Table of Contents Executive Summary Industry Overview Situational Analysis Strategy Calendar Budget Works Cited
Executive Summary Based off of secondary research I have created a plan for Listerine to successfully reach the Young Transitional market. Listerine will create a new product that will pack a powerful slogan to get Young Transitionals involved online with Listerine.
Company Mission Johnson & Johnson Development Corporation creates strategic growth options for Johnson & Johnson by investing in emerging health care businesses
JnJ General Description Johnson & Johnsons commitment to innovative health care products has resulted in consistent financial performance. The Company has 27 consecutive years of adjusted earnings increases and 49 consecutive years of dividend increases. Johnson & Johnson, employing approximately 116,000 people worldwide, is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnsons primary interest, both historically and currently, has been in products related to health and well-being. Johnson & Johnson was organized in the State of New Jersey in 1886. Johnson & Johnson is organized on the principles of decentralized management. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations of Johnson & Johnson. In addition, certain Executive Committee members serve as Worldwide Chairmen of Group Operating Committees, which are comprised of managers who represent key operations within the group, as well as management expertise in other specialized functions. These Committees oversee and coordinate the activities of domestic and international companies related to each of the Consumer, Pharmaceutical and Professional segments of business. Operating management of each company is headed by a Chairman, President, General Manager or Managing Director who reports directly to, or through a line executive to, a Group Operating Committee. In line with this policy of decentralization, each international subsidiary is, with some exceptions, managed by citizens of the country where it is located.
JnJ Business Description Johnson & Johnson is the largest medical device company. J&J is the 8th largest pharmaceutical company on the globe. J&J is the 5th largest Biotech company on the globe. J&J is the world’s most comprehensive and broadly based manufacturer of health care products. J&J serves the consumer, pharmaceutical and medical devices and diagnostics markets with a focus on research- based, technology-driven products. J&J has 27 consecutive years of earnings increases adjusted for special items. J&J has 49 consecutive years of dividends increases. (includes April 2011 dividend increase).
JnJ Staffing 114,000 employees William C. Weldon (picture) Chief Executive Officer, Chairman of the Board Dominic J. Caruso Vice President, Chief Financial Officer Peter M. Fasolo Vice President, Human Resources Russell C. Deyo General Counsel
Company locations Company headquarters One Johnson & Johnson plaza, New Brunswick, New Jersey 08933 Phone number: (732) 524-0400 Johnson & Johnson has more than 250 operating companies conducting business in almost every country in the world.
Projects for Next Year The projections for J&J next year includes a .5% sales growth and .6% total return to share holders. Growth rate 2005-2010: .7% (U.S.). 7.7% (International). 4% (worldwide).
Listerine Listerine holds 61% of its market share Listerine is 6 times bigger than its nearest competitor Dr Joseph Lawrence and Jordan Wheat Lambert created Listerine’s first product in 1879 In 1987 Listerine mouthwash became the first non-prescription mouthwash to earn the American Dental Associations Seal of Acceptance for plaque and gingivitis. Cool Mint Listerine was launched in 1992 This product attracted a new generation of mouthwash users. The powerful germ killing properties and the fresh minty taste proving popular with younger consumers. Listerine was initially used for other purposes non related to oral care including a house cleaning agent
Core Consumer As an average for all lifestyles, people that live in Cosmopolitan Centers are 25% more likely to purchase Listerine than the average consumer Total Consumption These are some important factors in finding Listerine’s core consumer based off of the total consumption charts. There is room For Growth with the Young Transitional demographic
Supportingdata According to the fast fact Total Dollars Charts the consumer still seems to be about the same as stated from the charts using consumption.
