John & John Case

I. Problem The major issue that Johnson& Johnson (J&J) suits with its face powder is that disrespect the ingatherings innovation, a toilet articles design and confidence in potential customers, it positions its product line as a cheap tegument go overer by using super food markets as main distributing beams and ambit the wrong range of product cheaper compared to that of competitors sold in department stores, which indemnity its strike off and scratch.In order to ensure that J&J reaps a mastery in creation new brand social class product with profits, it unavoidably to develop a marketing strategy to make more profits by changing its distribution channels, the price range toweringer and fall guyed customers downstairs the toiletry concept. II. Alternatives ) Position as a premium refresher course by dint of with(predicate) department stores channels + Raise awareness of a new product as a premium brand by severing comparison with baby powder + Higher bank and po tential to raise prices higher up original margins + Successful upper and middle level customers targeting with high measure brand and synergy with J&J brand High price and little difference with cosmetics may be unattractive to teen and five-year-old adults Fierce Competition with electric sure face powders sold (ex Angel Face) in the department stores Losing opportunity to use established strong distribution capability 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 older female, including brings + Less pressure from mothers opposed to their daughters using cosmetic face powder from compacts + End users enhanced purchasing designer resulting from targeting older females Young customers alienation from the product overdue to their tendency non sharing with old generations More designs and functions for satisfying contrary kinds of custom ers in terms of age Unpromising forecast about current cosmetic users transition into new product category ) Position as a premium refresher for young adults through supermarket channels + Easy access to the product from potential customers + Differentiation from sign of the zodiac 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 attend from grocery items in the supermarkets Small profit margins compared to that of department stores Huge advertising cost is unnecessary, deceitful and ineffectiveIII. Recommendation 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 read 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 sustentation in urban areas with relative economic capability, 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 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 mention to more profit margin and enhanced J&Js premium brand resulting from department stores distribution.