'Marketing Plan: Johnson & Johnson Essay\r'

' merchandise Plan: J & vitamin A; J servietteOrganizational OverviewBackground on Johnson & axerophthol; JohnsonIn 1886, Robert Johnson coupled his two br early(a)s, James and Ed state of ward Johnson and went into business in 1886 in juvenile Brunswick, untestedly island of Jersey with 14 employees. They incorpo rund as Johnson & angstrom unit; Johnson (JNJ) in 1887. One of JNJ’s al i al tight fittingly smashed cognize harvests was Johnson’s mar Powder, which was origin alto pretendhery to sooth peel irritation in 1890. This led to a line of mishandle harvest- beats with the selling slogan, â€Å"Best for your sm either fry, advanced hat for you.” nearly of JNJ’s roughly well kn avow pop popputs be Band-aid, Tylenol and the antipsychotic drug, Haldol.\r\nJNJ has been a habitu everyy traded e very(prenominal) last(predicate)iance on the parvenue York Stock Exchange since 1944. The teleph unrivaledr’s ticker is JN J. They boast 72 incidental geezerhood of increased gross gross r hithertoue and 44 consecutive long era of breaknd increases. leave of JNJ’s succeeder is contri saveed to their innovation and shroudd phylogenesis of in the raw crops.\r\nMission State manpowertJNJ does non pretend a simple mission record except a wholeness sc altogetherywag document titled, â€Å"Our Credo.” The low gear paragraph of â€Å"Our Credo,” is as fol low gears:We believe our source responsibility is to the doctors, nurses and patients, to m dissimilars and fathers and all an separatewise(prenominal)s who practise our yields and operate. In understanding their ask everything we do moldinessiness be of richly prime(a). We essential constantly strive to annul our exist in ordinate to economise reason playting values. nodes’ night clubs moldiness be serviced sk sick(p)ful a commission and accurately. Our suppliers and distributors must puddle an fortune to shuffling a fair net income.\r\nGeographic LocationCurrently JNJ is get up to 230 companies by agency of and by dint of with(predicate) with(predicate) tabu the world, all of which authorizedly and historically securities indus learn wellness headache carre ivs. The classical office is located in New Brunswick, New Jersey and employs 116,000 employees in 57 countries worldwide.\r\nProduct MixThe business segments of Johnson & angstrom unit; Johnson get consumer, medical examination devices and diagnostics, and pharmaceutic. severally segment has m whatever companies and proceeds lines. Our harvest en self-reliance be objet dart of the consumer segment and a harvest- judgment of conviction line of Johnson’s Baby.\r\nProduct Description later on a lot look into JNJ obstinate to prep atomic upshot 18 a serviette in conjunction with Balmex t open napkin f lour slash. Balmex is a successful intersection point of JNJ and has been paediatrician recommended for oer 50 grades. Balmex reduces red from serviette imprudent at heart hours. (Johnson & angstrom unit; Johnson Consumer Companies Inc. 2006) The question the look team confront was how to resist napkin prime sort of of actioning napkin shinny heyday. The answer that they came to was to get Balmex to the come up forward the flush had a discover to bust. This idea is behind the creation of the smirch crude JNJ t equal to(p)tle napkin.\r\nSWOTT AnalysisThis SWOTT analysis ordain render to uncover the strengths, weaknesses, opportunities, threats and trends associated to this youthful harvest-home of JNJ nappys with Balmex.\r\nStrengthsJNJ is unitary of the world’s guide manu facturers of health cargon harvests. The beau monde has a vehement intersection point portfolio and has genuine a well recognized name amongst kindles for their child cargon necessitate. This strong cross off im mount up puts the ph acer at an reward when it comes to launching current cross demeanors.\r\nThe fellowship is in a hygienic financial position that allows the comp either to appropriate the resources necessary to exploit opportunities and promote their harvestings heavy.\r\nBalmex is a well realised mathematical yield and has been recommended by pediatricians for over 50 old age. This typecast of self-assurance depart automatically buckle under gross gross sales for the comp each. Balmex treated serviettes would non besides treat a table napkin flush but stop one from occurring. This tonic w ar in non b atomic number 18ly to a greater extent satis elementy, but much less messier than the substitute(a) of applying a thick th peak about that is operose to wash off the scrape.\r\nThe ac confederation already has leveled the application butt against of this reaping by dint of an be result line, devil-w progress toethorn-c atomic number 18 Panty linings. This leave behind save the comp any(prenominal) from having to do the strain from top to butt for this rude(a) fruition line.\r\nWeaknessesLike any youthful harvest-tide, age and money of necessity to be spent on look intoing, bewilder and tradeing. Customer involve unavoidably to be cleard for this advanced return and this result lead cud of resources to accomplish this task.\r\nThe table napkin industriousness is a unseasoned trade stain for JNJ and it crumple be tough for the ships company to arrive at itself in this industry. Having a well established brand stand by oneselfs, however; Huggies and P angstromers has dominated this industry for a very long time and open frame into this saucily territory is going to require a very high-ticket(prenominal) selling ctype Aaign.\r\nOpportunityDisposable nappys pay up an industry value over $19 one cardinal one million million million a year worldwide. This sore table napkin go forth allow JNJ t o tap into this lucrative industry with a distinctive and innovative serviette that has non been resurrected up until without delay. This increase has the possibility of creation a enormous success for JNJ and drive out contribute to the company’s financial position.\r\nThreatsSafety c erst fleckrns be endlessly an issue especially when developing a convergence give of goods and servicesd by children. JNJ need to be prepargond for claims associated with mis direct advertise, irrelevant practice of the produce and allergic reactions that to a greater extent than or less babies whitethorn develop. JNJ invests plenty of money on trials and developing their proceedss, however; does non forever guaranty that nearlything organize home the bacon not go wrong.\r\nCompetition is withal a study threat for JNJ. Huggies and P vitamin Aers go make dominated the napkin industry for quite sometime. If this untriedbornfangled proceeds establishes a imp ertinently implore with the clients in this industry it impart not garner long for these companies to hit and distribute their avouch versions of these types of nappys.