstrategyfocusonthetargetcustomers.TheCleanEdgeproductisontheintroductionstageandhasmanystrongcompetitors,thatis,ProandAvail,sothemarketlocationoftheCleanEdgeistotryitsbesttoexceedthecompetitorsandmakeaminimumeffecttotheothercompany'sBrandPortfolios.

Anichepositionstrategy

Amainstreampositionstrategy

CombinationofthenicheandmainstreampositionstrategyPlanstoThenichepositionstrategy

TheParamountProandAvailarefacingwiththemainstreammarket.

IfCleanEdgetakesthenichepositionstrategy,itwillcomplementtheexistingproductportfolioperfectly.

Atthebeginning,thecostwillbelowwhiletheprofitishigh.???AverageProfitrate41.8%Themainstreampositionstrategy

?

Withtheadvancedtechnology，CEwillseizethemarketverywell.

?Tosomedegree,CEislikelytobecomethebestsellerinthewholemarket.AverageProfitrate27.7%

Combinationofthenicheandmainstreampositionstrategy?Firsttwoyears,thenichepositionstrategywillbeused,thenturntothemainstreamone.CapitalAdvertisingConsumerPromotionTradePromotionProducingProfitYear10.6176223.778.16Year20.8776355.33538.465Year31.711917649.5995.889Year42.451714899.52258.072Average1.4112.510.754.7557.056527.6465Costsofthecombinationstrategy($inmillions)Theaverageprofitrateis27.88%PlanImplementationWe’llchoosethethirdoptions——combinationoftheNicheandMainstreampositionstrategy.Thecausescomeasfollows.Withthestrategy,thecompetitionbetweentheParamountproductsiscertaintoreduce.Thewholeinterestsarewellprotected.Meanwhile,theexistingproductportfolioiscomplemented.Launchedintothehigh-endmarket,boththemarketingcostsandriskwillbereduced.Howevertheprofitishigh.PlanImplementaionProisinthematurephaseoftheproductlifecycle.Itisamatteroftimetoseeitsdecline.Ontheotherhand,CleanEdgeisintheintroductoryphase.ItisaremedialmeasuretoreplaceProwithCleanEdgetwoyearsafter,whichalsoallowsParamounttodevelopnewproductsinordertoattracttheconsumersinthenichemarket.Enteringthemainstreammarket,thedominantpositionofParamountwillbeconsolidated.Thenewtechnologywillbringinloyalconsumersandbuildaperfectbrandimage.ForecastLaunchinthemarket

Newtechnologycreatessuperiority

Turnintomainstreamandenlargethegroups

LoyalconsumersandtrustinthetechnologyUpdateintechnology

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