1. ListerineBy: Thomas Confar

2. Table of Contents Executive Summary Industry Overview Situational Analysis Strategy Calendar Budget Works Cited 3. Executive Summary Based off of secondary research I have created a plan for Listerine to successfully reach the Young Transitional market. Listerine will create a new product that will pack a powerful slogan to get Young Transitionals involved online with Listerine. 4. Company Overview 5. Company Mission Johnson & Johnson Development Corporation creates strategic growth options for Johnson & Johnson by investing in emerging health care businesses 6. JnJ General Description Johnson & Johnsons commitment to innovative health care products has resulted in consistent financial performance. The Company has 27 consecutive years of adjusted earnings increases and 49 consecutive years of dividend increases. Johnson & Johnson, employing approximately 116,000 people worldwide, is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnsons primary interest, both historically and currently, has been in products related to health and well-being. Johnson & Johnson was organized in the State of New Jersey in 1886. Johnson & Johnson is organized on the principles of decentralized management. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations of Johnson & Johnson. In addition, certain Executive Committee members serve as Worldwide Chairmen of Group Operating Committees, which are comprised of managers who represent key operations within the group, as well as management expertise in other specialized functions. These Committees oversee and coordinate the activities of domestic and international companies related to each of the Consumer, Pharmaceutical and Professional segments of business. Operating management of each company is headed by a Chairman, President, General Manager or Managing Director who reports directly to, or through a line executive to, a Group Operating Committee. In line with this policy of decentralization, each international subsidiary is, with some exceptions, managed by citizens of the country where it is located. 7. JnJ Business DescriptionJohnson & Johnson is the largest medical device company. J&J is the 8th largest pharmaceutical company on the globe. J&J is the 5th largest Biotech company on the globe. J&J is the worlds most comprehensive and broadly based manufacturer of health care products. J&J serves the consumer, pharmaceutical and medical devices and diagnostics markets with a focus on research- based, technology-driven products. J&J has 27 consecutive years of earnings increases adjusted for special items. J&J has 49 consecutive years of dividends increases. (includes April 2011 dividend increase). 8. Revenue/Sales (Last 3 years)2008: 63,747 billion dollars2009: 61,897 billion dollars2010: 61,587 billion dollars (sales to customers) 9. Profitability (Last 3 years)2008: 16,929 billion dollars2009: 15,755 billion dollars2010: 16,947 billion dollars (earnings before provision for taxes on income)2008: 12,949 billion dollars2009: 12,266 billion dollars2010: 13,334 billion dollars (net earnings) 10. JnJ Staffing114,000 employees William C. Weldon (picture) Chief Executive Officer, Chairman of the Board Dominic J. Caruso Vice President, Chief Financial Officer Peter M. Fasolo Vice President, Human Resources Russell C. Deyo General Counsel 11. Company locations Company headquarters One Johnson & Johnson plaza, New Brunswick, NewJersey 08933 Phone number: (732) 524-0400 Johnson & Johnson has more than 250 operating companies conducting business in almost every country in the world. 12. Projects for Next YearThe projections for J&J next year includes a .5% sales growth and .6% total return to share holders. Growth rate2005-2010: .7% (U.S.). 7.7% (International). 4% (worldwide). 13. Listerine Listerine holds 61% of its market share Listerine is 6 times bigger than its nearest competitor Dr Joseph Lawrence and Jordan Wheat Lambert created Listerines first product in 1879 In 1987 Listerine mouthwash became the first non-prescription mouthwash to earn the American Dental Associations Seal of Acceptance for plaque and gingivitis. Cool Mint Listerine was launched in 1992 This product attracted a new generation of mouthwash users. The powerful germ killing properties and the fresh minty taste proving popular with younger consumers. Listerine was initially used for other purposes non related to oral care including a house cleaning agent 14. Core ConsumerAs an average for all lifestyles,people that live in CosmopolitanCenters are 25% more likely topurchase Listerine than theaverage consumerTotal Consumption These are some important factors in finding Listerines core consumer based off of the total consumption charts. There is room For Growth with the Young Transitional demographic 15. Supportingdata According to the fast fact Total Dollars Charts the consumer still seems to be about the same as stated from the charts using consumption. 