Paramount Clean Edge Case Study
CHALLENGE
Paramount needs to decide on a marketing strategy to launch Clean Edge, a new non-disposable razor touted as the latest innovation in the men’s shaving industry.
STRATEGY
After conducting market research, I segmented the men’s shaving market into three groups: social/emotional shavers, aesthetic shavers, and maintenance shavers. Through industry analysis, I identified two potential product launch plans: niche, targeting the social/emotional and aesthetic shavers, and mainstream, targeting the maintenance shavers. Finally, with the help of Paramount financial data, I calculated cannibalization costs and forecasted profits for Clean Edge in the niche and mainstream launch plans.
RESULTS
I projected a product launch in the smaller but highly motivated niche market to generate nearly $31.4 million in two years compared to $2.8 million in the highly elastic mainstream market, including a $14.2 million loss in the first year. The projections included best case and worst case cannibalization costs of the Paramount Avail.
Launching in the niche market gives Paramount a first mover advantage and allows Clean Edge to eventually move into the mainstream market while competitors copy and catch up.
Jacob Betzner 