The Supporting Brand

Chapter 3: The Supporting Brand

3.1 History

JOHNSON'S^® Brand family includes more than 50 products, all of them carefully formulated and designed for baby and also for the mom. Their motto is CLINICALLY PROVEN MILDNESS^®

One of America's most admired companies, Johnson & Johnson (J & J) is one of the largest healthcare firms in the world and one of the most diversified. Its operations are organized into three business segments: pharmaceutical, which generates 39 percent of revenues and 61 percent of operating income; professional, which accounts for 36 percent of revenues and 27 percent of operating income; and consumer, which contributes 25 percent of revenues and 12 percent of operating income. J & J's pharmaceutical products--which are sold under such brands as Janssen Pharmaceutica, Ortho-McNeil Pharmaceutical, and Centocor--include drugs for family planning, mental illness, gastroenterology, oncology, pain management, and other areas. The professional segment includes surgical and patient care equipment and devices, diagnostic products, joint replacements, and disposable contact lenses. The company's well-known line of consumer products includes the Johnson's baby care line, the Neutrogena skin and hair care line, Tylenol and Motrin pain relievers, o.b. and Stayfree feminine hygiene products, the Reach oral care line, Band-Aid brand adhesive bandages, Imodium A-D diarrhea treatment, Mylanta gastrointestinal products, and Pepcid AC acid controller. J & J generates about half of its revenues outside the United States, through its network of 190 operating companies in 51 countries and its marketing organization that sells in more than 175 countries.

In 1923, Robert W. Johnson's sons, Robert Johnson and J. Seward Johnson, took an around-the-world tour that convinced them that J & J should expand overseas, and Johnson & Johnson Limited was established in Great Britain a year later. Diversification continued with the introduction in 1921 of Band-Aid brand adhesive bandages and Johnson's Baby Cream (Johnson's Baby Powder had debuted in 1893) and the debut of the company's first feminine hygiene product, Modess sanitary napkins, in 1927.

7

The Supporting Brand

3.2 Timeline

1886: Johnson brothers begin producing dressings in New Brunswick, New Jersey.
1887: Company is incorporated as Johnson & Johnson.
1893: Johnson's Baby Powder is introduced.
1921: Band-Aid brand adhesive bandages make their debut.
1924: Overseas expansion begins with the establishment of Johnson & Johnson Limited in the United Kingdom.
1932: Robert Johnson, known as 'the General,' takes over leadership as president.
1943: Johnson writes the company credo.
1944: Company goes public on the New York Stock Exchange.
1959: McNeil Laboratories, Inc. (McNeil Labs) is acquired.
1960: McNeil Labs introduces Tylenol as an over-the-counter (OTC) pain reliever.
1961: Janssen Pharmaceutica is acquired.
1975: Through a significant price decrease, Tylenol is transformed into a mass-marketed product.
1982: Tylenol tampering tragedy occurs.
1988: Acuvue disposable contact lenses are introduced.
1989: J & J and Merck form joint venture to develop OTC versions of Merck's prescription medications.
1994: Neutrogena Corporation is acquired.
1995: Merck and J & J launch Pepcid AC; company acquires the clinical diagnostics unit of Eastman Kodak Company.
1996: J & J acquires Cordis Corporation.
1998: DePuy, Inc. is acquired, and a companywide restructuring is launched.
1999: Centocor, Inc. merges with J & J.

3.3 Product Classification

Consumer market

Non-durable

Shopping goods

3.4 Distribution

The distribution channel for Johnson’s Baby is indirect distribution channel.

8

The Supporting Brand

3.5 Product Manufacturer - Factory - Warehoused - Retailer – Consumer

The type of distribution used by Johnson’s Baby is Selective distribution. Johnson’s Baby only available at drugstore, retailing merchants, beauty shops, and pharmacies such as Watsons and Guardian in shopping malls such as One Utama (Jusco), Midvalley Megamall and also Suria KLCC.

3.6 Brand Image&Implications

For over 100 years, Johnson’s Baby dedicated us to understanding babies and the special nurturing their eyes, skin, and hair require. They use that knowledge to provide mothers with safe, clinically proven mild and gentle products. But they don't stop there. Their products also engage the senses, evoke positive emotions, and ultimately enhance the loving bond between mother and baby.