16. Key CustomerConsumptionDollars With Listerine being an additional oral care product to toothbrushes and toothpaste it is not surprising that income has the biggest influence on defining its core customer. Based on the Listerine Total Consumption and Dollars charts: Couples are more likely to buy Listerine than the average consumer due to their index numbers being over 100. 2 persons perhousehold also have the highest percentage of the market. People with annual incomes over $50,000 are more likely to buy Listerine than the average consumer and they have the highestpercentage of the market. People without children make up most of the market and they are more likely to buy Listerine than the average consumeraccording to the index chart. While the Caucasian race doesnt have the highest index rate though they still dominate in the Listerine percentage category.They have a good hold on the market for Listerine. Affluent Suburbs and Cosmopolitan Centers have the highest index rate for consumption and total dollars. These lifestylesseem fitting to the data noted above. People above the age of 45 make up Listerines biggest market but ages 18-24 have a higher average consumer buying indexrate. The Middle and South Atlantic regions seem to be the hotspots for Listerine consumption and total dollars. Consumers havehigh percentage rates and high index rates in these regions which means they make up most of the market and they consumemore Listerine than the average consumer. Listerines current key customer segment includes white couples over the age of 45, no children currently living in their house,making more than $75,000 dollars per year, living in affluent suburbs or cosmopolitan centers and are located in the Middle andSouth Atlantic region. 17. Mouth-rinse Core Customer These are someimportant factorsin finding the coreconsumer for allmouthwashbrands based offof the totalconsumptionchartsTotalConsumption 18. Total Dollars These are someimportant factors infinding the coreconsumer based offof the total dollarscharts 19. TotalConsumption Total DollarsNotice that Race and Lifestylehave both fallen to the number ofpersons when compared to justListerines importance ranking. Based on the Mouth-rinse Total Consumption and Dollars charts Couples are rating the highest on the index charts stating that they are buying more mouth-rinses thanthe average consumer. People with an income of $50,000 or more hold the majority of the market and are more likely to buymouth-rinse products than the average consumer due to their index number being over 100. The age that holds most of the market is above 45, people 45 and above are also above 100 on the indexchart. They are more likely buy mouth-rinse products than the average consumer. 2 people per house hold has a hold on the market percentage and that segment is also buying moremouth-rinse products than the average consumer. Households with no children have almost two thirds of the mouth-rinse market. Affluent Suburbs and Cosmopolitan Centers are the most popular places for mouth-rinse consumers. The Middle and South Atlantic regions are receiving most of the mouth-rinse market and thoseconsumers are more likely to buy more mouth-rinse products than the average consumer. The average mouth-rinse product consumers are white couples with an income of $50,000 or above, hasno children, is 45 years or older, lives in the middle or southern Atlantic region in an affluent suburb orcosmopolitan center. 20. Market Trends 21. Natural Products Natural oral care products continue to rapidly grow, but overall, the segment is still a small portion of the U.S. oral care sector at just 30 million dollars.Toms of Maine-Has half of the natural oral Natural Productcare market Leaders-Offers all natural Kiss My Facetoothpaste, dental floss, and -Offers all naturalmouthwash toothpastes andmouthwashesBurts Bees-Offers multiple allnatural toothpasteproducts includingwhitening toothpastesand childrenstoothpastes 22. Demographics According to Spectra African Americans are48% more likely to buy Listerine and have thehighest index percentage of all demographics. 18-24 year olds are 40% more likely 23. Bedtime quick rinseDry mouth creates an easy environment for germs to multiply 24. Market Growth The Listerine market is growing Every category in the demographic skew isbuying more Listerine than the averageconsumer This is happening with all brands that havesimilar consumers Most Americans are highly conscious ofproper oral care, and in addition to healthconcerns, they value the cosmetic aspectsof proper oral health like whiter teeth andfresh breath. That being said, future growthopportunities will be tied to "value added,""improved benefit" and "simplified" oralcare products 1,989.12 Listerine units are consumed annuallyper 100 household or adults Just under 20 Listerine products consumed per year, per household The oral care future seems to be promising Even due to the current low economic times,the oral category is predicted to globally grow 25. Current Market Position Listerine emphasizes the efficiency of its productsto help prevent gingivitis Listerine promotes having a healthy mouth andbody on their website Listerine is the leader in mouthwash care Listerine is a senior