...[pic] HARVARD BUSINESS SCHOOL BRIEF CASES 4249 JANUARY 19, 2011 JOHN A. QUELCH HEATHER BECKHAM Clean Edge Razor: Splitting Hairs in Product Positioning On August 9, 2010, a group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount's newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. Clean Edge's improved design provided superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave.1 Jackson Randall, product manager for Clean Edge, sat in the darkened observation room considering the positioning strategy for this new product. He had led the new product development process and was now grappling with how to position the product for the upcoming launch. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market. Others felt a more differentiated niche strategy, targeting the most intensely involved super-premium consumers, would be optimal...
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...Clean Edge Razor Case Analysis Luiz Dantas Marketing Management Professor MaryJo Radosevich Background/Situation A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry within that segment, with the broad appeal of being the most effective razor available on the market. 1. What changes are occurring in the nondisposable 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? Consumers are becoming more sophisticated and looking for new technologies. In other words, they are willing to invest more money and buy products that satisfy the necessity of a smooth shaving experience. In other hand, observing the Exhibit 1, there is a category of consumers called “Maintenance users” that made up 33% of consumers; they were not interested in buying products with superior technology. These consumers cannot be ignored...
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...Sample Case Scenarios Via: Harvard Business School Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market where it has a strong presence. Jackson Randall, the product manager for Clean Edge, struggles with how best to position the product for the launch. One strategy is to release Clean Edge as a "niche" product, targeting the high-end market of fastidious groomers looking for superior skin care products. Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. Randall meets internal resistance to the mainstream strategy from the product manager for the company's current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision--not just for Clean Edge, but for its effect on the entire company. Learning objective: Explore issues associated with strategic product positioning. Review new product development...
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...MBA 812 Marketing Management Case Analysis Clean Edge Razor Splitting Hairs in Product Positioning Shiwei Hua (Vivian) Fall 2012 September 20, 2012 Summary Paramount Health and Beauty Company, a global consumer products giant, operates in health, cleaning, beauty and grooming divisions. The Paramount Pro and Paramount Avail are two lines of nondisposable razors and refill cartridges, and currently share a respectable market share in the industry. Recently, Paramount is set to launch a new nondisposable razor which named Clean Edge with a vibrating, ultra-thin blade design to improve men’s shaving experience. The Clean Edge is to be launched in the Super-premium segment of the market, which experienced significant growth in the industry. The company can either position the product in the niche or mainstream market. The problem at hand is how to position the new product to maximize the company’s profits. This paper analyzes the changes in the nondisposable razor market by evaluating competitors, customer behaviors, and advantages and disadvantages between launching in a niche market or a mainstream market. Finally, it provides financial forecasts to attempt to give insight about which strategy will best for the overall company. Five Changes occurred in the nondisposable razor category First, many new technologies were applied to the nondisaposable design such as vibrating technology, anti-corrosive technology...
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...4188 REV: NOVEMBER 30, 2011 V. KASTURI RANGAN SUNRU YONG Soren Chemical: Why Is the New Swimming Pool Product Sinking? Jen Moritz grimaced as she reviewed the February 2007 sales report for her company’s new Coracle product. In September 2006, Soren Chemical had launched Coracle, a new water clarifier for use in small recreational and household swimming pools. Moritz was responsible for marketing the new clarifier, which she believed was a superior product, but the results so far were discouraging. The volume target was 50,000 gallons (100,000 units) for the first year of sales. However, through the first half of the selling season for pool chemicals, Soren had sold just 3,725 gallons, or 7,450 units. Moritz also had responsibility for marketing Kailan MW, a clarifier used primarily in large recreational water park facilities with typical capacities of one million gallons or higher. Very small quantities of Kailan MW were sufficient to treat large volumes of water, but it was unsuitable for smaller-scale applications such as residential pools. Thus Soren Chemical had developed Coracle, targeting smaller pools with a lower volume of swimmers (known in the industry as “bather loads”) and a less intense maintenance program. In 2006, Kailan MW revenues were $6.1 million and sales were on pace for a 7% increase in 2007; it was healthy growth in a relatively mature market. Coracle had been budgeted at $1.5 million in sales for the year, but so far Soren had sold a very disappointing...
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...Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background TruEarth was founded in 1993 in St. Louis, Missouri, by Gareth DeRosa, a young entrepreneur...
