3. What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream
brand?
Over the past decade, the super-premium segment has been experiencing the most
significant growth in the razor market. As generic razors are mostly replaceable amongst brands,
consumers are beginning to have increasingly higher tastes. While niche markets are not as large
in overall popularity as mainstream markets, they are typically of higher quality, boast more
loyal consumers, and can demand higher prices.
Launching Clean Edge as a niche product would highlight the premium quality of the
product and differentiate the razor from various mainstream options. Providing an innovate,
high-level grooming experience that provides the best possible shaving experience to a consumer
segment with preferencing evolving towards a higher-quality shave. This type of differentiation
would capitalize on the growing demand within the segment of consumers seeking a premium
shaving experience. As consumer tastes are becoming more sophisticated and expectations for
cutting-edge technology continue to grow, Clean Edge would fit in nicely to this growing market
segment as a niche product. With many generic products already on the market to serve the broad
shaving audience, a niche product like Clean Edge would position Paramount to separate itself in
the eyes of consumers with increasingly higher standards.
However, there are benefits to positioning Clean Edge as a mainstream product. With an
already established corporate brand, Paramount has the Pro razor as its leading mainstream
product. There are fears within the company that the Pro is a fading product that is on the
decline. Pro has achieved mainstream market success and developed strong brand recognition for
Paramount in the mainstream market. However, Pro may not see continued growth as consumer
demands change and evolve towards higher-quality razors. This fact makes a strong case for
Paramount to position Clean Edge as the higher-end replacement for Pro in the mainstream
market. A bet that the premium style of Clean Edge would become the new mainstream
preference might eat into sales of Pro, but it would set up Paramount to keep its share of the
mainstream market in the long-term.