Key CustomerConsumption Dollars With Listerine being an additional oral care product to toothbrushes and toothpaste it is not surprising that income has the biggest influence on defining its core customer. Based on the Listerine Total Consumption and Dollars charts: Couples are more likely to buy Listerine than the average consumer due to their index numbers being over 100. 2 persons per household also have the highest percentage of the market. People with annual incomes over $50,000 are more likely to buy Listerine than the average consumer and they have the highest percentage of the market. People without children make up most of the market and they are more likely to buy Listerine than the average consumer according to the index chart. While the Caucasian race doesn’t have the highest index rate though they still dominate in the Listerine percentage category. They have a good hold on the market for Listerine. Affluent Suburbs and Cosmopolitan Centers have the highest index rate for consumption and total dollars. These lifestyles seem fitting to the data noted above. People above the age of 45 make up Listerine’s biggest market but ages 18-24 have a higher average consumer buying index rate. The Middle and South Atlantic regions seem to be the hotspots for Listerine consumption and total dollars. Consumers have high percentage rates and high index rates in these regions which means they make up most of the market and they consume more Listerine than the average consumer. Listerine’s current key customer segment includes white couples over the age of 45, no children currently living in their house, making more than $75,000 dollars per year, living in affluent suburbs or cosmopolitan centers and are located in the Middle and South Atlantic region.
Mouth-rinse Core Customer These are some important factors in finding the core consumer for all mouthwash brands based off of the total consumption charts Total Consumption
Total Dollars These are some important factors in finding the core consumer based off of the total dollars charts
Total Consumption Total Dollars Notice that Race and Lifestyle have both fallen to the number of persons when compared to just Listerine’s importance ranking. Based on the Mouth-rinse Total Consumption and Dollars charts Couples are rating the highest on the index charts stating that they are buying more mouth-rinse’s than the average consumer. People with an income of $50,000 or more hold the majority of the market and are more likely to buy mouth-rinse products than the average consumer due to their index number being over 100. The age that holds most of the market is above 45, people 45 and above are also above 100 on the index chart. They are more likely buy mouth-rinse products than the average consumer. 2 people per house hold has a hold on the market percentage and that segment is also buying more mouth-rinse products than the average consumer. Households with no children have almost two thirds of the mouth-rinse market. Affluent Suburbs and Cosmopolitan Centers are the most popular places for mouth-rinse consumers. The Middle and South Atlantic regions are receiving most of the mouth-rinse market and those consumers are more likely to buy more mouth-rinse products than the average consumer. The average mouth-rinse product consumers are white couples with an income of $50,000 or above, has no children, is 45 years or older, lives in the middle or southern Atlantic region in an affluent suburb or cosmopolitan center.
Natural Products Natural oral care products continue to rapidly grow, but overall, the segment is still a small portion of the U.S. oral care sector at just 30 million dollars. Toms of Maine -Has half of the natural oral Natural Product care market Leaders -Offers all natural Kiss My Face toothpaste, dental floss, and -Offers all natural mouthwash toothpastes and mouthwashes Burts Bees -Offers multiple all natural toothpaste products including whitening toothpastes and children’s toothpastes
Demographics According to Spectra African Americans are 48% more likely to buy Listerine and have the highest index percentage of all demographics. 18-24 year olds are 40% more likely
Bedtime quick rinse Dry mouth creates an easy environment for germs to multiply
Market Growth The Listerine market is growing Every category in the demographic skew is buying more Listerine than the average consumer This is happening with all brands that have similar consumers Most Americans are highly conscious of proper oral care, and in addition to health concerns, they value the cosmetic aspects of proper oral health like whiter teeth and fresh breath. That being said, future growth opportunities will be tied to "value added," "improved benefit" and "simplified" oral care products 1,989.12 Listerine units are consumed annually per 100 household or adults Just under 20 Listerine products consumed per year, per household The oral care future seems to be promising Even due to the current low economic times, the oral category is predicted to globally grow
Current Market Position Listerine emphasizes the efficiency of its products to help prevent gingivitis Listerine promotes having a healthy mouth and body on their website Listerine is the leader in mouthwash care Listerine is a senior product, its brand name is well known
Market Size Over 300 million consumers in the U.S. Currently with 61% of the market share, Listerine is 6 times bigger than its’ nearest competitor
Johnson & Johnson Competitors Clorox Procter & Gamble Unilever Dow Chemical 3M Alticor Blyth Church & Dwight Colgate-Palmolive DuPont Henkel Corp. IWP International Reckitt Benckiser Shaklee Yankee Candle
Listerine Direct Competitors Act Mouthwash Colgate Mouthwash Crest Mouthwash Scope Mouthwash Toms of Maine Mouthwash Plax Mouthwash Biotene Mouthwash
Similar Core Target CompetitorProducts in Mouthwash Plax Oral Rinse Scope Outlast Act Mouthwash Crest Pro-Health
Comparisons Mouth-rinse products and Listerine have a very similar core customer. Mouth-rinse products have a more spread out and evenly distributed target than Listerine but that is expected when looking at all mouth- rinse brands vs. a specific mouth-rinse brand. Race didn’t seem to be as big of a factor in mouth-rinse products and Listerine consumers were more dependent on spectra’s defined “lifestyle” targets. The 18-24 year old index for Listerine was at 149 and the mouth-rinse index is only 112 for total dollars. People in that age category heavily prefer Listerine when choosing a mouth-rinse product.
