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Marketing Strategy MKT306 Assignment July 2010 University of Sunderland, UK Joey Kwan Lay Kuan Student ID: 089111572 Table of Content Assignment Questions 1 Abbreviations Report 1. 0 Executive Summary 2 3 4 2. 0 Terms of Reference 3. 0 Corporate Objective 4. 0 Situational Analysis 4. 1 Industry Analysis 4. 2 SWOT Analysis 4. 3 Competitive Advantage and Core Competencies 5. 0 Recommendations 5. 1 Segmentation Targeting and Positioning 5. 2 Marketing Objectives and Goals 5. 3 Marketing Strategies and Programmes 5. 3. 1 Product 5. 3. 2 Pricing 5. 3. 3 Place 5. 3. 4 Promotion 6. Conclusion Reference Appendix 5 7 8 9 11 12 14 15 19 20 21 22 23 25 33 34 41 MKT306 Marketing Strategy Assignment Questions This is an individual assignment as a single report in two parts. 1. Investigation and analysis Choose an individual brand or product line from either the producer and/or brand owner, who are involved in the marketing of an oral hygiene product or products. Investigate and evaluate their marketing strategy using contemporary marketing tools and techniques however this may be illuminated using examples from other companies /organisations.

You can demonstrate the effectiveness of the reported policies for the chosen company by giving performance data against competitors in the market (e. g. market share, sales, profitability, etc. ). 2. Recommendations Your remit is to put forward your own suggestions covering changes in marketing strategy that will improve the future performance of the brand /product /product line for the benefit of the parent company and its stakeholders. marketing methods and techniques.

These suggestions should be your own ideas but may include marketing tactics and strategies used by other successful organisations but in different industry sectors. will put these suggestions, forward in a written report. You Justify your choices again using contemporary Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 1 MKT306 Marketing Strategy Abbreviations J&J R&D : : Johnson & Johnson Research & Development Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 2 MKT306 Marketing Strategy Report

To: From: Date: Reference: Subject: Management of J&J Ms Joey Kwan Lay Kuan 2nd July 2010 MKT306 Marketing Strategy Marketing Strategy for Listerine Children’s Mouthwash This report outlines the current market evaluation, as well as the marketing strategy proposed to successfully achieve J&J’s objective of market development to achieve first year Singapore market share 30 percent with sales revenue of SGD9million, followed by 50 percent market share for subsequent 3 years, which amounts SGD15million per annual. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 3 MKT306 Marketing Strategy 1. Executive Summary This academic report will examine the marketing strategy which J&J will engage to launch the Listerine brand children mouthwash product in Singapore market. Despite the weak product awareness of children series mouthwash and fierce rivalry from competitors of adult market, J&J can compete because Listerine Smart Rinse offers a unique combination of features at a value-added price. We are targeting specific segments in the consumer market, taking advantage of opportunities indicated by increasing purchasing power and awareness of healthy lifestyle, which includes oral care hygiene.

The primary marketing objective is to achieve first year Singapore market share 30 percent with sales revenue of SGD9million, followed by 50 percent market share for subsequent 3 years, which amounts SGD15million per annual. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 4 MKT306 Marketing Strategy 2. 0 Terms of Reference 2. 1 Johnson & Johnson (J&J) J&J is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886.

The highly respected and reputable company employs approximately 114,000 staff who are engaged in the manufacture and sale of a broad range of products in the health care field worldwide. J&J’s commitment to innovative health care products has resulted in 76 consecutive years of sales increases; 25 consecutive years of adjusted earnings increases; and 47 consecutive years of dividend increases (refer appendix A-E). Profits at the world’s biggest health care J&J products maker are driven by sales of over-the-counter brands including Listerine. 1 to health and well-being. headquartered in New Jersey, United States with its primary interest in products related J&J Family of Companies delivered impressive results in year 2009 with outstanding new products, robust pipelines and global presence. 3 2. 2 Listerine Brand Listerine is one of the numerous household names under J&J’s brand. It was created in 1879 by Dr. Joseph Lawrence and Jordan Wheat Lambert and grows to become one of the world’s best-selling consumer healthcare brands. Listerine joined J&J family when 4 J&J acquired Pfizer Consumer Healthcare in 2006. rand after the acquisition. 5 Listerine’s Smart Rinse mouthwash was released in summer 2006 as part of J&J’s plan to expand the Listerine The brand was a consistent driver of growth throughout Rinsing with 2009 when it successfully launched Listerine Total Care Anticavity. provides the daily essentials for a healthier mouth. 6 1 2 3 4 5 6 The Fortune 500’s Biggest Win J&J official website, Company Overview J&J 2009 Annual Report J&J official website, Health Care Innovations CosmeticsDesign. com, ‘Listerine targets children’s oral care market’, 12

March 2008 J&J 2009 Annual Report Student ID: 089111572 Page 5 Listerine brand mouthwashes, plus flossing and brushing with Reach® products, Student: Joey Kwan Lay Kuan MKT306 Marketing Strategy 2. 3 Singapore Singapore is a multi-lingual, multi-racial and multi-cultural nation with overall population of 4. 98million as in 2009. 7 Although lacking natural resources, its government invested heavily in developing the educational and skills level of their people, so as to compete globally as a highly developed market-based economy.

