You are on page 1of 41

Marketing Assignment

ON

REPOSITIONING OF
CLEAN & CLEAR FACE WASH

PREPARED BY:

Sami Hassan (29)


Nooshen Raza (20)
Sania Naz (27)
Faisal Naseem (09)
Nazia Saleem (21)
Zehra Asif (34)

PRESENTED TO:
Sir Shameel Zubairi

In partial fulfillment of the course of marketing


management.
Karachi University Business School
K.U.B.S

Letter of Transmittal

January 6th 2009

Sir Shameel Zubairi


K.U.B.S.
Karachi

Dear Teacher,

We have a pleasure in presenting to you this report for the subject of


Marketing Management. The report has been prepared keeping the course
requirement in mind.

We would like to thank you for providing us such a wonderful learning


opportunity. It has helped us immensely to improve upon our managerial
knowledge by sharpening our analytical skills.

Thank you

Sincerely,

Sami Hassan
Nosheen Raza
Sania Naz
Faisal Naseem
Nazia Saleem
Zehra Asif

Repositioning of Clean & Clear Face Wash


2
Karachi University Business School
K.U.B.S

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.

We went through certain hardships during the making of this report. In


spite of all of this we remained unshaken and confident by the difficulties
that hindered our effort. It was the most laborious task for us and we
couldn’t have accomplished this without those promising group discussions
and the support of a lot of people.

We cannot oversee the extended help of our Marketing Management


Teacher who give us all the guidance, advice and examples in making this
report possible. We are grateful for her help and co-operation.

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

Repositioning of Clean & Clear Face Wash


3
Karachi University Business School
K.U.B.S

TABLE OF CONTENT

S.NO. PARTICULARS PAGE NO.

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

Repositioning of Clean & Clear Face Wash


4
Karachi University Business School
K.U.B.S

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.

Sometimes we assume these foaming facials, cleansers and face washes


were rejected by the public due to poor quality or high price. In a level
competitive field the losers must have been defective and the winners’
superior, right? But most often this is a simpleminded way of looking at
business. Maybe it was sloppy bookkeeping, or poor marketing decisions, or
sudden materials expenses, any of these factors could have doomed these
businesses, without any input from the consumer.

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.

Repositioning of Clean & Clear Face Wash


5
Karachi University Business School
K.U.B.S

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.

Repositioning of Clean & Clear Face Wash


6
Karachi University Business School
K.U.B.S

CREDO values of the company

We believe our first responsibility is to the doctors, nurses and patients to


mothers and fathers and all others who use our products and services. In
meeting their needs everything we do must be of high quality.

 We must constantly strive to reduce our costs in order to maintain


reasonable prices.
 Customers' orders must be serviced promptly and accurately.
 Our suppliers and distributors must have an opportunity
to make a fair profit.

We are responsible to our employees, the men and women who work with us
throughout the world.

 Everyone must be considered as an individual; we must respect their


dignity and recognize their merit. They must have a sense of security
in their jobs.
 Compensation must be fair and adequate and working conditions clean,
orderly and safe.
 We must be mindful of ways to help our employees fulfill their family
responsibilities.
 Employees must feel free to make suggestions and complaints.
There must be equal opportunity for employment, development
and advancement for those qualified.
 We must provide competent management and their actions must be
just and ethical.

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.

Repositioning of Clean & Clear Face Wash


7
Karachi University Business School
K.U.B.S
 We must encourage civic improvements and better health and
education.
 We must maintain in good order the property we are privileged to use,
protecting the environment and natural resources.

Our final responsibility is to our stockholders.

 Business must make a sound profit.


 We must experiment with new ideas.
 Research must be carried on, innovative programs developed
and mistakes paid for.
 New equipment must be purchased, new facilities provided and new
products launched.
 Reserves must be created to provide for adverse times.
 When we operate according to these principles, the stockholders
should realize a fair return.

Repositioning of Clean & Clear Face Wash


8
Karachi University Business School
K.U.B.S

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.

In customer home, products from our consumer health companies brighten


customer smile, add luster to customer hair and ease that nagging headache.
Customer can rely on us to help keep baby fresh, sooth an irritating itch, or
relieve an aching muscle.

