MARKETING REPORT
CLEAN&CLEAR FACE WASH
SUBMITTED ON: SUBMITTED TO: SUBMITTED BY:
Bilal Iqbal Lateef Anus Rafiq Ali Raza Ayeman Qazi Iqra Zahid Zeeshan Siddiqui
Miss Sabeen
TABLE OF CONTENTS 1 2 3 4 5 6 7 8 9 10
Letter of transmittal«««««««««««««.. ii Executive summary««««««««««««««iii current marketing situation««««««««««1 market description ««««««««««««««1 product review««««««««««««««««..2 competitive review«««««««««««««.....2 channels and logistics review«««««««««3 SWOT««««««««««««««««««««4 Objectives and issues««««««««««««..4 Marketing strategy««««««««««««««4 Positioning««««««««««««....5 Product strategy««««««««««...5 Pricing strategy«««««««««««.5 Distribution strategy«««««««««.6 Market communication strategy««««.6 Market research«««««««««««7 Market organization«««««««««..7 Action program««««««««««««««««.7 Budget««««««««««««««««««««8 Control««««««««««««««««««««.8 Conclusion««««««««««««««««««.8 y y y y y y y
11 12 13 14
1. Current marketing situation:Johnson & Johnson founded in 1886 introduced its new line of
dermatology products Clean & Clear. When introduced in Pakistan, by then the trend was to wash faces with soaps. And there was very little awareness regarding face wash and the fact that soaps are harmful for skin as it damages the cells it was this need that the company felt that eventually consumer will shift towards this specialized product. The marketing management team of Johnson and Johnson wants to design strategies that will help them build profitable relationships with the target audience. The product concept of clean and clear is to develop a product that help the consumer obtain a clearer and more beautiful skin. It keeps skin nice and clean. This oil-free foaming cleanser fights bacteria to help avoiding pimples and acne. Cleansing agents gently remove oil, dirt and makeup without over-drying. Johnson and Johnson·s Clean and clear use the Marketing concept to design and carry out their marketing strategies. It follows that J & J analyze the needs of their customers that is to get a clearer skin that boost their confidence. Therefore J & J make decisions to satisfy those needs, better than the competition by providing the best quality. They have typically set up separate marketing departments whose objective is to satisfy customer needs and have structured themselves into an organization having company-wide customer focus. Since the entire organization exists to satisfy customer needs, nobody can neglect a customer issue by declaring it a "marketing problem" ² everybody in J & J is concerned with customer satisfaction. CLEAN is a range of face products which have been designed to
care for different skin types, like oily and sensitive. There are a lot of different products in the range like cleansers, toners, moisturizers and pads which soak up excess oil. The prices of these products vary on what product you buy and where you buy them from. They are generally cheaper than most brands of skin care stuff but slightly more expensive than own brand stuff. The Research and development department does necessary research to define market segments, their size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix. BCG MATRIX
High
STAR
QUESTION MARK
CASH COW
Low
Clean & Clear Facial foaming face wash
DOG
HighRelative Market Share Low
2. . Market description
The brand has the tagline "Clean Clear and Confident ". In fact confidence is a virtue that will attract the attention of Teens. Teenagers have a view of themselves as adults. So by identifying this need, confidence can be a platform to attract these young minds into this brand. And the product showcases that if one has acne and oil free skin, she will be confident The Company believes that beauty comes from being confident, comfortable and secure in your own skin. Clean and clear·s market consist of teenage consumers. Teenage period is a very sensitive time in ones life, there are personalities and physical changes which call for peer pressure. So teenagers want to look at their best. So at that time basic need is to have a
clearer, oil free and more beautiful skin. The company believes that beauty comes from being confident, comfortable and secure in your own skin. . It is great for Asian skin. It·s fabulous for summer season where it really keeps your face from perspiring and becoming a sweat fountain. It·s wonderful for anyone that has a pimple or two; it cleans them up in a couple of days. Not only does it do everything it says on the bottle but it actually makes you feel good. It works two ways first it removes away dirt, oil and other impurities second it contains ingredients to help prevent blemish.oil free. Rinses cleanly without over drying the skin it is available in 3 sizes of bottles for the convenience of the customer and with the perfect price set for the lower middle age group females who wants to feel good in the price range they can afford. Specific segments being targeted includes student who are in high school or high school graduate. Below the table shows how clean and clear addresses the needs of targeted consumer segments.