Many foreign direct investments are attracted to do business in Singapore due to its strategic location, excellent infrastructure, highly skilled workforce and opened economic policies initiated by the state. Being highly-skilled and well-educated, Singapore workforce is well-paid in the commercial world thus made them generally affluent spenders (refer appendix F). It is also reported that there are more millionaires in Singapore. 8 Thus Listerine can benefit from Singapore’s purchasing power by formulating strategic marketing plans and engagements that appeal to its local target market. 8 Singapore Department of Statistics The Straits Times, ‘Rise in millionaires here’, 24 June 2010 Student ID: 089111572 Page 6 Student: Joey Kwan Lay Kuan MKT306 Marketing Strategy 3. 0 Corporate Objective This report will focus on product Listerine Smart Rinse, an anticavity fluoride rinse that cleans up what brushing may have missed for kids ages six and older. The purpose of the proposal is to recommend marketing strategy to effectively penetrate into the children oral care market J&J’ children mouthwash product, namely the nonalcohol Listerine Smart Rinse.

The primary marketing objective is to achieve first year Singapore market share 30 percent with sales revenue of SGD9million, followed by 50 percent market share for subsequent 3 years, which amounts SGD15million per annual. Listerine Smart RinseTM Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 7 MKT306 Marketing Strategy 4. 0 Situational Analysis The world oral care market has an estimated retail value of US$8. 5 billion (Hollenesen, 2003). J&J’s group of oral care brands fetched USD1,569million in 2009 (refer appendix G-I).

The Singapore oral hygiene market has an estimated 500,000 users age between 6-12 years old of relatively untapped market value of approximately SGD15million for mouthwash products. 9 of oral hygiene. Children do not take the time to brush thoroughly all the time and will only use mouthwash that tastes great. If not, they will avoid this important part Mouthwash is recommended for children 6 years old and above, as that is the age when they know how to rinse and spit. It is reported that Singaporeans may know the importance of good oral hygiene but only a handful would actually do something to ensure it. 0 The children definitely fare worse than their parents. There is in fact barely any presence of children’s mouthwash in most distribution channels like supermarkets or convenience stores. This is therefore a potential market to develop and gain leadership in market share before competitors do. 9 Reuter exchange rate GDP1 = SGD2. 042, 7 June 2010 10 Asiaone, ‘Most Singaporeans don’t floss daily’, 24 April 2009 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 8 MKT306 Marketing Strategy 4. 1 Industry Analysis Porter’s five forces framework as shown below is used to analyse the children mouthwash industry environment.

Source: Courtesy of www. 12manage. com The barrier to entry is high due to the cost of production and costly R&D required for the product development (refer appendix J). Moreover, the ability to market new brand and access effective distribution channels present great threat to new entrants. Competitors include P&G, Oral-B, Systema, Colgate and other smaller oral hygiene product manufacturers. Colgate has tapped on the children’s toothpaste market via their collaboration with the primary schools in engaging the school children with good oral care habit. Systema.

In the oral care industry, customers enjoy significant buying power as they incur low Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 9 They are also relatively more visible in the children mouthwash sector compared to the other big players of adult market, including Listerine, Oral-B and MKT306 Marketing Strategy switching costs. This is partly due to insufficient demand in relative perfect market of children oral care business (Ron and Heene, 2004). The lack of perceived need and product awareness has in turn resulted to loss of revenue from the untapped market segment.

Singapore has national competitive advantage as mentioned earlier, so relevant strategies must be formulated to win the consumers. Product substitutes are a strong threat as the customers face low switching costs. Products such as good toothpaste, oral spray for sweet-smelling breath, sugar free gum and dental services constitute possible substitutes which customers can opt for. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 10 MKT306 Marketing Strategy 4. 2 SWOT Analysis A SWOT analysis is used to better understand the key issues and trends facing the children mouthwash segment.

The strengths and weaknesses examine the internal environment, while the opportunities and threats identify the external (Levicki, 2003). The SWOT table below summarises Listerine Smart Rinse analysis. Strengths 1. Successful global brand 2. Profitable and respected company 3. Global presence through wide distribution channels 4. Wide product offerings 5. Global infrastructure and capabilities 6. Exceptional financial profile 7. Consistent and successful R&D track records 8. Superior product quality Weaknesses 1. Weak product awareness in the market 2. Weak distribution channels 3. Poor promotion 4.