While MOUTHWASH competitors deserve to be recognized by Listerine, they still do not pose a huge threat Listerine is 6 times bigger that its nearest competitor and has more than half of the market Listerine needs to focus on all of the oral care industry products How can a mouthwash sell more than toothbrushes or toothpaste These are big picture questions Listerine should be focusing on
Oral Brands Brands with similar consumers Colgate Total toothpaste seems to be Listerine’s biggest brand competitor For every 100 households, 22.4 have purchased Listerine For every 100 households, 16.35 have purchased Colgate total toothpaste
Gap Analysis Consumer Wants A clean & healthy mouth Current Products Benefits Helps Prevent Cavities Restores Minerals to Enamel Strengthens Teeth Kills Bad Breath Germs Freshens Breath Cleans the Whole Mouth Price 1.05 pt costs $5.79 2.01 pt costs $8.99 33.8 fl oz costs $5.87 3.15 pt costs $11.99
Channels and Demographic Mass Merchandise (Wal-Mart, Meijer, Target, Kmart etc) make up Listerine’s best channel for sales Club and Grocery channels are both over 20% Mass, Club and Grocery channels are all reliable channels for All Over their expected Listerine buying index rate distribution The most important demographic attribute is household income Blacks make up 17% of Listerines demographic High income households make up a large percent of Listerine’s total consumption
SnapshotMostimportantdemographicattribute Based on Listerine’s product snapshot Listerine’s customer segment includes 2 people per household, most commonly couples, income of $75,000 a year or more, white, age 45 or older, no children in the household, college grad education and lives in the middle or southern Atlantic region in a cosmopolitan center or affluent suburb
Regions Regions: Split up on the United States of America map Mouth-rinse product (including Listerine) markets have the highest rate of consumption on the east coast of America Specifically in the Mid and South Atlantic region
Business Drivers/Market Needs Consumers want more than fresh breath from their mouthwashes and dental rinses, and suppliers are touting the additional benefits that their products offer. The benefits include riding mouth of: Gingivitis Germs Plaque Listerine removes 56& more plaque than brushing alone Bad Breathe The term halitosis was coined by Listerine as a marketing strategy to convey the message that bad breath should be embarrassing and by using Listerine you could get rid of bad breath Dryness of the mouth Cavities
Economy Changes have occurred in the oral industry due to the economic low Hygiene products are seen as a necessary purchase, as an industry they are less responsive to change in the economy But, while Listerine is not the cheapest mouthwash brand on the market. Due to economical hard times, Listerine buyers may be shifting to less expensive off brand mouthwash. Electric toothbrushes sales are down due to their high cost mixed with the current low economy Teeth whitening strip sales are down due to time issues and and cost Teeth whitening toothpastes have become an oral care company product norm Consumers are finding ways to still keep oral hygiene a part of their daily life without breaking the bank
Internal Factors Strengths Listerine has 61% of the market share Listerine is 6 times bigger than its nearest competitor Listerine has great brand awareness in the mouthwash industry When one thinks of mouthwash, Listerine is usually the first brand to enter that consumers mind Listerine’s couple’s demographic on average are consuming 34% more than expected Listerine has been engaged in oral care industry from a long time. They are the oldest producer of oral care products. This makes Listerine the most senior brand in the oral care industry and due to this, the image of the brand remains strong and concrete in the eye’s of the customers. With its past award and medical certification performance, Listerine remains the choice of many customers who are concerned about oral health care with large number of customers being loyal to the brand
Internal Factors Weaknesses Listerine has struggled to gain consumers with a household income of 50k or less (household income is the biggest factor of the demographic attributes) Listerine does not do as well as it is expected to with start up families Listerine doesn’t sell well in Plain Rural Living behavioral stages
