Clean Edge Razor Splitting Hairs in Product Positioning Case Study Answer

Case Study 1

Question1

Clean Edge Razor is operating in the niche of a super premium strategy. The improved design of Clean Edge made it work well and shave closer by using vibrations to wake up hair follicles and lift the hair off the skin. Jackson Randall, the product manager for Clean Edge, sat in the dark observation room and thought about how to market this new product. He was in charge of making the new product and was now thinking about how to market it for its upcoming launch. All of the top people at Paramount agreed that Clean Edge should be priced in the super-premium market. But some executives thought Clean Edge should be launched as a mainstream competitor in that market. They thought it would be the best razor on the market and appeal to many people. Others thought it best to use a more specific niche approach to go after the most involved super-premium customers (Jager et al. 2020).

Introducing the innovative Clean Edge razor as a niche product would be better, targeting a particular population that is more likely to accept the most recent technological developments. These are the kinds of people who are most likely to be the product's early adopters. The product's appeal may be restricted to a particular subset of consumers, specifically those with a significant financial investment in shaving and a strong commitment to the Paramount brand. As a result, it would make sense to concentrate on targeting specific and niche markets instead of general ones. In a market with a narrow focus, the threat of cannibalization is mitigated, and it is possible to maximize revenues by selling the new Clean Edge product line and the products that have been on the market for some time (Bian, Song & Bai, 2019).

The amount of risk associated with the product is lower, even though it is expected to generate fewer earnings than possible with a debut in the mainstream market. Monitoring the product life cycle makes it possible to identify the maturity stage, which is the point at which demand begins to decrease. This makes promoting the product as a mainstream offering easier after it has reached this level. Compared to transitioning from a specialist market to a mainstream market, it is easier for a product to transfer in the opposite direction.

Question 2

The amount of money made from the sale of Paramount Pro has been on an unbroken increase trajectory. In contrast, the amount of money made from the sale of Paramount Avail has been on an unbroken downward trajectory. As a result of the lack of significant advancements over the previous five years, Paramount Pro has entered the maturity phase of its life cycle, which will likely result in a drop in sales. The Clean Edge product is based on an innovative and ground-breaking technology that has led to an increase of 25 percent in the effectiveness of hair removal. The product's marketing strategy is geared specifically toward the ultra-luxury sector of the market. There is a chance that the launch of Clean Edge will result in the cannibalization of Paramount Pro's existing market, which is the company's principal source of revenue (Kozłowska et al. 2019).

Based on the cost and quality of the product, the market for non-disposable razors and cartridges that can be refilled may be broken down into three distinct subcategories: super-premium, midrange, and value. The business's extremely premium, moderate, and value divisions each account for a respective 34, 24, and 22% of the industry's total sales value. Distribution outlets have increased the shelf space they have available as a direct response to the rising quantity of razors. The huge margins that come with selling razors make them an appealing choice for retailers, even though razors sell very little.

There is a growing movement in the market towards products that are geared specifically at men. on recent years, there has been a growth of products on the market, including men's body spray, shower gel, and skin care lines. These products may be found in a wide variety of price points. The market for men's personal care goods has expanded at a faster rate than the industry for women's beauty products in recent years (Ferrell, Hartline & Hochstein, 2021)

Case Study 2

Answer 3

In 2012, the company J.C. Penny was dangerously close to entering into a state of insolvency. The actions taken by the CEO at the time, Ron Johnson, who implemented an ambitious strategy to rejuvenate the company through the use of various measures, including store renovations, alterations to the product offerings, and the discontinuation of sales and promotional events in favor of a consistent pricing model, served as the rationale for this decision. This decision was made because of the actions taken by the CEO at the time. The modifications that the corporation made resulted in the alienation of a sizeable percentage of their dedicated customers while simultaneously failing to attract members of the target demographic that the company had hoped to attract (Ferrell, Hartline & Hochstein, 2021)

JC Penny has determined that three significant aspects of their business need their attention for them to revive their organization. The company has made the decision to use these three strategic goals namely, omnichannel integration, increasing revenue per customer, and private-label merchandise as the driving principles for all upcoming efforts. The retail business has been experiencing increased levels of rivalry, with department stores coming under increasing pressure from new retail models, such as large-scale retailers like Walmart and niche specialty stores like Gap (Kozłowska et al., 2019).

In the context of the department store channel, J.C. Penney is suffering a loss of market share in comparison to its primary competitors, Macy's and Kohl's, throughout the whole range of price points available at these establishments. Following the economic downturn that occurred in 2008, there has been a discernible movement in consumer behavior towards frugality and a focus on pricing. This shift has been visible. As a direct consequence of this, mass merchandisers like Walmart and Target have captured a sizeable portion of the less affluent end of the market, while more upscale department shops like Macy's and Nordstrom have refocused their attention on catering to the needs of the middle-class customers who are on the rise (Morgan et al. 2019)

J.C. Penney runs the risk of alienating its core client base as a direct consequence of its drastic makeover. The growth of J.C. Penney's e-commerce sales has reached a plateau, but there remains room for major expansion in this market. Despite going through a considerable shift, J.C. Penney has yet to be able to win over the younger generation, which is a critical part of the market that has the ability to increase sales. There is potential for J.C. Penney to target the specialized market that comprises the LGBT community.

Answer 4

The JCPenney Company has been undergoing a transition from a value retailer to a streamlined, customer-driven retailer in order to differentiate itself from its two key competitors, Macy's and Kohl's. These two retailers are its primary competitors. This decision was made in order to help the organization reduce its expenses. In the past, JCP's primary focus was centered on specials that were available across the entire shop.

As a result of increased rivalry from both high-end and low-end competitors like Macy's and Kohl's, J.C. Penney is seeing a decrease in the percentage of the market share it holds within the department store industry. There has been a discernible movement in consumer behavior towards frugality and a focus on pricing as a result of the economic recession that began in 2008. This shift came about as a direct result of 2008. As a consequence of this, mass merchandisers like Walmart and Target have established themselves as significant players in the lower end of the market, whilst department stores that cater to the upwardly mobile middle class, like Macy's and Nordstrom's, have established themselves as significant players in the higher end of the industry. JCPenney has lately reworked their brand to represent a wider variety of pricing points that are more in line with one another, in addition to a number of other kinds of sales. In this exploratory look at JCP's merchandising strategy, both traditional and modern methods, as well as additional steps that might be taken to improve the returns on merchandising investments, are investigated. During the course of this study, a thorough assessment of JCP's internal and external surroundings has been carried out, and an analysis of the behaviours that their consumers have been showing has been presented. Both of these aspects have been taken into consideration in this investigation (Bian, Song & Bai, 2019).

References

Bian, Y., Song, K., & Bai, J. (2019). Market segmentation, resource misallocation and environmental pollution. Journal of Cleaner Production , 228 , 376-387.

Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy . Cengage Learning.

Jager, J., Gerssen, A., Pawliszyn, J., Sterk, S. S., Nielen, M. W., & Blokland, M. H. (2020). USB-powered coated blade spray ion source for on-site testing using transportable mass spectrometry. Journal of the American Society for Mass Spectrometry , 31 (11), 2243-2249.

Kozłowska, A., Grzegorczyk, B., Morawiec, M., & Grajcar, A. (2019). Explanation of the PLC effect in advanced high-strength medium-mn steels. a review. Materials, 12(24), 4175.

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science , 47 , 4-29.

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