Strong competition in oral care industry 5. Innovative products can be easily replicated Opportunities 1. Increasing affluence of Singaporean parents 2. Growing population due to foreign immigration 3. Government’s effort to drive healthy lifestyle awareness 4. Untapped children’s market due to insufficient educational tips and help to engage the kids in long term oral care habits 5. Tested and approved by dental authority Threats 1. Fierce rivalry among competitors 2. Busy lifestyle that makes oral care unappealing 3. Changing customer needs/tastes 4. Distribution channels coming out with own labels 5.

Cut in spending during economic downturn Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 11 MKT306 Marketing Strategy 4. 3 Competitive Advantage and Core Competencies In leveraging their strengths, J&J managed to create the following capabilities and competitive advantages (Ferrell and Hartline, 2008). 4. 3. 1 Successful Global Branding Branding is a method through which manufacturers and retailers help customers to differentiate between various offerings in a market. It enables them to make associations with certain attributes or feelings with a particular brand.

If this differentiation can be achieved and sustained, then a brand is considered to have a competitive advantage (Baines et al, 2008). Listerine is a successful global brand that falls under the endorsed branding where the product gets the spotlight while the corporate brand name appears as an endorser, usually in small print (Temporal, 2006). 4. 3. 2 Customer-Focus R&D Because customers are vital to the survival of organizations, management must correctly identify customers and promote organizational strategies that respond to their needs (Jones and George, 2003). ommitment to exemplary customer service. The credo of J&J guides their Listerine, like the other brands Listerine launched a from J&J, is developed as a result of customer-focus R&D. mouth rinse for kids in US market in 2006, meant to make teeth brushing more fun, as well as a complete good tasting mouthwash. “Now there is a Listerine for everyone,” claimed J&J. 11 Successful products will be imitated sooner or later, so the company must be willing and active to innovate continually and look for new ways of differentiating if they wish to retain its unique position (Hooley et al, 2008). 1 BrandChannel office website, ‘Is My Brand Losing Focus? ’ Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 12 MKT306 Marketing Strategy 4. 3. 3 Wide Distribution Channels Listerine can leverage on the wide distribution channels of other Listerine’s series products to create loyal customer base nationwide. The distribution advantage also played a critical role in attracting and retaining affluent and highly busy Singaporeans by increasing their pulling power and giving consumers the convenience of accessing J&J healthcare and household products (Hollenesen, 2003). . 3. 4 Approval from Dental Authority Listerine gained the Singapore Dental Association seal of approval for their mouthwash products. consumers’ confidence. 12 The seal provides credibility on the safety and effectiveness of Listerine products in dental healthcare industry, thus able to win 4. 3. 5 Respected Company J&J’s products are associated with quality, and the company has differentiated itself during the years as being committed to producing high quality products. Because of this association with quality nd respected reputation, J&J has been able to charge a premium for its product offerings, which often reflect the extra value-added features provided for the consumer. 12 The New Paper, ‘Alcoholic mouthwash may be harmful’, 12 February 2009 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 13 MKT306 Marketing Strategy 5. 0 Recommendations Market development strategy from Ansoff’s growth matrix model shown below is suggested, with aim to strengthen product awareness in Singapore market and increase market share. Ansoff Product-Market Matrix

Current Products Current Markets Market penetration strategies Increase market share Increase product share Increase frequency of use Increase quantity used New applications New Markets Market development strategies Expand products Geographic expansion Target new segments /customer group markets for existing Diversification strategies Vertical integration Forward integration Backward integration Diversification into related businesses (concentric diversification) Diversification into unrelated businesses (conglomerate diversification) New Products Product development strategies Product improvements Product-line extensions New products for same market Source: Hollenesen, (2003). Marketing Management: A Relationship Approach. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 14 MKT306 Marketing Strategy 5. 1 Segmentation Targeting & Positioning Marketing segmentation is the act of dividing a market into distinct groups of buyers with different needs, characteristics, or behavioral who might require separate products or marketing mixes. Once the groups have been identified, target marketing evaluates and selects one or more segments to serve.

Target marketing involves designing strategies to build the right relationships with the right customers. Marketing positioning consists of deciding how to best serve target customers – setting the competitive positioning for the product and creating a detailed marketing plan (Kotler and Armstrong, 2007). Steps in Market Segmentation, Targeting, and Positioning Source: Kotler and Armstrong. (2007). Marketing – An Introduction. 8th ed. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 15 MKT306 Marketing Strategy 5. 5. 1 Segmentation Targeting To be useful, market segments must be identifiable, measurable, substantial, accessible, differentiable, actionable, viable and sustainable (Ferrell and Hartline, 2008).

