Advantages of Opting for the Niche Positioning

Pros/Advantages of Opting for the Niche Positioning –

1. Choosing the Niche market as a positioning statement could be more consistent with the marketing message of promoting product’s high technology and innovation. The target market/consumers will be the intensely involved super premium users, they comprise of the 39% of non-disposable razor users. This group easily distinguishes products based on functionality and messaging- “Shaving is a part of a daily schedule for this group. It makes them feel confident and attractive and would give them an overall shaving experience.”

1. Till date, Paramount product lines were not creating any products to target the niche market; therefore, if Clean Edge with its entire technology prowess is positioned in the niche market, Paramount will have product lines in each market segments, especially; the niche market which is less saturated, and this segment has potential growth in the future. Refer Dustin’s slide # 6 and slide #7.

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Also, per the latest trends for the non-disposable razors and refill cartridges, new product innovations and introductions had accelerated. Most of these targeted the super-premium segment.  Competitors have already started making in-roads by offering superior products -

• Prince (already has 2 super-premium products Cogent and Cogent Plus).  
• B&K (Vitric master has superior anti-corrosive blades)
• Tempest – Pivoting head razor
• Radiance – Naiv (Has a Pulsating Feature) similar to Radiance’s Clean edge.

1. The Niche positioning requires relatively less marketing expenditures ($15 million) as compared to the mainstream positioning ($42 million).Also, advertising and promotions expenditures ($32.48) million in niche positioning against $85.1 million in mainstream positioning for two years.

1. According to the numbers in the excel, choosing the niche strategy will lower the net cannibalization. (By applying the 35% and 60% rule and adjusting it with the Net profit margin).

Clinical trials with various focus groups indicated that Radiance’s Clean Edge is a superior product, has 25% more hair removal as compared against Cogent and Vitric). (Not sure if the results of the clinical trials were compared with the performance of Radiance’s Naiv, which is the closest competitor)