MKTG500 – Midterm Exam answers

MKTG500 – Midterm Exam answers - MKTG500...

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MKTG500 – MARKETING CONCEPTS SPRING 2011 DR. HIEU NGUYEN MIDTERM EXAM HBS CASE: CLEAN EDGE RAZOR: SPLITTING HAIRS IN PRODUCT POSITIONING 1. Using the case information and the BCG matrix framework, classify Paramount Pro, Paramount Avail, and Clean Edge: Both Paramount Pro and Avail lines are in the nondisposable razor product category with a 5% growth between 2007 and 2010 in a mature product category (non-premium nondisposable razor). Together these two lines allowed Paramount to capture the unit-volume market leader position in 2009 (23.3% retail unit share). However share of the Avail line has steadily slipped from 8.5% in 2007 to 2.9% in 2010. These facts suggest that Paramount Pro is a Cash Cow (large market share, slow growth market) and Paramount Avail is a Dog (small market share, slow growth market). Clean Edge is being introduced in the super-premium segment which has experienced significant growth in the last decade driven by product innovation. Since Clean Edge is a new product, its market share is uncertain at this point, as it depends on Paramount’s marketing strategy and reactions from the competition. These facts allude to the suggestion that Clean Edge is a Question Mark (high growth market, small market share). 2. What are the arguments for launching Clean Edge as: A niche product: Its benefits appeal to only the minority of consumers (social/emotional and aesthetics segments). Its technical features can only be communicated to and appreciated by highly involved consumers. If successful as a niche brand, the positioning could later be broadened to appeal to the mainstream (“test and invest” strategy). Paramount Pro is a strong mainstream brand which could be aided rather
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MKTG500 – Midterm Exam answers - MKTG500...

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