In operating rooms and laboratories, doctors and nurses, too, rely on


products from our medical technology companies. They use these products
to perform hip replacements, implant coronary stents, and run tests for
metastasis breast cancer that give people hope for a longer, more active
life. These products help those people conquer life-threatening obesity,
ward off colon cancer, and control their diabetes. The list goes on.

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.

Repositioning of Clean & Clear Face Wash


9
Karachi University Business School
K.U.B.S

JOHNSON & JOHNSON PRODUCTS

 Baby care
 Skin and Hair care
 Wound care and tropicals
 Oral health care
 Women’s health care
 Over-the-counter-medicines
 Nutritionals
 Vision care

Repositioning of Clean & Clear Face Wash


10
Karachi University Business School
K.U.B.S

CLEAN & CLEAR FACE WASH

Whether its analgesics or baby care, endoscopic surgery or interventional


cardiology, oral care or wound care, the Johnson & Johnson Family of
Companies make products that help people live healthier lives. Clean and
Clear face wash comes in the category of consumer skin care products. Clean
and clear is very famous brand in many countries of the world but
unfortunately in Pakisan it does not show a good result therefore we are
repositioning it with new marketing plan.
Clean and Clear Face Wash lets keeps things nice and clean. This oil- free
foaming cleanser fights bacteria to keep skin clearer and more beautiful.
Cleansing agents gently remove oil, dirt and makeup without over-drying.
Customer skin is left looking clean, noticeably clear, and at the top of its
game.

REASON FOR REPOSITIONING

Repositioning of Clean & Clear Face Wash


11
Karachi University Business School
K.U.B.S

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.

Ingredients of Face wash

Alanine, Arginine, Betaine, Camellia sinensis leaf extract, Cetearyl Alcohol,


Citrus aurantium dulcis (orange) fruit extract, Citrus medica limonum
(lemon) fruit extract, DMDM Hydantoin, Fragrance, Glutamic acid, Glycerin,
Glycine, Glycolic Acid, Iodopropynyl butylcarbamate, Lysine, May also
contain Sodium Hydroxide., Menthol, Methylchloroisothiazolinone,
Methylisothiazolinon Methylparaben, Montmorillonite, PPG-15 Stearyl Ether,
Polyethylene, Polysorbate 60, Potassium Cetyl Phosphate,Proline, Saccharum
officinarum (sugar cane) extract, Serine, Sodium PCA, Sorbitol, Steareth-
21, Threonine, Vaccinium myrtillus fruit/leaf extract, Water, Xanthan Gum

SUCCESS REASON OF “CLEAN & CLEAR FACE WASH

Repositioning of Clean & Clear Face Wash


12
Karachi University Business School
K.U.B.S

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 beauty comes from being confident comfortable and


secure in customer’s own skin. We believe that customer’s skin is unique and
that his skin care needs are constantly changing.

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

Repositioning of Clean & Clear Face Wash


13
Karachi University Business School
K.U.B.S

POTENTIAL INTERNAL STRENGTH

 Company reputation is recognized through all over the world


 Customers satisfactions (toll free number, online services, and
advisory services)
 Customer’s retention ratio is high.
 Supreme product qualities.
 Stability in Pricing.
 Larger Distribution network.
 Products promotion in a large scale
 Aggressive sales force team
 Geographical coverage
 Company is financially strong
 Company is internationally recognized in consumer segment
 12. Well established products
 13. High quality of products

POTENTIAL INTERNAL WEAKNESSES

 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

POTENTIAL EXTERNAL OPPORTUNTIES

 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.

Repositioning of Clean & Clear Face Wash


14
Karachi University Business School
K.U.B.S

POTENTIAL EXTERNAL THREAT

 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

Repositioning of Clean & Clear Face Wash


15
Karachi University Business School
K.U.B.S

COMPETITOR ANALYSIS
DOVE FACE WASH PONDS FACE WASH

NEUTROGENA

OLAY FACE WASH L’OREAL

Repositioning of Clean & Clear Face Wash


16
Karachi University Business School
K.U.B.S

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.

DISTIBUTERS: 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 retailers that any retailer who will generate the
highest sales will get its superstore or supermarket’s name on the
billboard.

MACRO ENVIRONMENT

DEMOGRAPHIC ENVIRONMENT: In Pakistan, large portion of population


lives in rural areas or are illiterate ad poor therefore J&J had to target
upper and upper middle class who mostly lives in urban areas.