Demographic factors are the most popular bases for segmenting customer groups because consumer needs, wants, and usage rates often vary closely with demographic variables (Kotler and Armstrong, 2007). The market segmentation for Listerine Smart Rinse is children between 6-12 years of age. The target consumers are the mothers, who are the main shopper for the family in most categories of consumer goods (Silverstein and Sayre, 2009). Most Singapore parents have strong purchasing power with concern to ensure that her children’s well-being is taken care of. When business connects women to each other and earns her trust, it strengthens its brand (Witter and Chen, 2008).

Children may also have strong influence on buying decisions based on their preference on the taste (Spinelli et al, 2004). It will thus serve J&J well to continue to tap on this behavioral of its target customers. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 16 MKT306 Marketing Strategy 5. 5. 2 Positioning The next step to decide on a value proposition for positioning the product (Kotler and Armstrong, 2008). One way of positioning a product is to highlight a product feature or attribute (Burrow, 2006). The focus of niche positioning would be placed in the children market. Listerine Smart Rinse should seek to differentiate in its target niche market by exploiting the special needs of buyers with value added attributes (Dess et al, 2008).

Attempts to create differentiation in competitive positioning should be the following criteria (Hooley et al, 2008): Importance a difference should create a highly valued benefit for significant numbers of customers Distinctive the difference cannot be imitated or performed better by others Superior the difference should provide a superior way for customers to obtain the benefit in question Communicable the difference should be capable of being communicated to customers and understood by them Affordable Profitable the target customers can afford to pay for the difference the difference will command a price adequate to make it profitable for the company

The Listerine Smart RinseTM positions itself as the anticavity fluoride rinse that cleans up what brushing may have missed when it was first launched in 2006. The Magnetic Cleaning ActionTM attracts particles, showing kids what brushing may have missed. The visual cues serve as powerful motivation for kids. Due to the nature of the industry, the strategy fits in the differentiation focus Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 17 MKT306 Marketing Strategy strategy of Porter’s Competitive Advantage model shown below, where the business aims to differentiate within the small number of target market segments as a quality and value-added product, thus enabling Listerine to maximize profit and market share.

Porter’s Competitive Advantage (Generic Strategies) Source: Courtesy of www. 12manage. com Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 18 MKT306 Marketing Strategy 5. 2 Marketing Objectives and Goals Many organisations use the ‘SMART’ acronym for describing individual objectives or targets (Torrington et al, (2005): Specific – clear, unambiguous, straightforward, understandable and challenging Measurable Achievable quantity, quality, time, money challenging but within the reach of a competent and committed person Relevant relevant to the objectives of the organisation so that the goal of the individual is aligned to corporate goals Timed to be completed within an agreed timescales

Mouthwash business is at the growth stage of product life-cycle and there is still significant potential growth in Singapore. Rinse. We have set aggressive but achievable objectives for the first and subsequent 3 years of marketing plans for Listerine Smart First-Year Objectives During the product’s initial year on local market, we are aiming for 30 percent of market share through sales revenue of SGD9million, as well as to achieve break-even for the marketing investment. Subsequent 3 Years Objectives To achieve 50 percent market share amounting SGD15million per annual. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 19 MKT306 Marketing Strategy 5. 3 Marketing Strategies and Programmes

In order to maximize their product awareness and achieve their corporate objective, a marketing budget of SGD3million is proposed as shown below. Media 1 2 3 4 5 6 7 Television commercial advertisement Printed brochures and posters Printed advertisement on magazines Outdoor advertisement on bus shelters, buses and cabs Point-of-Purchase advertising display shelves Sponsorship events Miscellaneous Total Budget Budget (SGD) 2,000,000 20,000 50,000 400,000 30,000 100,000 400,000 3,000,000 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 20 MKT306 Marketing Strategy 5. 3. 1 Product Listerine Smart Rinse is an anticavity fluoride rinse that cleans up what brushing may have missed for kids ages six and older. It comes in mint shield and berry shield flavors, in 250ml and 500ml sizes.

Its features include: Contains fluoride to help prevent cavities Kills bad breath germs Shows proof in the sink of a cleaner mouth • • • Listerine Smart Rinse children mouthwash is designed with fun and functionality in mind. This visual cue that the product is working provides an immediate benefit for the child that it is easy to see and understand, making oral care more fun. The product efficacy is designed for parents who are trying to educate their children into good oral care habits. The product protects teeth against cavities and cleans the mouth beyond brushing alone. 13 We recommend that the packaging should also include print of the attributes to reinforce the benefits to the target consumers. 13 CosmeticsDesign. om, ‘Listerine targets children’s oral care market’, 12 March 2008 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 21 MKT306 Marketing Strategy 5. 3. 3 Pricing Market value-based pricing recognises that pricing must be seen within the context of a price-value relationship. strategy (Hollenesen, 2003). Price competition is not advised for Listerine Smart Rinse. J&J is urged to It is thus esstential to find a balance between what customers are willing to pay and the costs associated with the sustain its differentiation focus strategy by creating a perception that the consumer is actually receiving superior value from a Listerine Smart Rinse product compared to their competitors.