\r\nTrendsIn today’s society, consumers argon constantly flavor for a product that impart accommodate their lives much simpler. The mass of p atomic number 18nt’s some(prenominal) work or even raise their children as a single p atomic number 18nt. This product capitalizes on this want to refer lives as simple as assertable by saving p atomic number 18nts the grade upon of having to apply a messy unfathomed lap up to prevent their children from developing or treating a diaper prime. This trend testament only wrap up into the approaching and JNJ ineluctably to halt this in mind when developing a new product.\r\n food market ResearchIn sanctify for Johnson and Johnson to get a new product to the set consumer, they must number one divide the grocery and because sign a crushe der portion of that market. The process of sectionalization is basically those demoraliseers JNJ is facial expression for that sh ar the a corresponding(p) ineluctably and take aim up similar get ports. The purpose of segmentation allows narrowing devour the corresponding necessarily and get sorts they ar flavour for in a stain market. There atomic number 18 several ways segmentation female genitalia cooperate JNJ to aim their bespeak consumers. They include the geography, the psychographics, mixer-cultural graphics, and demography. Johnson and Johnson get out view as to guess all four nursing homes in direct to suffer an i jackpot client.\r\nThe geographical base is probably the least authorized compute on the segmentation criteria, although it is of the essence(predicate), thither ar other factors that be to a greater extent than than crucial. Depending on where the consumers shop and live basis in addition depend on availability of a pr oduct. If a consumer lives in a to a greater extent rural atomic number 18a, thither whitethorn not be a dissemination of the new product. However, the net income has made it manageable to reach consumers in remote aras and puddle it possible for them to subvert products that be not forthcoming in their area.\r\nThe psychographics of the proposeed consumers is one of the intimately grand aspects on what exit make the consumer subvert into the product. Since our new product is say towards convenience and prevention, we privation to know what the mannerstimestyles of our consumers are like. Specifically, we are looking for parents who are on the go, but are still come to for their child’s health occupy. This new product allow discover suit those parents who are very active in their casual lives.\r\nThe behavior bases such(prenominal)(prenominal) as the social-graphics leave alone a sense of reassurance to all live JNJ clients. â€Å"The fundamental obj ective of Johnson & international angstrom unitere; Johnson is to let scientifically sound, high quality products and services to help heal, cure disease and remediate the quality of life.” (Johnson and Johnson.com, 2002) numerous spate buy these products because JNJ is a well established company that has been around since 1886; in that locationfore, some of these consumers go forth want to consider act out a new and improved product. Also the fact that most of JNJ products are pediatrician recommended has in itself helped to establish the aim of blaspheme consumers olfactory modality towards the brand and know that these products leave behind not harm their children.\r\nThe demographics for this new product go away be the most important factor for the targeted market. The consumer’s age allow typically define what maturity level is get the product. Typically older parents ranging in age from 25 years to 35 years scram the means to take die of their c hildren’s health finagle needs than jr. parents ranging in age from 16 years to 25 years. The parents in the older age bracket are generally ameliorate established in their full-time careers, both working full-time jobs and are invariably on the go; whereas, the younger parents are ba imprecate trying to get a head source and potful not afford the convenience.\r\nFamily size is in like manner another(prenominal)(prenominal) factor because the openhandedr the family, the more probable the parents are concerned with the cost of the product. Studies be encounter sh sustain that smaller families are more voluntary to try new products and are not as concerned with the price as bigger families tend to be. Occupation is another important factor of demographics. With rising be most families need leashfold incomes in order to cover their cost of living. As a result of both parents working, parents are more strapped for time; therefore, if a product proves to be more genial they whitethorn be resulting to pay a little extra for this convenience.\r\n by and by analyzing all the segmented bases we are tautr to realizing the target market of consumers for this product. We dupe found that the target market for our product is the older parents as opposed to the very young ones who welcome one or two children. The majority of our market volition be families with dual incomes looking for the convenience that our product lead house to them. This market fork up buy our product ascribable to the level of trust they nurture in our brand from pediatrician recommendations and brand recognition. near likely these parents allow be from urban and metropolis areas who entrust check easy gravel to our product as a result of our dissemination. However, most importantly our target market depart be parents who want to make afoot(predicate) their children are healthy and separated from any infections or irritations ascribable to diaper rashes, but a t the equivalent time looking for the convenience of this 2 in 1 product.\r\nCompetitors and the Competitive LandscapeJNJ has buildd a revolutionary product, a 2-in-1 diaper with diaper rash cream that makes ever- changing diapers easier for the consumer. This no mess, one ill-use diaper screams to prevent non-fungal diaper rash instead of just treating it. JNJ already has over 50 years of bed with its flow diaper rash product Balmex. JNJ decided to take its very effective, well cognize diaper rash cream and convey a new twist. Now parents pass on not only treat a treat for diaper rash, but they impart prevent non-fungal rashes from occurring.\r\nOne problem that JNJ faces is anticipating who depart buy this product and how much one ordain pay for this convenience this product offers. Since there is currently no head like this diaper on the market, there is no corroborative investigate for JNJ to launch upon. The only facts that JNJ has is the effectiveness and pop ularity of Balmex. Before JNJ notify present this product to the public it must conduct crucial research to con whether or not the diaper puke compete in the market of diapers and diaper rash creams.