9

The Supporting Brand

3.8 Promotional History

Holding contest

Social Service

Upgrading the brand image

Introducing JOHNSON'S® NATURAL™ Natural made gentle

10

Consumer/Stakeholders

3.9 Current Consumer Characteristic

Segmentation

Child : 0-5

Youngster : 16 – 25

Office Lady : 26 – 35

Career Women : 35 above

Target Market

Johnson’s Baby core target audience of 16 – 35 year old women

New target segment

Men

3.10 Stakeholders Characteristic

Board of Director

Mary Sue Coleman, Ph.D.
President, University of Michigan

James G. Cullen

Retired President and Chief Operating Officer, Bell Atlantic Corporation

Ian E. L. Davis

Former Worldwide Managing Director of McKinsey & Company

Michael M.E. Johns, M.D.
Chancellor, Emory University

11

The Supporting Brand

Susan L. Lindquist, Ph.D.
Member and Former Director, Whitehead Institute for Biomedical Research;

Professor of Biology, Massachusetts Institute of Technology

Anne M. Mulcahy

Retired Chairman and Chief Executive Officer, Xerox Corporation

Leo F. Mullin

Retired Chairman and Chief Executive Officer, Delta Air Lines, Inc

William D. Perez

Senior Advisor, Greenhill & Co., Inc.; Retired President and Chief Executive Officer,

Wm. Wrigley Jr. Company

Charles Prince
Chairman, Sconset Group LLC; Senior Counselor, Albright Capital Management

LLC; Retired Chairman and Chief Executive Officer, Citigroup Inc.

David Satcher, M.D., Ph.D.

Director, Center of Excellence on Health Disparities, Director, Satcher Health

Leadership Institute and Poussaint-Satcher-Cosby Chair in Mental Health,

Morehouse School of Medicine

William C. Weldon

Chairman, Board of Directors and Chief Executive Officer, Chairman, Executive

Committee

12

The Supporting Brand

3.11 Industry and Market

3.11.1 The Industry – Personal Care

Personal care products are generally used for personal health and hygiene. It includes products like body talc, body scrub, tooth paste, tooth brush; tongue cleaner, tooth powder, bathing salts, bathing gel, essential oils, moisturizer, skin creams, face wash, hair oil, hair shampoo, hair conditioner, soap, nail and cuticle care products. The personal care product market was a success on all counts in 2005-2006 with good performances from each of the Big 5 markets. In recent years, consumer health awareness has slowly been increasing and this has led people trying to take better care of them.

The major personal care products manufacturing nations include France, Germany, Italy, Spain, United Kingdom, United States, Russia and Brazil. The industry has a huge market and the demand for essential products like soaps, shampoos, moisturizers and lotions is the highest. The personal care products industry is closely associated with two other industries, the health care industry and the chemical industry thus forming an important part of the value chain. It is also related to the petroleum industry as most of the raw materials used for making personal care products like Propylene Glycol and PVP/VA Copolymer are derived from petroleum products. As these products might contain some toxic elements, research and development is going on to make them less harmful and therefore healthy ingredients like herbal and other natural products are used. Now more and more companies are emphasizing on making products, using organic or herbal compounds instead of synthetic ones.

The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth.

Figure 2: Growth in Personal Care Industry in 2006

13

The Supporting Brand

3.11.2 The Marketplace – Baby Care

Baby care unit was founded more than 120 years ago on a revolutionary idea; Doctors
and nurses should protecting our child different ways. In the baby care industry there are many companies involve and they are playing a vital role to protect the children and
they provide various different variety of products such as shampoo, powder, oil, lotion and etc. Baby’s skin is very sensitive and these products will not react on the baby’s skin. The birth rate per thousand of the population in Malaysia dropped from 17.7 in 2008 to 17.4 in 2009. This illustrated that younger-generation parents give birth to fewer children compared with previous generations, given that younger Malaysians choose to focus on their careers. Hence, parents are becoming increasingly willing to spend on better quality products to maintain and improve the overall wellbeing of their children.

