Marketing Plan: Johnson & Johnson Essay

marting Plan J & J DiaperOrganizational OverviewBackground on Johnson & JohnsonIn 1886, Robert Johnson conjugate his two br early(a)wises, James and Edward Johnson and went into business in 1886 in New Brunswick, New Jersey with 14 employees. They corpo appraise as Johnson & Johnson (JNJ) in 1887. One of JNJs intimately salutary kn give come inputs was Johnsons Baby Powder, which was in the beginning to sooth skin irritation in 1890. This led to a line of luxuriate join ons with the grocerying slogan, Best for your treat, go forthflank for you. Some of JNJs most well known harvests ar Band-aid, Tylenol and the antipsychotic drug, Haldol.JNJ has been a in public traded comp whatalways on the New York Stock Exchange since 1944. The federations ticker is JNJ. They boast 72 consecutive age of increased gross sales and 44 consecutive historic period of dividend increases. discontinue of JNJs achievement is contributed to their innovation and coverd comement of bleak crops.Mission StatementJNJ does non brook a simple commissioning statement but a one page document titled, Our Credo. The beginning paragraph of Our Credo, is as followsWe confide our front responsibility is to the doctors, nurses and patients, to m some others and fathers and all others who use our convergences and helps. In suit fittinging their acquires e rattlingthing we do moldiness be of lofty quality. We must constantly strive to reduce our costs in ordain to maintain conjectural prices. Customers orders must be serviced promptly and accurately. Our suppliers and distributors must give way an opportunity to sack up a fair amplification.geographic LocationCurrently JNJ is p atomic number 18nt to 230 companies by dint ofout the world, all of which currently and historically grocery store health c atomic number 18 growths. The principal tycoon is located in New Brunswick, New Jersey and employs 116,000 employees in 57 countries world spacious.Product MixThe business pieces of Johnson & Johnson accommodate consumer, medical devices and diagnostics, and pharmaceutical. from each one segment has numerous companies and w atomic number 18 lines. Our proceeds entrust be part of the consumer segment and a crop line of Johnsons Baby.Product Description afterwards much query JNJ refractory to puddle a diaper in conjunction with Balmex diaper blizzard thresh. Balmex is a successful crossroad of JNJ and has been pediatrician recommended for all over 50 years. Balmex reduces redness from diaper flower in spite of appearance hours. (Johnson & Johnson Consumer Companies Inc. 2006) The question the re anticipate team faced was how to go along diaper judicious instead of treating diaper rash. The answer that they came to was to begin Balmex to the skin before the rash had a chance to develop. This idea is behind the creation of the imperfection peeled JNJ diaper.SWOTT psychoanalysisThis SWOTT analysis go forth attempt t o divulge the strengths, abstemiousnesses, opportunities, threats and trends associated to this bracing product of JNJ diapers with Balmex.StrengthsJNJ is one of the worlds tether manufacturers of health cargon products. The confederacy has a well-knit product portfolio and has unquestion up to(p) a well recognized name amongst pargonnts for their child c be necessarily. This grueling brand image puts the company at an return when it comes to launching recent-fangled products.The company is in a healthy financial mooring that rents the company to leave behind the resources necessary to exploit opportunities and promote their products heavily.Balmex is a well open product and has been recommended by pediatricians for over 50 years. This display caseface of trust forget automatically knuckle under sales for the company. Balmex treated diapers would non alone treat a diaper rash but thwart one from occurring. This tender product in not wholly much favor equal , but much less(prenominal) messier than the alternative of applying a thick ointment that is difficult to wash off the skin.The company already has developed the application process of this product through an existing product line, Care warrant Panty liners. This volition publish the company from having to do the research from top to bottom for this raw(a) product line.WeaknessesLike any impudently product, sentence and money buzz off to be spent on researching, developing and merchandise. Customer train needs to be seduced for this sassyfound product and this pull up stakes require plenty of resources to accomplish this task.The diaper exertion is a virgin market for JNJ and it lead be tough for the company to march itself in this persistence. Having a well established brand financial aids, hitherto Huggies and Pampers has dominated this indus fork out for a very long time and breaking into this raw(a) territory is going to require a very expensive merchandi se campaign.OpportunityDisposable diapers addle up an industry worth over $19 one million million million a year worldwide. This new diaper entrust allow JNJ to tap into this lucrative industry with a distinctive and innovative diaper that has not been developed up until now. This product has the possibility of beness a commodious success for JNJ and ignore contribute to the companys financial position.ThreatsSafety concerns are forever and a day an issue especially when developing a product used by children. JNJ needs to be prepared for cl refer backs associated with mis direct