Case Johnson and Johnson
I. Main Problem:
J&J has observed that one of its baby products, Johnson’s Baby Powder, was being used by young female consumers in a different way from the product’s original usage purpose. Based on this observation, the company is considering launching a new product (“Johnson’s Face Powder”) targeting different segment (urban teen and young female adults between 16 and 25 years old, and from AB and C category economic households). The Face Powder is basically Johnson’s Baby Powder with several variations in the feature and is being positioned differently.
II. Alternatives:
1) Johnson’s Face Powder as Toiletry+Cosmetic (J&J’s marketing strategy)
+ Product (Face powder in a “compact” with puffs that bear gold lettering) appeals as cosmetic to young adults, giving them a sense of a grown-up
+ Price is not too expensive compared to other face powder compacts sold in department stores
+ Distribution channel (supermarket) is appealing in terms of cost reduction, easy access by target audience, and image perception for mothers of target segment as safe product (mothers generally don’t want their teenage daughters to wear “makeup”)
- The target audience can be confused of the product’s purpose (Cosmetic? Toiletry?)
2) Johnson’s Face Powder as Cosmetic
• Distribution channel: department stores
• Case: Dark color (e.g black) with gold lettering
• Promote on TV and fashion magazine as a new line of cosmetic product
+ Appeal more to teens and young female adults as “cosmetic” product
+ Enhance the brand image as more
- May encounter resistance from mothers of target audience
- May have to raise price → may not be able to meet sales target
- May confuse consumers with the identity of J&J (J&J doesn’t carry cosmetic products in the Philippines)
3) Johnson’s Face Powder as Toiletry
• Promote as a convenience product that reduces facial moisture
• Use different packaging (not compact+puff but plastic bottle+puff)
• Distribute to...
J&J has observed that one of its baby products, Johnson’s Baby Powder, was being used by young female consumers in a different way from the product’s original usage purpose. Based on this observation, the company is considering launching a new product (“Johnson’s Face Powder”) targeting different segment (urban teen and young female adults between 16 and 25 years old, and from AB and C category economic households). The Face Powder is basically Johnson’s Baby Powder with several variations in the feature and is being positioned differently.
II. Alternatives:
1) Johnson’s Face Powder as Toiletry+Cosmetic (J&J’s marketing strategy)
+ Product (Face powder in a “compact” with puffs that bear gold lettering) appeals as cosmetic to young adults, giving them a sense of a grown-up
+ Price is not too expensive compared to other face powder compacts sold in department stores
+ Distribution channel (supermarket) is appealing in terms of cost reduction, easy access by target audience, and image perception for mothers of target segment as safe product (mothers generally don’t want their teenage daughters to wear “makeup”)
- The target audience can be confused of the product’s purpose (Cosmetic? Toiletry?)
2) Johnson’s Face Powder as Cosmetic
• Distribution channel: department stores
• Case: Dark color (e.g black) with gold lettering
• Promote on TV and fashion magazine as a new line of cosmetic product
+ Appeal more to teens and young female adults as “cosmetic” product
+ Enhance the brand image as more
- May encounter resistance from mothers of target audience
- May have to raise price → may not be able to meet sales target
- May confuse consumers with the identity of J&J (J&J doesn’t carry cosmetic products in the Philippines)
3) Johnson’s Face Powder as Toiletry
• Promote as a convenience product that reduces facial moisture
• Use different packaging (not compact+puff but plastic bottle+puff)
• Distribute to...