John & John Case

I. Problem The major erupt that Johnson& Johnson (J&J) presents with its face powder is that despite the wares innovation, a toiletry formulate and confidence in potential clients, it positions its crossway line as a cut- toll skin refresher by victimization supermarkets as main distributing transmit and backing the equipment casualty range of increase cheaper compared to that of competitors sell in section breeds, which damages its pock and scratch.In order to ensure that J&J makes a success in launch radical brand category result with profits, it demand to develop a selling strategy to make much(prenominal) profits by changing its dissemination channel, the price range lavishlyer(prenominal) and targeted customers under the toiletry concept. II. Alternatives ) Position as a bountifulness refresher through department stores channels + Raise awareness of a new output as a bonus brand by severing likeness with baby powder + exalteder coast and potenti al to raise prices above archetype margins + Successful upper and middle aim customers targeting with last value brand and synergism with J&J brand High price and little difference with cosmetics whitethorn be unattractive to teen and puppylike adults Fierce Competition with current face powders s old (ex Angel Face) in the department stores Losing opportunity to use established square distribution strength in supermarket channels ) Position as a ex spay premium refresh for both new womanish and adults through department stores + Enlarging market by targeting both teen and young adults and elder female, including mothers + Less pressure from mothers opposed to their daughters use cosmetic face powder from compacts + finis drug users intensify purchasing power resulting from targeting older females Young customers alienation from the intersection out-of-pocket to their tendency not sharing with old generations More designs and functions for satisfying different k inds of customers in terms of age Unpromising auspicate about current cosmetic users transition into new overlap category ) Position as a premium refresher for young adults through supermarket channels + Easy access to the product from potential customers + Differentiation from household items sell in the supermarkets due to high price and premium brand + Strong distribution power by usage of already established supermarket distribution channels bar in separating its flick from grocery items in the supermarkets Small profit margins compared to that of department stores spacious advertising cost is unnecessary, unprofitable and ineffectiveIII. passport I suggest that J&J set a new product line as a premium refresher with higher price by distributing it through department stores. At first, the ingest of targeted customers much(prenominal) as teens and young adults is already verified. In order to make more profit with this product, J&J needs to target the market segmentatio n more specific.Considering most potential customers are young females living in urban areas with carnal knowledge economic capability, more profit margin in department stores compared to supermarkets, and a merchandising strategy under the toiletry concept, I recommend that J&J change its distribution channel into department store and set the price range higher than the current competitors in the market, thus resulting in more profit margin and boosting an image of brand new product as premium items among young adults-main target customers-in the Philippines.In addition, high end strategy will surface the way for launching J&Js future youth lines such as body care product with high profit margin and providing high brand image with future customers to J&J baby products, not reference book to more profit margin and enhanced J&Js premium brand resulting from department stores distribution.