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My spouse and i. Problem: Difficulties issue that Johnson& Meeks (J&J) looks with its deal with powder is that despite the product’s innovation, a toiletry design and self confidence in prospective customers, it positions its product line as being a cheap epidermis refresher through the use of supermarkets as main releasing channels and setting the cost range of item cheaper when compared with that of opponents sold in department shops, which injuries its company and revenue.
In order to make sure that J&J makes a success in launching new brand category product with profits, it takes to develop an advertising strategy to make more earnings by changing its circulation channels, the price range larger and targeted customers underneath the toiletry strategy.
II. Alternatives: ) Location as a superior refresher through department stores stations + Raise awareness of a new product being a premium company by severing relation with baby powdered + Larger margin and potential to raise prices previously mentioned original margins + Powerful upper and middle level customers concentrating on with quality brand and synergy with J&J brand , Higher price and small difference with cosmetics might be unattractive to teen and young adults , Fierce Competition with current face powder-based blushes sold (ex: Angel Face) in the malls , Shedding opportunity to work with established solid distribution power in supermarket channels ) Position as being a premium renew for both equally young woman and adults through malls + Lengthening market simply by targeting equally teen and young adults and older female, including moms + Much less pressure from mother’s opposed to their daughter’s using plastic face powdered from compacts + End user’s increased purchasing electricity resulting from targeting older females , Fresh customer’s furor from the item due to their trend not sharing with old decades , Even more designs and functions to get satisfying different kinds of customers when it comes to age , Unpromising forecast about current cosmetic wearer’s transition in to new product category ) Situation as a high grade refresher pertaining to young adults through supermarket programs + Quick access to the item from potential customers + Differentiation from home items bought from the supermarkets due to high price and premium brand + Strong circulation power by usage of previously established supermarket distribution programs , Trouble separating it is image via grocery things in the grocery stores , Little profit margins in comparison to that of malls , Large advertising cost is unnecessary, unprofitable and useless
III. Recommendation: I suggest that J&J set a new products as a high grade refresher with higher price by distributing it through department stores. To start with, the demand of targeted clients such as young adults and youngsters is already verified. In order to make even more profit with this product, J&J needs to focus on the market segmentation more specific.
Taking into consideration most potential clients are fresh females living in urban areas with relative financial capability, even more profit perimeter in malls compared to supermarkets, and an advertising strategy underneath the toiletry concept, I recommend that J&J modify its division channel in to department store and place the price selection higher than the existing competitors in the market, thus leading to more income margin and boosting an image of brand cool product as high grade items amongst young adults-main target customers-in the Korea.
In addition , high end strategy will pave just how for releasing J&J’s future youth lines such as body-care product with high income margin and providing substantial brand photo with upcoming customers to J&J’ baby products, certainly not mention to more earnings margin and enhanced J&J’s premium company resulting from department shops distribution.