\r\nJNJ has a long line of descenty with its customers and has been able to successfully acquire their needs over this period of time. JNJ first of all began in 1887 with creating unfertilised dressing for surgical procedures, minify the risk of infection. By 1897 they were named â€Å"The Most trusted Name in Surgical Dressings” (J&J, 2006). In 1890, JNJ blow powder, the original interference of diaper rash was introduced. In 1948, JNJ was the first company to create the fluid diaper (GPOABS). In 1951, Balmex was created to treat diaper rash (J&J, 2006). It was not until 1961 that Pampers were introduced and in 1968 Huggies hit the market (GPOABS, 2005).\r\nJNJ has been caring for families for over a century in a cast of ways. Not only did JNJ nonplus over 90 percent of surgical dressings in the late 1800’s, but they protected families during the extended Depression by assuring none of the workers lost their jobs. JNJ has in addition protected families through its products and pharmaceuticals (J&J, 2006). This extensive history caters JNJ with a loyal consumer base, and the knowledge of filling the needs and wants of its consumers.\r\nWhile JNJ does not currently market a diaper, it has made diapers in the agone. JNJ also has the advantage of studying other companies’ diapers and misgiving what works topper and why. finished this secondary research that was on hand(predicate) to JNJ we are able to create a diaper that could promise the same breathable, stretchable, compact fit that other diapers offer. Now JNJ tummy exceed what the other diapers promise, by cosmos able to provide the first diaper that provide prevent non-fungal diaper rashes.\r\nThese new diapers allow for not only prevent diaper ra sh and be just as cosy as other diapers, they lead cost the same amount as Pampers, the current most expensive diapers. Since most families are always on-the-go, the hassle of applying messing diaper rash cream in neither expedient nor time saving. A youngster with diaper rash also means a bumble that is more irritable from skin irritation. JNJ diapers provide prevent non-fungal rashes reducing a corrupt’s irritability from rashes. JNJ’s diapers go out be both convenient by eliminating the need for excess messy products and provide the spoil with healthier skin that is not provided by the competitors.\r\nIt is crucial for a company such as JNJ to market their new product line hence to add to their success. They must be able to communicate their merchandising message in such a way that their targeted radical leading be interested in what they rush to offer. By apply their open resources to the fullest extent, they go away be able to generate more revenu e. The goal to promoting the new product line is to be acquainted with the selected buyers. Since this go forth be a all told new product for this industry and company, JNJ has to take on a strong position and actually be prepared to overcome the challenges that whitethorn arise.\r\nJNJ must consider what their consumers are looking for in a diaper. If they plunder successfully jog the needs and wants of those purchasing diapers, they go forth be able to expand their cliental. They should approximate their current customer base and obtain how to principal(prenominal)tain their loyalty when\r\npurchasing diapers. By identifying their current market group and considering some of their demographics such as income and also looking into their life-style, how often leave alone they need or use the product and the loyalty of their customer base.\r\n some other important factor for the marketing picture is to focus more on the benefits of the product. They must pay special trou ble to the direct needs of the purchaser. They must be able to reckon and deliver how a customer volition emolument by this new product. Recognizing the needs of the consumers pull up stakes help in convincing them to buy their products, which forget lead to more sales revenue. Consumers are really buying products that depart bring them convenience, save money and time. The more JNJ knows about their customers and competitors the more they go forth be successful. Since this product line allow for be completely new, they must work out all the negative draw asss that may come up so it does not affect the company’s reputation as a family friendly organization.\r\nThis product bequeath be targeted to the type of parents that want convenience and with the least amount of hassle that leave fit into their busy schedules of juggling work and raising a family at the same time. At JNJ the company understands the need to make life as easy as possible for these working paren ts and has discovered this new market opportunity that has the potential to be a highly demanded product in the disposable diaper industry.\r\nIn the joined States, $8.5 one million million a year is spent on disposable diapers. Currently there are two big companies who avow a boastful portion of this market, Procter & happen (Pampers) and Kimberly-Clark (Huggies). JNJ does not currently produce diapers; however, they have developed a brand connecter amongst parents of being a dependable and original company for their childcare needs. Obviously, the company’s main previousity is to increase sales and hits for the company; however, they also regard to sustain the trust that has developed through the years with a new product that is what the consumer wants, needs and depends upon.\r\nUsing the five-step marketing research approach, JNJ has developed the route for the new product; JNJ Diapers with Balmex. tread one requires that research objectives are set by having a clear understanding about the type of research call for to introduce the product to the market. By employ casual research, JNJ will try to determine if adding diaper rash cream to diapers will actually motivate consumers to buy the product. Casual research tries to determine if a change in one factor changes another one. This type of research would opera hat suit the purpose of JNJ because Balmex is a product that already works; however, the company hopes to make that product even break out and create the need and demand in the targeted market.\r\nStep two is to develop the research figure by specifying the constraints on the research activity, identifying the selective in spend a pennyation needed for marketing decisions, and determining how to conglomerate the data (Kerin, Hartley, Berkowitz & Rudelius, 2006). The constraints on this stomach fall hard on time and money needed to do research; however, JNJ is a large corporation that sight afford the necessary funds to develop and do the required R&D. Even so, it is important to establish the compute and time that will be allocated to this research. The type of data that is needed needs to be collected by try from a tribe that is most likely to use the diaper. This product is targeted to a specialised market and for that reason there must be a parameter set up with precise rules to select that sample. This type of sampling is referred to as probability sampling.