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Marketing Management and Value Creation

In: Business and Management

Submitted By nadiafrade
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Consider exhibit 1 and the three different consumer segments. For which segment would the niche strategy be more effective? And for which group would the more mainstream approach be more effective?

Considering exhibit 1, social and emotional shavers is the segment where the niche strategy would be more effective. This group has some specific characteristics as: more brand switching (mainly to super premium quality); shorter inter-purchase intervals; and shorter average usage period for blades (greater recognition for earlier replacement).
On the other hand, maintenance shavers is the segment where the mainstream approach would be more effective. This segment: has a view of products as they are the same; a lack of interest in product category; shaving routine is inconsistent; shaving is a chore they try to finish as quickly as possible; and are motived by the price.

What segment would you choose to target and how would you position Clean Edge for this segment?

I would choose the niche market segment with a super-premium product. This market, with a low initial investment, minimizing costs, and selling through the niche market, we have what seems like a less risky strategy, that still yields a healthy profit.
The niche market will complement company’s existing product portfolio perfectly and avoid cannibalism, it requires less immediate expenditures in areas of promotions and advertisements expenditures.
Since Clean Edge is the first product that Paramount has in the niche market, Paramount will have market shares in both main stream and niche positions which will diversify its income from multiple sources.
Despite all of this, there are several benefits of entering into the niche market segment as it would increase the…...

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