Case Analysis (individual assignment, written submission required):
Note: You will be submitting two separate documents for this assignment:
1) Written Analysis
2) Complete P&L statement in Excel file format
Read the case "Clean Edge Razor: Splitting Hairs in Product Positioning." Analyze the situation in the case
using marketing concepts discussed in class and covered in your previous marketing coursework. These
questions are meant to help guide your analysis. Your written submission must answer these questions clearly
and concisely using specific marketing concepts and terms.
What changes are occurring in the non-disposable razor category?
Assess Paramount's competitive position. What are the strategic life cycle challenges for Paramount's current
products as well as for Clean Edge?
How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors.
What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream brand? Which
would you recommend? Why?
Based on your positioning strategy, what brand name and marketing budget allocations would you advise?
Develop a Profit & Loss statement to answer the question: Where will Clean Edge Razor sales come from?
Use the attached template to develop sales, costs and profits for Niche and Mainstream positioning. Insert the
completed tables from your P&L into your written case analysis.
NOTE: Use the attached P&L template to complete your assignment. YOU MUST USE FORMULAS TO
CALCULATE THE VARIOUS NUMBERS IN THE P&L STATEMENT. YOU WILL NOT RECEIVED CREDIT
UNLESS YOU USE EXCEL FORMULAS IN THE APPROPRIATE CELLS OF THE P&L SPREADSHEET. We
will be discussing the P&L statement during class.
Case submission tips:
Your written case analysis (Executive Memo) should be no more than 4 pages 750 words in length.
Do not merely summarize the case; use the written submission to show your understanding and application of
relevant marketing concepts.
You can have unlimited appendices. You should put extended calculations or large tables in an appendix to
keep the body of your Executive Memo short.
NOTE: You must upload your written assignment via the Blackboard/Turnitin assignment. Please bring a copy
of your assignment with you to class so you can refer to your notes during the class discussion.
ADDITIONAL HINTS AND TIPS FOR THIS CASE:
1) Consider the Segmentation-Targeting-Positioning elements when you are comparing Paramount's old and
new products to the competition.
2) A Perceptual Map of some sort might be helpful to your analysis.
3) Pay attention to the value chain. Paramount sells their products through distribution channels. How does this
affect your revenue and profit calculations?
4) If the new product cannabilizes the old products, Paramount loses the contribution margin of each lost unit
of old product sold. What data in the case will help you quantify that loss?
Sample Solution