Marketing 100 - Johnson & Johnson Baby Shampoo "no more tears"

Johnson & johnson

J&J Baby Shampoo “no more tears”

Marketing 100

Rebecca Licacristi Budianto - 15359111 Curtin University

2011

1.0.         Situation Analysis

1.1.         Current Product

Johnson and Johnson Baby Shampoo, gives parents especially mother, some benefits as the consumers when they purchase this product for their babies. Better quality products always being look by the people (Wood 2009). The specialties of this product is the ingredients selected are made naturally from natural origin, it will not hurt the baby’s eyes when they consuming the product. When the baby take a bath, they would not stop moving because the baby do not understand and just get excited to play with water. When they moving their head, the probabilities of the shampoo gets into their eyes is high. When their eyes becomes hurts, they will cry, the mother will be panic and hard to handle the situations, especially for new mother. To prevent that kind of situations, the mother choose Johnson Baby Shampoo for their babies. It was produce in well-known and big company, so the consumer feel safe and guarantee to use this product, moreover, it also appear in attainable price.

The product has well packaging, wide, tall and transparent bottle, so the mother can see and decide when they have to purchase the new shampoo. The design of the product are, big tears shape sticker, with labelled Johnson’s baby shampoo and small tears shape sticker labelled “no more tears” are stick on the front part of the bottle and the last one is Johnson and Johnson logo. This is to indicate and tell the mother that this is Johnson and Johnson Baby Shampoo no more tears which they are looking for. On the back part of the bottle, there are “HALAL” and triangle logo. Triangle logo means that this product is made up from recycle bottle, so the consumers will be happy to purchase the product because psychologically they will think that they also take part to safe the environment  HALAL, is to indicate that the products is safe to be consumed in any religions. Singapore is a multicultural country, it has different kinds of target market which depends on their own culture and religion. It might become an opportunities for this product to have more consumers than their competitors (The Strait Times, January 11, 2010).

Johnson and Johnson are able to fulfill their consumer’s needs, they can choose according to what they need for their babies. The consumers will have extra services and products from Johnson and Johnson. For example, if the consumers want to buy a full packet of Johnson’s products, they will get a medium size baby bag with the products they need inside. They provide beautiful packages for a gift to new baby born. The consumer type for this product is Gen Y (18-30), in that range, many married woman and new mother. They provide services for a new mother, one of them is a guide book for baby bath. They explained it step by step to make a new mother understand easily and feel safe to take their baby for a bath. Consumer’s need little time willing to buy this product. Basically, every human need shampoo as safety needs to take care their hair, because they need it, they only spent little time to decide. The consumer will not accept the substitutes products if they cannot find this product. The reason is because the mother does not want to see their baby cry because their eyes hurts cause by the shampoo. For a mother, even if the price is expensive, or need large effort to get this product, it was no problem to purchase as long as their baby are safe and happy.

Johnson and Johnson have many products, from baby skin care, hair care, night and day cream protection, even for baby massage and more. Johnson and Johnson are unique and different from the competitors in their features, that is, together with the mother, protect and prevent the baby from crying and make them feel safe and happy.

1.2.         Current Pricing

Johnson and Johnson has a monopolistic competition. Intensive market situation brings direct competition with the competitors. Sellers are likely to inflate price to get large amount of exchange, they will increased the buyers power when short supply happen and in high demand, or during stable economic (Ferrel and Hartline, 2008).

If there is a change in price of Johnson’s products, the demand number would not greatly change. The changes will be inelastic, because this is specialize product, Johnson’s baby shampoo have a competitive advantage. The current price is about the same as the competitor, it makes direct competition with its competitors in the same target market. The price change affect the product demand inelasticly because if the price increasing, the mother will not change to substitutes product.

Consumer decides to buy these products are based on, first, locations, product quality, product price, and product features (The Strait Times, December 16, 2010). The consumer trust the quality of the product, Johnson and Johnson also provides good features to the product, it also a well-known products with attainable prices. The products create good image already, price is not a concern for the consumers as they set the price in standard pricing. Business cost is important when they determine the price for the product, energy costs, marketing and advertising costs, packaging costs and also the distribution and labor costs.

Company set the price includes the cost of making the goods and services. Several companies might set high price for their products because the company wants to create an image of a high quality products. On 1 July 2010, the Top 1000 Asia-Pacific Brands 2010, announces that Johnson and Johnson baby products get the 86^th rank (Media, July 1, 2010). By this announcement, they do no need to create high image quality product. Moreover, Johnson and Johnson is eco-friendly product. The opportunities from eco-friendly product are, people tend to buy this environmental products, so they would having large amount of consumers. It also lead to lower supply of energy consumption, so it will decrease the production costs. This is the reason why they set normal price for their pricing strategy. 

1.3.          Current Distribution

There are lot of place where the consumers can buy this product. Singaporean citizens were live dispersely, many big and small malls were build in here, in every locations. The reason for this is to make the citizens easier to go buy and fulfilled their needs as mainly people in Singapore use public transportation or go by walk. Consumer can  find this product in the store such as NTUC Fair Price, Carrefour, Giant and more. Shops, for example, baby shops or online shops, and license shops, like Watsons and Guardian (The Strait Times, December 16, 2010).

