Clean n Clear adjusted

Marketing Assignment

ON

REPOSITIONING OF CLEAN & CLEAR FACE WASH

PREPARED BY:

Sami Hassan (29)Nooshen Raza (20)Sania Naz (27)Faisal Naseem (09)Nazia Saleem (21)Zehra Asif (34)

PRESENTED TO:Sir Shameel Zubairi

In partial fulfillment of the course of marketing management.

Karachi University Business School K.U.B.S

Letter of Transmittal

January 6th 2009

Sir Shameel ZubairiK.U.B.S.Karachi

Dear Teacher,

We have a pleasure in presenting to you this report for the subject of Marketing Management. The report has been prepared keeping the course requirement in mind.

We would like to thank you for providing us such a wonderful learning opportunity. It has helped us immensely to improve upon our managerial knowledge by sharpening our analytical skills.

Thank you

Sincerely,

Sami HassanNosheen RazaSania NazFaisal NaseemNazia SaleemZehra Asif

Repositioning of Clean & Clear Face Wash2


ACKNOWLEDGEMENT

First of all we would like to thank Almighty God for giving us the strength and courage to accomplish all tasks, big and small. And the will power and patience in making this report possible. We went through certain hardships during the making of this report. In spite of all of this we remained unshaken and confident by the difficulties that hindered our effort. It was the most laborious task for us and we couldn’t have accomplished this without those promising group discussions and the support of a lot of people.

We cannot oversee the extended help of our Marketing Management Teacher who give us all the guidance, advice and examples in making this report possible. We are grateful for her help and co-operation.

This report will be a source of best secondary data for the upcoming students with similar projects

In the end I hope and pray that this report meets the criteria, which we were asked to adhere to and you have a worthy time going through it.

THANKYOU



TABLE OF CONTENT

S.NO. PARTICULARS PAGE NO.

1 Executive Summary 52 Introduction 63 Our History 64 CREDO values 75 Product Offering 96 Johnson & Johnson Products 107 Clean & Clear Face Wash 118 Reason for Repositioning 129 Product benefit 1210 Success reason 1311 SWOT analysis 1412 Competitor analysis 1613 Environment analysis 1714 Market Planning 2015 Marketing Objectives 2016 Target market 2117 Segmentation 2218 Market Mix 2319 Product positioning 2720 Value proposition 2621 Advertising plan 3022 Marketing strategies 3623 Action plan 3724 Financial Objective 3825 Budget 3826 Controls 3927 Conclusion 41



EXECUTIVE SUMMARYWe chose the re-positioning of the brand Clean & Clear Face wash, which was quite challenging because it is easier to work over a new product but harder to make a product successfully reposition.

If we look beyond the big-name brands of face wash, we find a whole world of lesser-known face washes. Thousands of new skin care products are introduced every year around the world.

But not all of these products survive. Every year, many of these new face wash and even some older brands go extinct. And perhaps secret characteristics and a uniqueness of products are lost along with it.

Sometimes we assume these foaming facials, cleansers and face washes were rejected by the public due to poor quality or high price. In a level competitive field the losers must have been defective and the winners’ superior, right? But most often this is a simpleminded way of looking at business. Maybe it was sloppy bookkeeping, or poor marketing decisions, or sudden materials expenses, any of these factors could have doomed these businesses, without any input from the consumer.

In our report, we first tried out to identify the actual users of Clean & clear face wash. We came to know that though women are target audience for Clean & clear face wash but men are also users of it. So we decided to target it for men as well so they don’t feel hesitant using it without being targeted.



INTRODUCTION

Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.Our Family of Companies comprises:

The world’s premier consumer health company The world’s largest and most diverse medical devices and

Diagnostics Company The world’s third-largest biologics company And the world’s sixth-largest pharmaceuticals company We have more than 250 operating companies in 57 countries

employing 120,200 people. Our worldwide headquarters is in New Brunswick, New Jersey, USA.

Our History

Johnson & Johnson was founded more than 120 years ago on a revolutionary idea: Doctors and nurses should use sterile sutures, dressings and bandages to treat peoples’ wounds. Since then, we’ve brought the world new ideas and products that have transformed human health and well-being. Every invention, every product, every breakthrough has been powered by generations of employees who are inspired to make a difference.People and Values

People and values are Johnson & Johnson’s greatest assets. We know that every invention, every product, and every breakthrough we’ve brought to human health and well-being has been powered by people. Our people strive to make a difference. We believe the shared values embodied in Our Credo help us attract and keep the most talented values-driven people in the world.

CREDO values of the company



We believe our first responsibility is to the doctors, nurses and patients to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality.

We must constantly strive to reduce our costs in order to maintain reasonable prices.

Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity

to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout the world.

