Final Marketing Plan

2020
NEUTROGENA
SUNSCREEN WIPES

Proposed to: Neutrogena

Meet the Team

EMILY BOMBA
Emily Bomba is an English major pursuing minors in both Psychology and
Integrated Marketing and Communications. She is a strong, passionate writer who’s
developed collaboration skills through communicating with people of diverse
backgrounds. Her creative and detailed eye results in the production of quality
work, maximizing her performance abilities while maintaining a positive attitude.

WILLIAM CHUNG
William is a first year Business major, intending to concentrate in Information
Systems, with a minor in Computer Science. He really enjoys working with others
because of the different perspectives it brings. He was part of the peer mentoring
program in high school, where he helped out incoming freshmen. He’s an attentive
listener and prides himself on not interrupting others while they speak.

STEPHANIE HAMILTON
Stephanie is studying Hospitality, Tourism, and Destination Management and has
acquired a range of experience throughout college, making her a reliable and
consistent contributor. With a bubbly personality, she prides herself on always
creating a positive and enjoyable environment to work in, without compromising
the quality. She is always eager to learn and enjoys challenging herself and those
around her to succeed.

CHLOE MARK
Chloe Mark is studying Accounting and would describe herself as an extrovert,
listener and leader. She was a captain for various sports teams growing up and is
looking forward to being a WOW leader next fall. She prides herself on the ability to
create inclusive environments and make everyone on a team feel valued through
her open-minded attitude.

REIV MOHAMMADI
Reiv is a first year business major pursuing a degree in Finance. He’s taken interest
in the analytical courses he’s taken because he enjoys working with data to reach
solutions. Reiv is a member of the Swim Club and prides himself on being a
personable teammate, as well as classmate. He’s enthusiastic and sees the benefit
in working with others to hold each other accountable, and succeed as a group.
2

Table of Contents

Meet the Team 2

SWOT Analysis 4-5
Strengths 4
Weaknesses 4-5
Threats 5
Opportunities 5

Segmentation, Targeting, & Positioning 6-7
Segmentation 6
Targeting 6-7
Positioning 7

Product Strategy 8-9
Customer Needs 8
Features and Benefits 8
Packaging 8-9
Branding 9
Warranty 9

Distribution Strategy 10-12
Retail Strategy 10
Distribution 10-11
Intermediaries
Transportation
Channel Risk Management 11-12

Promotion Strategy 13-14
Pull Strategy 13
Push Strategy 14

Pricing Strategy 15-16
Pricing Strategy 15
Financials 15-16

Qualtrics Analysis 17-24

Appendix 25-41

Works Cited 42-45
3

SWOT Analysis

Strengths
Brand Recognition: Neutrogena®
is a brand of the Johnson & Johnson Family of
Consumer Companies and is the number one dermatologist-recommended skincare
brand, offering some of the world’s most loved beauty and skincare lines. The 1
company markets products in over 70 countries and is the second leading brand in
sales for the sunscreen industry. Neutrogena is not only a very well recognized and 2
trusted brand, but it provides effective solutions to skincare routines including acne,
hair, skin, bath, and cosmetics.

Sustainability: In recent years, sustainable products have continued to be of high
demand, as they are valued by the majority of the public. Fifty percent of growth for
consumer packaged goods from 2013 to 2018 stemmed from sustainability-marketed
products. With biodegradable sunscreen wipes, green marketing could likely improve 3
sales, especially because this ensures profitability as well as sustained long-term
growth. It helps companies market their products and services while both 4
establishing their environmental concern and ensuring environmental consciousness. 5

Convenience/Travel-friendly: Consumers are searching for convenience more than
ever, with 83% of shoppers saying that convenience while shopping is more important
today than it was 5 years ago. Sunscreen wipes are convenient, everyday products 6
that consumers can take on-the-go and pack in a travel bag. Slightly more than half
(52%) of shoppers say that at least half of their purchases are influenced by
convenience, while 93% of shoppers say they are more likely to choose a retailer based
on convenience. 7

Weaknesses
Cost of production: Biodegradable materials are often more costly to produce as
opposed to non-biodegradable materials. As a result, sunscreen wipes will certainly 8
1
(Neutrogena.com, 2020)
2
(Statista.edu, 2019)
3
(Harvard Review Business, 2019)
4
(Nielsen.com, 2018)
5
(Nielsen.com, 2018)
6
(Marketingcharts.com, 2020)
7
(Marketingcharts.com, 2020)
8
(SFGate, 2019)
4

cost more to manufacture, and the price could potentially deter customers from
choosing to purchase. Despite the higher price point, Neutrogena is determined to
create environmentally-friendly products.

