Market research proposal for Johnson&Johnson

Document Sample
Market research proposal for Johnson&Johnson Powered By Docstoc
					      IIM LUCKNOW



       Nov 2009
                        During 2008, the baby care sales grew by 8% in current value terms to
    Baby Care
                        reach Rs3.3 billion. Rising disposable incomes have allowed parents to
                        spend more on buying branded products for their babies. Consumers are
                        shifting from unbranded and traditional home-made items to branded
      Highlights        products such as those from Johnson & Johnson and Dabur. Urban
 Rising incomes
                        consumers have realised the benefits of using products from reputed
  allow parents to
  spend more on         companies, instead of using ones that are either home-made or meant
  branded products
                        for adults. Though there has been an increase in the prices of the baby
 Johnson & Johnson     care products, demand was inelastic, as parents are typically unwilling to
  leads sector sales,
                        compromise on quality.
  with 69% value
  share                 Johnson & Johnson remained the clear leader in baby care in 2008, with
                        the company accounting for 69% of value sales. The company’s greatest
 Baby care is
  predicted to          strength is the trust consumers have in it. Its products have the
  witness 36%           reputation of being of high quality, and undergo the strictest quality
  growth over the
                        control tests. Johnson & Johnson is able to cater to a wide range of
  forecast period
  (2008-2013)           consumers by carrying multiple brands in hair care, skin care and
                        toiletries. Johnson & Johnson led in terms of advertising expenditure in
                        2008, with its campaigns heavily tilted towards baby skin care products.
                        In addition, the company benefits from a strong nationwide distribution
                        network. Second and third placed Dabur and Wipro accounted for 27%
                        of total value sales in 2008.
                        Baby skin care and baby toiletries are expected to experience the fastest
                        growth in constant value terms over the forecast period, at 37% and
                        36%, respectively. Consumer familiarity with soaps and body oils will put
                        them at ease using such products, as compared to shampoos, which they
                        themselves might not be using.
            The moisturizing product category is composed mainly of two types of
            products – creams and lotions. In India, the moisturising product
            category has been seen to be dominated by creams. However, the
            lotions category has been seen to be growing in recent years. The
            Johnson’s baby moisturising portfolio is comprised of both lotions and
            creams with both available in regular and milk variants. The Johnson’s
            cream products account for 2/3 of the sales in its moisturizing portfolio
            while lotions account for 1/3 of the sal es. The milk variants are a new
            introduction to the portfolio. Despite low advertising, the milk variants
            account for 30% of the sales. After a rapid growth, this category is
            seeing a slowdown in the growth rate.

            To identify clear roles for each of the products in the Johnson’s baby
            moisturizing portfolio.
            This would be accomplished with the help of the following broad
            research problems:
            1. To identify the differences between the 2 moisturizing formats by
                identifying usage patterns, areas of application, and other
                information areas.
            2. To profile customers buying each of the different formats based on
                demographic and psychographic characteristics.
            3. To identify consumer’s perception of the milk variants.

            The above research objectives and the research plan are explained in
            detail in later sections.
                As was expected, the secondary research also indicated that baby
Findings From   skin care products are high involvement purchases. Following
  Secondary     variables have been identified as important for decision making for
   Research     baby skin care products.
                   1) Ingredients                       2) Enhancing muscular growth
                                                            of kids
                   3) Gentleness of the product         4) Non sticky
                   5) Cute Packaging                    6) Natural glow
                   7) Brand repute                      8) Healthy ingredients
                   9) Skin softness                     10) Enhancing health of skin
                   11) Skin smoothness                  12) Protection              from
                                                            environment factors
                   13) Moisturizing effect              14) Suitability of the product for
                                                            the kids age
                   15) Natural products                 16) Peer/Family
                   17) Medicinal properties             18) Previous experience

                Following are the differences between consumer’s perceptions about
                lotions and creams

                   Attribute                  Cream                     Lotion
                  Greasiness              More greasy                Less greasy
                  Absorption                Slower                Quickly and easily
Shared By:
Description: This proposal was submitted as a bid for a market research project for Johnson&Johnson as part of INDEX 2009, the annual marketing fair of IIM Lucknow.
PARTNER Prem Krishnan