Clean N Clear Adjusted
Clean N Clear Adjusted
Clean N Clear Adjusted
ON
REPOSITIONING OF
CLEAN & CLEAR FACE WASH
PREPARED BY:
PRESENTED TO:
Sir Shameel Zubairi
Letter of Transmittal
Dear Teacher,
Thank you
Sincerely,
Sami Hassan
Nosheen Raza
Sania Naz
Faisal Naseem
Nazia Saleem
Zehra Asif
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.
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
1 Executive Summary 5
2 Introduction 6
3 Our History 6
4 CREDO values 7
5 Product Offering 9
6 Johnson & Johnson Products 10
7 Clean & Clear Face Wash 11
8 Reason for Repositioning 12
9 Product benefit 12
10 Success reason 13
11 SWOT analysis 14
12 Competitor analysis 16
13 Environment analysis 17
14 Market Planning 20
15 Marketing Objectives 20
16 Target market 21
17 Segmentation 22
18 Market Mix 23
19 Product positioning 27
20 Value proposition 26
21 Advertising plan 30
22 Marketing strategies 36
23 Action plan 37
24 Financial Objective 38
25 Budget 38
26 Controls 39
27 Conclusion 41
EXECUTIVE SUMMARY
We 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.
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.
We are responsible to our employees, the men and women who work with us
throughout the world.
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.
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.
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.
Baby care
Skin and Hair care
Wound care and tropicals
Oral health care
Women’s health care
Over-the-counter-medicines
Nutritionals
Vision care
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.
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 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
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
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.
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
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.
MACRO ENVIRONMENT
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
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
The segmentation which we will use for Clean & Clear Face Wash will be:
SOCIAL CLASS
DEMOGRAPHIC SEGMENTATION
Age 14-30
Gender Male, female
Family size 1 to 4 or above
Lifecycle Young, single, married, married with children, older
Income Average monthly income 15,000 and above
Occupation Working and business class
Education Literate
Religion Belong to any religion
Race Belong to any race
Nationality Pakistani
GEOGRAPHIC SEGMENTATION
BEHAVIOURAIL SEGMENTATION
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.
Price
The price of the product is reasonable.
The small bottle of 3oz. is for Rs.80
The large bottle of 6oz. is for Rs.130
Place
Clean & 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.
PROMOTION
Advertising 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.
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”
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
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 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:
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.
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
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:
PROMOTION STRATEGIES
Consumer promotions
Trade promotions
Sales force promotions
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.
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.
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.
MAGZINES
In 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
NEWSPAPER
The 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.
Promotion Budget
15%
37% Television
Bill Boards
Magazines
25%
Newspaper
Sales Promotion
11% 12%
EVALUATING ADVERTISING
CHANNEL STRUCTURE
The 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 SPACE
Clean & 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 OUTLETS
According 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.
MARKETING STRATEGIES
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.
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
MARKETING EXPENSES
As we are about to reposition our product, our initial expenses are relative
high on the following areas
Sale force 15%
Advertising 25%
Sale promotion 12%
Marketing research 18%
Sale administration 10%
FINANCIAL ANALYSIS
We 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 CONTROLS
At 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 REPORT
Johnson & 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 SURVEY
Johnson & 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 BARRIERS
Johnson & 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.