Marketing Channels 2017

1. CASE 2: Johnson
and Johnson Has A
Baby Powder
Problem
Estacio | Malihan
Magbago | Opeña

2. Background
● 1894 - J&J Introduced 99.8% talcum baby
powder
● “For toilet and nursery”
● 1913 Ad - “Best for baby, best for you”
● 2016 - 1,200 lawsuits
● Talcum was linked to ovarian cancer
● Fox, who suffered ovarian cancer, won
over J&J for $72M
● J&J continues to defend safety of talc on
their product

3. The problem
What marketing strategy should
J&J employ to build trust and
reassure consumers on the
safety of talcum powder?

4. Objectives
● Identify improvements to
strengthen Johnson &
Johnson customer value
● To revisit the existing
contract with Imerys Talc
America, the biggest talc
supplier and the sole
source of the powder for
J & J
● Identify potential
marketing initiatives that
can create positive
impact to Johnson &
Johnson brand image

5. Wendy Writer Ronny Reader Abby Author
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit, sed do
eiusmod tempor
Berry Books
The group
takes the future
perspective of the case
after resolving the complaint

6. SWOT

7. SWOT
● Operations
○ Global operations and production
capacity
○ Continuously improving technology
● Sales and Marketing:
○ Strong brand presence
○ Very good global presence
○ Effective advertisements
● Outbound Logistics:
○ Limited presence in the rural markets
● Product:
○ The product is not hypoallergenic
○ Linked as one of the causes of cancer

8. ● Political
○ America’s status as the world leader are at risk
● Environmental
○ Limited manufacturing due to carbon footprint
● Competitors
○ Cheaper similar substitutes are available
● Legal
○ Stigma on J&J Baby Powder lawsuits
SWOT
● Economic
○ The economy of US where the HQ of J&J is anchored is
stronger (Applebaum, 2017)
● Social
○ The growth of social media and other communication
media will continue to develop
● Technology
○ More efficient manufacturing through AI

9. Theoretical
Framework

10. STP - Segmentation
Geographic Global
Demographics Age: 24 - 34 (new mothers and mothers with children)
Gender: Female
Income: Above poverty line
Generation: All generation (up to Gen-Zers)
Social Class: Groups A - D (Working class to upper middle class)
Behavioural Decision Roles: Mothers are the ones deciding which type or
brand of baby powder should be purchased
Loyalty: Hardcore Loyals
Buyer-Readiness Stage: Regular Users
Attitude: Positive
Usage Rate: Medium Use
Psychographics Personality: Caring
Life stage: People who care about the physiological needs of
their family especially their children
Interest: Family, parenting and children

11. STP - Target
Consumer
Market
New Born Babies
Mothers with child/ren
Grandparents with grandchildren
Odor-conscious people
Business
Market
Health care companies
Medical companies
Aesthetics companies

12. STP - Position
“Because you are still someone’s baby”
The J&J’s Baby Powder is for mothers who want the best
comfort and protection for their children by reducing the
effects of rubbing to keep a healthy and soft skin at an
affordable price. It is also for individuals who want to
stay fresh all day by minimizing sweat and facial oil.

13. ALTERNATIVE COURSES OF
ACTION
ACA 1: To consider phasing out the baby powder
product and introduce a new alternative
(Product and Promotion)
ACA 2: To create a team focus on rebranding of
the existing product (Promotion)
ACA 3: To invest in research and development to
reformulate the existing product (Product)

14. ACA 1: To consider phasing out the
baby powder product and introduce a
new alternative (Product and
Promotion)
PROS CONS
● Can regain its
market share in
baby powder
category
● Relatively costly – requires
extensive research, product
development and marketing
effort.

15. ACA 2: To create a team focus on
rebranding of the existing product
(Promotion)
PROS CONS
● Can attract new customers and
also rekindle an interest from the
existing product
● Can show existing and potential
customers what is so great about
the changes the company is
making and why the company is
making them
● costs associated with
possible projects /
activities
● People can become
easily confused and/or
frustrated whenever
change occurs

16. ACA 3: To invest in research and
development to reformulate the
existing product
PROS CONS
● In depth review of Johnson &
Johnson contract with IMERYS, it
will pinpoint the inefficiencies in
the formula if there is and
foresee what needs to be done.
● It will require high
initial investment to
venture into R&D.

17. RECOMMENDATION
CRITERIA WEIGHT ACA
1
ACA
2
ACA 3
Customer Value 30% 20% 20% 25%
Profit Growth 30% 20% 25% 25%
Brand Equity 40% 30% 35% 35%
TOTAL 100% 70% 80% 85%

18. ACTION PLAN
What To invest in research and development to
reformulate the existing product.
Who J & J’s CEO - Alex Gorsky w/ Board of Directors , R &
D Department , Marketing Team
When The action plan is based on a 1-year format.
Resource
Requirement
Research and Development Plan and Budget
Infrastructure Improvement Budget
Marketing Plan

19. MONTH ACTIVITIES
January Strategic planning with the President and shareholders of the company (Research and Development
Team, Marketing Team).
February Creating and building a solid Research and Development team
Hiring and training with the consultants expert in the field of R & D for consumer products.
March - June Stage processes for the reformulation of the product.
July Approval to FDA.
August Meeting with the marketing team for the formulation of the new packaging, promotions and distribution
strategies.
September Coordination with the production team.
Initial production of the product.
Public sampling of the product.
October Formal release of the product to the market.
Advertise to all possible media vehicle integrated with the branding of the product such as magazine ,
billboards , social media , event launching and etc.
November Monitoring of the consumer acceptance rate, sales performance, reviews etc. Review and assessment for
the marketing campaigns.
December Release consumer reviews and testimonials on the safety and effectivity of the product. Work with a PR
agency if possible.
ACTION PLAN

20. End of presentation
Estacio | Malihan
Magbago | Opeña