Everyone must be considered as an individual; we must respect their dignity and recognize their merit. They must have a sense of security in their jobs.

Compensation must be fair and adequate and working conditions clean, orderly and safe.

We must be mindful of ways to help our employees fulfill their family responsibilities.

Employees must feel free to make suggestions and complaints.There must be equal opportunity for employment, developmentand advancement for those qualified.

We must provide competent management and their actions must be just and ethical.

We are responsible to the communities in which we live and work and to the world community as well.

We must be good citizens – support good works and charities and bear our fair share of taxes.

We must encourage civic improvements and better health and education.

We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.

Our final responsibility is to our stockholders.

Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed

and mistakes paid for.



New equipment must be purchased, new facilities provided and new products launched.

Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders

should realize a fair return.

PRODUCT OFFERING

Every day, millions of people around the world enjoy the benefits of products from the Johnson & Johnson Family of Companies; very likely, someone in your family is one of them.

Customer’s family’s health and well-being is our passion. That’s why our companies offer the world’s broadest range of health care products. Whether customer have a skin blemish or sniffles or a serious medical condition, customers and the health professionals trust can turn to our companies’ products for comfort and care.

In customer home, products from our consumer health companies brighten customer smile, add luster to customer hair and ease that



nagging headache. Customer can rely on us to help keep baby fresh, sooth an irritating itch, or relieve an aching muscle.

In operating rooms and laboratories, doctors and nurses, too, rely on products from our medical technology companies. They use these products to perform hip replacements, implant coronary stents, and run tests for metastasis breast cancer that give people hope for a longer, more active life. These products help those people conquer life-threatening obesity, ward off colon cancer, and control their diabetes. The list goes on.

And products from our pharmaceutical companies have likely helped someone you know. These medicines treat a wide array of conditions, ranging from migraines and rheumatoid arthritis to cancer and serious infections.

Whatever your family’s health care needs, the Johnson & Johnson Family of Companies is at your side.



JOHNSON & JOHNSON PRODUCTS

Baby care Skin and Hair care Wound care and tropicals Oral health care Women’s health care Over-the-counter-medicines Nutritionals Vision care



CLEAN & CLEAR FACE WASH

Whether its analgesics or baby care, endoscopic surgery or interventional cardiology, oral care or wound care, the Johnson & Johnson Family of Companies make products that help people live healthier lives. Clean and Clear face wash comes in the category of consumer skin care products. Clean and clear is very famous brand in many countries of the world but unfortunately in Pakisan it does not show a good result therefore we are repositioning it with new marketing plan.Clean and Clear Face Wash lets keeps things nice and clean. This oil- free foaming cleanser fights bacteria to keep skin clearer and more beautiful. Cleansing agents gently remove oil, dirt and makeup without over-drying. Customer skin is left looking clean, noticeably clear, and at the top of its game.

REASON FOR REPOSITIONING

The reason for repositioning clean & clear face wash is to attract a new target market, increase the product acceptability among males and hence generate sales and profits.



PRODUCT BENEFIT

Clean & clear face wash is a skin care product for those people who want healthy and clean skin. It’s a face wash which helps prevent blemish.

Clean and Clear Face Wash works to remove dirt, oil and make-up. The rich lather is oil-free and leaves skin feeling soft and refreshed. It contains Triclosan, an ingredient that fights problem-causing bacteria.

Ingredients of Face wash

Alanine, Arginine, Betaine, Camellia sinensis leaf extract, Cetearyl Alcohol, Citrus aurantium dulcis (orange) fruit extract, Citrus medica limonum (lemon) fruit extract, DMDM Hydantoin, Fragrance, Glutamic acid, Glycerin, Glycine, Glycolic Acid, Iodopropynyl butylcarbamate, Lysine, May also contain Sodium Hydroxide., Menthol, Methylchloroisothiazolinone, Methylisothiazolinon Methylparaben, Montmorillonite, PPG-15 Stearyl Ether, Polyethylene, Polysorbate 60, Potassium Cetyl Phosphate,Proline, Saccharum officinarum (sugar cane) extract, Serine, Sodium PCA, Sorbitol, Steareth-21, Threonine, Vaccinium myrtillus fruit/leaf extract, Water, Xanthan Gum

SUCCESS REASON OF “CLEAN & CLEAR FACE

WASH

The success reason of Clean and Clear Face wash is that we have changed our philosophy from competitor centeredness to following believes:

We believe that beauty comes from being confident comfortable and secure in customer’s own skin. We believe that customer’s skin is unique and that his skin care needs are constantly changing.



We believe that more customer know about managing their skin the better it will look. We believe that by getting noticeably clearer, more beautiful skin, customer will become a more beautiful you. And we believe that we can help them.