3. Product review y
First it removes away dirt, oil and other impurities.
y
Second it contains ingredients to help prevent blemish and problem causing bacteria.
y
Small quantity can provide the desired result.
y
Acne fighting ingredient that helps that prevent clogging by helping the skins natural renewal process
y
Doesn·t over dry the skin
y
Available in three sizes
y
Easy to carry packaging
y
Available in almost all the stores
4. Competitive review
Clean And Clear facial foaming face wash will be classified in face wash category. The price of 50 ml bottle is Rs. 90. As for the 100 ml size the price is Rs 175.Clean & Clear Foaming facial wash considers Ponds as its major competitor. Reason being, that they are offering all most the same price range. Also both are positioning themselves to daily face wash. If Garnier is compare the price range is also a bit high and also the need that they are identifying is to unblock pores. In brand competition the face wash that are covering this target market i.e. lower middle class and the upper middle class are written below.
Pond's Daily Face Wash
Pond's Daily Face Wash is 100% soap-free, thus non-alkaline. Its Active Cleansing System deep cleans without drying. Your face retains its natural moisture and looks noticeably radiant. Garnier face wash
Is a mass market cosmetics brand of L·Oreal that produces hair care and skin care products with its face wash which is suitable for all skin types? Dove face wash
Is a brand of Unilever especially produced for people with sensitive skins Nivea visage face wash
Is a face wash for upper class people with relatively high salary and works for whitening the skin? Clean & Clear Foaming facial wash considers Ponds as its major competitor.
Reason being, that they are offering all most the same price range. Also both are positioning themselves to daily face wash. If Garnier is compare the price range is also a bit high and also the need that they are identifying is to unblock pores.
5. Channels and logistic review TV
advertisement on TV is the most common and effective type of all
clean&clear tries it best to attract the customers Radio nowadays is getting more noticeable as new channels are being
introduced and people tend to listen to radio while they driving and many teenagers r adopting this as their time pass so it can b a very good source as it directly communicates the targeted customers Press is indeed a very good source as well as many of the people believe in
what others have to say Magazines is after the television the best source as many of the females in
Pakistan reads the magazines which suites their type as there is many variety in magazines in Pakistan as well. BTL activities like free sampling in schools and colleges and campaigns like
dawn lifestyle, product awareness programs are conducted in the targeted area.
6. Strength, weaknesses, opportunities and threat analysis(SWOT)
Strength:
y
The product has the advantage of strong support from its parent company Johnson & Johnson. The product leverages the resources and brand image of Johnson & Johnson. Like customers can link CLEAN & CLEAR foaming facial wash with J & J·s reputable baby shampoo.
y
In Pakistan though the company setup is small but it is growing.
Weaknesses: y
The presence of the company is on small scale. Due to which the budget is relatively low.
y
In Pakistan the trend to wash face with soap is still more as compared to face wash. This calls to create more awareness, which requires more budgets.
Opportunities:
y
With its affiliation with J & J, certain other health care consumer products can be acquired, which can strengthen the product image further.
y
As the company is new so there are further chances to explore more.
Threats:
y
Pakistani market for skin care products is bringing attention for foreign companies, which can bring intense competition. Further local, low cost manufacturer as well as private label brands introduced by larger retailers and a discount store brings intense competition. The low cost products are also a sign of worry because people here are not that aware of quality and they might go for low price.
y
As the product is imported from Thailand, there is the threat related to imposition of duties and taxes.
7.Objective and issues 1st yr objective
To shift the soap users to clean&clear face wash users 2nd year objective
To become the no. 1face wash in Pakistan
Issues
We should keep advertising for the face wash so that the people won·t forget us and we will be in their minds as there is a strong competition we must be in the minds of our customers always marketing strategy.
7. Marketing strategy
The goal of Clean and clear·s marketing team is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
Positioning
POSITIONING STATEMENT: ´To young teenage girls whose skin care needs is constantly changing along with an evolving environment.