advertising, inappropriate use of the product and allergic chemical reactions that some babies whitethorn develop. JNJ localizes plenty of money on trials and developing their products, however does not unceasingly guaranty that something get out not go wrong.Competition is similarly a major threat for JNJ. Huggies and Pampers gift dominated the diaper industry for quite sometime. If this new p roduct establishes a new demand with the customers in this industry it leave behind not take long for these companies to produce and distribute their own versions of these types of diapers.TrendsIn todays society, consumers are always sounding for a product that go away make their lives much simpler. The majority of parents both excogitate or even raise their children as a single parent. This product dandyizes on this demand to make lives as simple as come-at-able by saving parents the hassleof having to apply a messy to a great extent cream to prevent their children from developing or treating a diaper rash. This trend forget only refer into the future and JNJ needs to keep this in mind when developing a new product.Market ResearchIn order for Johnson and Johnson to get a new product to the right consumer, they must first divide the market and then send a punyer portion of that market. The process of segmentation is basically those demoraliseers JNJ is looking for for that al curing the kindred needs and have same bar crystallize foring behaviors. The purpose of segmentation allows narrowing down the same needs and purchaseing behaviors they are looking for in a mastermind market. There are several(prenominal) ways segmentation fanny help JNJ to consider their target consumers. They include the geography, the psychographics, cordial-cultural graphics, and demography. Johnson and Johnson get out have to appraise all four ignorants in order to let on an i bay window customer.The geographical base is probably the least(prenominal) strategic factor on the segmentation criteria, although it is important, there are other factors that are much(prenominal) crucial. Depending on where the consumers shop and live crowd out also depend on availability of a product. If a consumer lives in a more rural area, there whitethorn not be a diffusion of the new product. However, the internet has made it possible to reach consumers in remote are as and make it possible for them to buy products that are not available in their area.The psychographics of the targeted consumers is one of the most important aspects on what get out make the consumer buy into the product. Since our new product is directed towards public lavatory and prevention, we want to know what the lifestyles of our consumers are like. Specifically, we are looking for parents who are on the go, but are still concerned for their childs healthcare. This new product lead interrupt suit those parents who are very active in their daily lives.The behavior bases such as the hearty-graphics put forward a sense of reassurance to all current JNJ customers. The fundamental objective of Johnson & Johnson is to provide scientifically sound, high quality products and services to help heal, cure disease and improve the quality of life.(Johnson and Johnson.com, 2002) numerous community buy these products because JNJ is a well established company that has been around s ince 1886 therefore, some of these consumers allow for want to consider laborious out a new and improved product. Also the fact that most of JNJ products are pediatrician recommended has in itself helped to establish the level of trust consumers feel towards the brand and know that these products testament not harm their children.The demographics for this new product ordain be the most important factor for the targeted market. The consumers age exit typically define what matureness level is buying the product. Typically older parents ranging in age from 25 years to 35 years have the essence to take split up of their childrens healthcare needs than younger parents ranging in age from 16 years to 25 years. The parents in the older age bracket are generally better established in their honorable-time careers, both working full-time jobs and are always on the go whereas, the younger parents are barely trying to get a head depress and bay window not afford the convenience.Famil y size is also another(prenominal) factor because the outsizer the family, the more belike the parents are concerned with the cost of the product. Studies have shown that smaller families are more forgeting to try new products and are not as concerned with the price as bigger families tend to be. Occupation is another important factor of demographics. With rising costs most families need dual incomes in order to come home their cost of living. As a result of both parents working, parents are more strapped for time therefore, if a product proves to be more convenient they may be go forthing to black market over a little s rout outty for this convenience. afterward analyzing all the segmented bases we are closer to realizing the target market of consumers for this product. We have found that the target market for our product is the older parents as opposed to the very young ones who have one or two children. The majority of our market pass on be families with dual incomes lo oking for the convenience that our product leave offer to them. This market leave buy our product due to the level of trust they have in our brand from pediatrician recommendations and brand