External Factors Opportunities Utilizing social media for more brand exposure Listerine could have an organic product (a current trend in the market place) Listerine’s packaging could be better designed for people on the go Listerine could focus more on Younger Bustling families (they only have 7.1% penetration out of the 100% penetration of all lifestyles) Reaching the Young Transitional demographic
External Factors Threats Listerine’s competitors are targeting the same consumer Smaller brands that don’t cost as much as Listerine, especially in hard economic times. New mouthwash products being introduced to the market The lack of a “natural” mouthwash product In the news claims stating Listerine may cause cancer
Mission Statement Listerine offers a quick way to help its consumers maintain a clean, odor free and healthy mouth. Listerine stands out as the most consumed and trusted mouthwash brand in the oral care industry. We are constantly pushing the envelope in oral care through our innovation of new products.
Central Idea Introduce a new product Involve pop icons as supporters Get the Young Transitional market involved with Listerine and the new product
Financial Objectives Increase Listerine’s profit in 2012 by 7.5%
Marketing Objectives Get the Young Transitional market involved and talking about Listerine online Increase the market penetration with Listerine’s Young Transitional market by 10% Launch a new Listerine product that represents Listerine’s push for a healthier mouth and promotes common sense
The Facts Targets Young Transitionals include 18-24 year old The 18-24 year old market is interesting because they have the highest index rate yet the lowest volume . 18-24 year olds are 40% more likely to buy Listerine than the average consumer They are constantly interacting on Listerine should target the Young social media sites Transitionals This target is heavily involved in online usage They spend a lot of their online time on their social media pages They share a lot of content online through their social media pages This target offers a way for Listerine to build a big social media presence Listerine and all of its products will have gained exposure on a big level if somehow this target really gets involved
Consumer Target Young Transitional behavior stages They have a low average consumer consumption index. 18-24 year olds have a high above average consumption index yet Young Transitional are still struggling to reach their potential.
Zip Codes Based on the the target index, the most popular zip codes focusing on Young Transitionals include New York, NY, Washington, D.C and Gainesville, FL.
Zip Codes NYC has a high index rating for Young Transitionals while still showing room for growth
New York, New York Population is 8,175,133 23% Black 13% Asian 29% Hispanic 33% White
Possible adplatformsPossiblepromotionalplatforms Website/Online data Young Transitionals have a heavy online presence 40% of the target penetration is online 20 hours or more on an average week For every 100 households, 62.4 Young Transitionals are on the internet for more that 20 hours a week
Highest target measure Magazines The top 10 magazines that would be useful for Listerine to buy ad space from to reach Young Transitionals include: Disticor, Us Weekly, Vogue, Glamour, Everyday Food, Martha Stewart, Ladies Home Journal, Popular Magazine Group and National Geographic
Possible adplatforms Cable T.V. Due to Black’s being 48% more likely to buy Listerine, BET would be a good ad platform for Listerine Also BET is 73% more likely to be watched by the Young Transistionals
T.V. & T.V. Events A prime time T.V. ad spot would reach a large percent of the Young Transitionals Prime time T.V. shows have high target penetration and index numbers
Places Nightclubs Broadway shows Sporting events Madison Square Garden Frequently hosts events year round Including sports
Hotels/Motels Personal vacations/Business trips Out of town demographic
C-Store Gas stations and food marts are popular Shows the demand for convenience by the Young Transitional market 7-Eleven Popular convenient store for Young Transitionals
Department Stores A high percent of Listerine’s Young Tranistional market has visited a department store in the past 30 days Macy’s gets a lot of traffic
Above average Coffee Listerine’s Young Transitional market is big on consuming coffee Extra boost of energy from to the caffeine Helps get your day going Get work done at a local coffee shop Students Writers Catch up with a friend over coffee at a local shop