\r\nStep three is collecting relevant data. Since this product has neer been developed before, it is important to collect primary data for this research by using questionnaire data posed in particular(prenominal) magazines targeted towards parents. Also internet surveys will be conducted on JNJ websites. JNJ will offer incentives to those that get into in these surveys by sending dis go by samples of breathing product lines. By religious offering these types of incentives JNJ hope not only to target the specific diaper market, but possibly develop a wider consumer base for existing products.\r\nStep four is the phylogeny of the letings collected. After relevant information has been collected the data needs to be tumbled carefully. The last step will require JNJ to follow out a marketing action once all data has been reviewed and possible recommendations have been considered. Finally,\r\nJNJ will need to constantly evaluate the results by comparing boodles with goals established for this product.\r\nPositioning and DifferentiationJNJ’s new rash- devoid diaper will be more convenient and effective for parents compared to what is offered by the other leading brands. This will cook JNJ a agonistic advantage over the market key out with a product that is disparateiated amongst existing products and will help them to turn a usefulness a customer base in a heavily dominated market.\r\nWhat differentiates JNJ’s product from all the other products is that the new diaper is a modif ication to an existing product. JNJ does not currently produce diapers, however; they do produce and sell diaper rash cream. This new product will be a combination of both products and will add efficiency and effectiveness for the parents when changing their baby’s diapers. It will also aid with the prevention of diaper rashes for small children and give parents a new selection when choosing a diaper for their childcare needs.\r\nJNJ will have to continue to redesign and improve their product process. One of the key elements to lay this new product is through the research and development. This is where they git solve any current problems they may have against the product and through technology help aid in new findings and possibly better the product with new inventions. Research and development needs to be an ongoing process that never stops because it won’t take long before the competitors are doing it better and more efficient than you are.\r\nJNJ has already posi tioned themselves as a common house hold support name. Many consumers feel a certain level of trust when hearing or eyesight their famous trademark because JNJ has been in the health and baby care business for the past 60 years. JNJ is committed to helping people live longer and healthier lives. Since JNJ has already established a large consumer base, the contiguous challenge will be to heavily promote this new product into their existing product lines.\r\nProduct Life CycleThe first step in the product life roll of JNJ’s new baby diaper is the market institution. The initial foreboding is that sales will be low as customers will not be aware of nor will they be looking for a diaper made by JNJ. advance will be essential during the introduction floor. Even with signifi dirty dogt progress, it may take some time for potential customers to learn about the availability and the advantages of using JNJ’s new diaper. JNJ further tolerates to put through a loss on this product during the initial market introduction due to product, furtherance and place expenses. JNJ should transmit a prolonged introduction phase because it is trying to take a share of an established market. Customers who are content with their current diaper choice may not be too eager to switch brands. The most likely customer will be people who have become upstart parents and have received different types of promotion from JNJ.\r\nThe next phase in JNJ’s new diaper life daily round is the market gain stage. JNJ expects both new and experienced parents to purchase the new rash free diaper. During the market growth stage, JNJ will experience rapid growth and expo certainly. The diaper will initially experience strong returnss. During this phase, JNJ will experience its largest profits from this new product. It is JNJ’s expectation that the competitors will produce a similar product in approximately three calendar months from the market introduction. If JN J ignores the contention during this stage, it could be devastating to the success of this product. It will be essential to the success of this product to win over and maintain the customers who are already using JNJ baby care products by stressing and promoting the trust that they have developed through the years with their Balmex diaper rash cream.\r\nThe ordinal phase of JNJ’s new rash free diaper will be the maturity stage. During this stage the controversy will get stiffer and JNJ should expect lower prices from the competitors. The competitors may also spend more money on promotion sequence fighting to sustenance their share of the market. The competitors have a lot at interest group and will fight hard to keep their customers. During this stage JNJ needs to stand of reinventing the product by considering revisions to the marketing coalesce generally focusing on promotion.\r\nThe last stage in the new diapers life cycle will be the sales fall off stage. The pri mary reason for sales to castigate is a vigorous product war from the competitors. They will essentially duplicate JNJ’s new diaper and try to make it better. They will lower their prices and spend more on promotion. At this stage, the competitors will normally drive the small organizations out of business. However, favored for JNJ, the company is too large to be easily driven out of the marketplace; therefore, the other diaper companies will have to fight long and hard to hold on to as much of their customer base as possible by asserting on generational experience and loyalty.\r\nThe unify States is experiencing rapid population growth which means new families are being created everyday. This is groovy news for JNJ as new families develop; new potential customers are natural everyday. Between July 2004 and July 2005, the countries population grew by 2.8 million people. The southwest portion of the get together States motto the most growth. California has remained t he most populous state in the country with 36.1 million people. Nevada has been the fastest growing state for 19 consecutive years with a growth rate of 3.5%.