recognition. Most likely these parents go away be from urban and metropolis areas who entrust have easy access to our product as a result of our distribution. However, mostimportantly our target market pull up stakes be parents who want to make sure their children are healthy and handsome from any infections or irritations due to diaper rashes, but at the same time looking for the convenience of this 2 in 1 product.Competitors and the Competitive LandscapeJNJ has created a revolutionary product, a 2-in-1 diaper with diaper rash cream that makes changing diapers easier for the consumer. This no mess, one step diaper promises to prevent non-fungal diaper rash instead of bonny treating it. JNJ already has over 50 years of experience with its current diaper rash product Balmex. JNJ decided t o take its very effective, well known diaper rash cream and add a new twist. today parents will not only treat a tiddler for diaper rash, but they will prevent non-fungal rashes from occurring.One problem that JNJ faces is anticipating who will buy this product and how much one will pay for this convenience this product offers. Since there is currently no item like this diaper on the market, there is no secondary research for JNJ to build upon. The only facts that JNJ has is the effectiveness and popularity of Balmex. Before JNJ can present this product to the public it must conduct primary feather research to determine whether or not the diaper can compete in the market of diapers and diaper rash creams.JNJ has a long history with its customers and has been able to successfully examine their needs over this period of time. JNJ first began in 1887 with creating unimpregnated dressing for surgical procedures, trim down the risk of infection. By 1897 they were named The Most Tru sted Name in Surgical Dressings (J&J, 2006). In 1890, JNJ fry powder, the pilot burner treatment of diaper rash was introduced. In 1948, JNJ was the first company to create the disposable diaper (GPOABS). In 1951, Balmex was created to treat diaper rash (J&J, 2006). It was not until 1961 that Pampers were introduced and in 1968 Huggies hit the market (GPOABS, 2005).JNJ has been caring for families for over a century in a renewal of ways. Not only did JNJ produce over 90 part of surgical dressings in the late 1800s, but they protected families during the Great Depression by assuring no(prenominal) of the workers lost their jobs. JNJ has also protected families through its products and pharmaceuticals (J&J, 2006). This extensive historyprovides JNJ with a loyal consumer base, and the knowledge of selection the needs and wants of its consumers.While JNJ does not currently market a diaper, it has made diapers in the past. JNJ also has the advantage of studying other companies diap ers and understanding what works best and why. finished this secondary research that was available to JNJ we are able to create a diaper that could promise the same breathable, stretchable, compact fit that other diapers offer. Now JNJ can exceed what the other diapers promise, by being able to provide the first diaper that will prevent non-fungal diaper rashes.These new diapers will not only prevent diaper rash and be just as comfortable as other diapers, they will cost the same tot up as Pampers, the current most expensive diapers. Since most families are always on-the-go, the hassle of applying messing diaper rash cream in neither convenient nor time saving. A baby with diaper rash also means a baby that is more irritable from skin irritation. JNJ diapers will prevent non-fungal rashes diminution a babys irritability from rashes. JNJs diapers will be both convenient by eliminating the need for supernumerary messy products and provide the baby with healthier skin that is not p rovided by the competitors.It is crucial for a company such as JNJ to market their new product line accordingly to add to their success. They must be able to communicate their market message in such a way that their targeted group will be interested in what they have to offer. By apply their available resources to the fullest extent, they will be able to generate more revenue. The goal to promoting the new product line is to be acquainted with the selected buyers. Since this will be a completely new product for this industry and company, JNJ has to take on a strong position and really be prepared to overcome the challenges that may arise.JNJ must consider what their consumers are looking for in a diaper. If they can successfully determine the needs and wants of those purchasing diapers, they will be able to rotate their cliental. They should evaluate their current customer base and determine how to maintain their loyalty whenpurchasing diapers. By identifying their current market group and considering some of their demographics such as income and also looking into their life-style, how often will they need or use the product and the loyalty of their customer base.Another important factor for the marketing device is to guidance more on the benefits of the product. They must pay special attention to the direct needs of the purchaser. They must be able to understand and deliver how a customer will profit by this new product. Recognizing the needs of the consumers will help in convincing them to buy their products, which will lead to more sales revenue. Consumers are really buying products that will bring them convenience, take over money and time. The more JNJ knows about their customers and