John & John Case

I. Problem The major issue that Johnson& Johnson (J&J) faces with its face powder is that despite the products innovation, a toiletry design and confidence in potential customers, it positions its product line as a cheap skin refresher course by utilize supermarkets as main distributing take and setting the price range of product cheaper compared to that of competitors change in plane section stores, which damages its defacement and take ins.In order to ensure that J&J serves a success in launching new scrape grade product with profits, it inescapably to develop a marketing strategy to make more profits by changing its distribution canalises, the price range higher and targeted customers under the toiletry concept. II. Alternatives ) correct as a premium refresher through department stores channels + Raise awareness of a new product as a premium brand by severing congenator with baby powder + Higher margin and potential to raise prices above original margins + Successfu l upper and middle level customers targeting with high value brand and synergy with J&J brand High price and little difference with cosmetics may be unattractive to teen and young adults Fierce aspiration with current face powders sold (ex Angel Face) in the department stores Losing opportunity to use established strong distribution strength in supermarket channels ) Position as a premium refresh for both young female and adults through department stores + Enlarging market by targeting both teen and young adults and sometime(a) female, including mothers + Less pressure from mothers opposed to their daughters using cosmetic face powder from compacts + End users heighten purchasing power resulting from targeting older females Young customers alienation from the product due to their tendency not sharing with old generations More designs and functions for real different kinds of customers in terms of age Unpromising forecast about current cosmetic users transition into new pro duct category ) Position as a premium refresher for young adults through supermarket channels + Easy access to the product from potential customers + Differentiation from household items sold in the supermarkets due to high price and premium brand + Strong distribution power by usage of already established supermarket distribution channels Difficulty in separating its image from grocery items in the supermarkets Small profit margins compared to that of department stores Huge advertising cost is unnecessary, unprofitable and ineffectiveIII. Recommendation I apprise that J&J set a new product line as a premium refresher with higher price by distributing it through department stores. At first, the demand of targeted customers such as teens and young adults is already verified. In order to make more profit with this product, J&J needs to target the market segmentation more specific.Considering most potential customers are young females living in urban areas with relative economic ca pability, more profit margin in department stores compared to supermarkets, and a marketing 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 pave the way for launching J&Js prox 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 mention to more profit margin and enhanced J&Js premium brand resulting from department stores distribution.