Clean Edge Razor
description
Transcript of Clean Edge Razor
![Page 1: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/1.jpg)
CASE STUDY:
Prepared by
Ershad Haekal
Martha Siahaan
R. Purwedi Darminto
Yuvi Karauwan
Marketing Management Dosen : Dr. Iin Mayasari, MM, MSi
![Page 2: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/2.jpg)
Case Summary
Main Issue
Problem Statement
Analysis
Recommendation
![Page 3: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/3.jpg)
![Page 4: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/4.jpg)
![Page 5: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/5.jpg)
SUPER-PREMIUM
25%
MODERATE 43%
VALUE 32%
VOLUME
![Page 6: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/6.jpg)
SUPER-PREMIUM
34%
MODERATE 44%
VALUE 22%
SALES
![Page 7: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/7.jpg)
![Page 8: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/8.jpg)
PRINCE
BENET & KLEIN
NEW ENTRANTS
![Page 9: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/9.jpg)
![Page 10: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/10.jpg)
![Page 11: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/11.jpg)
![Page 12: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/12.jpg)
Market
segments
Super-Premium
Mainstream Niche
Moderate Value
![Page 13: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/13.jpg)
Profit and Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios ($ in Millions)
Niche Mainstream
Year 1 Year 2 Year 1 Year 2
1 Unit sales - Razors 1.0 1.5 3.3 4
2 Dollar sales - Razors $ 9.09 $ 13.64 $ 25.84 $ 31.32
3 Unit sales - Cartridges 4.0 10 9.9 21.9
4 Dollar sales - Cartridges $ 29.40 $ 73.50 $ 61.58 $ 136.22
5 Total dollar sales $ 38.49 $ 87.14 $ 87.42 $ 167.54
6 Production costs Razors $ 5.00 $ 7.50 $ 15.64 $ 18.96
7 Production costs Cartridges $ 9.72 $ 24.30 $ 22.18 $ 49.06
8 Capacity costs $ 0.61 $ 0.87 $ 1.71 $ 2.45
9 Advertising and Promotion $ 15.00 $ 16.00 $ 42.00 $ 39.00
10 Total costs $ 30.33 $ 48.67 $ 81.53 $ 109.47
11 Operating Profit $ 8.16 $ 38.47 $ 5.89 $ 58.07
12 Profits as % of sales 21% 44% 7% 35%
13 Cost of cannibalization - Razors $ 0.62 $ 0.92 $ 3.48 $ 4.22
14 Cost of cannibalization - Cartridges $ 3.92 $ 9.80 $ 16.63 $ 36.79
15 Profit after cannibalization $ 3.62 $ 27.74 $ (14.23) $ 17.06
(a) Cannibalization cost = % cannibalization from Avail and Pro (5th paragraph in case under Positioning heading) * unit sales * contribution per
unit
where the contribution per unit average for Avail and Pro is $1.76 for razors and $2.80 for cartridges (case footnote 2 under Company Overview heading)
Assumes cannibalization of 35% for Niche, 60% for Mainstream
![Page 14: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/14.jpg)
(ALBERT ROSENBERG)
(WILLIAM KIM)
![Page 15: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/15.jpg)
APPEALS TO MINORITY
CAN BE BROADENED TO
APPEAL TO THE
MAINSTREAM
AVOID CANNIBALIZING
EFFECT
CREATE A ONE STRONG
BRAND
MARKETING INVESTMENTS
&
FINANCIAL RISKS ARE LOWER
![Page 16: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/16.jpg)
CLEAN EDGE IS A
TECHNICAL INNOVATION
REPLACE THE PRO
SCARE OF NEW ENTRANTS
TIME IS RIPE FOR A NEW
PRODUCT
![Page 17: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/17.jpg)
CleanEdge
CLEAN EDGE
![Page 18: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/18.jpg)
![Page 19: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/19.jpg)
![Page 20: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/20.jpg)
![Page 21: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/21.jpg)
![Page 22: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/22.jpg)
![Page 23: Clean Edge Razor](https://reader035.fdocuments.net/reader035/viewer/2022081722/5695d0341a28ab9b0291709b/html5/thumbnails/23.jpg)