This provide Listerine with a competitive advantage and allow them to charge premium price for its children mouthwash product by attaching value-added features to differentiate their offers and thus support higher prices (Kotler and Armstrong, 2007). J&J can also leverage on its international brand presence to charge higher in order to support their core competency in R&D for further new products, wide distribution channels and higher marketing expenses. Normal retail price is recommended to price at SGD6. 50 for 250ml and SGD8. 50 for 500ml14. Promotional pricing at retail outlets will temporarily price the product below list price and sometimes even below cost to create buying excitement and urgency. This pricing strategy will be used occasionally to persuade consumers that they will save money if they take advantage of the promotional price being offered (Falk, 2003). their brand.

J&J can also use special-event pricing in certain events example For the promotion activities in schools, discount and allowance oral care month to win new users and encourage other consumers to switch to pricing is suggested. Bundle pricing may be used occasionally by combining few of their products and offer the bundle at a reduced price (Kotler and Armstrong, 2006). 14 Reuter exchange rate USD1 = SGD1. 3923, 1 July 2010 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 22 MKT306 Marketing Strategy 5. 3. 4 Place Strong channel management for brand products brings the company close to its clients. Intensive distribution is recommended for fast-moving consumer goods such as oral care products.

It is about placing the product in as many outlets or locations as possible, so that consumers purchase on the basis on convenience or impulse (Baines et al, 2008). 1. Retail Outlets Retailers like supermarkets, convenience stores, pharmacies are excellent intermediary for distributing products to a wide geographical range of consumers. Prominent placement on display shelves is suggested during introduction stage to attract consumers. 2. Dental and Pediatric Clinics Dentists and even pediatrician also played an important role in the distribution of oral care products. Their opinion and recommendation carry much weight to their patients. Profit-sharing scheme can be worked out for sales through the channel. 3.

Vending Machines Slowly but surely, vending machines have been multiplying across Singapore as more businesses sense a shift in buying trends. With an expanding variety of products and increased convenience, vending machines are pushing all the buttons for a new generation of tech-savvy and time-starved Singapore consumers. 15 These machines can be placed at target distributions like dental and pediatric clinics. A profit-sharing scheme will be 15 The Straits Times, ‘Rising of vending machines’, 19 June 2010 Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 23 MKT306 Marketing Strategy worked out to encourage partnership and wider distribution channels. Sample of vending machines Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 24 MKT306 Marketing Strategy 5. 3. 5

Promotion More companies are adopting the concept of integrated marketing communications where they carefully integrate its many communications channels to deliver a clear, consistent, and compelling message about the organisation and its brands (Baines et al, 2008). Integrated Marketing Communications Source: Kolter and Armstrong (2007). Marketing – An Introduction. 8th ed. A summary of the profiles of major media types is shown in appendix K, with recommendations of advertising, public relations and sales promotion for this report. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 25 MKT306 Marketing Strategy 1. Advertising Advertising includes print, broadcast, Internet, outdoor, and other forms.

It can reach masses of geographically dispersed consumers at a low cost per exposure, and it enables the sellers to repeat a message many times (Kotler and Armstrong, 2006). The following media are proposed to market Listerine Smart Rinse: a. Print media advertising on parenting magazines such as Young Parents and Motherhood. b. Print posters and brochures for distribution to schools, dental and pediatric clinics. c. Television advertising to reach huge audiences. working parents. d. e. Outdoor media advertising at bus shelters, on buses and cabs. Point-of-Purchase display advertising at major supermarkets. It should be broadcasted during prime time in order to reach target audience, i. . Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 26 MKT306 Marketing Strategy Samples of Recommended Media Types Printed brochures for schools and clinic Source: www. listernkids. com Coupon on magazines Source: www. listernkids. com Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 27 MKT306 Marketing Strategy Outdoor advertising at bus-stops Source: Clear Channel Media Transit advertising on buses and cabs Source: SMRT Media Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 28 MKT306 Marketing Strategy 2. Public Relations Public relations include press releases, sponsorship, and special events (Kotler and Armstrong, 2006).

A well-thought-out public relations campaign used with other promotion mix elements can be very effective and economical to strengthen product or brand awareness (Kotler and Armstrong, 2007). J&J can collaborate with professional dental organizations and societies, example Singapore Dental Association, in dental public education initiatives locally. Example participation in sponsorship of community family-related events, educational road shows or workshops for Oral Health Month or National Children’s Oral Health campaigns that aim to raise public awareness and educate them of the importance of oral health. Free samples can also be given away.

