GROUP CASE

STUDY
PRESENTATION
Splitting
Hairs in Product Positioning

Group Members:
Lee Eng Keong
814704
Rajarajeswary Sellamuthu 819442

Splitting Hairs in Product Positioning

Presentation Outline :
Case Summary
Problem Statement
Case Analysis
Recommendation

Splitting Hairs in Product Positioning

Splitting Hairs in Product Positioning

Case Summary
1

Paramount is one of biggest international

consumer products.
Market leader since 1962
Offers paramount Pro & Paramount Avail

In 2009, invented technology advanced razors

(Clean Edge Razor)
Superior performance utilizing vibrating
technology

Dilemma in positing the product Niche positiong

or Mainstream Positioning

Splitting Hairs in Product Positioning

NON DISPOSAL RAZOR & REFILL
CARTRIDGE RETAIL SALES BY
SEGMENT
sales

volume

Value; 22%
Moderate; 44%

Value; 32%
Moderate; 43%

Super-Premium; 34%

Super-Premium; 25%

Splitting Hairs in Product Positioning

Paramount Competitors Market Share 2010
23%

21%

6%
3%
26%
21%

Paramount
Prince
B&K
Radiance
Simpson
Other

Splitting Hairs in Product Positioning

Problem Statement
Positioning

Mainstrea
m?
Niche?

Issue
Brand
name

Clean Edge
By
Paramount
Paramount
Clean Edge

Splitting Hairs in Product Positioning

Market Segmentation
Market
Segmentat
ion

Moderate

SuperPremium

Mainstrea
m

Value

Niche

Splitting Hairs in Product Positioning

Market Budget Allocation

Mainstrea
m
Positionin
g

$ 42
Million

Niche
Positionin
g

$15
Million

Splitting Hairs in Product Positioning

Case
Analysis
SWOT Analysis

Leader in
technolog
y
innovation
Strong
brand
Equity
Afford
huge
amount
for
advertisin
g

Cannibaliz
e the
existing
product
Does not
hold
position in
SuperPremium
segment
Competito
r may
release
similar

Growth of
SuperPremium
Segmentati
on
Mainstrea

m market
highly
profitable
Revolution
ary product

Unsuccessf
ul launch
could hurt
strong
brand
equity
Competitors
already in
the SuperPremium
market
segment for
past 50

Splitting Hairs in Product Positioning

Case
Analysis
Budget Analysis
2010
Marketing
Expenses 48.3
Million

Advertising
Expenses 20.2
Million
Promotion
Expenses 28.1
Million

Splitting Hairs in Product Positioning

Budget Analysis
Marketing Budget
50
40
30
Million

Niche
Mainstream

20
10
0

2011
Year

2012

Splitting Hairs in Product Positioning

Product Positioning Analysis
Niche Positioning
Advantages

Disadvanta
ges

35%
alization
ib
nn
ca
less
n
Less competitio
Less cost for
advertising
Match to the
current Portfolio

Difcult to
Expand
arket
Smaller M
Size

Splitting Hairs in Product Positioning

Product Positioning Analysis
Mainstream Positioning
Advantages

Disadvanta
ges

Need to
sustain the
existing
customers

High cost for

advertising

Existing
product
already in
mature
phase

Will weaken
the sales of
existing
product

Splitting Hairs in Product Positioning

Recommendation
h
c
i
N
Mai
nstr e
e
am

Splitting Hairs in Product Positioning

Recommendation