Considering this problem, Randall, the one given the authority to take charge of positioning strategy of Clean Edge has to find alternative courses of actions then analyze them well and choose the probable best among them.
The entire problem highlights the idea of marketing issue concerning positioning strategy of Clean Edge. It talks about the point whether it is good to pursue its launching in the market knowing that it could somehow compete with company’s bread and butter such as Paramount Pro and Avail. The company might be a bit hesitant to pursue this issue as there are required data needed to be unearthed prior to the actual decision-making process. Thus, it is not enough to rely on the point that the customers are becoming sophisticated, knowing what they exactly need in the advent of technological advancement. For this reason, Randall, on behalf of the Paramount should consider investigating alternative courses of actions. One alternative course of action is to launch Clean Edge as a niche product within a year or two, which has to be the indicated period of the market trial. For this reason, he has to consider conducting economic analysis in order to be sure about the output. This particularly would take into account some probable impacts such as the cannibalization effect. So a profit-loss pro forma is necessary in order to find out Clean Edge’s performance and its potential impact on the current profit Paramount’s top products are generating.
It is not easy to decide right away. What Randall requires is a thorough market research on this issue taking into account the associated economic analysis and a benefit-loss analysis. In order for Paramount to grow more, it has to significantly analyze the product life cycle of its top products and the extent to which customers are becoming sophisticated with the latest innovations in technology.