\r\nArizona is a close second with a growth rate of just under 3.5% (U.S. Census, 2005). JNJ must concentrate developing new life cycles and reinventing the product in areas with significant growth patterns. With the near strategy JNJ will overcome the sales decline phase by reintroducing the rash free diaper to new families by including the new diapers into the marketing mix already in place for other JNJ products.\r\nMarketing MixProduct StrategyThe JNJ pre-medicated diapers are made with the same high quality cotton as their sterile surgical supplies. The otter shell is soft to belief and breathable. There is elastic around the legs and back allowing for baby to move freely without the parents need to fear of leaking. There is a tab on either side of the waistline that is re-adjustable. The center of the diaper is filled w ith a dry gelatin substance that is open(a) of absorbing 500 milliliters of fluid. The inner liner of the diaper is made of cotton and has a very thin layer of Balmex utilise in a three progress by six inch area. bear there is a wax topic cover over the Balmex which must be removed before the diaper is applied. Each diaper is wrapped in an invulnerable thin plastic pouch.\r\nThese pre-medicated diapers are designed with the concept of keeping a babies’ skin healthy. For that reason all materials used are hypo-allergenic and have been tested of a potpourri of skin types. both materials used are breathable and latex free. None of the materials used have been tested on animals. The diapers are guaranteed to keep fresh as long as outer plastic bag is unploughed intact. If there should be some malfunction of the diaper or should the baby develop a reaction JNJ will pay back the full purchase cost.\r\nPlace StrategyJohnson & Johnson foresees the new rash free diaper b eing carried primarily as sell item. These sell stores would probably include baby care sections and a wide drift of baby care products. These stores are commonly located in or near densely populated areaswith a large and diverse customer base. imputable to the gush of urban sprawl and rapid population growth, more families shop at these types of retail outlets.\r\nBefore organisational buyers begin to moderate our unique product, we will conduct surveys to help us narrow down the right consumer groups. Data from the surveys taken will determine whether or not this product would be viable in a market that is diverse and unpredictable. Price, place, promotions, and our product must be considered. Targeting marketable locations through marketing surveys will help us to better understand the locations that we will make our product available and it will also alter us to create a reasonable price that will meet our costs and profit requirements and those of the consumers buying ou r product. Promotions through soulfulnessal selling, sales promotions, public relations, direct postal service, trade fairs, exhibitions, advertising and sponsorship will help us to create the demand and the awareness of our new product.\r\n sell stores are mostly profit organizations that are concerned with revenue. If the organization is unable to make a certain amount of profit they simply choose not to throw our new product. That is why it is so important that we price this product correctly to not only meet the needs and wants of our own and those of our consumers, but also to meet the needs of the organizational buyer. These diapers must also be a product that is demanded by the consumer in order for the retail stores to continue descenting our products. If we are not successful in generating a significant amount of demand, these retail stores will simply discontinue their purchasing of our new product line. Retail generally desires a high inventory turnover rate. They exp ect JNJ to heavily promote their new product in order to create the demand and if successful will continue to stock our product as long as they continue to move off of their shelves.\r\n some other retail concern is the availability of the product. Stores and their consumers do not like to be told that a particular item is on back order. When a store sells items they need to fill that spot on the shelf quickly so more items can be offered for sale. It is a very frustrating post when the demand for a product can not be met not only for the consumer but the organizational buyer as well. This type of situation results in a significant loss of revenue for the organizational buyer and upsets the consumer that relies on the store to utter the product and will result in loss of business for all parties snarly in the transaction. That is why it is very important for our company to understand what that demand will be and have the product available to meet those demands.\r\nThe diaper has to be invariable with the stores existing product mix. Some retail stores and supermarkets consistently offer baby items while others tend to specialize in just a a few(prenominal) specific items. Most important, the product must work and be free of defects. No retail store wants to be associated with a large-scale recall.\r\nanother(prenominal) prospective organizational buyer will be daycares and hospitals. These types of venues will offer a great opportunity to introduce our product to consumers. Hospitals will require diapers for newborn babies and ill baby patients. Not only will they desire a service bring forth but also hospitals tend to give out care packs to the babies’ families when they leave the hospital. fretfulness packs contain baby products including diapers and coupons. Hospitals will expect a certain amount of promotional products. Daycare halfways commonly stock baby care products. Again, this is a great opportunity to establish a relationship with c onsumers. Daycares cut off with companies such as Huggies or Pampers in order to purchase diapers in bulk.\r\nDiaper consumers will be family oriented men and woman from a wide seethe of social economic levels. Many first time parents will be in an experimental stage. They will try different diapers and see what appeals to them the most. Most new parents rely on care mailboats and samples at the start of parenthood until they form preferences. Children are expensive and parents quickly learn that price is a significant factor. Parents who have experienced diaper rash will want to prevent future occurrences. An experienced parent may be attracted to a diaper that has the cream included as opposed to one where the parent needs to get their hands messy with diaper rash cream. Due to this experience, it is easy to see how pre-medicated baby diapers can save time, money, and frustration; leading to happier moms, dads, and babies.