ECONOMIC ENVIRONMENT: Clean & Clear Face Wash will be initially


launched in one of the largest city of Pakistan Karachi.
According to a survey here the average monthly income of an

Repositioning of Clean & Clear Face Wash


17
Karachi University Business School
K.U.B.S
individual is 10,000 and these are those people who fall is the
target market.

NATURAL ENVIRONMENT: Major raw materials are lather boosters,


lavender, jasmine, aloe, plant derived ingredients, peony , hibiscus , vitamin E
and orange flower. Some are locally available and some are imported.

TECHNOLOGICAL ENVIRONMENT: Today Technological environment is


changing fastly. It includes research and development,
accelerating pace of technological change and unlimited
opportunities for innovation.

POLITICAL LEGAL ENVIRONMENT: At present the country seems


politically stable and is a good chance for investment .The present condition
also shows future stability of the country. During past political and economic
instability J& J has never faced any problems, because we are properly
paying taxes and are fulfilling all the Govt. requirements. The internal
affairs of the city of Karachi are peaceful and show bright chances for good
business. Establishment of a new setup for launching shampoo will be easy as
Govt. is supporting investment and banks are offering reasonable interest
rates. Govt. of Pakistan has issued a law stating against unfair practices
such as exploiting customers by over changing and false advertisement.
Unilever abides by these standards and laws in an ethnical and legal manner.

SOCIAL CULTURAL ENVIRONMENT: J & J is a market leader in health


care products. In Karachi it is doing good sales. Day by day
people are moving towards modernization, acquiring education,
learning new cultures and looking forward to new trends. Now
we are consuming ready made products rather then home made.
People of Karachi are conscious, they care of their
personalities. Clean & Clear Face Wash will help them to
enhance their personalities.

THE MARKETING STRATEGY:

MARKET DRIVEN STRATEGY:

Repositioning of Clean & Clear Face Wash


18
Karachi University Business School
K.U.B.S
Clean & Clear face wash is following this type of strategy. Market driven is
one in which the market and the customer form the market and they also
believe that it should be starting point in the business strategy formulation.
Same as Ponds is doing.

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.

Repositioning of Clean & Clear Face Wash


19
Karachi University Business School
K.U.B.S

MARKETING PLANNING

MARKETING OBJECTIVES

Marketing objectives may be defined in terms of qualitative and quantitative


measures.
 With respect to quantitative objectives, Clean & Clear Face Wash
aims to achieve 15% of the market share in the 1 year with a sale of
Rs.20 Million.
 Expand consumer awareness from 40% to 60%.
 Expand number of dealers by 25%.
 Aim for an average price as to compete with a wide variety of face
wash, which are not very famous among the consumers in the first few
months.

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.

Repositioning of Clean & Clear Face Wash


20
Karachi University Business School
K.U.B.S

TARGET MARKET

Target markets consist of a set of buyers who share common needs or


characteristics that the company decides to serve. These include people
from all age groups especially ranging from 15-30 where the attitudes of
individuals are to be professional and successful in their social strata. If we
attract and keep these innovators we will be a source of attraction for
other potential customers. And off course Clean & clear Face Wash would
be targeting the market according to the classes of each area existing in
Karachi. The upper class women spend a lot of time choosing the best face
wash for their face, which will give them maximum satisfaction and make
their skin healthy glow. So they usually opt for branded shampoos.

Our marketing strategies, which will follow differentiated marketing, will


focus not only on women but also on men. In order to attract all these
groups Clean & Clear face wash will now be re-positioned and will also be
targeted to men.

Repositioning of Clean & Clear Face Wash


21
Karachi University Business School
K.U.B.S
SEGMENTATION

The segmentation which we will use for Clean & Clear Face Wash will be:

SOCIAL CLASS

Social class Upper-upper, upper-middle & middle class


Lifestyle Highly/mildly Modern
Personality Modern and educated

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

World region Asia


Country Pakistan
Target market Karachi

BEHAVIOURAIL SEGMENTATION

Benefits Strong shiny hair and protection from getting white


Usage rate Daily
Loyalty status Medium
Readiness stage Aware, Informed, Desirous
Attitude Enthusiastic, Positive

Repositioning of Clean & Clear Face Wash


22
Karachi University Business School
K.U.B.S
MARKETING MIX

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.