Social networking media such as Facebook and Twitter example can be explored as free marketing tools. male users (Chandler, 2009). Facebook is now the third most popular site after Google and Yahoo, and it attracts more female than Informative website address can be printed on the product label for parents to find tips and free downloads to help teach their kids about smart oral care, example sample shown next page. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 29 MKT306 Marketing Strategy Tips for engaging kids early in oral care Source: www. listerinekids. com Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 30 MKT306 Marketing Strategy 3. Sales Promotion Sales promotion includes point-of-purchase displays, premiums, iscounts, coupons, specialty advertising, and demonstrations (Kotler and Armstrong, 2006). They are used extensively in consumer markets when launching existing products in new market, example Listerine Smart Rinse. They work more effectively when supported by advertising. immediate sale (Baines et al, 2008). Effective retail Point-of-Sale displays at major retail channels can make a significant difference in the overall success of a retail display or in-store promotion for Listerine Smart Rinse, as shown below for Kikkoman and Red Bull. Sales promotions are concerned with offering customers additional value, in order to induce an Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 31 MKT306 Marketing Strategy 1.

Bonus and Bundle Packs Bonus packs of a free 50ml bottle along with the purchase of 2 bottles of 250ml mouthwash is suggested. This form of promotion provides consumers with an immediate reward and primarily serving a repeat purchase objective for J&J (Terence (2007). Customer buy earlier before they finish using the product and are locked into Listerine Smart Rinse for longer period, thus have also excluded all competitor brands from getting their business for at least the same period. Bundle packed with other related products example kids toothbrush or toothpaste, or twin pack offer that tag adult’s series along with Listerine Smart Rinse also achieve same purpose. 2.

Promotional Discounts in Schools The strategy is to establish partnerships between government, dental and education professionals and schools. Educational cum promotional pamphlets will be distributed to students to bring back home to show their parents, who are the target consumers. Yakult successfully increased its market share when it launched bulk purchase promotions of “Yakult once a day” healthy drink in primary schools. Discounts are given for bulk order of 10 bottles order of Listerine Smart Rinse, plus free gift example pencil case. 3. Free Samples from Advertising Media Printed or electronic coupons for free samples and rebates from parenting magazines, pop-up advertisements on Parents Forum Chartrooms can be used to encourage trial or switch from competitors’ products..

Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 32 MKT306 Marketing Strategy 6. 0 Conclusion In order to maximize their product awareness and achieve success in its market development, strong marketing strategy and investment is needed to communicate the attributes of Listerine Smart Rinse to its target segmentation. Word count: 3,522 words Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 33 MKT306 Marketing Strategy Reference Books: Baines, P. , Fill, C. and Page, K. University Press. Burrow, J. L. Western. Chandler, S. (2009). Leap! 101 Ways To Grow Your Business. United States of America: The Career Press. Dess, G. G. , Lumpkin, G. T. nd Eisner, A. B. Cases. th (2008). Marketing. United States of America: Oxford (2006). Marketing. 2nd ed. United States of America: Thomson South- (2008). Strategic Management – Text and 4 ed. United States of America: McGraw-Hill. 1001 Ideas To Create Retail Excitement. United States of America: Falk, E. A. (2003). Prentice Hall Press. Ferrell, O. C. and Hartline, M. D. America: Thomson South-Western. Gilmore, F. (1997). (2008). Marketing Strategy. 4th ed. United States of Brand Warriors : Corporate Leaders Share Their Winning Strategies. United Kingdom: Harper Collins Publishers. Hollenesen, S. (2003). Marketing Management: A Relationship Approach.

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Weidenbaum, M. 7th ed. United States of America: Thomson South-Western. (1993). Greater China: The Next Economic Superpower? United States of America: Washington University Center for the Study of American Business. Witter, L. and Chen, L. (2008). The She Spot : Why Women Are The Market For Changing The World And How To Reach Them. United States of America: Berrett-Koehler Publishers, Inc. Journals: Silverstein, M. J. and Sayre, K. (2009). ‘The Female Economy’, Harvard Business Review, pp. 1-8 [Online] Harvard Business Review. Available from: http://hbr. harvardbusiness. org/2009/09/the-female-economy/ar/pr. Accessed 2 November 2009. Websites: Adbrand. om, ‘Listerine: Brand Snapshot’. Available from: http://www. adbrands. net/us/listerine_us. htm. Accessed 5 June 2010. Don’t Floss Daily. ’ Available from: Asiaone 2010. office website, ‘Most Singapreans http://health. asiaone. com/print/Health/News/Story/A1Story20090424-137163. html. Accessed 28 May BrandChannel office website, ‘BP Suspends Marketing, Faces US Probe. ’ Available from: http://www. brandchannel. com/home/post/2010/05/18/Brand-News-051810AM. aspx. 1 June 2010. BrandChannel office website, ‘Is My Brand Losing Focus? ’ Available from: Accessed http://www. brandchannel. com/brand_speak. asp? bs_id=198. Accessed 1 June 2010. Student: Joey Kwan Lay Kuan