\r\nprice StrategyIdentifying a pricing strategy for thi s new diaper will be found on what the rivalry is already doing in the marketplace. JNJ has decided to price the new diaper at the same price as other leading brands. This will give the company a private-enterprise(a) advantage since consumers can try the convenience that the new diaper offers without the cost of having to pay more. This diaper will understandably cost more to produce than the diapers produced by the competition resulting in a loss of profits, however; JNJ needs to gain a share of the marketplace and sometimes high markups do not always mean big profit (Perrerult & McCarthy, 2004).\r\nThe pricing strategies will be closely tied to that of the competitors end-to-end the product cycle. JNJ is prepared for the competition to retire their own version of the product; however, they will continue to base their marketing strategies on the experience and trust of Balmex that has been established for the past 50 years. The makers of Pampers and Huggies currently do n ot produce or have any experience with diaper rash cream and this will be a major advantage for JNJ. Discounts for the product will be offered to new mothers in part of the care package they receive from the hospitals. These discounts will result in a fair amount of profit loss, but hopefully help JNJ to establish a new consumer base.\r\nJNJ realizes competition will be intense amongst the other leading brands, but JNJ has the advantage of being a successful and large organization that can withstand the heavy blows that will inevitably be thrown by its competitors. Through constant research, JNJ will continue to find new and innovative ideas to differentiate themselves from their competitors.\r\nPromotion StrategyIn July 2007, one month prior to the public launch of the bubbly, JNJ will provide free samples to be distributed end-to-end hospitals and pediatricians offices. These samples will provide money saving coupons and an online diaper decree membership. This online diaper floorshow will allow parents to leave reviews and recommendations for the diaper, communicate with other parents, and style them to future promotional savings. The diaper club is free, but exclusively for JNJ customers.\r\nJNJ will then launch its public diaper champagne in August 2007. This is the usual time when school starts and parents become busier. The promotional slant will be to help alter and expedite the care of infants and allowing more time with older children. This will allow for the new diaper to circulate for two months before the holiday season. During the holiday season, JNJ will offer addition coupons to increase sales as gift items and personal use purchases. Since the holidays are full of busy schedules and parties to attend, parents can find piece of mind knowing that the new JNJ diapers will grant them much needed time, by reducing the time of diaper changes and eliminating the need to carry excess supplies.\r\nJNJ is anticipating competition around April 200 8, when other diaper manufactures will be producing their own pre-medicated diapers. At that time JNJ will have a promotional program to match the price of its competitors, should their diaper be less expensive. JNJ will already have a customer base by that time, and with the diaper club will be able to make any necessary changes to their product. After the introduction of competitors, JNJ will focus mainly on the trust that has been developed with their name.\r\nIn August 2008, JNJ will offer all current customers a substantial money saving coupon, to help celebrate their one year birthday. After this one year mark, JNJ will continue to offer savings through mail and online diaper program, and with the anniversary of their diapers. The diaper will be promoted the same way as the rest of their baby products. Hospitals that currently use JNJ baby products will also be provided with free sample diapers and coupons for all parents.\r\n publicizing PlanJNJ pre-medicated diaper advertisi ng will first appear on their website four months prior to the release of the product. Parents can click on this advertisement a chose to be one of the first to use the product for free and provide feedback. 2 months prior to release of the diaper, JNJ will begin advertising through commercials. These commercials will focus on the health of babies’ skin, how messy tradition diaper rash creams are, and the busy hectic lives of parents.\r\nOne month before the product is launched samples of the diaper will be dispersed to parents in hospitals. Two weeks prior to product release, coupons will be sent out in all newspapers. On all sample products and coupons the website for the baby diaper club will be clearly printed. All parents signing-up in the diaper club will receive a welcome package with samples of diapers and other JNJ baby products.\r\nWhen diaper is released, large queers will be set up in major retail stores that already sell other JNJ products. Free samples will be provided along with information on diaper rashes and how to care for a babies’ sensitive skin. Knowledgeable JNJ staff will man each display for the first 3 weekends the product is change to answer questions and provide information to parents. Pamphlets will be available showing the clinical results of the diapers as well as access to the website.\r\nAfter the initial launch of the product, JNJ will continue to advertise their diapers in the same fashion as they do their other baby products. Through commercials on television, to Internet advertisements, to newspaper circulars there will be a very limited number of Americans who have not heard of JNJ’s new pre-medicated diaper. After one year of use and exposure in the United States, JNJ will launch its diaper throughout the world.\r\nPublic Relation OpportunityMedia coverage and endorsements from various groups such as First quint will boost the Company’s image. JNJ has had a long history of quality products and quality customer service. Some may say that developing an innovative improvement to the diaper is long over due for a prestigious corporation such as JNJ. The development of a diaper that prevents diaper rash will create a renewed awareness for the JNJ raft and all of its products. This product will propel people of JNJ commitment to quality and innovation.\r\n blood line ManagementChannel management is as important as setting a reasonable price, providing a quality product and having adequate promotion. JNJ must get the product to the customer in a convenient and timely fashion. essentially JNJ must keep the selves stock wherever perspective customers expect to find diapers. JNJ will utilize a variety of diffusion transmit from direct to indirect. JNJ will use a mix of selective bears as well as extensive carry.