Johnson and Johnson Face Powder Case Anlysis

376 Words2 Pages
1. J&J has discovered that there is a strong interest among teen and young adults for one of its baby line products - Baby Powder. Research showed that 80% of these customers (teens and young adult women) used it in a different way from the product’s original purpose, applying the product on the face. From a consumer perspective there were the following barriers for adopting the product: young people would like to see themselves as more grown-ups, and the word ‘Baby’ in the product’s name did not help well to overcome this. On the other hand, mothers were strongly against the usage of cosmetics by their daughters. 2. Estimated Size of the market for the given segment is 206 158 target clients. Calculation: Population 61 M, of which assume 50% women, Of which 42 % live in the urban area, Of which 7.8% belong to AB-C economic class, Of which 20.3% belong to teen-young adult age group. 61M x 50% (women) X 42% (living in the urban area) X 7, 8% (AB-C economic class) X 20.3% (teen – young adult group) = 206’158 size of market. In order to reach its revenue goal of 6’500’000 pesos J&J will need to sell 84’006 units of compact pack for the price per pack of 39.95 pesos and 126’009 units of refill packs for the price per pack of 24.95. Revenue goal Price/compact pack Prie/refill pack 6,500,000.00 39.95 24.95 # of units 84,006.46 126,009.69 3. In order to overcome the consumer barriers J&J should position its Face Powder as a toiletry product rather than cosmetics. The price for the product (39.95 pesos for compact pack) is lower comparing to face powder compacts products that are sold in department stores (60-150 pesos). Distribution channel through supermarkets will help to get better access to the target clientele and provide a competitive advantage as cosmetics brands do not sell at supermarkets. In
Open Document