Student ID: 089111572 Page 36 MKT306 Marketing Strategy BrandChannel office website, ‘Yuck: The Taste Of Success. ’ Available from: http://www. brandchannel. com/features_effect. asp? pf_id=345. Accessed 1 June 2010. CosmeticsDesign. com, ‘Listerine targets children’s oral care market’. http://www. cosmeticsdesign. com/content/view/print/129196. Available from: Accessed 5 June 2010. Win’. Available from: CNNMoney. com, ‘The Fortune 500’s Biggest http://money. cnn. com/galleries/2009/fortune/0904/gallery. f500_mostprofitable. fortune/6. html. Accessed 25 June 2010. Health Promotion Board, ‘Adult Oral Health Promotion Programme’. 2. Available from: http://www. pb. gov. sg/hpb/default. asp? TEMPORARY_DOCUMENT=1782&TEMPORARY_TEMPLATE= Accessed 29 May 2010. iDentalcare official website, ‘Oral Health, General Health and Quality of Life’. Available from: http://www. identalcare. com. sg/doyouknow/article13. asp. Accessed 29 May 2010. iDentalcare official website, ‘Survey Findings – Singaporean’s Attitude Towards Oral Health’. Available from: http://www. identalcare. com. sg/doyouknow/article15. asp. Accessed 29 May 2010. Johnson & Johnson Dental Professional website, ‘Patients Education Material’. Available from: http://www. jjdentalprofessional. com/global/downloadable-patient-education-materials. html.

Accessed 5 June 2010. Johnson 2010. Johnson & Johnson official website, ‘2009 Annual Report’. Available from: & Johnson official website, ‘2008 Annual Report’. Available Accessed 29 from: May http://www. myvirtualpaper. com/doc/J&J/Johnson-And-Johnson/2009030501/. http://www. investor. J&J. com/2009annualreport/index. html. Accessed 29 May 2010. Available from: Johnson & Johnson official website, ‘2007 Sustainability Report’. report. pdf? MOD=AJPERES. http://www. J&J. com/wps/wcm/connect/944bde004f5565a09eb7be1bb31559c7/2007-sustainability- Accessed 28 May 2010. Student ID: 089111572 Page 37 Student: Joey Kwan Lay Kuan MKT306 Marketing Strategy

Johnson & Johnson official website, ‘2008 Sustainability Report’. rt. pdf? MOD=AJPERES. Available from: http://www. J&J. com/wps/wcm/connect/ad9170804f55661a9ec3be1bb31559c7/2008+Sustainability+Repo Accessed 28 May 2010. Available from: Accessed 28 Johnson & Johnson official website, ‘Accountable Business Practices’. http://www. J&J. com/connect/about-J&J/our-citizenship/accountable-business-practices. May 2010. Johnson & Johnson official website, ‘Awards and Recognition’. Available from: http://www. J&J. com/connect/aboutJ&J/diversity/awards/awards? contentIDR=ed3c730048419fd9876edf20aa7ccfae&useDefaultText=0&use DefaultDesc=0. Accessed 28 May 2010.

Johnson & Johnson official website, ‘Company Structure – Consumer Health Care’. Available from: http://http://www. J&J. com/connect/about-J&J/company-structure/consumer-healthcare. Accessed 28 May 2010. Johnson & Johnson official website, ‘Our Credo Values’. Available from: http://www. J&J. com/wps/wcm/connect/c7933f004f5563df9e22be1bb31559c7/ourcredo. pdf? MOD=AJPERES. Accessed 28 May 2010. Available from: Johnson & Johnson official website, ‘Our History – Growth & Expansion’. http://www. J&J. com/connect/about-J&J/company-history/healthcare-growth. Accessed 28 May 2010. Available from: Johnson & Johnson official website, ‘Our Products – Consumer Products’. http://www. J&J. com/connect/healthcare-products/consumer/.

Accessed 28 May 2010. Available Johnson & Johnson official website, ‘Product Advertising and Communications’. from: and-communications. pdf? MOD=AJPERES. http://www. J&J. com/wps/wcm/connect/ebd28f804f5567d49f54bf1bb31559c7/product-advertising- Accessed 28 May 2010. website, ‘Subsidiaries’. Available from: Johnson & Johnson official http://www. J&J. com/wps/wcm/connect/73cf28804f5563d49e16be1bb31559c7/Subsidiaries. pdf? MOD=AJ Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 38 MKT306 Marketing Strategy PERES. Accessed 28 May 2010. Available from: Kilmer House official website, ‘History of The Johnson & Johnson Logo’. http://www. kilmerhouse. com/? p=373.