Consumer loyalty to personalized sunscreen methods: Sunscreen comes in the form
of spray, lotion and stick already. Studies have shown that people do not like to try
new things because the unfamiliarity rings alarm . People would be taking a risk by 9
buying the wipes rather than their previous comfortable form of sunscreen.

Opportunities
The severity of Skin Cancer: Skin cancer is one of the most prevalent diseases in the
U.S., resulting in the deaths of two or more Americans every hour. With this, one in
five Americans will develop skin cancer by the age of seventy. 10

Rise in Biodegradable Products: Biodegradable products are being used more now as
opposed to plastic, as this appears to be a rapidly increasing trend. Consumers are 11
also becoming increasingly motivated to support environmentally sustainable
products. 12

Threats
FDA Approval: While sunscreen wipes were once very popular among a variety of
consumers, due to a lack of FDA approval, many companies in the past have decided 13
to discontinue this line of product. Currently the FDA does not allow the marketing of
nonprescription sunscreen products in the form of wipes or towelettes. 14

Lack of usage: Given that 14.3% of men and 29.9% of women were reported to use
sunscreen on a daily basis, encouraging people to use sunscreen more frequently will
most likely be challenging. 15

9
(Psychologytoday.com, 2010)
10
(Skincancer.org, 2020)
11
(Essel, 2020)
12
(Nielsen.com, 2018)
13
(FDA.gov, 2019)
14
(FDA.gov,2019)
15
(MarketResearch.com, 2017)
5

STP Analysis

Segmentation
Demographic
Seventy percent of individuals who purchase sunscreen are women aged 35-44 with an
annual income of approximately $75,000-150,000. These women make up a moderate 16
portion of the market, especially those with professional occupations, and more
specifically those who have graduated college with one or more degrees. In addition,
according to the qualtrics survey, 34.78% of respondents aged 18-24 said they were
“very likely” to purchase the wipes. This demographic would be a great secondary
target market.

Geographic
The states with the highest skin care diagnoses are Florida with 7.1%, Washington, D.C.
with 5.8%, and Connecticut with 5.6%, making these states ideal targets for increased
sun care. According to a National Cancer Institute (NCI) report, only about 33.7% of 17
adults regularly wear sunscreen with an SPF of 15 or greater.   18

Behavioral
The target market spends a lot of time in the sun either relaxing or exercising, while
also traveling frequently and reading magazines on planes. Women who are interested
in traveling and who read Airline magazine are 100% more likely to purchase
Neutrogena suncare products, while they are also more likely to visit websites such as
Yelp, TripAdvisor and AirBnb. Also, 90% of people who read Real Simple Magazine use 19
Neutrogena personal care products. Women who value environmentally friendly and
biodegradable products are also 28% more likely to watch CNN. 20

Targeting
Neutrogena will focus on targeting both women aged 35-44 as well as young adults
aged 18-24 who are either college students or graduates with professional occupations.
The primary market has a relatively high income of around $75,000-$150,000 and are
interested in travel as well as sports. In addition, they tend to live in sunny states such
16
(GFK MRI, 2018)
17
(Blue Cross Blue Shield, 2018)
18
(Journal of the American Academy of Dermatology, 2015).
19
(GFK MRI, 2018)
20
(GFK MRI, 2018)
6

as Florida, Washington and Connecticut--all places where people are more likely to
wear sunscreen. The targeted consumers will also be active, enjoy traveling and 21
outdoor activities.

Persona
Jennifer is a lawyer at a firm in Santa Barbara, California. She is approaching
the age of 40 and has two young children. She loves to travel in the summer
with her family and has a very busy life, so convenient products like sunscreen
wipes allow her to maintain her on-the-go pace. Jennifer is also an
environmental activist at home and cares deeply for the quality of her clothing,
cleaning products, and personal care products. She also plays outdoor tennis
and wears sunscreen on a daily basis in order to prevent aging in addition to
skin cancer.

