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
By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the
The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
• The promoters have been trying to promote the concept through press and meeting with retailers.
The positive outcome with this strategy is that it would create excitement with customers to buy our product compared to the competitors. It would create awareness about our product to our customers and possibly new customers. By implementing this strategy, it could strengthen our market share.
The entire purpose of promoting products is to create awareness, persuade and inform customers about your product or service while identifying key features compared with competitive products. There are many benefits of performing successful promotion such as increasing sales and acquiring a greater market share, showing your products features and exposing competitive product’s flaws, teaching the market benefits of your product, explaining different usage of your product, conveying your brand image of your organisation and promoting new and improved features of your products.
Improving the products and services will certainly increase the company’s rating and competitive advantage in this industry(Argenti 2008).
Management has decided that the suggested retail price for the 8-ounce can to the consumer will be $1.00. The only unit variable costs for the product are $0.36 for materials and $0.12 for labor. The
Describe the methods that will be used to sell and distribute the products or services
d) What additional information would you like before making a decision about adding these new products?
The company sells its products through two separate channels of distribution. Each is treated as a
The price point of Natural Vitality will be in the range of $2.89-$2.99 for a 10oz can depending on the location.
The company sells its products through two separate channels of distribution. Each is treated as a
The products that had given the company success, were forgotten. For that reason, the new strategy was based to revive those ‘core products’ and bring with them back the values that their founders set at the beginning (Breen 2013). (See Appendix 2)
There are a variety of distribution channels used in the marketing of cosmetic products which include examples such as product counters set up in department stores and product distribution through shelf display in supermarkets. These intermediaries make selling more efficient by minimizing the number of contacts a company has to make by handling all the individual contacts with customers and providing a range of goods to customers at one location. All