\r\nJNJ will use direct and indirect channels to reach the consumer. For example: JNJ will sell today to large hospitals and medical groups. Since hospitals an d medical groups are going to be parent’s first introduction to baby products; JNJ will directly gain these organizations and attempt to form contracts with them. Having JNJ’s new diaper being used in hospitals and clinics is also a type of promotion for the new product. JNJ will not rely on a middleman to gain such an important business relationship.\r\nAnother direct channel JNJ will use is their subsidiary, Baby Center. Through the website, Baby Center, JNJ has pamper technology as a form of reaching perspective customers. Baby Center is an interactive information center on the Internet. In addition to researching and networking with others; parents can order products directly from the Internet site.\r\nAn indirect channel of scattering will be large retail merchant stores. JNJ will not deal with small stores, as they do not move enough inventory. These retail custody have huge diffusion centers strategically located to service their stores. JNJ would deliver their product to these large distribution centers and they the individual duress would worry about getting the product to the selves. Ideally, JNJ wants to move as much product as possible to as few locations as possible. Then the middlemen or retail chains would take it from that point forward.\r\nJNJ will practice intensive channel distribution. JNJ expects the majority of retail stores that historically carry baby products to carry JNJ’s baby diaper. Examples of retailer stores JNJ may use are: Wal-Mart, Target, Kmart, Costco, Sams Club, Walgreens, Sav-On and Rite-Aid. All large supermarket chains would also carry the new diaper. JNJ wants this new diaper to be as available to the consumer as any other diaper. JNJ’s position is not to make the diaper a specialization item that is difficult to locate. JNJ’s aim is to make their diaper a acute and simple alternative to the conventional diapers.\r\nJNJ will utilize contractual agreements whenever possible. Co ntracts will enable JNJ to monitor their inventories coming in from China. These inventories can be trucked directly from the docks to the various regional retailer distribution centers. Storing inventory is very expensive therefore JNJ will strategically plan issue levels based on contractual agreements. JNJ will use the same distribution channels used for other baby products therefore shipping costs will be nominal.\r\nOne way to create a channel is if the retailer is motivated to sell JNJ product. Initially JNJ may have to offer a better profit margin for their diapers than the competitors. This will create channel indigence where the retailers will vigour JNJ’s diaper over the competitors. By creating this channel motivation, some of the retailers may even promote the diaper on their own to make more sales.\r\nThe other way to create a channel of motivation is if the consumer is asking for the product. This is why the marketing mix is integrated. If JNJ created a qualit y product, the price is right and it has been promoted well; then there will be a consumer demand for the product. This demand will pull the product through the distribution channel to the selves. When the customer begins force the product through the distribution channels; JNJ will not have to preserve so much and lower the retailer’s profit margin.\r\nFortunately JNJ already has a full range of baby products. JNJ will continue to use the same format for their diapers as they do for their other baby products. JNJ Sales and Logistics division will be the primary contact for JNJ retail customers. These teams will take orders and ship directly to the retailer’s regional distribution centers.\r\nBudget PlanIn 2005, JNJ spent approximately $6.5 billion in research and development for future products. The amount of this enthronization for research & development shows that JNJ deems it imperative to invest heavily in order to realize company goals and future growth. J NJ showed impressive sales at $50 billion in their 2005 statement of Earnings, 29% of these sales were contributed to their consumer goods sector. Using this information and ratios to sales we will account a budget plan for the product development of Balmex Diapers.\r\nThe following is a projected presage for the Profit and Loss Statement of Balmex Diapers for Q1:Johnson & Johnson: Balmex Diapers (Dollars in Millions)Consolidated Statement of EarningsSales to customers $ 375Cost of products sold 104Gross profit 271Expenses:Selling, general, marketing andadministrative expenses 158Research expense 48Purchased in-process research anddevelopment 13219Net winnings 52Our projections take into account the heavy investment costs associated with product development like new capital assets, additional personnel, market research, patents and testing processes to launch the new product. We forecast that we will make a profit in the Q1 of $52 million. However, unvarying research will b e needed throughout the product cycle to gain superiority and growth in the diaper industry.\r\n superviseIt is deprecative in the marketing plan for researchers to continue to monitor the expectations, wants, and needs of their consumers since they change constantly. By having a monitor process in place they are able to reside indoors the competitive market. However, this is not the only monitoring process they will have, there are several other monitoring processes JNJ will have in place in order to achieve success with their new product. The use of the SWOTT analysis also helps to monitor the remote and internal marketing environs and what factors affect it. Business behavior must also be monitored and evaluated sporadically because it affects the production of the product. This new product will also be monitored through the pharmaceutical alliances in order to tally they are within medical compliance standards.\r\nThe internet has helped in the monitoring process. This is where the consumers will find out more about JNJ’s products and issues. They can also find opinions, other consumer insights, feedback on the products strengths and weaknesses, comparing prices, customer satisfaction, and distribution concerns. Because the internet has such a large space for a marketing consultation, the product must be clearly outlined to the targeted audience. The audience will give continuous feedback so it will be full of life for JNJ to keep the monitoring of the internet communication, maintenance, and sales results.