Positioning
SPF Wipes will be differentiated
from other competing
sunscreen brands due to the
company’s commitment to the
environment and convenience
provided to consumers. SPF
wipes are great for frequent
travelers or busy people. The
packaging allows for those on
the go to easily place the
product into a tote bag or
suitcase. Although wipes seem
wasteful, SPF Wipes are
biodegradable and
environmentally friendly which
makes them unique.

21
(Forbes.com, 2018)
7

Product Strategy

Customer Needs
Neutrogena Sunscreen wipes are eco-friendly wipes that can be easily applied to the
face. By applying sunscreen daily, consumers can reduce the risk of skin cancer
significantly as well as aging . Sunscreen can be the solution for both health risks and 22
aging concerns. The wipes are packaged in a resealable pack of 30 wipes, which is
convenient for people to keep in their bag.

Features and Benefits
Other types of Neutrogena wipes have become routine to skincare such as makeup
wipes, cleansing wipes, and oil wipes. Wipes are a quick way to apply sunscreen and 23
are convenient for people on the go. These sunscreen wipes can be easily applied to 24
the face and brush on the dermatologist-recommended sunscreen with SPF of choice.
Since the wipes are readily available out of the package and moistened with sunscreen
much unlike spray sunscreens, you will definitely be able to avoid contact with the
eyes.

Packaging
Neutrogena sunscreen wipes are also
biodegradable, and both the wipes themselves
as well as the packaging are environmentally
friendly, unlike all other plastic competitors.
Along with being biodegradable, the packaging
of sunscreen wipes will look similar to other
Neutrogena facial wipes in order to maintain
the consistent look of the brand. The
small-sized packaging ensures that the
product’s travel friendliness as it can fit into a purse, backpack, or other small
containers without the fear of leakage. The travel-sized sunscreen wipes will allow the
consumer to finish a product before throwing it out, allowing for reduced waste. The
product reduces harmful environmental impact while the travel-sized wipes fit into
22
(Skincancer.org, 2019)
23
(Allure, 2018)
24
(Allure, 2018)
8

the everyday consumer’s bag. Today, travel-size packaging is one of the hottest trends
in beauty.   25

Branding
The bright-colored yellow packaging will
stand alone from other sunscreen
products, so consumers become aware of
the unique product. With the green leaf
and sun design, the product aims to
convey environmental sustainability as
well as effective protection from the sun.
The color yellow evokes optimism and confidence, which is what the product will
bring to consumers, while green promotes balance and environmental awareness,
which reflects the product’s environmental friendliness. The font remains consistent 26
with other Neutrogena products for brand recognition and the supplemental
information such as SPF range, the dermatologist-recommended brand, as well as the
number of wipes that appear on the front in order for consumers to continue to
choose this product.   27

Warranty
Many of Neutrogena’s competitors are not offering any sort of warranty. Although 28
biodegradable sunscreen wipes are a relatively new product, Neutrogena aspires to be
kindly accommodating while even offering refunds if customers are not entirely
satisfied with their already purchased product. This allows Neutrogena’s customers to
test their products and see if they like them, and simply return them if not.
Neutrogena seeks to promote confidence and security, as well as a sense of trust with
the new product line for customers. The company remains focused on providing the
best possible customer service and care while committing to valued customer
satisfaction.

25
(The Zoe Report, July 2020)
26
(Colour Affects, 2020)
27
(BrightEdge, 2017)
28
(Hawaiiantropic.com, 2020)
9

Distribution Strategy

Retail Strategy
As a global company that operates via its headquarters in Los Angeles, Neutrogena has
a widespread supply chain and distribution network for marketing its products,
assisting its parent company, Johnson and Johnson, in order to further markets. 29
Neutrogena sells products in a variety of retail stores, including CVS, Target, and
Walmart. In addition, Sunscreen Wipes can be easily purchased on the company’s
website, where customers will find a full product description detailing application,
care, and materials used. The wipes will be created and sustainably packaged then 30
shipped to wholesalers via UPS and FedEx Smartpost. Following this, inventory will 31
be distributed to retail locations and online shopping warehouses.