competitors the more they will be successful. Since this product line will be completely new, they must work out all the negative drawbacks that may come up so it does not affect the companys reputation as a family friendly organization.This product will be targeted to the type of parents that want convenience and with the least amount of hassle that will fit into their busy schedules of juggling work and raising a family at the same time. At JNJ the company understands the need to make life as easy as possible for these working parents and has discovered this new market opportunity that has the emf to be a extremely demanded product in the disposable diaper industry.In the United States, $8.5 billion a year is spent on disposable diapers. Currently there are two big companies who own a large portion of this market, Procter & Gamble (Pampers) and Kimberly-Clark (Huggies). JNJ does not currently produce diapers however, they have developed a brand stand amongst parents of being a dependable and trustworthy company for their childcare needs. Obviously, the companys main priority is to increase sales and profits for the company however, they also wish to sustain the trust that has developed through the years with a new product that is what the con sumer wants, needs and depends upon.Using the five-step marketing research approach, JNJ has developed the lane for the new product JNJ Diapers with Balmex. Step one requires that research objectivesare perplex by having a wanton understanding about the type of research needed to introduce the product to the market. By using unremarkable research, JNJ will try to determine if adding diaper rash cream to diapers will actually motivate consumers to buy the product. Casual research tries to determine if a change in one factor changes another one. This type of research would best suit the purpose of JNJ because Balmex is a product that already works however, the company hopes to make that product even better and create the need and demand in the targeted market.Step two is to develop the research plan by specifying the constraints on the research activity, identifying the data needed for marketing decisions, and determining how to aggregate the data (Kerin, Hartley, Berkowitz & Rud elius, 2006). The constraints on this project fall heavily on time and money needed to do research however, JNJ is a large corporation that can afford the necessary funds to develop and do the required R&D. Even so, it is important to establish the budget and time that will be allocated to this research. The type of data that is needed needs to be collected by sampling from a commonwealth that is most likely to use the diaper. This product is targeted to a specific market and for that reason there must be a parameter set up with precise rules to select that sample. This type of sampling is referred to as opportunity sampling.Step three is collecting relevant information. Since this product has never been developed before, it is important to collect primary data for this research by using questionnaire data indicated in specific magazines targeted towards parents. Also network surveys will be conducted on JNJ websites. JNJ will offer incentives to those that participate in these surveys by sending free samples of existing product lines. By offering these types of incentives JNJ hope not only to target the specific diaper market, but possibly develop a wider consumer base for existing products.Step four is the development of the findings collected. subsequently relevant information has been collected the data needs to be analyzed carefully. The last step will require JNJ to implement a marketing action once all data has been reviewed and possible recommendations have been considered. Finally,JNJ will need to constantly evaluate the results by comparing profits with goals established for this product.Positioning and DifferentiationJNJs new rash-free diaper will be more convenient and effective for parents compared to what is offered by the other leading brands. This will give JNJ a private-enterprise(a) advantage over the market roll with a product that is differentiated amongst existing products and will help them to gain a customer base in a heavily domi nated market.What differentiates JNJs product from all the other products is that the new diaper is a variety to an existing product. JNJ does not currently produce diapers, however they do produce and sell diaper rash cream. This new product will be a combination of both products and will add cleverness and effectiveness for the parents when changing their babys diapers. It will also aid with the prevention of diaper rashes for small children and give parents a new option when choosing a diaper for their childcare needs.JNJ will have to continue to redesign and improve their product process. One of the key elements to positioning this new product is through the research and development. This is where they can solve any current problems they may have against the product and through technology help aid in new findings and possibly better the product with new inventions. Research and development needs to be an ongoing process that never stops because it wont take long before the com petitors are doing it better and more efficient than you are.JNJ has already positioned themselves as a common house adhere name. Many consumers feel a certain level of trust when hearing or seeing their famous tag because JNJ has been in the health and baby care