People can get the products easily because Johnson and Johnson is a big company, they able to produce and distribute their products in country and sell it in possible retail shops because they intensively distributing their products (Jain and Haley, 2009). Apart from inside factor, I had  mention about this before, environmental product means recycled products,  because of Johnson and Johnson is an environmental product, it have simple packaging and make the transportation to distribute the product much more easier.

The consumer cannot buy the products directly from the factory, the consumer have to purchase it in the market, the factory only can sell it to the distributors. The factory only serves selling in a large amount, the company would find it hard to sell it one by one to the customer. The selling cycle is, factory sell the products to the distributors, the distributors sell the products to the retailers, and the retailers sell it to the consumers.

The characteristics of the products are fast-moving consumer, non-durable, perishable and has expiry date. Fast-moving consumer  people have little time consideration to buy this product, because as it mentions before, people need this product as their basic needs. Non-durable, the product is liquid and it will be use everyday, so it will finished quickly. Logically, people will buy the products again when the products almost run-out, this is also one of the factors of fast-moving consumer. Perishable, for product like Johnson and Johnson baby shampoo and soap, they will not get damage, they are last-long products and can be sell for a long-term.

It was confirmed that for expiry date, commonly, health care products such as shampoo and soap, do not have an expiry date, but they have the production date. This is because they are last-long products or long-term use product, they do not have any expire dates, so the government policies set the rules to at least put the production dates. (L. Cahyaningsih, personal communication March 27, 2011).

1.4.         Current Promotion

In any advertisement, brand name is important. Positive brand biography shall influence consumer’s perceptions especially in radio or advertisement which does not show any pictures or images. Company need to define their target market to make any types of advertisement for their product (Koegel 2010). For health and well-being product such as Johnson and Johnson, the target audience is female with range of age between 25 until 54. Especially mother, mother has become common target markets for the marketers. As mentioned by Peppers and Rogers (2008), doing an advertisement in social media such as internet, might be dangerous because it can lift or sink your product and brand reputation by word-of-mouth from one person to another.

Advertising is about establish and manage a communication between brand and consumers. In 2009, Johnson and Johnson have associated the spirit of Chinese Olympic with the link between mother and kids. The advertisement is held in a magazine, the theme of the advertisement is, ‘Golden Touch, Golden Mom’. The meaning is to tell the world that Chinese mother are caring and protecting, it also tell the attitudes of Chinese woman towards family and country, that leads the Chinese young generation become success and become the winner (Media, August 27, 2009). Consumers want to have relationship with brands that have personality.

By doing advertising, the company wants to remind the people that their products are still exist in the market, to gain consumer’s demand or to increase the consumer interests to buy this product and also to clear the stocks so it will be not count as loss. All the promotions sending different messages to the consumers, it depends to the situations and the changes in consumer trend. For example, in one of mother or parents magazines, there are advertisement about Johnson and Johnson baby shampoo, the theme of the advertisement is “You would never bring a tear into his eye, neither will our shampoo”. This advertisement is introducing and remaindering the mother as the consumers, if there is a shampoo that will not make baby cry when the shampoo gets into his eye, exist in the market.

For another example that I saw in the magazines, the advertisement theme is “Nobody knows babies more than mothers... and Johnson and Johnson”. Like I have mentioned before, Johnson’s baby product, have a unique or different feature and mission. Johnson baby product is concerning more on the baby safety, so that, together with the mothers, Johnson and Johnson tried to protect and give happiness to the baby.

2.0.   Segmentation Theory

2.1.    Define and Explain Segmentation

Segmentation is a process of classify the market for a service or product into different groups or segments, and applying different marketing strategy in each segments according to the different target market (Lancaster and Reynolds, 2005). Opinions, values, attitudes and lifestyle are the based for segmentation  Dividing a market into several groups of promising customers might be more advantageous than invite an extensive consumer foundation. Segmenting let the marketing to achieve nearly subgroups of consumers who probably give more response to the product and service which offered and results in high profits. Better knowledge of the needs and wants of the customer approving better acceptance of products that been offers and also better experience on competitive advantage.

2.2.    Benefits of using segmentation

By doing segmentation  Johnson and Johnson could promote opportunities for success in competitive market atmosphere. They able to analyze marketing possibility among its competitors and can adjust in their known market environment. Johnson and Johnson capable to create two-way communication between the organization and the customer, also maintain the relationship because they have a clear product segments, and they have different customer services in each segments, so that they can provide and give the correct information according to the customer’s request.

By segmentation  the company might know the differences that occur in each group and could increase the standards of service delivery according to its product. Every product need different concern and it may lead to decrease in costs on variant marketing projects such as advertisements. They might upgrade their market share as they get more profits by doing segmentation  Johnson and Johnson can put more concentrate to preferred groups of customers, and according to marketing concept, Johnson and Johnson can put the customer’s needs as the centre of the decisional making. 