CLEAN & CLEAR
foaming facial wash provides
them a beautiful and clean skin that lets them take control of their skin and appearance to forge ahead with confidence. CLEAN& CLEAR foaming facial wash is the only brand that understands the physiology of teen skin. We have the most appropriate and unmatched product that match Pakistani teens evolving lifestyle and their unique skin needs.µ The positioning statement written above summarizes the target market, need, brand concept and how it is different from the rest.
Product strategy
The term "product" refers to tangible, physical products as well as services. Clean and Clear oil free facial wash is the product of Johnson and Johnson.
Following product decisions were taking by Johnson and Johnson in the launch
of this product: Brand name:
y
Clean and clear is not only a product to wash face but also it has created the relationship with customers by providing them a product that boost up confidence in them by providing them clearer and more beautiful skin. The name itself shows CLEAN AND CLEAR understands of teen skin better then any other brand. The products are developed specifically for teen skin. y
Functionality:
The facial foam is multifunctional with its cleansing, refreshing and moisturizing action. It, removes dirt, oil and even make-ups. As on the back of the pack, it says its active ingredient reaches deep, all the way to the pores, to help prevent spots and keep your skin clear. After washing it, leaves your skin feeling cool, fresh and nicely invigorated, with the unmistakable tingle of really clean skin. It's completely free, rinses clean and doesn·t clog up pores y
Packaging:
The packaging is portable. It comes in different sizes. That is 100 ml and 50 ml. It is mentioned on the bottle for sensitive skin, that doesn't over dry. It looks transparent, in a clear bottle, with a purple squirts end. The packaging is attractive that creates instant consumer recognition of the company and brand. y
Quality:
Quality is the main strength of Clean and clear face wash that has given
them an edge over the competitors. Consumer trust is product that has boost up their brand equity
. pricing strategy
Factors considered before determining pricing policy:
y
y
y y
Target Market/positioning: Keeping in mind that the audience is teen girls belonging to lower middle and middle class, the pricing is set. The pricing objective: In Clean & Clear foaming facial wash case its max market share. Competitors Prices Costs
To introduce, Clean and clear foaming facial wash, with respect to pricing market penetration strategy is used. Employing this strategy means relatively low prices are set to penetrate in the market quickly and deeply. As the target audience is also from lower and upper middle class, such prices will attract them. This in turn will make them buy the product and the company can have large market share. But Clean & Clear makes sure that they don·t compromise on the quality either. Prices are set keeping in mind that they have to maintain quality standard. The penetration strategy will help keep out the certain competitors. Calculating the Cost Price of Clean and Clear:
SP (1-%) = CP SP = CP/ (1-%) 1. Warehouse = 3% (Storage cost) 2. Distributor = 5% (Profit) 3. Retailer = 10% (Profit) 4. Selling Price = Rs. 175
Retailer Cost Price = 175 (1- 10/100) = CP CP = Rs. 157.5
Distributor Cost Price = 157.5 (1- 5/100) = CP
CP = Rs. 149.6
Cost at Warehouse = 149.6 (1-3/100) = CP CP = Rs. 145.1
Cost Price of Clean and Clear is = Rs. 145.1
Distribution strategy
Distribution is about getting the products to the customer. Following is the
distribution channel of Johnson & Johnson clean and clear oil free facial wash:
Supplier (Thailand)
J & J warehouse ( Karachi)
Distributor (IBL)
Retailer
Consumer
Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. CLEAN & CLEAR as discussed above after shipment stores the stock in warehouse. (Now the outbound logistics start) Then the customer i.e. distributor places order. Through the company·s computerized order processing system, order is arranged. Accordingly it is told to distributor to arrange their transportation. The stocks are then moved to the stocking point of distributor. The whole inventory is controlled by SAP. J & J (CLEAN & CLEAR) has one distributor i.e. IBL group. They have got eighteen branches all over Pakistan from where the product is given to the end customer. This overall distribution chain is used to make the product available in the market for customers· convenience. The marketing team of clean and clear ensures that product is extensively placed in all the well known shopping centers of the major countries and general stores which come under their potential and target market area. They use pull strategy for their product by using various promotional tactics and through media. They directly approach retailer by providing credit facility and bonus in form of incentives. They also provide trade allowances to our distributors and retailer to further intensify usage of push strategy.