business for the past 60 years. JNJ is committed to helping people live longer and healthier lives. Since JNJ has already established a large consumer base, the immediate challenge will be to heavily promote this new product into their existing product lines.Product Life CycleThe first step in the product life hertz of JNJs new baby diaper is the market introduction. The initial expectation is that saleswill be low as customers will not be aware of nor will they be looking for a diaper made by JNJ. Promotion will be essential during the introduction stage. Even with pregnant promotion, it may take some time for potential customers to learn about the availability and the advantages of using JNJs new diaper. JNJ further ex pects to experience a passing game on this product during the initial market introduction due to product, promotion and place expenses. JNJ should expect a prolonged introduction phase because it is trying to take a share of an established market. Customers who are suffice with their current diaper choice may not be too eager to switch brands. The most likely customer will be people who have become recent parents and have stock various types of promotion from JNJ.The next phase in JNJs new diaper life rack is the market growth stage. JNJ expects both new and go through parents to purchase the new rash free diaper. During the market growth stage, JNJ will experience rapid growth and exposure. The diaper will initially experience strong profits. During this phase, JNJ will experience its largest profits from this new product. It is JNJs expectation that the competitors will produce a interchangeable product in approximately three months from the market introduction. If JNJ igno res the competition during this stage, it could be devastating to the success of this product. It will be essential to the success of this product to win over and maintain the customers who are already using JNJ baby care products by stressing and promoting the trust that they have developed through the years with their Balmex diaper rash cream.The third phase of JNJs new rash free diaper will be the maturity stage. During this stage the competition will get stiffer and JNJ should expect lower prices from the competitors. The competitors may also spend more money on promotion while fighting to keep their share of the market. The competitors have a lot at stake and will fight hard to keep their customers. During this stage JNJ needs to concentrate of reinventing the product by considering revisions to the marketing rumple primarily focusing on promotion.The last stage in the new diapers life cycle will be the sales decline in quality stage. The primary reason for sales to decline i s a vigorous product war from thecompetitors. They will essentially duplicate JNJs new diaper and try to make it better. They will lower their prices and spend more on promotion. At this stage, the competitors will unremarkably drive the small organizations out of business. However, lucky for JNJ, the company is too large to be easily impelled out of the marketplace therefore, the other diaper companies will have to fight long and hard to hold on to as much of their customer base as possible by relying on generational experience and loyalty.The United States is experiencing rapid population growth which means new families are being created everyday. This is earnest news for JNJ as new families develop new potential customers are born everyday. Between July 2004 and July 2005, the countries population grew by 2.8 million people. The southwest portion of the United States saw the most growth. California has quelled the most inhabited state in the country with 36.1 million people. Nevada has been the fastest growing state for 19 consecutive years with a growth rate of 3.5%.Arizona is a close second with a growth rate of just under 3.5% (U.S. Census, 2005). JNJ must concentrate developing new life cycles and reinventing the product in areas with significant growth patterns. With the right strategy JNJ will overcome the sales decline phase by reintroducing the rash free diaper to new families by including the new diapers into the marketing mix already in place for other JNJ products. merchandise MixProduct StrategyThe JNJ pre-medicated diapers are made with the same high quality cotton as their sterile surgical supplies. The otter shell is soft to touch and breathable. There is elastic around the legs and back allowing for baby to move freely without the parents need to fear of leaking. There is a tab on either side of the waist that is re-adjustable. The center of the diaper is filled with a dry gelatin substance that is capable of absorbing ergocalciferol m illiliters of fluid. The inner liner of the diaper is made of cotton and has a very thin layer of Balmex use in a three inch by six inch area. Last there is a wax paper cover over the Balmex which must be removed before the diaper is applied. Each diaper is wrapped in an airtight thin plastic pouch.These pre-medicated diapers are designed with the concept of charge ababies skin healthy. For that reason all materials used are hypo-allergenic and have been tested of a variety of skin types. All materials used are breathable and latex free. None of the materials used have been tested on animals. The diapers are guaranteed to keep fresh as long as outer plastic bag is unploughed intact. If there should be some malfunction of the diaper or should the baby develop a reaction JNJ will refund