product, its brand name iswell known 26. Market Size Over 300 millionconsumers in theU.S. Currently with 61%of the market share,Listerine is 6 timesbigger than itsnearest competitor 27. Johnson & Johnson Competitors Clorox Procter & Gamble Unilever Dow Chemical 3M Alticor Blyth Church & Dwight Colgate-Palmolive DuPont Henkel Corp. IWP International Reckitt Benckiser Shaklee Yankee Candle 28. Listerine Indirect Competitors BreatheFresheners Toothbrushes Cough andThroat Sprays Floss DentureCleansers Toothpaste Tooth Whiteners 29. Listerine Direct Competitors Act Mouthwash Colgate Mouthwash Crest Mouthwash Scope Mouthwash Toms of Maine Mouthwash Plax Mouthwash Biotene Mouthwash 30. Similar Core Target CompetitorProducts in Mouthwash Plax Oral Rinse Scope Outlast Act Mouthwash Crest Pro-Health 31. Comparisons Mouth-rinse products and Listerine have a very similar core customer. Mouth-rinse products have a more spread out and evenly distributedtarget than Listerine but that is expected when looking at all mouth-rinse brands vs. a specific mouth-rinse brand. Race didnt seem to be as big of a factor in mouth-rinse products andListerine consumers were more dependent on spectras definedlifestyle targets. The 18-24 year old index for Listerine was at 149 and the mouth-rinseindex is only 112 for total dollars. People in that age category heavilyprefer Listerine when choosing a mouth-rinse product. 32. While MOUTHWASH competitors deserve to be recognized by Listerine, they still do not pose a huge threatListerine is 6 times bigger that its nearest competitor and has more than half of the market Listerine needs to focus on all of the oral care industry productsHow can a mouthwash sell more than toothbrushes or toothpaste These are big picture questions Listerineshould be focusing on 33. Oral Brands Brands with similar consumersColgate Total toothpaste seems to be Listerines biggest brand competitor For every 100 households, 22.4 have purchased Listerine For every 100 households, 16.35 have purchased Colgate total toothpaste 34. Gap Analysis Consumer Wants A clean & healthy mouth Current Products Benefits Helps Prevent Cavities Restores Minerals to Enamel Strengthens Teeth Kills Bad Breath Germs Freshens Breath Cleans the Whole Mouth Price 1.05 pt costs $5.79 2.01 pt costs $8.99 33.8 fl oz costs $5.87 3.15 pt costs $11.99 35. Listerine Products 36. Listerine Products 37. Listerine Products 38. Listerine Products 39. Listerine Products 40. Listerine Products 41. Listerine Products 42. Channels and Demographic Mass Merchandise(Wal-Mart, Meijer,Target, Kmart etc)make up Listerinesbest channel for sales Club and Grocery channels are both over 20% Mass, Club andGrocery channelsare all reliablechannels forAll Over their expected Listerinebuying index rate distribution The most importantdemographic attributeis household income Blacks make up 17% of Listerines demographic High income households make up a large percent of Listerines total consumption 43. SnapshotMostimportantdemographicattribute Based on Listerines product snapshot Listerines customer segment includes 2 people per household,most commonly couples, income of $75,000 a year or more, white,age 45 or older, no children in the household, college gradeducation and lives in the middle or southern Atlantic region in acosmopolitan center or affluent suburb 44. Regions Regions: Split up onthe United States ofAmerica map Mouth-rinse product(including Listerine)markets have thehighest rate ofconsumption on theeast coast of America Specifically in theMid and SouthAtlantic region 45. Business Drivers/Market Needs Consumers want more than fresh breath from their mouthwashesand dental rinses, and suppliers are touting the additional benefitsthat their products offer. The benefits include riding mouth of: Gingivitis Germs Plaque Listerine removes 56& more plaque than brushing alone Bad Breathe The term halitosis was coined by Listerine as a marketing strategy to convey the message that bad breath should be embarrassing and by using Listerine you could get rid of bad breath Dryness of the mouth Cavities 46. Economy Changes have occurred in the oral industry due to the economic low Hygiene products are seen as a necessary purchase, as an industry they are less responsiveto change in the economy But, while Listerine is not the cheapest mouthwash brand on the market. Due to economical hard times, Listerine buyers may be shifting to less expensive off brand mouthwash. Electric toothbrushes sales are down due to their high cost mixed with the current low economy Teeth whitening strip sales are down due to time issues and and cost Teeth whitening toothpastes have become an oral care company product norm Consumers are finding ways to still keep oral hygiene a part of their daily life without breaking the bank 47. S.W.O.T.ExternalOpportunities ThreatsFactorsInternalStrengths WeaknessesFactors 48. Internal Factors Strengths Listerine has 61% of the market share Listerine is 6 times bigger than its nearest competitor Listerine has great brand awareness in the mouthwash industry When one thinks of mouthwash, Listerine