Marketing communication strategy
Keeping the targeted market in mind advertisements are to be made like wise. For advertisements both print and electronic media is used. The main objective of advertisement is y
Maintaining customer relationship
y
Remind customers that the product may be needed in the near future
Keeping the brand in customer·s mind during off seasons. Clean & Clear arranges certain BTL activities in universities and colleges. This will give the company a chance to communicate with their customers directly. The company doesn·t have a customer complaint centre, so direct marketing can also provide a tool to get to know their customer issues. Another reason to use direct marketing is that whether how effective the use has been, can be measured easily. It can also help in creating customer loyalty. Because of these BTL activities customer information is gathered. Which is then entered into the database, and the database then helps in communicating with those customers.
Market research
As they have imported product the RND department is not here they just distribute it and sell it they analyze the general behavior their attitude and any product that consumer demand which is not available in Pakistan they can conduct a research and further take actions according to the results they obtain.
Marketing organization
General manger Ibad aslam
Marketing manger Haris rehman
Brand manger of beauty care
Brand manger of baby
Brand manager of ABM
care
OTC(over the counter)
Brand manager of ABM CHC Faiza abid
.
8.
Action program
The main aim of marketing activities of clean & clear is not just to satisfy the customer but also delight her. For this we believe in developing customer relationship management (CRM). Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Clean and clear deals with all aspect of acquiring, keeping and growing customer. In order to delight their customer and build strong customer equity clean and clear marketing team take following steps: We will further maintain customer data management. This database provide us detailed information about our individual customers helping them in managing customer touch points in order to maximize customer loyalty. With the help of the database, clean and clear maintains relationships with their particular customers by remembering them on special occasions like their birthdays, Eid, Christmas etc. This makes the customer feels special. We will also cater to customers complains and suggestions. Though we don·t have a Toll-free number as yet, they try to keep in touch with customers and listen to their complaints and feedback. We will conduct BTL activities to promote their new products that help customer aware of the new innovation in the product. We will conduct skin care programs in school and colleges to give proper guidance on skin care and how to use different products of clean and clear. This is to show the customer that the company care and your skin issue is not yours alone but Clean and clear would help you throughout your teenage to get a clearer and beautiful skin.
9. Budget
In establishing the budget, Percentage of Sales method is used. By seeing the sales of the previous year, next year budget is decided as to how much to spend on the promotional activities. But the company doesn·t limit itself, the approach can be flexible. Company also undertakes the response rate from BTL activities that which brand is preferred. So accordingly, more money is spent on that brand in the future year. 10. Control:
The purpose of marketing plan of clean&clear face wash is to serve as guideline for the organization. We will measure our performance by controlling following areas: Annual revenue Annual sales expense Customer satisfaction
We are planning tight control measure to closely monitor quality and customer Satisfaction. This will enable us to react very quickly in correcting any problem (If any deviation find) that may occur. 11. Conclusion:
As people are still use to of using soap for washing their faces, people are not accustomed with such kind of product etc. but we hope we can easily overcome these lacking in our nearest future by providing better quality and creating strong brand loyalty among the customer.
Executive Summery We are analyzing the marketing plan of clean & clear face was which is a product of Johnson and Johnson Company. Our analysis of clean & clear face wash will include the current market situation and strategic analysis of the company. We will see the various strategies that can be used by them for improving their product. Clean & clear face wash has been serving in more than 47 countries with its excellence in quality and value with their main focus on skincare of young women. Johnson and Johnson offer products targeting baby care skincare and wound care. We have taken CLEAN & CLEAR face wash for our project report. Their aim is to provide customer with skin that makes them feel beautiful free from acne and that makes them feel fresh on suitable prices and make the product as convenient as possible. According to Johnsons&Johnsons they claim that they are world·s premier consumer health company. World·s largest and most diverse medical devices and Diagnostics Company, the world·s fourthlargest biologics company. And the world·s eighth-largest pharmaceuticals company for clean & clear they adopted the societal and marketing concept. Further we will explain the SWOT, competitive analysis and all other strategies used by them.
