Swot Analysis Of Clean Edge

Product Characteristics

In 2007 Paramount developed ‘Clean Edge’, a technologically advanced non-disposable razor ina bid to establish the company as an innovation leader. This new razor had an ultra-thin five-blade design but its most important characteristic was its vibration technology.The vibrations stimulate hair follicles and lift the hair from the skin. This facilitates a thoroughclean shave. The vibrations were generated with an AAA battery housed in the handle of therazor. The handle, therefore had to be large and heavy, and in this in turn provided better grip,balance and control while shaving.The advanced ultra-thin blades reduced irritation and was 25% more efficient in hair removalvis-à-vis other leading non disposable brands.

Paramount’s bread and butter product, Pro was in the mature phase of the productlifecycle so there is a possibility of decline. Positioning Clean Edge as mainstream product willhelp prevent loyal Paramount customers from being wooed away to more innovative brands.Main stream razor unit volumes are expected to capture over three times the volumes of theniche market in the first year. Clean Edge has the potential for true market domination andwould quickly gain mass appeal.

Cons:

Paramount already had product in mainstream positioning -Paramount Pro so launching it asmainstream positioning will dilute the brand power and will lead to cannibalization.More marketing support will be needed to reach the target masses. The company wouldrequire an extensive advertising campaign, considerable consumer promotions would beneeded and thus the expenses associated with them will be huge. To reach full sales potentialwith this positioning, $42 million marketing budget would be needed for year

“CleanEdge by Paramount” and “Paramount Clean Edge”. The former is suitable if the company wantsto emphasize the product as a unique breakthrough/stand-out product.

However given the tight advertising budget it will be wise to consider “Paramount Clean Edge”because there is greater emphasison the name “Paramount” and rather than the productname. This strategy facilitates new product acceptance because potential buyers are alreadyfamiliar with the “Paramount” brand.

The amount of advertising required to specificallyconvince consumers about trying Clean Edge, as a completely new product will be considerablyreduced. Besides, this is consistent with the overall corporate strategy of building theParamount brand name equity.

Thus, by naming the product “Paramount Clean Edge”, Randallcan leverage the company’s positive image in the consumer’s mind to generate maximum