Distribution
Intermediaries
Neutrogena’s distribution channel begins with the manufacturing process in the U.S.
To keep with the eco-friendly aspect, Sunscreen wipes will be flushable. The wipes
will be made using a Polyethylene glycol for glue that is the most water soluble binder
glue. We will also use virgin wood fibers, a recycled fiber. Neutrogena will buy these 32 33
fibers from the Shawnee National forest in Illinois, a responsibly managed forest. 34
After being manufactured, the wipes will be sent to distribution centers in LA so that
the product can be stored and later shipped to wholesalers. The wipes will then be
sold to retail locations like CVS, Target, Walmart, and Amazon where they can be
purchased by consumers.

Transportation
Neutrogena currently manufactures and markets its products in over 70 different
countries. For the Sunscreen Wipes, Neutrogena plans to manufacture within the US. 35
From manufacturer to wholesale, Neutrogena will utilize its partnership with UPS. 36
29
(Marketing 91, 2020 )
30
31
(Ups.com, 2020)
32
(Tablet Presses)
33
(Cottenelle)
34
(Sustainable Forestry in America, 2011)
35
36
(Ups.com, 2020)
10

UPS optimizes its shipping and distribution process through a wide carrier network as
well as its extensive freight transportation system. Neutrogena will focus mainly on 37
using FTL freight shipping as it moves directly from the origin to the destination
without making various stops, which thus saves a significant amount of time. From 38
wholesale to distributors, many of Neutorgena’s distributors also ship via UPS trucks. 39
In order to directly transfer products to consumers from their website, Neutrogena is
currently shipping through UPS as well as FedEx Smartpost, though purchases made
on the company’s website can only be shipped within the U.S. 40

Channel Risk Management
Neutrogena ensures that each and every customer feels satisfied with their
experience. The company is contracted with UPS and Smartpost for the shipment of all
online products. Unsatisfied customers will be able to return their online products in 41
exchange for a full refund within 30 days of purchasing. If there are any errors or 42
damage to the product or shipment, Neutrogena will be contacted immediately and
37
(Ups.com, 2020)
38
(Business Source Premier, 2015)
39
(Ups.com, 2020)
40
41
42
11

held fully accountable for repairing the issue. In the case of a delivery error, the
product will be tracked back to UPS or Smartpost. However, Neutrogena will be held
responsible for resolving all other online product problems to uphold their customer
satisfaction guarantee. Additionally, Neutrogena will monitor product delivery to all
retail locations to verify that shipping companies are both complying to and operating
under company standards.

12

Promotion Strategy

Pull Strategy
Free Samples
Neutrogena will offer customers one free sample containing three Sunscreen Wipes,
sustainably packaged and ready-to-use. To increase sales and create brand awareness,
small samples will be offered at Target and CVS, given that about 16% and 13.70%,
respectively, of qualtrics respondents reported they would most likely find the
product at these locations. Free samples on sales will spark an acceleration effect in
which consumers begin repeat purchasing of the sample earlier than they otherwise
would, a cannibalization effect, which reduces the number of paid trial purchases of
the brand, and lastly an expansion effect, which induces purchasing by consumers
who would not consider buying the brand without a free sample. 43

Instagram & Facebook Ads
Neutrogena will focus on using social media platforms like Instagram and Facebook to
promote its new line of sunscreen wipes. People between the ages of 18-34, account
for around 64% of Instagram’s users. To reach older audiences, Neutrogena will use 44
Facebook Ads because 56.1% of users are ages 35+, which is 26% higher than Instagram
users at ages 35+. Neutrogena has 808,000 followers on Instagram, and even invites 45
consumers to tag their page in order to be featured. Neutrogena will make a post 46
once a week for the first 3 months and will measure its market size not just through
likes, but also through shares and comments to get a more accurate picture. 47

Email List
Those who have enlisted in either Neutrogena’s Rewards Program or email list--both
of which inform consumers about new products and promotional offers--will receive
an email promoting the Sunscreen Wipes. If consumers purchase the wipes via the link
provided in the email, they will receive a generous discount, off 10%. All information 48
will be included in the email.

