REPOSITIONING OF CLEAN & CLEAR FACE WASH

Submitted To: Ms. Farah Ali Nawaz Submitted By: Hatim Mustafa Hussain Kakal Kanchan Rajkumar Mir Raza Talpur Sumaiya Reyaz Dhib Yousuf Hussain 4331 4116 4202 4315 4021

Date of Submission: 19th July 2008

Letter Of Transmittal

July 19th 2008 Ms. Farah Ali Nawaz Iqra University Karachi Dear Madam, 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, Hatim Mustufa Hussain Kakal Kanchan Rajkumar Mir Raza Talpur Sumaiya Reyaz Dhib Yousuf Hussain

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 couldnt 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

TABLE OF CONTENT
S NO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

PARTICULARS
Executive Summary Introduction Our History People & Values CREDO Product Offering Johnson & Johnson Products Reason for Repositioning Product benefit Target Market Financial Objectives Segmentation Competitor analysis SWOT analysis Value Proposition Positioning Positioning for Competitive Advantage Competitive Advantage Overall Positioning Strategy of Clean & Clear Face wash Marketing Mix Promotion-Advertising Strategy Scheduling of the Advertising-Television Broadcast Media-Radio Print Media Mobile Media Outdoor Media Conclusion

PAGE NO
6 7 7 7 8 9 10 11 11 11 11 12 14 15 16 17 17 18 18 19 20 21 22 23 24 24 25

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 lesserknown 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 dont feel hesitant using it without being targeted.

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 worlds premier consumer health company The worlds largest and most diverse medical devices and diagnostics company The worlds third-largest biologics company And the worlds 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, weve 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 & Johnsons greatest assets. We know that every invention, every product, and every breakthrough weve 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.

CREDO
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. 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.

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. Your familys health and well-being is our passion. Thats why our companies offer the worlds broadest range of health care products. Whether you have a skin blemish or sniffles or a serious medical condition, you and the health professionals you trust can turn to our companies products for comfort and care. In your home, products from our consumer health companies brighten your smile, add luster to your hair and ease that nagging headache. You 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 metastatic breast cancer that give people hope for a longer, more active life. These products help them help people conquer lifethreatening 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 familys health care needs, the Johnson & Johnson Family of Companies is at your side.

JOHNSON & JOHNSON PRODUCTS

10

REASON FOR REPOSITIONING

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.

PRODUCT BENEFIT
Clean & clear face wash is a skin care product for those people who want healthy and clean skin. Its a face wash which helps prevent blemish.

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. 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.

FINANCIAL OBJECTIVES
Our financial objectives are as follows: To make profit within 5 years of establishment. To achieve sales growth of minimum of 10% every year. To break even within the 10 years of operation.

11

SEGMENTATION

The segmentation which we will use for Clean & Clear Face Wash will be: Demographic: It emphasizes mostly on demographic factors which include: Age and life cycle:

Clean & Clear Face wash is for age group 15 - 30 Gender:

Initially these products were targeted to women and children but now we have repositioned it for men as well. Income

Income levels of above 15000. SEC A and SEC B can afford to buy the Clean & Clear face wash.

Psychographics: Clean & Clear face-wash also segments the market based on psychographic variables: Social class: Clean & Clear faces wash targets middle class, upper middle class and upper class. Life style: Clean & Clear product line is suitable for health conscious people and its positive aspect is hygiene.

12

Behavioral: Occasions: Its product line fits use as a part of a daily routine. Benefits: It provides its customer with high quality skin care and blemish control. It is also conveniently available at every super market.

13

COMPETITOR ANALYSIS
DOVE FACE WASH PONDS FACE WASH

NEUTROGENA

OLAY FACE WASH

LOREAL

14

SWOT ANALYSIS

Strengths Well established products High quality of products Existing distribution network

Weaknesses No specialized variant for men No specialized personnel used

Opportunities The market segment of upper-middle class and upper class are relatively less price sensitive Men are becoming increasingly aware of the importance of skin care

Threats Competitors: Local and international Environment changes Large proportion of men who are currently unaware and place low priority on skin care

15

Value Proposition
1. Functional Benefit: Face wash will be the Functional benefit here.

2. Emotional Benefit: Emotional benefit will be the confidence which one gets after using Clean & Clear face wash.

3. Self Expressive: It makes my skin really refreshed.

16

POSITIONING
A product positioning is the way a product is defined by consumers on important attributes- place the product occupies in consumers minds relative to competing products. Positioning involves implanting the brands unique benefits and differentiation in consumers mind. The marketing strategy is built on segmentation, targeting and positioning. A company discovers different needs and groups in the market, targets them to serve them in a superior way, and then position its efficiency so that the target market recognizes the companys distinctive offering & image. Through research, we analyzed that a certain number of male population are also the users of Clean & Clear Face wash though they have not been targeted. Therefore we are re-positioning the product for men so that the number of users and subsequent market share increases.