The other reason of success of this product is that company has also targeted men for this product and use ingredients that are also helpful for men’s skin and no other company is targeting this product to men.

SWOT ANALYSIS

POTENTIAL INTERNAL STRENGTH

Company reputation is recognized through all over the world Customers satisfactions (toll free number, online services, and

advisory services) Customer’s retention ratio is high. Supreme product qualities. Stability in Pricing. Larger Distribution network. Products promotion in a large scale Aggressive sales force team Geographical coverage Company is financially strong Company is internationally recognized in consumer segment



12. Well established products 13. High quality of products

POTENTIAL INTERNAL WEAKNESSES

Our Premium prices are basically set keeping in mind our target customers, but high prices are a weakness to the sales of the product

No specialized variant for men No specialized personnel used

POTENTIAL EXTERNAL OPPORTUNTIES

Clean n Clear has a strong market potential in the market & can look forward to gaining more shares in the skin care segment.

The market segment of upper-middle class and upper class are relatively less price sensitive.

Men are becoming increasingly aware. We will do heavily promotions to expand our market to its fullest

ability. The product is created keeping in mind our customer’s

convenience, and our availability, prices and packaging proves it.

POTENTIAL EXTERNAL THREAT

The switching potential can be high if the customers are not satisfied with our product.

If our product gets successful, there is a major threat of new entrants to follow up on our trend.

Existing producers of face wash can decrease their prices as well as new entrants to attract customers.

Competitors: Local and international competitors have well established businesses

Environment is constantly changing Large proportion of men who are currently unaware and place

low priority on skin care



COMPETITOR ANALYSIS

DOVE FACE WASH PONDS FACE WASH

NEUTROGENA

OLAY FACE WASH L’OREAL



ENVIRONMENTAL ANALYSIS

MICRO ENVIRONMENT

COMPETITION: The survey shows the only major competitor for Clean & Clear Face Wash is Ponds Face Wash. The other competitors include L’oreal, Neutrogena, Olay and Dove face wash but they have very small market share.

CONSUMER AWARENESS: The target market for Clean & Clear Face Wash are those who are mostly already using other J&J products so customers are already aware of J&J and are aware of its quality product. These customers will be made aware of Clean & Clear Face Wash through posters outside renowned superstores and super markets of Karachi, Billboards, TV ads, through print media and additional campaigns.

DISTIBUTERS: Johnson & Johnson Company has segregated its distribution by 7:3 ratio, in which 70 % is J&J self – distribution which possesses 235 trucks and each truck visits approximately 30 to 35 outlets daily. And 30 % distribution is outsourced. Clean & Clear Face Wash will be providing its distributors with unique bottle shelves. And an incentive will be given to retailers that any retailer who will generate the highest sales will get its superstore or supermarket’s name on the billboard.

MACRO ENVIRONMENT

DEMOGRAPHIC ENVIRONMENT: In Pakistan, large portion of population lives in rural areas or are illiterate ad poor therefore J&J had to target upper and upper middle class who mostly lives in urban areas.

ECONOMIC ENVIRONMENT: Clean & Clear Face Wash will be initially launched in one of the largest city of Pakistan Karachi. According to a survey here the average monthly income of an individual is 10,000 and these are those people who fall is the target market.

NATURAL ENVIRONMENT: Major raw materials are lather boosters, lavender, jasmine, aloe, plant derived ingredients, peony , hibiscus ,



vitamin E and orange flower. Some are locally available and some are imported.

TECHNOLOGICAL ENVIRONMENT: Today Technological environment is changing fastly. It includes research and development, accelerating pace of technological change and unlimited opportunities for innovation.

POLITICAL LEGAL ENVIRONMENT: At present the country seems politically stable and is a good chance for investment .The present condition also shows future stability of the country. During past political and economic instability J& J has never faced any problems, because we are properly paying taxes and are fulfilling all the Govt. requirements. The internal affairs of the city of Karachi are peaceful and show bright chances for good business. Establishment of a new setup for launching shampoo will be easy as Govt. is supporting investment and banks are offering reasonable interest rates. Govt. of Pakistan has issued a law stating against unfair practices such as exploiting customers by over changing and false advertisement. Unilever abides by these standards and laws in an ethnical and legal manner.

SOCIAL CULTURAL ENVIRONMENT: J & J is a market leader in health care products. In Karachi it is doing good sales. Day by day people are moving towards modernization, acquiring education, learning new cultures and looking forward to new trends. Now we are consuming ready made products rather then home made. People of Karachi are conscious, they care of their personalities. Clean & Clear Face Wash will help them to enhance their personalities.