is usually the first brand to enter that consumers mind Listerines couples demographic on average are consuming 34% more than expected Listerine has been engaged in oral care industry from a long time. They are the oldestproducer of oral care products. This makes Listerine the most senior brand in the oralcare industry and due to this, the image of the brand remains strong and concrete in theeyes of the customers. With its past award and medical certification performance, Listerine remains the choice of manycustomers who are concerned about oral health care with large number of customers being loyal tothe brand 49. Internal Factors Weaknesses Listerine has struggled to gain consumers with a householdincome of 50k or less (household income is the biggestfactor of the demographic attributes) Listerine does not do as well as it is expected to with start upfamilies Listerine doesnt sell well in Plain Rural Living behavioralstages 50. External Factors OpportunitiesUtilizing social media for more brand exposureListerine could have an organic product (a current trend in the market place)Listerines packaging could be better designed for people on the goListerine could focus more on Younger Bustling families (they only have 7.1% penetration out of the 100% penetration of all lifestyles)Reaching the Young Transitional demographic 51. External Factors ThreatsListerines competitors are targeting the same consumerSmaller brands that dont cost as much as Listerine, especially in hard economic times.New mouthwash products being introduced to the marketThe lack of a natural mouthwash productIn the news claims stating Listerine may cause cancer 52. Customer Service and Loyalty 53. Keys to Success Listerines brand seniority Their hold on the market share Their efforts to create convenience in their products 54. STRATEGY 55. Mission Statement Listerine offers a quick way to help its consumers maintain a clean, odor free and healthy mouth. Listerine stands out as the most consumed and trusted mouthwash brand in the oral care industry. We are constantly pushing the envelope in oral care through our innovation of new products. 56. Central Idea Introduce a new productInvolve pop icons as supportersGet the Young Transitional market involved with Listerine and the new product 57. Financial Objectives Increase Listerines profit in 2012 by 7.5% 58. Marketing Objectives Get the Young Transitional market involved and talking about Listerine onlineIncrease the market penetration with Listerines Young Transitional market by 10% Launch a new Listerine product that represents Listerines push for a healthier mouth and promotes common sense 59. The FactsTargets Young Transitionals include 18-24 year old The 18-24 year old market is interesting because they have the highest index rate yet the lowest volume . 18-24 year olds are 40% more likely to buy Listerine than the average consumer They are constantly interacting on Listerine should target the Youngsocial media sitesTransitionals This target is heavily involved inonline usage They spend a lot of their onlinetime on their social media pages They share a lot of content onlinethrough their social media pages This target offers a way forListerine to build a big socialmedia presence Listerine and all of its products willhave gained exposure on a biglevel if somehow this target reallygets involved 60. Consumer Target Young Transitional behavior stages They have a low average consumer consumptionindex. 18-24 year olds have a high above averageconsumption index yet Young Transitional are stillstruggling to reach their potential. 61. Zip Codes Based on the the target index, the most popular zipcodes focusing on Young Transitionals include NewYork, NY, Washington, D.C and Gainesville, FL. 62. Zip Codes NYC has a high index rating for Young Transitionals while still showing room for growth 63. NYC Target: Young Transitionals 64. New York, New York Population is 8,175,13323% Black13% Asian29% Hispanic33% White 65. Possible adplatformsPossiblepromotionalplatforms Website/Online data Young Transitionals have a heavy online presence 40% of the target penetration is online 20 hours or more on an average week For every 100 households, 62.4 Young Transitionals are on the internet for more that 20 hours a week 66. Highest target measure Magazines The top 10 magazines that would be useful for Listerine tobuy ad space from to reach Young Transitionals include:Disticor, Us Weekly, Vogue, Glamour, Everyday Food, MarthaStewart, Ladies Home Journal, Popular Magazine Group andNational Geographic 67. Possible adplatforms Cable T.V. Due to Blacks being 48% more likely to buy Listerine, BET would be a good ad platform for Listerine Also BET is 73% more likely to be watched by the Young Transistionals 68. T.V. & T.V. EventsA prime time T.V. ad spot would reach a large percent of the Young Transitionals Prime time T.V. shows have high target penetration and index numbers 69. Places Nightclubs Broadway shows Sporting events Madison Square Garden Frequently hosts events year round Including sports 70. Hotels/MotelsPersonal vacations/Business trips