POSITIONING FOR COMPETITIVE ADVANTAGE

Johnson & Johnson has effectively positioned itself in the consumers minds. They have categorized their product line according to different consumer needs. In order to plan position, it has widened the target market by catering to the needs of the neglected segments, such as baby care, skin and hair care, oral care, nutrition, pain relief, topical care and much more. By doing so it has not only occupied a place in consumers minds relative to the competing products like Ponds, Garnier, Loreal, Himalya, Dove etc., but has also implanted a unique brand differentiation in consumers minds.

17

COMPETITIVE ADVANTAGE

Clean & Clear has built profitable relationships with its target customers by understanding their needs better than their competitors and by delivering more value. It has gained the competitive advantage by providing superior value to the consumers. It has delivered the promised quality by offering the best one.

THE OVERALL POSITIONING STRATEGY OF CLEAN & CLEAR FACE WASH

Value proposition is the full positioning of the brand, that is, the full mix of benefits upon which it is positioned. Clean & Clear value proposition hinges on quality, convenience and health, all for a price that is not even very high than the mix of benefits being offered. Clean & Clear has differentiated its offers by building a unique bundle of benefits that appeal to a substantial group within the segment.

18

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 is for Rs 70 The large bottle is for Rs 130 Place: Clean & Clear face wash is available at every super market namely Aghas, EPCO, Mottas, Paradise Store and other retail outlets

19

PROMOTION
Advertising Strategy: The advertising strategy is determined by the advertisers 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 & clears 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 & Clears product concept is that of a Face wash that provides freshness and complete skin care. Communications Media: These are the vehicles used to transmit the advertisers 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 todays generation. The tag line is : Clean & Clear - Key to clear skin

20

Scheduling of the Advertising

Scheduling refers to the timing of the promotion expenditures or the sequencing of promotions within a time-period. Few of them are: Massing Flighting Pulsing Even-scheduling

For Clean & Clear, the company has selected Even Scheduling because it involves regular scheduling of ads for long periods of time within a year as it is a product which is used as part of a daily routine throughout the year. Secondly, it will also allow retention of our brand in the minds of the people and hence top-of-the-mind recall.

21

BROADCAST MEDIA 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: Audio and Visual support: Seeing is believing and nothing shows it better than television in terms of the mass media. Thus Clean & Clear can be shown to be actually more effective than other face wash. The basic message conveyed through TV will be Clean & Clear - Key to clear skin High Penetration: Television advertisements have the advantage of being able to reach the greatest number of people at a time. Moreover, majority of the target market comprises of young adults who are regular TV enthusiasts, thus the penetration of this medium will be the highest of all media. Geographic Selectivity: The Company can attain a high degree of geographic selectivity by using the different television channels to geographically segment their target market. This will be done by using different time slots according to program popularity for that region. The disadvantages of using TV such as clutter, perishability and high cost will be overcome by Our Company by using program sponsorship, increasing frequency and achieving low cost per person. Both 30 second and 15 second insertions will be run simultaneously in the beginning in order to create a relationship between the two different formats of the same advertisement.

22

Moreover, when introducing the product in Karachi, the company will be using nationwide advertising to create awareness of the new product in its future target markets as well. At this stage a disclaimer will be inserted in the advertisements on the national network indicating that the product is currently available in Karachi only in order to reduce confusion among the viewers.

Radio
We will also utilize Radio advertising to advertise Clean & Clear Face wash. Radio will be used to reinforce and support its Television campaign and approach the target market from another angle to aggressively impinge the brand in consumer minds. Fm-89, Fm-86 and Fm 106.2 are the ideal channel for Clean & Clear s target market of men and women

Print Media
Newspapers Newspaper advertising will help our company in reaching the masses which will enable it to penetrate a greater percentage of the population. The major advantages of newspapers such as editorial support and secondary readership will be capitalized by the company for reaching every possible consumer which falls in the target market for Clean & Clear, in a cost efficient manner. The negative aspects of newspaper advertising such as short life and poor quality of work are expected to be overcome by ensuring maximum exposure using front page advertisements and advertising in relevant sections of the paper, of interest to the target market.

23

The company will advertise Clean & Clear in the most popular newspapers of the target market namely: Dawn, The News and Daily Jang. Using both English and Urdu language papers will allow maximum exposure to Clean & Clear s advertisements and cater to the target markets needs in two languages. Magazines

In order to spotlight the target market our company will also advertise Clean & Clear in magazines with majority readership made up of men and women. Given the high demographic selectivity and quality of workmanship magazine advertisements will provide Clean & Clear with the cutting edge in its advertising campaign. The following magazines have been chosen for their proximity to the target market: - She - Mag - Aurora - Herald Only four magazines have been selected in order to ensure maximum coverage in this expensive medium with its limited geographic availability.

Mobile Media
Mobile media consists of outdoor media and transit media both of which try to relay the advertising message to the customer while the customer is not at home. Our company will make selective use of outdoor media to promote Clean & Clear

Outdoor Media
In outdoor media, Clean & Clear will be advertised on hoardings and banners which will be strategically placed to draw maximum attention.

24

CONCLUSION
Johnson & Johnson creates products which have great demand in todays 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 N Clear will feature both the genders in its communication, thus extending its current product line and benefits to a diverse target market.

25