THE MARKETING STRATEGY:

MARKET DRIVEN STRATEGY: Clean & Clear face wash is following this type of strategy. Market driven is one in which the market and the customer form the market and they also believe that it should be starting point in the business strategy formulation. Same as Ponds is doing.

PRICING STRATEGY: J&J will price this product in the similar fashion that it use to do for its products which are for Upper-upper, upper-middle & middle class. The pricing strategy will help J&J to cater its target market.

PROMOTIONAL STRATEGY:



J&J uses promotional strategies and this strategy includes advertising which is basically how company communicates with its customers. They prefer personal selling, sales, promotion, direct marketing & publicity.

MARKETING PLANNING

MARKETING OBJECTIVES

Marketing objectives may be defined in terms of qualitative and quantitative measures.

With respect to quantitative objectives, Clean & Clear Face Wash aims to achieve 15% of the market share in the 1 year with a sale of Rs.20 Million.

Expand consumer awareness from 40% to 60%. Expand number of dealers by 25%. Aim for an average price as to compete with a wide variety of

face wash, which are not very famous among the consumers in the first few months.



As far as qualitative goals are concerned, Clean & Clear Face Wash looks forward to achieve top of mind of the consumer by building such a healthy image in the market through its innovative policies.

TARGET MARKET

Target markets consist of a set of buyers who share common needs or characteristics that the company decides to serve. These include people from all age groups especially ranging from 15-30 where the attitudes of individuals are to be professional and successful in their social strata. If we attract and keep these innovators we will be a source of attraction for other potential customers. And off course Clean & clear Face Wash would be targeting the market according to the classes of each area existing in Karachi. The upper class women spend a lot of time choosing the best face wash for their face, which will give them maximum satisfaction and make their skin healthy glow. So they usually opt for branded shampoos.

Our marketing strategies, which will follow differentiated marketing, will focus not only on women but also on men. In order to attract all these groups Clean & Clear face wash will now be re-positioned and will also be targeted to men.



SEGMENTATION

The segmentation which we will use for Clean & Clear Face Wash will be:

SOCIAL CLASS

Social class Upper-upper, upper-middle & middle classLifestyle Highly/mildly ModernPersonality Modern and educated

DEMOGRAPHIC SEGMENTATION

Age 14-30Gender Male, femaleFamily size 1 to 4 or aboveLifecycle Young, single, married, married with children,

olderIncome Average monthly income 15,000 and aboveOccupation Working and business classEducation LiterateReligion Belong to any religionRace Belong to any raceNationality Pakistani

GEOGRAPHIC SEGMENTATION

World region AsiaCountry PakistanTarget market Karachi

BEHAVIOURAIL SEGMENTATION

Benefits Strong shiny hair and protection from getting white

Usage rate DailyLoyalty status MediumReadiness stage Aware, Informed, DesirousAttitude Enthusiastic, Positive



MARKETING MIX

Product Clean & Clear face wash is a skin care product that possesses special ingredients to help eliminate acne blemishes without over drying. It leaves your skin look healthy, clean, and radiant. This face wash is being used by women and men as well. Previously the target audience was women but after conducting a survey we came to know that not only women are the actual users of Clean & clear face wash but men also frequently use it. So we have repositioned it for men as well.

PriceThe price of the product is reasonable.The small bottle of 3oz. is for Rs.80 The large bottle of 6oz. is for Rs.130

PlaceClean & Clear face wash is available at every super market namely Agha’s, EPCO, Mottas, Paradise Store Wall Mart and other retail outlets. In addition to these well known stores Clean & Clear face wash will also be available in small and medium retail stores.

PROMOTIONAdvertising Strategy:The advertising strategy is determined by the advertiser’s use of the creative mix. The creative mix is composed of four main elements:

The target audience: This is the specific group of people the advertising will approach. Clean & clear’s target audience will thus include men and women.

The Product Concept: This refers to the bundle of values the product is intended to represent to the customer. Clean & Clear’s product concept is that of a face wash that provides freshness and complete skin care.

Communications Media: These are the vehicles used to transmit the advertiser’s message. Clean & Clear face wash communication media will include Broadcast, Print, Point- of-Purchase and Outdoor media.

Advertising Message: This is what the company plans to say in its advertisements and how it plans to say it. Clean & Clear face wash advertising message will focus on the confidence provided by fresh and blemish-free skin for both genders.