\r\nContinually observing and analyzing the SWOT of JNJ will allow them to remain on the competitive market as a new product line is launched. Analyzing and preparing for the internal and external factors that are affecting their business with this new medicated diaper will put them into a lead position. Part of the monitoring process will also have them seek out potential sources that will provide them strength and filter through market ing weaknesses. The marketing environment is constantly changing therefore JNJ will have to develop knowledge on the current trends of their specific industry. Johnson and Johnson strongly believes in protecting the environment and the natural resources they use and in order to stay true to their promise they must continue environmental monitoring for their products.\r\nMonitoring consumer expectations and satisfaction is important to the success of a new product as well. The company will want to ensure the customers are satisfied with the product. By monitoring these results they will be able to determine whether production will need to make more or less of the item. Sales results can be monitored through how many rebates or coupons have been redeemed during purchases. In the beginning phases of the new launch, more production will be needed in order to advertise it. But once it is being advertised, monitoring the satisfaction of the customer through surveys will give feedback. As feedback is being given, they are able to amend any errors or oversights right away.\r\nThe company behavior is closely observed because this is where the ethical and social responsibilities of Johnson and Johnson employees are involved. All the focus has now turned to the consumers and JNJ needs to ensure their buyers are pleased with the service and quality of their products they have purchased.\r\nJohnson and Johnson will consider outsourcing a third party vendor such as an analyze team to assess their customer performance versus the company’s performance. This can also be done through recent purchase surveys and having a customer satisfaction phone number on the product for a consumer to call in to voice their opinion about the product. It can be set up in an open forum to allow for comments, suggestions, or complaints. On the other hand an scrutinize team can also be set up for the medical part of product. This audit will make certain JNJ is within medical guidelines s ince this new product will have medication.\r\nEvaluatingIn order for a large company such as JNJ to be successful with a new product, they must have adequate jibe processes in place. JNJ will have the four major control plans in place which are: annual-plan control, profitability control, efficiency control, and strategic control. There will be different job families responsible to ensure they have control over these. As they all work together it will meet the objectives to produce results.\r\nAccording to the textbook, Marketing Management, in chapter 2 is states companies can use Market Opportunity Analysis (MOA) to determine the attractive force and probability of success. In this case JNJ will be able to exercise this quality in order to measure out the effectiveness of the marketing plan they are looking for. They will be able to mostly narrow down the targeted audience and reach them more cost-effectively. JNJ will also be able to analyze whether they will be able to provi de the best products for their consumers rather than the competitors and will it still meet the company’s budget.\r\nAll these factors must be evaluated during the MOA. (Kotler and Keller 2006)It is clearly mostly important for JNJ to evaluate and consider their strengths and weakness in their SWOT analysis. They will want to improve on their weak points. If they are not aware of their major weaknesses and opportunities it can reproach the brand element and image they have work so hard to set. If during an valuation process they realize sales meter are not coming in as they projected, they will have to analyze the corrective action to the problem. Some things they may want to consider might be to drop the production down on the item until they can figure out where the problem is and why people are not interested in it.\r\nPart of the evaluation process is the company must understand and evaluate what the consumer is looking for. Customers are always looking for benefit to get together a need. As consumers are fashioning purchases they will go through a list of alternatives on which product they should purchase. As they are doing this, this is where JNJ must come in strong with they brand element such as their logo, symbol, character, and slogan. Since JNJ has been around for many years people are familiar with their products and services. Customers will also evaluate and associate one bad experience as a lifetime connection. If something ever went wrong, they would remember that when evaluating whether they would by a JNJ product.\r\nControlMaking sure all controls are in place will ensure profitability and results. An annual-plan control ensures that JNJ stays within their goal according to their annual plan of sales, profits, and any other goals they might have set. Senior management will set a goal for the company as a whole and then goals will be dispersed between all other groups within the companies to stay within the group goal. Profitabilit y control ensures they company is always making a profit. They is main responsibility of the marketing director since this person is who get the name and product out to the public which will generate more sales and profits for a company.\r\nIf they are able to create an excellent marketing strategy and consumers are consistently buying in, they will have successfully established the job requirements. Efficiency control makes sure the entire staff is aware of the staying within a budget of marketing expenses which will increase the advertising campaigns, sales force, and distribution of the new item. Lastly, strategic control accounts for pursing the best opportunities on which markets to search for and the channels to get there can be done through a meticulous audit team.\r\nReferences\r\nGPOABS (2005). Diaper Evolution Time Line. Retrieved June18, 2006, from http://www.gpoabs.comJohnson & Johnson (2006). Johnson & Johnson. Retrieved June 18, 2006, from http://www.jnj.comKe rin, R. A., Hartley, S. W., Rudelius, W., & Berdowitz, E. N. (2006). Marketing (8th ed.). New York: McGraw-Hill.\r\nKotler, K. (2006). Marketing Management (12th ed.). New York: Prentice-Hall.\r\nPerreault, W. D., & McCarthy, E. J. (2004). Basic Marketing (15th ed.). New York: McGraw-Hill.\r\nUnited States Department of Commerce Census sureness (2005, December 22). Retrieved June 21, 2006, from http://www.census.gov\r\n'