J&J (Philippines) Case Analysis
Salumbides, Lois Conrad
Sumadsad, Beatrix Keith
Tolentino, Maria Yvette
I. Point of view
We will take the point of view of Vice President of Marketing P.M. “Boy” de Claro because he is in-charge of the introduction of the product to the market.
II. Situation Audit
* In the mid-1880s, Johnson and Johnson (J&J) was founded in the U.S producing antiseptic bandages for wound care. * As the company grew larger, it started to manufacture baby care, first-aid and hospital supplies, and became the leading manufacturer of the said products. * In 1959, the firm entered in the …show more content…
* Use their established name in the market for easier market penetration. | * Introduce the product as toiletry and not as a cosmetic | WEAKNESSES 1. Conservative to any changes in the product 2. Inactive in product introduction | | |
Based on these strategies, the alternatives formulated are:
Alternative 1: They should change the color of the company’s name in the packaging from gold to their standard blue color and introduce it as a toiletry and not as a cosmetic.
* The product could be more appealing to mothers as the standard blue color entails a “mild” feel to it. * Easier market acceptance since the customers are accustomed to the blue color. * The probability of the international management’s acceptance is higher because the new product will be conforming to the company’s policies. * There is less confusion among the customers about the product’s classification.
* Cost inefficient.
Alternative 2: Expand the product line and introduce the product as a cosmetic.
* May appeal to a larger portion of the population.
* May encounter resistance from mothers of the target market. * Heavy competition due to established cosmetics companies.
Alternative 3: Do not launch the new product.
* No advertising cost * No risk of market in acceptance
* Opportunity loss * Will not meet the breakeven point