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CleanEdgeRazorByNirvanaThemostsuitablestrategyforpositioningCatalogueSpecificplanStrategyselectionAnalysisofstrategiesAnalysisofproblemsBackgroundPlanimplementationBackgroundBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationParamountHealthandBeautyCompanyisaglobalconsumerproductsgiant.ItscorporatedivisionsincludesHealth,Cleaning,BeautyandGrooming.Andithasalonghistoryinnondisposablerazorsmanufacturing.NowithastheproductsofProandAvailwhicharerespectedbrandsintheindustry.Paramounthasdonewellinthisindustryfordecades.AndrecentlyitsuccessfullydevelopedanewproductandplanedtoofferittothemarketinJanuary2021.Itiscertainlyagoodjob.Butittroublestheexecutivesastheyconsiderabouttheorientationofthenewproduct.Andwewilllookatitbelow.CleanEdgerazorHowtoposition?BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationMacro-EnvironmentAnalysisCleanEdgecompetedinthenondisposablerazorandrefillcartridgecategories.Nondisposablerazorsexperienceapproximately5%growthperyearwhilerefillcartridgecapturingapproximately2%growthperyear.SoitisanattractivemarketforParamount.Thismarketcanbedividedintodifferentsegmentsaccordingtodifferentcriterions.Paramountstudiesfrom2021showedthatconsumerspurchasedrazorsandreplacementmorefrequentlythantheyhadinanypreviously.Soconsumers’behaviorisaveryimportantfactorwhenweconsiderthepositioningstrategyforCleanEdge.BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationTheCurrentCompetitorsThreatofSubstituteProductsThreatofpotentialEntrantsBargainingPowerofSuppliersBargainingPowerofCustomersConsumeperceptionchangesquickly&ConsumerscanconverttootherbrandseasilyThemainstreampositioningiseasytoentrywhilethenicheisrelativelyhardtoentrybecauseoftechnologywallParamountisoneofthethreegiantsintheindustry,soithasstrongpoweragainstthesuppliersSubstitutesincludedisposablerazors,electricshavers,andsoon.TheyaimatdifferentconsumersThecompetitionisveryfierce.TheanalysisofFivePowersModelAfteranalyzingtheFivePowersModel,wecanknowthatbargainingpowerofconsumersisbigmeanwhilethecompetitionissofierce.Nextwewillanalyzethecompetitorsparticularly.BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationTheanalysisofcompetitors-1Thenondisplsablerazorandrefillcartridgemarketwasdominatedbythreemultinationalplayers:Paramount,Prince,andBenet&Klein.Butnewentrants,RadianceHealthInc.andSimpsonshadrecentlyintensifiedcompetitioninthespace.Nextwewillanalyzethecompetitionfromthefactorsofadvertisingandpromotionexpendituresandmarketshares.ParamountBenet&KleinSimpsonsPrinceRadianceBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationTheanalysisofcompetitors-2FromthechartwecanseethattheMediaAdvertisingExpendituresareveryhighespeciallytheBenet&Klein.Paramount’sadvertisingexpendituresonlyranksthethird.Sowecangettheconclusionthatthecompetitionisreallyfierce.BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationTheanalysisofcompetitors-323.3%23.4%21.4%30.7%26.2%Conclusion:FromthechartwecanseethatParamountistheleaderwhenthemarketsharesarecountedinvolumes,butitslowpricemakesPrincetheleaderwhenthemarketsharesarecountedinsales.SoParamountmustincreasethecontributionmarginofitsproducts.BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationOpportunitiesCleanEdgerazorwillmakethesupplementforProandAvail
ThechangeofConsumers’perceptionforrazorwillbringagoodopportunityMoreandmoremenpursuingbeautywillincreasethesaleofrazor
ThreatsThecompetitorRadiancewillsellNaivwhichhasthesimilarfunctionwithCleanEdgerazorCleanEdgerazorwillswallowthemarketshareofProandAvailCleanEdgerazorwillbeshiftedoutwiththedevelopingofthetechnologyStrengthsParamounthasalonghistoryandgoodreputationParamounthasabundantexperienceonthesegmentofModerateandValue
ParamountownsthemostadvancedtechnologySWOTWeaknessParamountlackstheexperienceonsegmentofSuper-PremiumParamounthasalimitedcapitalbudget