the full purchase cost.Place StrategyJohnson & Johnson foresees the new rash free diaper being carried primarily as retail item. These retail stores would probably include baby care sections and a wi de array of baby care products. These stores are usually located in or near densely populated areaswith a large and divers(a) customer base. Due to the explosion of urban sprawl and rapid population growth, more families shop at these types of retail outlets.Before organizational buyers begin to feed our ludicrous product, we will conduct surveys to help us narrow down the right consumer groups. Data from the surveys taken will determine whether or not this product would be viable in a market that is diverse and unpredictable. Price, place, promotions, and our product must be considered. Targeting marketable locations through marketing surveys will help us to better understand the locations that we will make our product available and it will also enable us to create a reasonable price that will meet our costs and profit requirements and those of the consumers buying our product. Promotions through person-to-person selling, sales promotions, public relations, direct transport, trade fairs, exhibitions, advertising and sponsorship will help us to create the demand and the awareness of our new product.Retail stores are mostly profit organizations that are concerned with revenue. If the organization is unable to make a certain amount of profit they simply choose not to carry our new product. That is why it is so important that we price this product correctly to not only meet the needs and wants of our own and those of our consumers, but also to meet the needs of the organizational buyer. These diapers must also be a product that is demanded by the consumer in order for the retail stores to continue stocking our products. If we are not successful in generating a significant amount ofdemand, these retail stores will simply discontinue their purchasing of our new product line. Retail generally desires a high inventory turnover rate. They expect JNJ to heavily promote their new product in order to create the demand and if successful will continue to stock our p roduct as long as they continue to move off of their shelves.Another retail concern is the availability of the product. Stores and their consumers do not like to be told that a particular item is on back order. When a store sells items they need to fill that spot on the shelf quickly so more items can be offered for sale. It is a very frustrating situation when the demand for a product can not be met not only for the consumer but the organizational buyer as well. This type of situation results in a significant loss of revenue for the organizational buyer and upsets the consumer that relies on the store to carry the product and will result in loss of business for all parties involved in the transaction. That is why it is very important for our company to understand what that demand will be and have the product available to meet those demands.The diaper has to be consistent with the stores existing product mix. Some retail stores and supermarkets consistently carry baby items while ot hers tend to specialize in just a few specific items. Most important, the product must work and be free of defects. No retail store wants to be associated with a large-scale recall.Another prospective organizational buyer will be daycares and hospitals. These types of venues will offer a corking opportunity to introduce our product to consumers. Hospitals will require diapers for newborn babies and ill baby patients. Not only will they desire a service contract but also hospitals tend to give out care packs to the babies families when they leave the hospital. Care packs contain baby products including diapers and coupons. Hospitals will expect a certain amount of promotional products. Daycare common snapping turtles commonly stock baby care products. Again, this is a great opportunity to establish a relationship with consumers. Daycares contract with companies such as Huggies or Pampers in order to purchase diapers in bulk.Diaper consumers will be family oriented men and woman fro m a wide range of social economic levels. Many first time parents will be in an experimental stage. They will try different diapers and see what appeals to them the most. Most new parents rely on care big buckss and samples at the start of origin until they form preferences. Children are expensive and parents quickly learn that price is a significant factor. Parents who have experienced diaper rash will want to prevent future occurrences. An experienced parent may be attracted to a diaper that has the cream included as opposed to one where the parent needs to get their hands messy with diaper rash cream. Due to this experience, it is easy to see how pre-medicated baby diapers can save time, money, and frustration leading to happier moms, dads, and babies.Pricing StrategyIdentifying a pricing strategy for this new diaper will be based on what the competition is already doing in the marketplace. JNJ has decided to price the new diaper at the same price as other leading brands. This w ill give the company a competitive advantage since consumers can try the convenience that the new diaper offers without the cost of having to pay more. This diaper will understandably cost more to produce than the diapers produced by the competition resulting in a loss of profits, however JNJ needs to gain a share of the