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...A Critical Review of ‘Park Resort’ Case Study Relating To Motivations of Employees Performance Introduction Motivation in work place is important since it is one of the key roles play in productivity growth, achieving goals and business objectivity (Stanton 1983; Vempati 2013) as well as a sign of successful organization (Huczynski and Buchanan 2013). When employees are highly motivated, they will put more effort on the job and enhance their productivity and the quality of their performance (Chiang and Jang 2008). This work is aimed to critically review the ‘Park Resorts’ case relating to motivation aspect of employee and the management’s insight. Both hotel employees and the management acknowledge the importance of employee motivation (Chiang and Jang 2008). This case presents critical learning points on what motivates and drives employee of Park Resort from various motivation theory, namely McGregor’s Theory X and Theory Y, Maslow’s Pyramids of Needs and Amabile & Kramer’s inner work theory, and how does the company sees the importance of such motivation for its benefit. ‘Park Resort’ Case In order to know what is happening in his business, Andy Edge – Marketing Director of Park Resorts – going undercover for a 10-day period in 2 resorts of the group. During his stay, he was joining cleaning departments. He found that there was different performance of the cleaning staffs at the two resorts. The staffs in the first resort were not enthusiast, complaining their...
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...Organization !1 ORGANIZATION Name Course Institution Date Introduction Organization !2 The main aim of the paper will be to support the definition of an organization as a group of people who work together in an organised way for a shared purpose. To achieve this, major characteristics of an organization, such as shared mission, vision and goals, bureaucracy, inclusiveness in decision-making process, work specialization and collective bargaining power will be analysed. Shared mission, vision and goals Every formal organization has mission, which highlights the reason why such an entity exists. The mission statement explains what an organization is out to do, and to achieve (Scott, 2008, p. 90). The vision on the other hand explains what an organization plans to do in order to achieve its mission. Goals are specific, measurable and timely targets that each organization has put forwards to improve its status quo. In order to realize the mission, vision and goals, it is vital that all the stakeholders work as a team. The management ensures that every employee understands the goals clearly, and that each is working towards their realization. The shared mission, vision and goal are achieved through monitoring and evaluation. The management has a role of monitoring the performance of every employee in an effort to know whether they are working in the right direction. Any activity that employees engage in must be geared towards the achievement of the organization’s...
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...MARKETING COURSE Articles Books & Chapters Cases Course Modules Online Courses Simulations 2012 MATERIALS Harvard Business Publishing serves the finest learning institutions worldwide with a comprehensive catalog of case studies, journal articles, books, and eLearning programs, including online courses and simulations. In addition to material from Harvard Business School and Harvard Business Review, we also offer course material from these renowned institutions and publications: Babson College Business Enterprise Trust Business Expert Press Business Horizons Magazine California Management Review Darden School of Business Design Management Institute HEC Montréal Centre for Case Studies Ivey School of Business International Institute for Management Development (IMD) IESE Business School INSEAD John F. Kennedy School of Government Kellogg School of Management Perseus Books Princeton University Press Rotman Magazine Stanford Graduate School of Business Sloan Management Review Social Enterprise Knowledge Network Thunderbird School of Global Management Tsinghua University University of Hong Kong Customer service is available 8 am to 6 pm ET, Monday through Friday. Phone: 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) Tech support is available 8 am to 8 pm ET, Monday through Thursday, 8 am to 7 pm ET Friday. Phone: 1-800-810-8858 (1-617-783-7700 outside the U.S...
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...Kingsford Charcoal case Kingsford Background and Problem Overview Kingsford, an all-American brand, is the prominent manufacturer of charcoal in the United States. The overall charcoal industry has enjoyed a consistent growth for almost 20 years. However, since the summer of 2000, the overall growth in the charcoal category has suffered from a clear decline; the charcoal category growth has declined from 4 % from 1998 to 1999 to 2 % from 1999 to 2000. Several factors have contributed to that, they are summarized below: * Gas grilling, which represents a new competitor to the overall charcoal category, came into play with a massive media expenditure communicating the value of cleanness, convenience, short cooking time, and high control over cooking temperature. * Kingsford failed to fully exploit the opportunity to distinguish itself from gas grilling. It has significantly cut down the advertising budget since 1988 while relying heavily on sales efforts. * Unlike Kingsford, which kept its price almost constant over the years, other competitors in the charcoal industry such as Royal Oak and private label brands have increased their prices and cut back on promotion funding at retailers which results in a decline in the overall category growth due to the shift of new customers getting into grilling who negatively responded to the charcoal price increase. * Unlike previously mentioned factors that can be controlled, weather patterns during the year 2000 showed a significant...
