Group 3 Assigment 14

Kaberi Malakar
Arjun Veer Singh
Divyendu Jha
Shaloo Nidhi Minz
Aarushi Kakirde
Manvendra Singh
Suraj Chaudhary
Krishnapriya Baby

Q1.What are the advantages and disadvantages of positioning clean

edge razor as mainstream or niche level?
A1.
Niche
Advantages Disadvantages
1. Complement existing 1. Due to the shift of consumer
product portfolio preferences towards more
sophisticated and advanced
technology the sales of pro
would decline, and market will
be captured by competitors-
Prince,Radiance,Simpson,Benet
&Klein
2. It would avoid
cannibalization
3. Higher gross profit of
$ 31.365 mn than
 mainstream
4. Lower marketing
expenditure in Niche
(15 mn)investment
than mainstream(42
mn)

Mainstream
Advantages Disadvantages
1. Prevent loyal paramount 1. Higher marketing
customers from shifting to expenditure (42 mn) level
competitors than Niche level(15 mn)
2. It would cannibalize its
own product Paramount
Pro(60% of new sales
would come from existing
product line)
3. Cost of production is
higher, therefore, lesser
gross profit of $ 2.82 mn

Q2.Which option will you prefer?

A2.
We will prefer Niche marketing because of the following reason
Initially, due to cannibalisation, there would be losses in both the
scenarios. However, advertising and promotional costs are much
lower in niche marketing than mainstream marketing. Also, the
production and operational expenses for niche marketing strategy are
lower than mainstream marketing. Hence positioning Clean Edge in
the niche marketing is more profitable ($ 31.365 mn ) than
positioning it as mainstream product ($ 2.82 mn )