Coupons Some of Listerine’s Young Transitional market utilized coupons around 2-3 time per month While product coupons have a higher index rate more coupons are used on groceries due to the high penetration percentage Overall, some Young Transitionals use coupons but the majority of the market does not
Listerine Clear Listerine water Drinkable Listerine Clear’s cost and taste will mimic that of every other bottled water product currently on the market Separating Listerine Clear from the competition Benefits Cleans mouth Rids the mouth of bad breath Promotes a healthier mouth
Calendar Special events and holidays are good times for brands to run themed promotions
Listerine Clear Ad BET (Black Entertainment Television) Why Demographic (Blacks) They represent Listerine’s highest index rate and Listerine’s second highest volume BET is targeted to 18-35 year old Blacks, the target age fits my target markets age Show 106 & Park BET’s most popular show Time 6pm ET on weekdays and runs for 90 mins Feb 9, 2012 (national toothache day, black history month) Cost 30 second ad=$80,000
Listerine Clear Ad NBC April 22, 2012 Sunday 8pm Sunday Night Football $434,792
Listerine Clear Ad People Magazine November 7, 2012 Magazine day Metro/Spot ad $295,000
Positioning Statement Listerine Clear is for the person who makes sensible decisions in life. Unlike the rest of the bottled water products, when consumers drink Listerine Clear they are practicing good oral care and making their mouth cleaner and healthier.
Listerine Clear Strategies All of the research I did on NYC and my target consumer led me to better understand my market. If my plan included strategically placed ads then that info would have been very useful After looking into possible ad spots I have decided I will only run one ad for Listerine Clear The point is not to convince my target to buy my product but for them to convince themselves The purpose of my one ad will be to spread awareness to the public
Listerine Clear will be used as a tool to get more consumers involved with Listerine through social media. The slogan for Listerine Clear will be “it made more sense” because why wouldn’t someone choose buying a water that makes their mouth healthier vs. just water This slogan will be used on twitter #itmademoresense Every week Listerine will use an interesting tweet containing a story involving the slogan #itmademoresense. From there, Listerine will get celebrities to act out the scenario from the tweet in a video. These weekly videos will be uploaded to Listerine’s YouTube channel. Young Transitionals are very involved with pop culture so seeing their favorite celebrities act out stories would be an incentive for my target audience to watch the video’s The online community will get involved because they would want to see their story be acted out by celebrities Weekly video’s would allow Listerine to stay current and relevant. Brands lose followers when they don’t stay current This plan allows Listerine to get involved with the online community.
Video Cost (dependant on which person and where) Between $100-500,000 Time, location and who
Ad A Super Bowl ad that promotes Listerine Clear’s message “It made more sense to” The purpose of this ad will bring attention to Listerine’s twitter page The first ad will show the marketing director of Johnson and Johnson’s marketing discussing Listerine Clear. Super Bowl ad example: “Listerine didn’t have a twitter so I thought it would be cool to have the online community really get involved with our newest product. I came to the conclusion when re-reading the products slogan that it made more sense to do one ad that would reach millions of people rather then to waste Listerine’s time and money trying to gain awareness through continued smaller scaled market ads.” Feb 5, 2012 $3.5 million dollars for a 30 second spot The objective will be to spread awareness for our product and generate consumer involvement online. This one ad will spread enough awareness for Listerine Clear to then let the online marketing plan get the consumer involved.
Why the Super Bowl Awareness at its best (Objective accomplished) Last year 111 million people watched the Green Bay Packers play the Pittsburgh Steelers That was the second year in a row the Super Bowl broke the T.V. view record. People talking about the commercials the next day
Works Cited Ebsco Host database Wall Street Journal online database SRDS NewYorkTimes.com Listerine.com JnJ.com U.S. Census Business & Company Resource Center