John & John Case

I. Problem The study issue that Johnson& adenine Johnson (J& international ampereJ) governances with its face pulverize is that despite the overlaps innovation, a toilet articles design and assertion in potential customers, it positions its merchandise crease as a cheap unclothe refresher by using super foodstuffs as main distributing impart and setting the wrong range of product cheaper compared to that of competitors sold in segment introduces, which damages its give away and bread.In prescribe to ensure that J&J makes a success in entree accepted crisscross category product with internets, it needs to develop a trade scheme to make more profits by changing its distribution channel, the price range richlyer and fooled customers under the toiletry concept. II. Alternatives ) Position as a bounty refresher through surgical incision stores channels + Raise awareness of a crude product as a tribute brand by severing apprisal with handle powder + Higher marge and potential to raise prices above master perimeters + Successful upper and middle train customers targeting with towering value brand and synergy with J&J brand High price and little unlikeness with ornamentals may be unattractive to jejune and unripe adults Fierce Competition with current face powders sold (ex Angel Face) in the department stores Losing opportunity to use establish strong distribution strength in supermarket channels ) Position as a premium refresh for both newborn female and adults through department stores + Enlarging market by targeting both teen and issue adults and older female, including arrests + Less pressure from mothers opposed to their daughters using cosmetic face powder from compacts + End users raise purchasing power resulting from targeting older females raw customers alienation from the product due to their tendency not share with old generations More designs and functions for satisfying contrary kinds of customers i n terms of age unfortunate forecast about current cosmetic users transition into new product category ) Position as a premium refresher for young adults through supermarket channels + Easy admission charge to the product from potential customers + Differentiation from plate items sold in the supermarkets due to high price and premium brand + virile distribution power by routine of already established supermarket distribution channels Difficulty in separating its watch from grocery items in the supermarkets Small profit margins compared to that of department stores Huge advertising cost is unnecessary, trifling and ineffectiveIII. Recommendation I suggest that J&J set a new product line as a premium refresher with high price by distributing it through department stores. At first, the demand of targeted customers such as teens and young adults is already verified. In fix up to make more profit with this product, J&J needs to target the market segmentation more speci fic.Considering well-nigh potential customers are young females animate in urban areas with relative sparing capability, more profit margin in department stores compared to supermarkets, and a marketing strategy under the toiletry concept, I pep up that J&J kind its distribution channel into department store and set the price range higher(prenominal) 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 surface the way for launching J&Js proximo youth lines such as body share 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.