3.0.   Target Market Identification

3.1.    Geographic Segmentation

The Republic of Singapore located in Southeastern Asia. The total population 4.8 million estimated including emigrant and rate of employment  with total area 647.5 square kilometers and 3642.7 residences. 50% of the land consists of urban areas and 40% covered with parkland, accumulation, estate and open military areas. Main city area occurs along Singapore river banks with high density areas. Colonial district lies to the North of Singapore, Little India and Central Business District (CBD) spread at Southern coast of Singapore river and Jurong stretch to the west. International airport placed in the Eastern shore of the city. Huge and better developing houses present at Northeastern of Singapore. Geographical location and the sea situation influence atmospheric condition in Singapore. The climate is warm and moist, with consistent temperature range between 23 -31 degree celcius, high humidity and sufficient rainfall.

The climate in Eastern side of Singapore is more dryer and hotter then the Western part. Singapore has 63 islands, and according to its strategic position, their helps in grow for trade, communications and tourism. Singapore has many immigrants from China, India, Srilanka and Indonesia. English is the main language of business and administration, it is widely spoken and understood. Dominant ethnic groups are Chinese, Malays, and Indians. Singapore known as green city. Marketers will concentrate in metropolitan areas as they have fastest  growing states. Johnson and Johnson will distribute their product mainly in the main city areas as they have high density and also in the Northeastern side as many residences placed there.

3.2.    Demographic Segmentation

Singapore is considered to be the second most densely populated independent nation of the world. Singapore Chinese people have the largest group population in Singapore. Singapore is a multireligious country, major population are Buddhism  and the rests are Christians, Muslims, Sikhism, Hinduism and Taoism. Singapore experienced low birth rate, resulted in high income, education and low rate of population growth. Singapore facing aging population. Singapore has many advantages in doing business with their geographical locations, well-developed infrastructure, availability of both international and domestic transportation. Singapore age structures are, 0-14 years, male dominant, 15-64 years, female dominant, and 65 years and over, female dominant. The age groups for Johnson and Johnson target market is gen X, that is in Singapore 15-64 years with female dominant.

Their nationality is Singaporean, the gender of target market is female with housewife occupation and full nest 1 life cycle stage and bachelor or university education stage with household income level between 500-1000 Singapore dollar. Singapore has a problem of ageing population and small family consists of one or no kids at all. Singapore is a multicultural country, the different taste of people could affect the Johnson and Johnson market. Moreover, the low birth rate, will give a threat for distribution of the product. People in Singapore mainly are high educated, with triangle and halal logo in Johnson and Johnson product, would give opportunities and profit as many people will choose the product to be consumed to considered their health. The raw materials are low as Johnson and Johnson is a recycle product packaging so it will spend less energy cost which lead to high profits.

3.3.    Psychographic Segmentation

Lifestyle, family with young children is likely to have a different lifestyles to a much older couple whose children have left home. There would be much differences in consumption patterns. Target market for Johnson and Johnson is likely dependent or family with at least one dependent child. Opinions, interests and hobbies covers cultural issues, views on the environment and political opinions. Opinions that customers hold and activities that they engage will have a huge impact on the products they buy and Johnson and Johnson have to beware of any changes. Product that environmentally friendly like Johnson and Johnson could influence the growth of demand for organic products. By segmenting, Johnson and Johnson can adapt their marketing strategies in order to retain loyal customer. Sometimes keep the customer will be more profitable than keep looking for new customer.

Depending on household income every month, the customers may purchase these products on a monthly basis. By this segmentation, Johnson and Johnson might identify and understand the main benefit consumers look for in the product. Johnson and Johnson baby shampoo is not only to maintain baby soft hair, but also to protect baby eyes from hurt so they will not cry when the shampoo gets into their eyes. In Roy Morgan lifestyle segments, Johnson and Johnson could be classify as basic needs and something better. A new mother must try for several shampoo to her first baby, after she experienced the baby reaction by using the shampoo, the mother will know which one is better, and finally she will use the same product for her next baby.

3.4.    Behavioral Segmentation

Johnson and Johnson is a strong brand. Usage rate is medium as it is a safety and psychological needs according to Maslow. The mother is the valuable customers who buy the brand all the time. Johnson and Johnson also segments the market into where loyal customers and new customers will be found. For locations, the consumer will fine Johnson and Johnson product mostly in NTUC Fair Price as that is the dominant retailer shop in Singapore. The mother will buy this product for monthly usage. This is a low involvement decision product, the things that motivates the mother to purchase this product is for the baby safety. User status is regularly use.

Attitude reflects the relationship between a consumer and the products. Attitude in consumer behavior is the result of direct experience with particular products that achieve by verbal communications. Perceptions are what the consumers think about the products and it requires knowledge. The formation of consumer attitude is extremely influenced by the opinions of the process with whom an individual communicates on daily basis. Not only visual attributes of a brand form one or more attitude such as smell, sound, taste, that touch by a consumer. In the future, seek for a competitive advantage, with a help of brand exclusiveness, the impact of the five senses, influences consumer’s attitudes. 

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