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Johnson Wax

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Case: Johnson Wax: Enhanced Case analysis: Define the problem John Sherman, the product development manager of Johnson & Company, had to take a decision about the future of Enhanced, a new instant hair conditioner. The issues faced by Johnson Wax are whether to launch 'Enhance' right now, launch it after some modifications or abandon the product. They wanted a new product with the same success that Agree, the company first care product but they also wanted to reduce the costs of the product development process. Formulate the alternatives 1. Launch Enhance as it is right now 2. Make some modifications to the product or its positioning 3. Abandon the product Analyze the alternatives …show more content…

If we would abandon the product, these costs will be sunk costs. -Launching the product as it is now is also not a good option. The MDS, as a result of the ASSESSOR test, was not encouraging about Enhances’ prospects. It is clear that some modifications has to be made. -The optimal solution is to launch Enhance, given the prospective that they will modify the product and subsequently reposition it. Surveys have shown that sampling is not successful so another way of promotion must be proposed. 2) Plan of action 1. Keep the price at the trial estimations rates, those were very similar to those of the competition( $ 1.31 and $ 1.94 for the 8 and 16 ounce sizes. 2. Sell the product through the existing distribution channels of the Agree line( distributed nationally and overseas to wholesalers and retailers through a system of manufactures’ representatives and factory salesmen. 3. An important step to ensure success of the product is that we make some modifications to the product. The ASSESSOR results in the product acceptance indicates that those who made a repeat purchase will most likely mention manageability as the thing they liked most about Enhance. The company does not really focus on manageability as much as they do on conditioning and cleaning. The relative importance of ‘manageability’ is merely 23% in comparison to 33% for ‘conditioning’. Given the results of the likes and the dislikes of the customer, we

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