Euro monitor International’s Baby Care in Malaysia report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2005-2009, allowing you to identify the sectors driving growth. Forecasts to 2014 illustrate how the market is set to change.

14

The Supporting Brand

3.12The Competitors

3.12.1 Direct Competitors

Pureen

Pureen were begun more than 35 years ago when a young Southeast Asian pharmacist founded Pureen. His vision for Pureen was as clear then as it is today: Thinking about Baby and You. Pureen continue to develop a family of products of the highest quality, made with the safest ingredients, produced under the safest standards.

Over the years, they have grown from their Pureen Baby product line to a full range of products designed to ease and comfort Baby, Mom and Family. Our mission remains constant: Thinking about Baby and You.

Their New Product

A favorite among Toddlers! PureenYogurt Shampoo and Yogurt Bath bring smiles to your Pride and Joy and makes bath time fun! Enriched with healthy yogurt for soft skin and kid-fresh hair.

15

The Supporting Brand

Anakku

Anakku is a name synonymous with every parent's pride and joy and is defined simply as my child. It is a home-grown brand that has become so widely accepted it is now a household name. Anakku's wide range of baby products, built on a strong, solid foundation of premium quality, safety and reliability, are found in most department stores and major retail chains as well as having it's very own boutiques.

Current and Past Advertising Campaign

Anakku Sure Win Contest for ANAKKU Children’s World. Customer must spend RM50 and above will entitle you a chance to win prizes.

Their New Product

Disney toiletries variant.

16

The Supporting Brand

Cherub Rubs

Cherub Rubs are fully certified organic and not just a couple of organic ingredients, but more than 95% of all the ingredients in the majority of our range are certified organic. The entire range is manufactured under strict organic standards in a certified organic manufacturing facility.

Slogan and Tagline

Cherub Rubs wants the best for you and your baby...naturally

3.13.2 Indirect Competitor

Avent

In 1984 the AVENT brand was born with the introduction of a baby feeding bottle that set the standard for feeding bottles worldwide. Pregnancy and early parenthood is an exciting and challenging time, when it's good to know there is expert advice on hand to help take care of you and your baby. AVENT has been designing and manufacturing products since 1984 that are inspired by nature and have been developed through extensive research and clinical trials. Now, as part of the Philips Group, the new Philips AVENT will continue to produce innovative solutions that make feeding and caring for your baby easier.

17

The Supporting Brand

Drypers

Drypers is the leader diaper brand in Malaysia and Singapore, taking more than 25% of the market in both countries and about 15% of the market in Thailand. Apart from these three core markets, Drypers is also exported to Vietnam, South Africa, the Maldives, Indonesia, India, Cambodia and Brunei. The global demand for Drypers has boosted its production to more than 800 million pieces a year.

Their New Product

Hygiene South Asia has launched Drypers XXL, the first baby diaper brand in Malaysia to offer diapers in a bigger size in the economy segment. The new, larger diaper has a better, more comfortable fit for bigger babies. Even the absorption capacity is better!

18

The Supporting Brand

Chicco

The Chicco Baby Product line has come up with incredible merchandise designed for your children exclusively. Chicco Baby Products are renowned for their top quality products. Its origins are as follows: it was an Italian brand that started way back in 1950. Chicco has always aimed at coming up with products that shall suit all the requirements of a child. Their products are simple and yet classy.

Their New Product

Chicco aims to be the brand which best meets the needs of all children, the definitive source for those seeking simple and safe products. Chicco strollers, high chairs and other baby products are designed with skill, love, responsibility and a commitment to helping children grow up in the best possible way.

19

3.13 SWOT Analysis

Strenght · Owned by Johnson’s &Johnsons , a well known global baby care company. · The brand associated with expertise in dermatology research · Strong and focused brand portfolio presence in emerging markets Well-controlled marketing and distribution allied to high quality products The products are suitable for all skin types even the most sensitive	Weakness Weak brand name awareness among Malaysian consumer Dependence on Western European markets late entry into Malaysia
Opportunity Increase brand name awareness by advertising Growth in adjacent categories Innovation will play a vital part in securing share	Threats Price competition among branded manufacturers Expansion of competitor into new sector Competition from private labels Weak economy can effects company equity