ParamounthaslowermarketsharethanPrinceTheanalysisofSWOTOutlinesofexistingstrategiesBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationNicheMainstreamTargetmarketHigh-endnichecrowdHigh-endmainstreamcrowdProductPositioningThehighestlevelofmarketNormalmarket-leadinglevelCompetitionintensityVerylowAlittlehighMarketdemandTheblankmarketManyproductsFutureindustrypositioningShave'stopleaderinthemarketRazorindustrymainstreammanufacturersBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementation
ItwillleadtoincomedecreaseinthebeginningperiodA:B:C:advantagesdisadvantagesItwillaffecttheexistingcustomers
Thecompanywillfaceagreaterrisk
StrategyA—NichePositioningItcandevelopmorecustomersinnewsegmentsofthemarketItcanbringahighermarginalprofitItwillestablishanewbrandandbenefittothecompanydevelopingA:B:C:AnalysisofstrategiesABackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationAnalysisofstrategiesB
Itcanrapidlyincreasetheincome
AdvantageItwillerodeoriginalbrandcustomers,affectcurrentproductsalesItisadirectcompetitionsothecompetitionisintenseDisadvantageTheinfluencefromstakeholdersisalsoverylikelytoaffectearningsStrategyB—MainstreamPositioningItcanfullyexerttheexistingbrandinfluence.ItestablishesitsowncorecompetitiveadvantagesBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationAnalysisofstrategiesCAABCBdisadvantagesadvantagesB:enjoythehugevolumeinthemid-latetimeoftheproductlifecycleA:enjoythehighermarginalprofitintheearlytimeoftheproductappearanceC:establishinganewhigh-endbrandisusefulforthecompanyintheindustrytooccupythemarketshareStrategyC—NichetoMainstreamA:Intheshortterm,relationswiththenewtargetcustomersisuncertainthatwillbringnewrisksB:Itwillspendhugemanpowerandfinancialcosttoestablishnewhigh-endbrandsBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationAnalyzethestrategiesquantitativelyNichePositioningMainstreamPositioningYear1Year2totalYear1Year2totalExpectedsales38.4987.135125.62587.417167.538254.955-Capacitycosts0.610.871.481.712.454.16-Productioncosts14.7231.846.5237.81868.016105.834-Advertising7714191736-Consumerpromotions6612171431-Tradepromotions2356814Netincome8.1638.46546.6255.88958.07263.961Netprofitmargin21.2%44.14%6.74%34.66%WithoutconsideringtheeffectofswallowingAftercomputingwecanseethatNichePositioninghasahighernetprofitmarginbothinyear1andyear2.
NichePositioningMainstreamPositioning
Year1Year2totalYear1Year2totalExpectedsales25.018556.6377581.6562534.966867.0152101.982-Capacitycosts0.610.871.481.712.454.16-Productioncosts9.56820.6730.2385.88812.7218.608-Advertising7714191736-Consumerpromotions6612171431-Tradepromotions2356814Netincome-0.159519.0977518.93825-14.631212.8452-1.786Netprofitmargin-0.64%33.72%23.19%-41.84%19.17%-1.75%AfterconsideringtheeffectofswallowingConclusionAftercomputingwecanseethatNichePositioninghasahighernetprofitmarginbothinyear1andyear2.BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationStrategyselectionFactorsNicheMainstreamNichetoMainstreamFasterearningsgrowthEstablishthecorecompetitivenessDevelopmentpotentialBrandinfluenceMakefulluseofmarketopportunitiesPlayexistingstrengthsConclusionHOWTODOIT?BackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationStep1:Createanewbrand,withexistingnewproductregardedasthemedium,stronglyshapingnewbrandimage,andmakeittothetopforrazorindustrybrand.Step2:Withtheindustryproductiontechnologyprogressing,wecanchangetheexistingproductsalittleintothebrandAvailorPro.Step3:Atthesametime,usenewtechnologytoresearchanddevelopnewadvancedrazorstothemarketofthenewbrandSpecificplanSpecificplansBackgroundAnalysisofproblemsAnalysisofstrategiesStrategyselectionSpecificplanImplementationImplementationBackgroundAnalysis
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