43
(Marketing Science, 2004)
44
(Statista.com, 2020)
45
(Statista.com, 2020)
46
(Instagram, 2020)
47
(Abi/Inform.com, 2014)
48
(MediaPost, 2019)
13

Push Strategy
Display in Target
Point of purchase displays have significantly increased as a desired form of product
marketing. Neutrogena Sunscreen Wipes will be promoted in Target and a display spot
in each store would increase the likelihood of potential sales. Neutrogena will pay for a
spot to display the product in Target.

Buy a Slotting Fee at Certain Stores
Common drug stores, to make room for new products on the shelf, usually charge
companies around 250-1000$ per item per store. One way to lower this initial cost is
to increase visibility of the product, before trying to sell at retails stores. Since
Neutrogena has shelf space at many retail locations, the product visibility will already
be high, resulting in a lower slotting fee at most retail locations. 49

49
(Bedrock, 2019)
14

Pricing Strategy

Pricing Strategy
The projected contribution margin per unit is $6.02 based on the cost to manufacture
Neutragena sunscreen and the virgin fibers to make the wipes. Neutrogena will be
spending $2.97 on production per sunscreen wipe unit and each unit contains
20 wipes. Sunscreen wipes are inelastic . Its price inelasticity is .7678, meaning for 50
every 1% increase in price, the quantity demanded for the wipes will decrease by
76.78%. At the price point of $8.99, the discount for intent is .0443. This indicates that
4.43% of customers exposed the Neutrogena sunscreen wipes would purchase them.
The target price will be set at $8.99 which maximizes the profit. Within the total
market of 80,000 customers that would hear about the wipes from advertising,
Neutrogena sunscreen wipes would earn $18,668.02 priced at $8.99 and priced at $14.99
would earn $9,102.24.

Financials
Instagram ads will cost on average $0.70-$0.80 per click. Neutrogena hopes to attract 51
at least 20,000 people to click on the sunscreen wipe ads. This will cost $16,000.
Facebook ads cost $0.35 per click, on average. Neutrogena hopes to reach 30,000 52
people through Facebook ads, costing $10,500 for the first year. Neutrogena will focus
on these two social media sites, since a 2019 Neutrogena campaign showed that
Facebook and Instagram ads cost 5.5 times lower per person compared to other media
channels such as T.V. According to our qualtrics, social media was one of the top 53
places where people expected to hear about Neutrogena Sunscreen wipes. Neutrogena
anticipates that 15% of people who click on the ads will make a purchase, which will
lead to sales of around $67, 425 for the first year. For the second year, Neutrogena
wants to increase sales by 30%, which will be $89,900.
Neutrogena plans to send out 30,000 sunscreen wipe samples, each containing
3 wipes. This will cost around $0.45 per sample for a total of $13,500 for the first year.
Neutrogena hopes that 20% of consumers who use a free sample will make at least one
purchase of sunscreen wipes within the first year, leading to estimated sales of around
50
(Qualtrics, 2020)
51
(Business.instagram.com, 2019)
52
(Business.instagram.com, 2019)
53
(Facebook.com/business, 2019)
15

$53,940. For the second year, Neutrogena expects to make sales to 30% of people who 54
use free samples for a sale of $80,910. Studies show that on average sampling could
potentially lead to a 600% increase in sales. 55
A point of purchase display would cost roughly between $750 per display in a
Target store; this is not including additional slotting fees or pay-to-stay fees. 56
Additionally, the wipes will be sold in CVS and online at Neutrogena’s store. Slotting
fees at retail stores will cost $1500 per SKU. Since Sunscreen Wipes would only use one
SKU, the total would be $1500 per retail store. Sunscreen wipes will first be sold to 20
retail stores and 30 in the next year.

Income Statement

54
(BusinessInsider.com, 2018)
55
(Businessinsider.com, 2018)
56
(Trax, 2019)
16

Qualtrics Analysis

FIGURE 1: Please rate each of the following in terms of the list of attributes in the left
column - How are Sunscreen Wipes doing (based on what you read above)?

The attributes rated best were travel-friendly followed by convenience and biodegradable.
Neutrogena does significantly better than Hawaiian Tropic in all categories except for
trusted and daily sun protection. Neutrogena will focus on the convenience and
biodegradable aspect when marketing its product.

17

column - How do you think Hawaiian Tropic is doing?