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...SweetWater case analysis- Executive summary: Platter, a successful designer and entrepreneur from the computer peripherals industry, soon became involved in attempting to design an improved product. This analysis examines the most important user needs in the water purifier market using Kano Model and Prototyping and what characterizes an outstanding concept for a water purification device for backpackers and other outdoor enthusiasts. Further competitor’s products are also analysed while determining on how to go ahead with the plan. Consumer Analysis: The consumers for portable water filter device were backpackers, hikers, climbers and other enthusiastic recreationalists. Camping in the backwoods means those people require clean drinking water during their trip. Even if there’s ample of civilization where purified bottle water is readily and cheaply available, it’s always an advantage to have a portable water filter or purifier for those days when all the stores are closed and when you’re in a place where there is no shops available. These backpackers and hikers were educated and had a fair idea of which brand to buy. Quality mattered to them and though they were price sensitive, they afforded to spend significantly on their hobby. User Need in water purifier market: Firstly, the water filter must meet the essential role of filtering water to eliminate bacteria and minerals. In order to meet the user’s needs at this crucial level, a product that is easy to use and...
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...company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad – Consultants and professors One must have strategies to execute dreams. Azim Premji – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the firm. But only one thing can account for the kind of long-lived success records that we see in the world’s greatest companies—and that is a cleverly crafted and well executed strategy, one that facilitates the capture of emerging opportunities, produces enduringly good performance, is adaptable to changing business conditions, and can withstand the competitive challenges from rival firms. In this...
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...own hidden theories of action, managers can detect and correct errors Chris Argyris Why are employees reluctant to report to the top that one of their company's products is a "loser" and why can't the vice presidents of another company reveal to their president the spectacular lack of success of one of the company's divisions? The inability to uncover errors and other unpleasant truths arises from faulty organizational learning, says this author. Such habits and attitudes, which alJow a company to hide its problems, lead to rigidity and deterioration. The author descrihes how this process can be reversed hy a method he calls double loop learning. Chris Argyris is James Conant Professor of Education and Organizational Behavior at Harvard University, and is the author of numerous publications on executive leadership and organizational effectiveness. Several years ago the top management of a multibillion dollar corporation decided that Product X was a failure and should be dropped. The losses involved exceeded $ioo million. At least five people knew that Product X was in serious trouble six years before the company decided to stop producing it. Three were plant managers who lived daily with the production problems. The two others were marketing officials, who perceived that the manufacturing problems could not be solved without expenditures that would raise the price of the product to the point where it would no longer he competitive in the market. There are several reasons...
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...The Big Idea hbr.org Scott D. Anthony is the managing director of Innosight Asia-Pacific and the author of The Little Black Book of Innovation (Harvard Business Review Press, 2012). The New Corporate Garage Illustration: otto steininger Where today’s most innovative—and world-changing—thinking is taking place by Scott D. Anthony Quick: List the big companies that have launched paradigm-shifting innovations in recent decades. There’s Apple—and, well, Apple. The popular perception is that most corporations are just too big and deliberate to produce game-changing inventions. We look to hungry entrepreneurs—the Gateses, Zuckerbergs, Pages, and Brins—instead. The rise of fast, nimble, and passionate venture-capital-backed entrepreneurs seems to have made slow-paced big-company innovation obsolete, or at least to have consigned it to the world of incremental advances. But Apple’s inventiveness is no anomaly; it indicates a dramatic shift in the world of innovation. The revolution spurred by venture capitalists decades ago has created the conditions in which scale enables big companies to stop shackling innovation and start unleashing it. September 2012 Harvard Business Review 45 The Big Idea The New Corporate Garage Three trends are behind this shift. First, the increasing ease and decreasing cost of innovation mean that start-ups now face the same short-term pressures that have constrained innovation at large companies; as soon as a young company gets a whiff of success...
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...Samsung Electronics Prepared by: M. O. Prepared for: Dr. N. C. Course: Organizational Strategy, MGM 6123, Fall 2009 [pic] Date: October 5, 2009 H. State University Samsung Group is one of the leading global conglomerates originating in South Korea, termed chaebol in native terms. Their sales in 2004 climbed to $134billion with 337 overseas operations in 58 countries and they employed 212,000 people worldwide. They have myriads of businesses in a wide variety of industry sectors including electronics, finance, trade and services (Siegel and Chang, 2005). In 1974 a semiconductor company in South Korea started ‘wafer’ production. This was purchased by Samsung Company who merged the semiconductor company with their electronics division to form a ‘global powerhouse’ (Siegel and Chang, 2005). They started with producing watch chips. In the 1980s, semiconductor was decided to be the future of Samsung Group. And the company gave most of its resources to this ‘star affiliate’ (Siegel and Chang, 2005). During 1983 to 1985, Intel exited the DRAM market. Samsung still held on despite incurring losses hoping that it would someday pay off. Their persistence paid off in later years. Samsung built its first large plant in the mid 1980s. Building a semiconductor facility is difficult and time consuming, because of high sensitivity to dust and electric shock. But the Samsung workers, from the executives, engineers, down to the field laborers, were highly dedicated. One memorable...
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