Language & Punch line: The ads in the broadcast media will be in English to get maximum reach amongst the audiences especially of today’s generation. The tag line is:

“Clean & Clear - Key to clear skin”

NATURE OF THE PRODUCT:Consumer products are those products, which are purchased directly by the consumer from a retail store. These products are bought for personal use. Clean & Clear Face Wash comes under the same category of consumer products. The unique selling point of our product is that it contains special ingredients Saw Palmetto, Virgin olive oil, and natural vitamin E in every unit.Our face wash is for daily use. It uses makes the face healthy and soft and extra leather helps in cleaning the skin and protects from getting dry.Consumer products are further classified into four main categories, which are convenience products, shopping products, specialty products and unsought products. Each of these categories have their own distinguish characteristics and products are assigned to the classes accordingly.After analysis of each of these categories we have come to the conclusion that Clean & Clear Face Wash comes under the category of convenience products.

DISTIBUTION: Johnson & Johnson Company has segregated its distribution by 7:3 ratio, in which 70 % is J&J self – distribution which possesses 235 trucks and each truck visits approximately 30 to 35 outlets daily. And 30 % distribution is outsourced. Clean & Clear Face Wash will be providing its distributors with unique bottle shelves. And an incentive will be given to retailers that any retailer who will generate the highest sales will get its superstore or supermarket’s name on the billboard.

PACKAGING:Convenient packaging consisting of a transparent bottle containing Clean & Clear Face Wash in a water blue color that will enhance the look of the product. The material used will be recyclable. An unbreakable plastic bottle containing the product.

LABELING:Package labeling will consist of the following:The brand name, manufacturers name and address, usage instructions, expiry date, salient features of the face wash, ingredients,



company’s web address, UAN no. for questions and comments, distributors name and in which country it is made.

PRODUCT POSITIONING

Product positioning is the act of designing the company’s image and value offer so that the segments customers understand and appreciate where the company stands for in relation to its competitors. The positioning task consists of three steps:

Identifying potential competitive advantages Selecting the right competitive strategy Signaling the competitive advantage

IDENTIFYING POTENTIAL ADVANTAGES

A company differentiates itself from competitors by bundling competitor’s advantages. A competitive advantage grows out of value a firm is able to create for its buyers that exceeds the costs of creating it. The same will be followed by Johnson & Johnson, which will obviously increase the market share.

CHOOSING THE RIGHT COMPETITIVE ADVANTAGE



Johnson & Johnson has been successful in choosing effective USP’s (Unique Selling Point) which sands out there product and people will have more conviction in buying Johnson & Johnson product as compared to competitor’s products.

SIGNALING THE COMPETITIVE ADVANTAGE

Competitive advantages are not automatically apparent to the market; therefore the company will advertise them.

DIFFERENTIAL ADVANTAGES

The product that Johnson & Johnson is repositioning makes them unique in many regards, these USP’s or differential advantages will help in increasing the sales of the companies product and will be a source of attracting customers towards the companies offering.

DIFFERENIAL ADVANTAGES FOR CLEAN & CLEAR FACE WASH

Clean & Clear Face Wash is the only face wash that is low in price and in large quantity as compared to the other competitive brands.

Clean & Clear Face Wash has fragrance add in it. It prevents from skin from germs and bacteria which are the

main cause of pimples. It cleans deep down to the pores and removes oil, dirt and make-

up to give you clean, healthy looking skin. Clean & Clear Face Wash is cost effective. Clean & Clear Face Wash is also effective for men.

VALUE PROPOSITION

Customer value proposition consists of the sum total of benefits which a vendor promises that a customer will receive in return for the customer's associated payment .It is divided into three parts:

FUNCTIONAL BENFIT: the functional benefit of face wash is that it would cleans deep down the skin to the pores and removes oil, dirt and make-up to give clean, healthy looking skin.

EMOTIONAL BENEFIT: Emotional benefit will be the confidence which one gets after using Clean & Clear face wash.


http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Vendor


SELF-EXPRESSIVE BENEFIT: The consumers who are very defensive and careful for their health and family would feel comfortable using this product it would gave them a sense of caring and safety.

PRICING STRATEGIES

The basic pricing strategy of Unilever will be premium-based pricing. The basic cost of the product is broken down into these categories, which add up to the total cost of the product.The price of the products is made up the following:

Cost of production and overhead expenses Net selling price (NSP) Distributor price Retailer price, which then adds up to, the total price cost charged

to the consumers at the retail outlets.

In order to provide incentives to resellers, trade discounts are also part of the promotional campaigns e.g. 5% off at the retail price.The basic problem arises when there is a lot of variation between the prices, as some reseller often charges a higher price. For other competitive brands it has been noted that customers often complain of paying a lot of higher prices as compared to less expensive retailers. The company will have to rectify this problem for their brand, by printing the Trade price and the consumer price on the retail pack.