Accessed 28 May 2010. Kilmer House official website, ‘The Story Behind Johnson & Johnson And Its People’. Available from: http://www. kilmerhouse. com/. Accessed 28 May 2010. Ministry of Education, ‘School Information Service’. Available from: http://app. sis. moe. gov. sg/schinfo/index. asp. Accessed 22 June 2010. System’. Available from: Ministry of Health, ‘Healthcare http://www. moh. gov. sg/mohcorp/hcsystem. aspx? id=102. Accessed 22 June 2010. http://www. reuters. com/finance/currencies. Reuter, Currency conversion. Available from: Accessed 7 June 2010. Reuter, ‘Germy Mouths Linked To Heart Attacks, Study Finds’. http://www. reuters. com/assets/print? id=USTRE5300RU20090401. Available from: Accessed 7 June 2010. Approval. Available from: Singapore 2010. Dental Association, SDA Seal of http://cms. sda. org. sg/index. php? option=com_content&task=view&id=47&Itemid=86. Accessed 24 June Singapore Department of Statistics, Singapore In Figures 2009’. Available from: http://www. singstat. gov. sg/pubn/reference/sif2009. pdf. Accessed 22 June 2010. The Straits Times, ‘Rise In Millionaires Here’. Available from: http://www. straitstimes. com/print/BreakingNews/Singapore/Story/STIStory_544850. html. Accessed 24 June 2010. The Straits Times, ‘Rise of Vending Machines’. Available Accessed from: 19 http://www. straitstimes. om/BreakingNews/Singapore/Story/STIStory_542760. html. June 2010. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 39 MKT306 Marketing Strategy Top 3 Mouthwash Accessed Products for Kids’. Available from: http://www. associatedcontent. com/article/1341809/top_3_mouthwash_products_for_kids_. html? singlepag e=true&cat=25. Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 40 MKT306 Marketing Strategy Appendix Appendix A: Financial Results on Net Sales Source: Johnson & Johnson 2009 Annual Report Appendix B: Financial Results on Diluted Earnings Per Share Source: Johnson & Johnson 2009 Annual Report Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 41 MKT306 Marketing Strategy

Appendix C: Financial Results on Dividends Paid Per Share Source: Johnson & Johnson 2009 Annual Report Appendix D: Operation Results on U. S. and International Sales for 10 Years Source: Johnson & Johnson 2009 Annual Report Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 42 MKT306 Marketing Strategy Appendix E: Operation Results on Sales by Geographic Region Source: Johnson & Johnson 2009 Annual Report Appendix F: National Income 2009 Source: Courtesy of Singapore Department of Statistics Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 43 MKT306 Marketing Strategy Appendix G: Operation Results on Sales by Segment Source: Johnson & Johnson 2009 Annual Report

Appendix H: Major Consumer Franchise Sales Source: Johnson & Johnson 2009 Annual Report Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 44 MKT306 Marketing Strategy Appendix I: Johnson & Johnson Financial Statement by Segment of Business and Geographic Areas Source: Johnson & Johnson 2009 Annual Report Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 45 MKT306 Marketing Strategy Appendix J: Research and Development expense (excluding purchased in-process research and development charges) by segment of business Source: Johnson & Johnson 2009 Annual Report Student: Joey Kwan Lay Kuan Student ID: 089111572 Page 46 MKT306 Marketing Strategy

Appendix K: Profiles of Major Media Types Medium Newspapers Advantages Flexibility; timeliness; good local market coverage; broad acceptability; high believability Limitations Short life; poor reproduction quality; small pass-along audience Television Good mass-marketing coverage; High absolute costs; high clutter; fleeting exposure; less audience selectively low cost per exposure; combines sight, sound, and motion; appealing to the senses Direct Mail High audience selectivity; flexibility; no ad competition within the same medium; allows personalisation Radio Good local acceptance; and high Relatively high cost per exposure, “junk mail” image

Audio only; fleeting exposure; low attention (“half-heard” medium); fragmented audience Long ad purchase lead time; high cost; no guarantee of position geographic demographic selectivity; low cost Magazines High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readership Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity Internet High selectivity; low cost; Little audience selectivity; creative limitations Small, audience; demographically relatively low skewed impact; immediacy; interactive capabilities audience controls exposure Source: Kotler and Armstrong (2007). Marketing – An Introduction. 8th ed. Student: Joey Kwan Lay Kuan

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