Repositioning of Clean & Clear Face Wash


23
Karachi University Business School
K.U.B.S
Communications Media: These are the vehicles used to transmit the
advertiser’s message. Clean & Clear face wash communication media will
include Broadcast, Print, Point- of-Purchase and Outdoor media.

Advertising Message: This is what the company plans to say in its


advertisements and how it plans to say it. Clean & Clear face wash
advertising message will focus on the confidence provided by fresh and
blemish-free skin for both genders.

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”

NATURE OF THE PRODUCT:


Consumer products are those products, which are purchased directly by the
consumer from a retail store. These products are bought for personal use.
Clean & Clear Face Wash comes under the same category of consumer
products. The unique selling point of our product is that it contains special
ingredients Saw Palmetto, Virgin olive oil, and natural vitamin E in every unit.
Our face wash is for daily use. It uses makes the face healthy and soft and
extra leather helps in cleaning the skin and protects from getting dry.
Consumer products are further classified into four main categories, which
are convenience products, shopping products, specialty products and
unsought products. Each of these categories have their own distinguish
characteristics and products are assigned to the classes accordingly.
After analysis of each of these categories we have come to the conclusion
that Clean & Clear Face Wash comes under the category of convenience
products.

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

Repositioning of Clean & Clear Face Wash


24
Karachi University Business School
K.U.B.S
retailers that any retailer who will generate the highest sales will get its
superstore or supermarket’s name on the billboard.

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.

Repositioning of Clean & Clear Face Wash


25
Karachi University Business School
K.U.B.S
PRODUCT POSITIONING

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:

 Identifying potential competitive advantages


 Selecting the right competitive strategy
 Signaling the competitive advantage

IDENTIFYING POTENTIAL ADVANTAGES

A company differentiates itself from competitors by bundling competitor’s


advantages. A competitive advantage grows out of value a firm is able to
create for its buyers that exceeds the costs of creating it. The same will be
followed by Johnson & Johnson, which will obviously increase the market
share.

CHOOSING THE RIGHT COMPETITIVE ADVANTAGE

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.

SIGNALING THE COMPETITIVE ADVANTAGE

Competitive advantages are not automatically apparent to the market;


therefore the company will advertise them.

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

Repositioning of Clean & Clear Face Wash


26
Karachi University Business School
K.U.B.S
the sales of the companies product and will be a source of attracting
customers towards the companies offering.

DIFFERENIAL ADVANTAGES FOR CLEAN & CLEAR FACE WASH

 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:

FUNCTIONAL BENFIT: the functional benefit of face wash is that it


would cleans deep down the skin to the pores and removes oil, dirt and make-
up to give clean, healthy looking skin.

EMOTIONAL BENEFIT: Emotional benefit will be the confidence which one


gets after using Clean & Clear face wash.

SELF-EXPRESSIVE BENEFIT: The consumers who are very defensive and


careful for their health and family would feel comfortable using this
product it would gave them a sense of caring and safety.

Repositioning of Clean & Clear Face Wash


27
Karachi University Business School
K.U.B.S
PRICING STRATEGIES

The basic pricing strategy of Unilever will be premium-based pricing. The


basic cost of the product is broken down into these categories, which add up
to the total cost of the product.
The price of the products is made up the following:
 Cost of production and overhead expenses
 Net selling price (NSP)
 Distributor price
 Retailer price, which then adds up to, the total price cost charged to
the consumers at the retail outlets.

In order to provide incentives to resellers, trade discounts are also part of


the promotional campaigns e.g. 5% off at the retail price.
The basic problem arises when there is a lot of variation between the prices,
as some reseller often charges a higher price. For other competitive brands
it has been noted that customers often complain of paying a lot of higher
prices as compared to less expensive retailers. The company will have to
rectify this problem for their brand, by printing the Trade price and the
consumer price on the retail pack.