PROMOTION STRATEGIES

In order to compliment the advertising strategy, Unilever also plans to use the tools of sales promotion to give short-term incentives in order to encourage the purchase of its products.The main sales promotion tools used for Clean & Clear Face Wash offerings are:

Consumer promotions Trade promotions Sales force promotions

CONSUMER PROMOTION TOOLSDuring the advertising campaign of face wash, the company will also offer a very lucrative consumer promotion. The mechanics of their



consumer promotion will be (this will be offered at the end of the first year of launch):

In order to win fabulous prizes, all consumers will have to do is to write their address on the back of the Clean & Clear Face Wash empty bottle that they purchase and send it to offices of Johnson & Johnson Karachi. These will be entered in lucky draw and the winner will receive a Suzuki car or a trip to Dubai.

TRADE PROMOTION

In order to increase our stocking of Clean & Clear Face Wash at retailer outlets, Johnson & Johnson will offer a 3% retailer margin on the consumer price of each stocking. Other than this the company will provide the retailer with gifts such as key chains, wall clocks, diaries and calendars.The objective behind this is to increase the availability and stock levels at each retailer outlet.

SALES PROMOTION

Recognizing that the above two promotions would actually work, Johnson & Johnson realizes that the most important agent in the whole process is the sales force that delivers the product to the retail shelves from where the consumers make their purchase.In order to make the promotion successful, the sales force of the distributor is being given incentives on the achievement of volume and availability targets.During the launch and advertising program of Clean & Clear Face Wash, the sales force will be given incentives through the offer of higher sales commission per stock sold of Clean & Clear Face Wash and a bonus will also be given for the achievement of the availability targets.

ADVERTISING PLAN

In order to deliver effectively its message to the consumers advertising is also an important element in the Marketing Mix for Johnson & Johnson.



The respective Brand Manager at Johnson & Johnson will be responsible for developing the advertising strategy for their respective brands. In consultation with the Advertising Agency that will be on retainer on each Brand, the Brand Manager develops the Advertising Strategy right from idea conception to the delivery of the message to the audience.The following are the elements on which the Advertising Program for Johnson & Johnson is developed:

Johnson & Johnson Advertising Objectives Johnson & Johnson Advertising Budgets Johnson & Johnson Advertising Strategy Johnson & Johnson Campaign Evaluation Strategy

The underlying principle for Johnson & Johnson Advertising program is to develop importance, by building strong brands, which supports our (Johnson & Johnson) benefits claim and underpin our relationship with the loyal consumers who have been using different products of our company and most importantly, enable us to make a real contribution to the improvement and growth of strong shiny hairs.

JOHNSON & JOHNSON ADVERTISING OBJECTIVESBased on the Brand Plan and activity plans for the year the Advertising objectives of each Brand shall be set. Also as the first of launch there are different objectives for each Advertising program in each Quarter. The general objectives that Johnson & Johnson sets for all of its Brands are as follows:Information AdvertisingPersuasive AdvertisingReminder AdvertisingJohnson & Johnson heavily relies on Informative Advertising. The objective is to build primary demand for the product.Specifically for Clean & Clear Face Wash an informative/persuasive advertising campaign will be introduced.The objectives of this campaign will be:

Explaining how the product works: Double deep action that penetrates to roots of the skin where ordinary face wash do not normally reach making skin smother and cleaner making it healthy since the environment is full of pollution.

Changing Customer perceptions of product attributes: Customers believe that until now there are no face wash that have offered this feature and the ingredients, real herbs will provide solution for their face. The double deep action campaign aimed at changing this perception.



JOHNSON & JOHNSON ADVERTISING BUDGETUnilever will set the Advertising Budget for each of its brands based on the Brands Marketing Plans. This in turn is set on the basis of the following:

The Brand’s Stage in its Life Cycle Market Share Level of Competition Level of Differentiation

The company plans to spend some good amount on the repositioning of the product, which will help in establishing a name in the market. Johnson & Johnson invasions to capture 25% of the market share by the fifth year of its launch.The Johnson & Johnson’s Clean & Clear Face Wash is in the introduction stage of the lifecycle. As such the advertising budget for the brand is an extremely high percentage of sales. (Around 15% of sales)In addition other factors that contribute to a large advertising budget of Johnson & Johnson’s are the following facts:

The overall strategy for Clean & Clear Face Wash is to establish a greater market share over its competitors.

The product class for face wash is largely undifferentiated, as most of the face wash are perceived to essentially resemble each other in terms of use and attributes. Clean & Clear Face Wash advertising campaign for Double Deep action will try to point out the differences to consumers between double deep action face wash and other face washes.

JOHNSON & JOHNSON ADVERTISING STRATEGYJohnson & Johnson’s recognizes that there are benefits to be gained from planning the creation of advertising messages and selecting the advertising media jointly.The Brand Manager for Johnson & Johnson’s will have to work closely with the advertising agency and the Company’s Media Planners as well as the Creative Directors for the Advertising Strategy.Johnson & Johnson’s will employ various communication channels to make people aware of its product and its features.

