Brand Extension Study – Johnson’s Baby

Johnson & Johnson

Consumer

Beauty & Personal Care

(BPC)Baby Care

PharmaceuticalMedical Devices

& Digonostics

• Health focused company• Primary focus on human health and well being• $ 74.3 billion Revenue: Broad geographic spread• World BPC Value share: 2.8%Johnson’s baby• Global value share of 22% in 2013; Category leader• CAGR of 4% over 2014-2018• Baby Care Sales of $ 2.2 billion in• Emerging markets major growth drivers, especially

Asia Pacific (9% CAGR)

Hair Care• Oil

• Shampoo• Conditioner

• Cologne

Skin Care• Powder• Oil• Lotion• Oil gel• Cream

Sun Care• Lotion• Cream

Toiletries• Wipes• Bedtime bath• Safety Swabs• Nursing Pads• Wash Clothes

Johnson’s Baby

Product Line

In India, Baby & Child Specific Product Category• Growth @ CAGR 1.5% [2008-13]• Expected CAGR of 7.6%Johnson’ baby:• Holds 73% Market Share• Most Valuable brand of company portfolio• Accounting for almost 1/3rd of beauty and personal

care sales

OTC28%

Skin Care26%

Baby Care16%

Oral Care11%

Wound Care10%

Women's health9%

CONSUMER SALES

2009 2010 2011 2012 2013

5.5 66.9

7.88.8

4.136 4.4765.0784

5.68626.3976

Baby and Child Specific Products Market Size (INR bn)

Baby & Child Specific Products Johnson's Company Share

COMPETITION

Johnson’s Baby

WiproDabur

VVF ProductsHimalaya Products

Johnson's Baby73%

Wipro11%

Dabur2%

VVF3%

Himalaya1%

Others10%

MARKET SHARE

SEGMENTATION & TARGET CONSUMER

Market Segmentation

Geographic

• Urban Population

• Tier 1,2,3 cities

Demographic

• Above BPL, medium to high income families

• Females/ Mothers

• Age ~ 24-35

Behavioral

• Parents concerned with wellness of the child

POSITIONING

Focus on relation between

mother and her baby

Connect it to relationship

between Johnson’s and

mothers

Gives moms more and more ways to make every moment with their

baby a special moment.

Happy mothers enjoying the time they spend with infants

The Power of Gentle acknowledges that babies change

lives of both parents

Own the mother

child

relationship

POSITIONING

Safely care for babies

Better products everyday

Moms trust on Johnson

Emphasis the fact that J&J knows that mothers decides ( know better ) about what is good for the baby.

“Papa ko kya malum”

SafeMild

GentleTrust

PERCEPTUAL MAP

Performance Safety Caring Mild

Brand Value Trust

4P’s of Johnson’s

Baby

Johnson’s Baby: Product

SKUs

Catering to different volumes

50 gms – 700 gms

Varients

Multiple products for different needs

All baby care products

Flavor based: Aloevera, bedtime, blossoms etc.

Availability

Hospital stores have smaller sizes for trial basis

Retail Stores have larger sizes for monthly needs

Attributes

Smoothens, protects

Combos

For gift occasions

Johnson’s Baby: Price & Place

Sales

Personal selling to mother’s through doctors

Distribution

Distribution

• Medical stores, grocery stores, modern trade

• Retail stores like mom and me, justbornetc.

• In India: 9,993 hospitals, 1,48,124 registered medical shops reaching a consumer base of around 120,193,444

• Different sizes

• Different variants

• Rs 25 – Rs 200

• Gift combos with multiple Johnson’s baby products

• Prices within the CPI

Johnson’s Baby: Promotions

Mother Child relation

established

TV Ads• Screened during

afternoon

• Targeting house wives

Print• Caring mother and

bubbly baby

• Light colors pink and white

Digital Media

• Pop Up Ads on e-commerce sites

• YouTube ads linked with child care videos

COMPETITIVE FRAME OF REFERENCE

• First – mover advantage

• First in India

• Consumer trust

• long-standing presence

• Mother's choice

Market Leader

• CAGR ~ 3%

• More number of working parents and one-child families Higher disposable incomes higher expenditure on baby care

• High growth in baby wipes segment

Prospects

• Launch by Dabur

• Key players

• Dabur Ltd

• Wipro Ltd

• VVF Ltd (Doy)

Threats

POINT OF PARITY/ DIFFERENCE

POP POD Caring,Trust

On the whole!

A trusted brand in

baby care

By mother’s for their children

Provides safe, gentle and mild

care And makes the mother-child bonding even more special

More to offer than

anyone else

REFERENCES

• Euromonitor - GMID• Baby & Child Specific Products in India

• Johnson’s Baby Official Website - www.johnsonsbaby.com

• Johnson’s Baby Social Media Pages – Facebook, Twitter

• Marketing Management by Kotler

• Brand Strategy by Prof. Sameer Mathur

Susmita Dheeraja Kraleti| Sec ‘B’| PGP30142

Guided by-

Prof. Sameer Mathur

Ph.D. Carnegie Mellon University

Marketing Prof., IIM Lucknow