PROMOTION STRATEGIES

In order to compliment the advertising strategy, Unilever also plans to use


the tools of sales promotion to give short-term incentives in order to
encourage the purchase of its products.
The main sales promotion tools used for Clean & Clear Face Wash offerings
are:

 Consumer promotions
 Trade promotions
 Sales force promotions

CONSUMER PROMOTION TOOLS


During the advertising campaign of face wash, the company will also offer a
very lucrative consumer promotion. The mechanics of their consumer

Repositioning of Clean & Clear Face Wash


28
Karachi University Business School
K.U.B.S
promotion will be (this will be offered at the end of the first year of
launch):

 In order to win fabulous prizes, all consumers will have to do is to


write their address on the back of the Clean & Clear Face Wash
empty bottle that they purchase and send it to offices of Johnson &
Johnson Karachi. These will be entered in lucky draw and the winner
will receive a Suzuki car or a trip to Dubai.

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.

Repositioning of Clean & Clear Face Wash


29
Karachi University Business School
K.U.B.S
ADVERTISING PLAN

In order to deliver effectively its message to the consumers advertising is


also an important element in the Marketing Mix for Johnson & Johnson.
The respective Brand Manager at Johnson & Johnson will be responsible for
developing the advertising strategy for their respective brands. In
consultation with the Advertising Agency that will be on retainer on each
Brand, the Brand Manager develops the Advertising Strategy right from
idea conception to the delivery of the message to the audience.
The following are the elements on which the Advertising Program for
Johnson & Johnson is developed:

 Johnson & Johnson Advertising Objectives


 Johnson & Johnson Advertising Budgets
 Johnson & Johnson Advertising Strategy
 Johnson & Johnson Campaign Evaluation Strategy

The underlying principle for Johnson & Johnson Advertising program is to


develop importance, by building strong brands, which supports our (Johnson
& Johnson) benefits claim and underpin our relationship with the loyal
consumers who have been using different products of our company and most
importantly, enable us to make a real contribution to the improvement and
growth of strong shiny hairs.

JOHNSON & JOHNSON ADVERTISING OBJECTIVES


Based on the Brand Plan and activity plans for the year the Advertising
objectives of each Brand shall be set. Also as the first of launch there are
different objectives for each Advertising program in each Quarter. The
general objectives that Johnson & Johnson sets for all of its Brands are as
follows:
Information Advertising
Persuasive Advertising
Reminder Advertising
Johnson & Johnson heavily relies on Informative Advertising. The objective
is to build primary demand for the product.Specifically for Clean & Clear
Face Wash an informative/persuasive advertising campaign will be
introduced.

Repositioning of Clean & Clear Face Wash


30
Karachi University Business School
K.U.B.S
The objectives of this campaign will be:

 Explaining how the product works: Double deep action that


penetrates to roots of the skin where ordinary face wash do not
normally reach making skin smother and cleaner making it healthy
since the environment is full of pollution.
 Changing Customer perceptions of product attributes: Customers
believe that until now there are no face wash that have offered this
feature and the ingredients, real herbs will provide solution for their
face. The double deep action campaign aimed at changing this
perception.

JOHNSON & JOHNSON ADVERTISING BUDGET


Unilever will set the Advertising Budget for each of its brands based on the
Brands Marketing Plans. This in turn is set on the basis of the following:

 The Brand’s Stage in its Life Cycle


 Market Share
 Level of Competition
 Level of Differentiation

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.

Repositioning of Clean & Clear Face Wash


31
Karachi University Business School
K.U.B.S
 The product class for face wash is largely undifferentiated, as
most of the face wash are perceived to essentially resemble each
other in terms of use and attributes. Clean & Clear Face Wash
advertising campaign for Double Deep action will try to point out the
differences to consumers between double deep action face wash and
other face washes.

JOHNSON & JOHNSON ADVERTISING STRATEGY


Johnson & Johnson’s recognizes that there are benefits to be gained from
planning the creation of advertising messages and selecting the advertising
media jointly.
The Brand Manager for Johnson & Johnson’s will have to work closely with
the advertising agency and the Company’s Media Planners as well as the
Creative Directors for the Advertising Strategy.
Johnson & Johnson’s will employ various communication channels to make
people aware of its product and its features.

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.

Repositioning of Clean & Clear Face Wash


32
Karachi University Business School
K.U.B.S
BILLBOARDS AND POSTERS
The advertisements will be used to make people aware that some new brand
is about to arrive. Catchy captions will be placed on billboards to get people
to notice it. This will build anticipation in the potential customers. We plan
to keep these teasers running on display for an estimated 2 weeks. After
this time duration we will place more descriptive and informative
advertisements on the billboards that talk about the actual product. These
billboards will be located in metropolitan areas of all cities of Pakistan.