TELEVISION Our company will use television advertising, on top domestic channels: HUM TV, Geo TV and TV ONE. It will advertise Clean & Clear aggressively on television because we feel that channel wise these three can provide us the most apt and regular coverage for our



product. We feel that TV is a powerful medium and can offer us the following advantages:

The advertisements will show in moderate details of the product, along with useful information about the product use. Even the benefits of the product can be discussed in the sense that it can be compared with other competitor’s brands.Clean & Clear Face Wash aims to air its advertisements during Prime Time on Television when 90% of the television viewers are watching TV. This time is between 7-11 p.m daily. However, the cost per spot during this time is also very high at an estimated Rs.25, 000-40,000 per spot.After two months Clean & Clear Face Wash will successfully create awareness for the product.

BILLBOARDS AND POSTERSThe advertisements will be used to make people aware that some new brand is about to arrive. Catchy captions will be placed on billboards to get people to notice it. This will build anticipation in the potential customers. We plan to keep these teasers running on display for an estimated 2 weeks. After this time duration we will place more descriptive and informative advertisements on the billboards that talk about the actual product. These billboards will be located in metropolitan areas of all cities of Pakistan.

MAGZINESIn order to attract our target market we intend to use appropriate magazines that are read by our potential customers like SHE, Women Own, Akhbare-jehan, Mag, Aurora, Herald and many other magazines. The magazines will feature full-page length color advertisements with greater detail about the range of the companies’ offerings. Only four magazines have been selected in order to ensure maximum coverage in this expensive medium with its limited geographic availability

NEWSPAPERThe newspaper advertisements will feature appropriate sized advertisements like quarter page and they will appear with an interval of a week. The timing of the add will be carefully monitored, they will clearly state the message to be conveyed to the potential customers. The newspapers will be THE DAWN, THE NEWS AND JANG etc.



ADVERTISING BUDGET FOR FIRST YEAR

Media channel Per Unit Cost in Rs.

No. Of units Total BudgetedCost in Rs.

Television 150,000/week 8 12,00,000Billboards 80000 5 400,000Magazines 12000 30 360,000Newspaper 15000 55 825,000Sales Promotion ******* ******* 500,000TOTAL 32,85,000



EVALUATING ADVERTISINGAt the end of each Advertising program the Brand Manager at Clean & Clear Face Wash will evaluate the effectiveness of the program.The Brand Manager for Clean & Clear Face Wash will conduct an analysis of pre-campaign and post-campaign secondary sales (distributor sales) comparison to gauge the effectiveness of the program. An increase in secondary sales is usually indicative of the success of the program.

CHANNEL STRUCTUREThe consumer defines a distribution channel as a set of interdependent organizations involved in the process of making a product or service available for use or consumption.When Unilever imports products, they are actually stored in warehouses. Those products, which are locally produced, go from the factory to the warehouses. Clean & Clear Face Wash will have to rent three warehouses, one each in Karachi, Lahore and Islamabad.The face wash will be sold to distributors: both on contract and otherwise. They are moved from the factories to the warehouses, and then the distributors can take delivery from the warehouses. The distributor in turn sells them either to wholesalers who later sell them to distributors or directly to retailers themselves.

SHELF SPACEClean & Clear Face Wash will strive to get maximum and more visible shelf space in comparison to the competition by pushing the product through distributors and in turn offering higher rate of retailer margin. The company will follow a push strategy and will be offering margins to the retailer.

TARGETED OUTLETSAccording to a survey conducted by M&A (marketing and advertising) the No. of outlets that are targeted for the selling of face wash are 50000/-. As the distributor is not able to cater all he outlets throughout Pakistan so the Company will be outsourcing the distribution network and will be paying a higher rate of margin so that the maximum number of outlets are supplied with Clean & Clear Face Wash Brand.



CITIES TARGETEDUnilever will be targeting mainly the cities in Sindh and Punjab. The demand for the products Johnson & Johnson offers is mainly vested in these two provinces. The major cities shall be Karachi, Hyderabad, Sukkur, Faislabad, sialkot, Rawalpindi, Islamabad, Lahore, Gujranwala and Multan.The product will also be available in cities of balouchistan and N.W.F.P.

MARKETING STRATEGIES

Marketing strategies of a company must be in accordance to the marketing objectives. Johnson & Johnson marketing strategies mirror the outline of the marketing mix (product, placement, promotion and pricing) in such away that the target market could be attracted by satisfying consumer’s needs and to achieve the objective. In market strategy making we should keep under consideration that separate strategies are necessary for each SBU’s, which will give us a proper guidance and make our work more efficient. But since all of our SBU’s are debutants, therefore, more or less same marketing strategies will be framed for them.