Out of town demographic 71. C-StoreGas stations and food marts are popular Shows the demand for convenience by the Young Transitional market7-Eleven Popular convenient store for Young Transitionals 72. Department Stores A high percent of Listerines Young Tranistional market hasvisited a department store in the past 30 days Macys gets a lot of traffic 73. Above average Coffee Listerines Young Transitional market is big on consuming coffee Extra boost of energy from to the caffeine Helps get your day going Get work done at a local coffee shop Students Writers Catch up with a friend over coffee at a local shop 74. Coupons Some of Listerines Young Transitional market utilized couponsaround 2-3 time per month While product coupons have a higher index rate more coupons are used ongroceries due to the high penetration percentage Overall, some Young Transitionals use coupons but the majority ofthe market does not 75. Listerine Clear Listerine water Drinkable Listerine Clears cost andtaste will mimic that of everyother bottled water productcurrently on the market Separating Listerine Clearfrom the competition Benefits Cleans mouth Rids the mouth of badbreath Promotes a healthiermouth 76. Calendar Special events and holidays are good times for brands to run themed promotions 77. Listerine Clear Ad BET (Black Entertainment Television) Why Demographic (Blacks) They represent Listerines highest index rate andListerines second highest volume BET is targeted to 18-35 year old Blacks, the target agefits my target markets age Show 106 & Park BETs most popular show Time 6pm ET on weekdays and runs for 90 mins Feb 9, 2012 (national toothache day, black history month) Cost 30 second ad=$80,000 78. Listerine Clear Ad NBC April 22, 2012Sunday 8pmSunday Night Football $434,792 79. Listerine Clear Ad People Magazine November 7, 2012 Magazine day Metro/Spot ad $295,000 80. Positioning Statement Listerine Clear is for the person who makes sensible decisions in life. Unlike the rest of the bottled water products, when consumers drink Listerine Clear they are practicing good oral care and making their mouth cleaner and healthier. 81. Listerine Clear Strategies All of the research I did on NYC and my targetconsumer led me to better understand mymarket. If my plan included strategically placed ads thenthat info would have been very useful After looking into possible ad spots I havedecided I will only run one ad for Listerine ClearThe point is not to convince my target to buy my product but for them to convince themselves The purpose of my one ad will be to spread awareness to the public 82. Listerine Clear will be used as a tool to get moreconsumers involved with Listerine through socialmedia. The slogan for Listerine Clear will be it made moresense because why wouldnt someone choosebuying a water that makes their mouth healthier vs.just water This slogan will be used on twitter #itmademoresense Every week Listerine will use an interesting tweetcontaining a story involving the slogan#itmademoresense. From there, Listerine will getcelebrities to act out the scenario from the tweet in avideo. These weekly videos will be uploaded toListerines YouTube channel. Young Transitionals are very involved with pop cultureso seeing their favorite celebrities act out storieswould be an incentive for my target audience to watchthe videos The online community will get involved because theywould want to see their story be acted out bycelebrities Weekly videos would allow Listerine to stay currentand relevant. Brands lose followers when they dont staycurrent This plan allows Listerine to get involved with the online community. 83. Video Cost (dependant on which person and where)Between $100-500,000Time, location and who 84. Ad A Super Bowl ad that promotes Listerine Clearsmessage It made more sense to The purpose of this ad will bring attention toListerines twitter page The first ad will show the marketing director ofJohnson and Johnsons marketing discussingListerine Clear. Super Bowl ad example: Listerine didnt have a twitter so I thought itwould be cool to have the online communityreally get involved with our newest product. Icame to the conclusion when re-reading theproducts slogan that it made more sense todo one ad that would reach millions of peoplerather then to waste Listerines time andmoney trying to gain awareness throughcontinued smaller scaled market ads. Feb 5, 2012 $3.5 million dollars for a 30 second spot The objective will be to spread awareness for our product and generate consumer involvement online. This one ad will spread enough awareness for Listerine Clear to then let the online marketing plan get the consumer involved. 85. Why the Super Bowl Awareness at its best (Objective accomplished)Last year 111 million people watched the Green Bay Packers play the Pittsburgh SteelersThat was the second year in a row the Super Bowl broke the T.V. view record.People talking about the commercials the next day 86. Works Cited Ebsco Host database Wall Street Journal online database SRDS NewYorkTimes.com Listerine.com JnJ.com U.S. Census Business & Company Resource Center