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.

Repositioning of Clean & Clear Face Wash


33
Karachi University Business School
K.U.B.S
ADVERTISING BUDGET FOR FIRST YEAR

Media channel Per Unit Cost in No. Of units Total Budgeted


Rs. Cost in Rs.
Television 150,000/week 8 12,00,000
Billboards 80000 5 400,000
Magazines 12000 30 360,000
Newspaper 15000 55 825,000
Sales Promotion ******* ******* 500,000
TOTAL 32,85,000

Promotion Budget

15%

37% Television
Bill Boards
Magazines
25%
Newspaper
Sales Promotion

11% 12%

EVALUATING ADVERTISING

Repositioning of Clean & Clear Face Wash


34
Karachi University Business School
K.U.B.S
At the end of each Advertising program the Brand Manager at Clean & Clear
Face Wash will evaluate the effectiveness of the program.
The Brand Manager for Clean & Clear Face Wash will conduct an analysis of
pre-campaign and post-campaign secondary sales (distributor sales)
comparison to gauge the effectiveness of the program. An increase in
secondary sales is usually indicative of the success of the program.

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.

Repositioning of Clean & Clear Face Wash


35
Karachi University Business School
K.U.B.S
CITIES TARGETED
Unilever will be targeting mainly the cities in Sindh and Punjab. The demand
for the products Johnson & Johnson offers is mainly vested in these two
provinces. The major cities shall be Karachi, Hyderabad, Sukkur, Faislabad,
sialkot, Rawalpindi, Islamabad, Lahore, Gujranwala and Multan.The product
will also be available in cities of balouchistan and N.W.F.P.

MARKETING STRATEGIES

Marketing strategies of a company must be in accordance to the marketing


objectives. Johnson & Johnson marketing strategies mirror the outline of
the marketing mix (product, placement, promotion and pricing) in such away
that the target market could be attracted by satisfying consumer’s needs
and to achieve the objective. In market strategy making we should keep
under consideration that separate strategies are necessary for each SBU’s,
which will give us a proper guidance and make our work more efficient. But
since all of our SBU’s are debutants, therefore, more or less same
marketing strategies will be framed for them.

The product opportunity matrix gives us the four alternatives for


maintaining the market strategies that are
 Market penetration
 Market development,
 Product development and
 Diversification.

Johnson & Johnson will use market penetration strategy because it is


repositioning its product, Clean & Clear Face Wash. In market penetration
strategy we have to increase our sales of our present products. They have
to manage a strategy of distribution channels (distributors, wholesalers and
retailers), promotions and competitors pricing.

Repositioning of Clean & Clear Face Wash


36
Karachi University Business School
K.U.B.S

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.

Repositioning of Clean & Clear Face Wash


37
Karachi University Business School
K.U.B.S

FINANCIAL OBJECTIVES
We want “Clean & Clear Face Wash” to deliver a good financial performance.

Our financial objectives are:

1. Earn an annual rate of return on investment over the next 2 years of


45% after taxes.

2. Produce net profits of RS. ___25 million____ in the next 2 years.

3. Produce a cash flow of 15 million by the next year.

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.

Repositioning of Clean & Clear Face Wash


38
Karachi University Business School
K.U.B.S

CONTROLS

MARKET SHARE ANALYSIS


At present according to the BCG matrix we are a question mark (?), as we
are a repositioning a product we have a low overall market share in a high
growth market, in the near future we aim at becoming a star product

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%

MARKET BASED ANALYSIS


We will be offering new and attractive promotion and deals to continuously
attract new customers and satisfy them with excellent quality and convince
of our product. We will ask for comments and suggestion from our customer,
which we help us analyze our customer needs & preference, so that we may
not lose our customer, as winning back our lost customer can be very costly.
Through advertisements & promotions we can create awareness among
targeted customers. We will also conduct survey to determine our targeted
customer’s preference, do they find our product highly satisfying in quality
and convinces compared to other face wash already existing in the market.

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.

Repositioning of Clean & Clear Face Wash


39
Karachi University Business School
K.U.B.S

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

Repositioning of Clean & Clear Face Wash


40
Karachi University Business School
K.U.B.S

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.

Repositioning of Clean & Clear Face Wash


41

You might also like