Johnson & Johnson in Philippines Essay

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: )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 convenience stores (such as Seven Eleven) and local supermarkets + Appeal to mothers of teens and young female adults (“It’s not a cosmetic product so my teenage daughter can use it”) + Price can be lowered and thus be more available to teens and young adults -Target audience may ignore the product since there is no clear benefit to them -Consumers can perceive the product as another variation of the Baby Powder, just for the face

III. Recommendation: J&J Philippines is facing a dilemma where the target audience (teens and young female adults) and their mothers want different things with regards to facial product. In order to address this issue, J&J should position the new product as a “Toiletry+Cosmetic,” thereby creating a new market.

In order to clearly communicate to the target consumer with regards to what the product is, J&J should (1) launch a country-wide advertisement campaign to increase product understanding and brand awareness, (2) advertise in fashion magazines to appeal the product’s Cosmetic side and in teen’s magazines to appeal the toiletry side, and (3) advertise on TV during soap-opera time, focusing on communicating the product’s benefit to mothers of the target consumer.

In terms of price, I believe it is reasonably set so there is no need to change the price. J&J can, however, develop more shades in the coming future and partner with companies that carry famous characters (e. g Hello Kitty) to enlarge its Face Powder brand.