The top 3 attributes were daily sun protection, trusted and convenience. Neutrogena
outranks Hawaiian Tropic in all attributes except daily sun protection and trust.
Neutrogena sunscreen wipes are also rated significantly better in terms of biodegradable,
sustainable and travel friendly.

18

column - How important is this attribute to you?

In figure 3, the attributes people value most when looking for sunscreen is daily sun
protection followed by trusted brands, convenience, environmentally friendly,
biodegradable, and lastly travel-friendly. Through the comparison of figure 1 and figure 2,
respondents rated Neutrogena sunscreen wipes higher in terms of sustainability,
biodegradable, and travel friendly in comparison to Hawaiian Tropic. Neutrogena’s new
line of sunscreen wipes focuses heavily on these attributes, which makes it favorable that
potential customers have high ratings for these three qualities.

19

FIGURE 4

This table shows the comparison between Neutrogena sunscreen wipes and Hawaiian
Tropic in terms of environmental sustainability. 70% rated Hawaiian Tropic very poor and
poor in sustainability, and rated Neutrogena well and very well in sustainability.
Neutrogena is viewed as more sustainable than Hawaiian Tropic.

FIGURE 5

In terms of convenience, 89% of respondents rated Neutrogena sunscreen wipes as
something they would find convenient whereas for Hawaiian Tropic only 79% rated their
sunscreen as convenient. Generally, respondents did not find either product as very
inconvenient, which means Neutrogena may be more attractive to consumers who value
convenience.

20

FIGURE 6

Figure 6 implies that over 50% of respondents are likely to purchase Neutrogena Sunscreen
Wipes over other conventional sunscreen products. This information supports the need or
demand for the product within the marketplace.

FIGURE 7

Figure 7 depicts that the top three age groups that responded to the survey were 18-24,
35-44, and 55-64. 43% of respondents were 18-24 years of age, approximately 25% were
35-44, and about 20% were aged 55-64. This data shows a higher number in younger
participants obtained than originally expected.
21

FIGURE 8

Figure 8 shows that 28% of respondents extremely value sustainable personal care products,
while 38.39% of respondents somewhat value sustainable products. Respondents that chose
sustainable personal care products on average totaled 15.43%. The two categories consisting
of people who do not have a preference or do not care if their products are sustainable, total
to about 10.5%. This shows that there is a market for Neutrogena’s biodegradable wipes.

22

Discount for Intent

FIGURE 9

Very likely 8 x .25 = 2
Likely 27 x .05 = 1.35
Very Likely 19 x .01 = .19
Total = 3.54
Total respondents = 80
3.54/80= .0443

Figure 9 depicts that of the customers aware of sunscreen wipes, 4.43% will purchase them
at the price of $8.99.

23

FIGURE 10

Very likely 5 x .25 = 1.25
Likely 6 x .05 = .3
Total = 1.77
1.77/82 = .0216

Figure 10 denotes that of the customers aware of sunscreen wipes, 2.16% will purchase them
at the price of $14.99. Neutrogena will set the price of sunscreen wipes at $8.99, as more
people would be willing to make a purchase at $8.99 compared to $14.99.

24

Appendix

LOGO

POSITIONING MAPS

25

FINANCIALS

DISCOUNT FOR INTENT
Low price ($8.99)
Very likely 8 x .25 = 2
Likely 27 x .05 = 1.35
Total = 3.54
3.54/80= .0443
High price ($14.99)
Very likely 5 x .25 = 1.25
Likely 6 x .05 = .3
Total = 1.77
1.77/82 = .0216
27

PROTOTYPE

PROFIT MAXIMIZATION
Low Price (8.99)
80,000 x .0443 x (8.99 - 2.97)= $18,668.02
High Price
80,000 x .0216 x (14.99-2.97)= $9,102.24

PRICE ELASTICITY OF DEMAND
% change in Q Demanded
(Qdh- Qdl)/Qdl = (.0216 - .0443)/.0443= -.5124
% change in Price
(Price H - Price L)/Price L (14.99 - 8.99)/8.99 = .6674
Price Elasticity of Demand
% change in Qd/%change in Price= (-.5124/.6674) = -.7678, absolute
value .7678
28

POST EXAMPLE FOR INSTAGRAM

29

AD EXAMPLE FOR FACEBOOK

30

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