The product opportunity matrix gives us the four alternatives for maintaining the market strategies that are

Market penetration Market development, Product development and Diversification.

Johnson & Johnson will use market penetration strategy because it is repositioning its product, Clean & Clear Face Wash. In market penetration strategy we have to increase our sales of our present products. They have to manage a strategy of distribution channels (distributors, wholesalers and retailers), promotions and competitors pricing.

ACTION PLAN



Clean & Clear Face Wash will be launched on happy New Year. The New Year gift from J&J to its consumers. The plans for the following months are as under:

January: first we will try to distribute free sachets to the consumers and will start Clean & Clear on wheels so that consumer can make a decision right there after applying to its face. We will be giving the mini size soap as a complimentary gift to the consumers.

February: we will start a new campaign in which customer have to fill in the coupon at the backside of the bottle and mail it to Johnson & Johnson for a free gift hamper.

March: newspaper advertisement will announce that all Clean & Clear Face Wash users get ready for a bang as the consumers who have got very soft and healthy face skin after using Clean & Clear Face Wash are required to send their pictures or come in by personal to enter in the contest. The one who has the longest hair will win a trip for two to Dubai.

This was the game plan for the 1 operating year. Below is the budget for the year.

FINANCIAL OBJECTIVES

We want “Clean & Clear Face Wash” to deliver a good financial

performance. Our financial objectives are:

1. Earn an annual rate of return on investment over the next 2 years of 45% after taxes.



2. Produce net profits of RS. ___25 million____ in the next 2 years.

3. Produce a cash flow of 15 million by the next year.

BUDGET

Total amount with which we are launching Clean & Clear Face Wash is RS. 45 million and the amount allotted for investments and marketing expenditures is RS.17 Million.

CONTROLS

MARKET SHARE ANALYSISAt present according to the BCG matrix we are a question mark (?), as we are a repositioning a product we have a low overall market share in a high growth market, in the near future we aim at becoming a star product

MARKETING EXPENSESAs we are about to reposition our product, our initial expenses are relative high on the following areasSale force 15%Advertising 25%Sale promotion 12%



Marketing research 18%Sale administration 10%

MARKET BASED ANALYSISWe will be offering new and attractive promotion and deals to continuously attract new customers and satisfy them with excellent quality and convince of our product. We will ask for comments and suggestion from our customer, which we help us analyze our customer needs & preference, so that we may not lose our customer, as winning back our lost customer can be very costly.Through advertisements & promotions we can create awareness among targeted customers. We will also conduct survey to determine our targeted customer’s preference, do they find our product highly satisfying in quality and convinces compared to other face wash already existing in the market.

FINANCIAL ANALYSISWe need to make sure that we are not overspending in non profitable areas, or under spending on profitable areas.At the initial our expenses are quite high, but in the next quarter, we will in profit margin by getting done on our cost on advertising, sale promotion.

PROFITBIILITY CONTROLSAt present we will need to maintain a profit margin of around 30-40%. We will also need to measure the profitability of our product in different territories, among different customer groups, segments so that appropriate steps can be taken.

WEEKLY REPORTJohnson & Johnson Company sales force submits the report to management on weekly basis regarding the feedback by the consumer and on the emergence of a complain. On the basis of which management will overlook the issue and gets into the foundation of problem and resolve it.

MARKET SURVEYJohnson & Johnson Company hires independent agencies to pick out their sales by practicing market surveys which embraces the constructive and unconstructive scenarios which are then compiled to a report and forwarded to the management. On to which management will overlook the situation keeping all circumstances in mind and taking decision for the utmost satisfaction of the consumer.



GROWTH BARRIERSJohnson & Johnson is a giant company which has a strong backbone in the beverage industry and is growing day by day with flying colors. It also faces certain growth barriers out of which the major are:

Political policies: Due to the new government in Pakistan, J&J was inquired for last 5 years data indeed it submitted the data each year regularly. Now providing the data requires commitment of time and staff which in fact might have been utilized for some promotional activities of the brand.

Rumors: Rumors also plays a growth barrier to any firm like a medical concept was at large that Clean & Clear is not suitable for the person’s skin due to some heavy chemical in it. The rumor is baseless however extra everything of everything can cause some trouble

CONCLUSION

Johnson & Johnson creates products which have great demand in today’s market where skincare has become a high priority for both men and women. Clean N Clear provides a face wash with distinct health benefits for both men and women. Its current positioning focuses on providing skin care to women only, featuring them in all product promotions. However now, Clean & Clear will feature both the genders in its communication, thus extending its current product line and benefits to a diverse target market.


Documents

Clean n Clear adjusted