marketplace and sometimes high markups do not always mean big profit (Perrerult & McCarthy, 2004).The pricing strategies will be closely tied to that of the competitors passim the product cycle. JNJ is prepared for the competition to release their own version of the product however, they will continue to base their marketing strategies on the experience and trust of Balmex that has been established for the past 50 years. The makers of Pampers and Huggies currently do not produce or have any experience with diaper rash cream and this will be a major advantage for JNJ. Discounts for the product will be offered to new mothers in part of the care package they receive f rom the hospitals. These discounts will result in a fair amount of profit loss, but hopefully help JNJ to establish a new consumer base.JNJ realizes competition will be intense amongst the other leading brands,but JNJ has the advantage of being a successful and large organization that can withstand the heavy blows that will inevitably be thrown by its competitors. Through constant research, JNJ will continue to find new and innovative ideas to differentiate themselves from their competitors.Promotion StrategyIn July 2007, one month prior to the public launch of the champagne, JNJ will provide free samples to be distributed throughout hospitals and pediatricians offices. These samples will provide money saving coupons and an online diaper inn membership. This online diaper club will allow parents to leave reviews and recommendations for the diaper, communicate with other parents, and entitle them to future promotional savings. The diaper club is free, but exclusively for JNJ custome rs.JNJ will then launch its public diaper champagne in August 2007. This is the usual time when school starts and parents become busier. The promotional angle will be to help simplify and expedite the care of infants and allowing more time with older children. This will allow for the new diaper to circulate for two months before the holiday season. During the holiday season, JNJ will offer addition coupons to increase sales as gift items and personal use purchases. Since the holidays are full of busy schedules and parties to attend, parents can find piece of mind knowing that the new JNJ diapers will grant them much needed time, by reducing the time of diaper changes and eliminating the need to carry excess supplies.JNJ is anticipating competition around April 2008, when other diaper manufactures will be producing their own pre-medicated diapers. At that time JNJ will have a promotional program to match the price of its competitors, should their diaper be less expensive. JNJ will a lready have a customer base by that time, and with the diaper club will be able to make any necessary changes to their product. After the introduction of competitors, JNJ will focus mainly on the trust that has been developed with their name.In August 2008, JNJ will offer all current customers a substantial money saving coupon, to help celebrate their one year birthday. After this one year mark, JNJ will continue to offer savings through mail and online diaperprogram, and with the anniversary of their diapers. The diaper will be promoted the same way as the rest of their baby products. Hospitals that currently use JNJ baby products will also be provided with free sample diapers and coupons for all parents. publicize PlanJNJ pre-medicated diaper advertising will first appear on their website four months prior to the release of the product. Parents can click on this advertisement a chose to be one of the first to use the product for free and provide feedback. Two months prior to relea se of the diaper, JNJ will begin advertising through commercials. These commercials will focus on the health of babies skin, how messy tradition diaper rash creams are, and the busy hectic lives of parents.One month before the product is launched samples of the diaper will be dispersed to parents in hospitals. Two weeks prior to product release, coupons will be sent out in all newspapers. On all sample products and coupons the website for the baby diaper club will be clearly printed. All parents signing-up in the diaper club will receive a welcome package with samples of diapers and other JNJ baby products.When diaper is released, large displays will be set up in major retail stores that already sell other JNJ products. Free samples will be provided along with information on diaper rashes and how to care for a babies sensitive skin. Knowledgeable JNJ supply will man each display for the first 3 weekends the product is sold to answer questions and provide information to parents. Pam phlets will be available showing the clinical results of the diapers as well as access to the website.After the initial launch of the product, JNJ will continue to advertise their diapers in the same fashion as they do their other baby products. Through commercials on television, to net advertisements, to newspaper circulars there will be a very limited number of Americans who have not heard of JNJs new pre-medicated diaper. After one year of use and exposure in the United States, JNJ will launch its diaper throughout the world.Public Relation OpportunityMedia coverage and endorsements from various groups such as First Five will get along the Companys image. JNJ has had a long history of quality products and quality customer service. Some may say that developing an innovative improvement to the diaper is long over due for a prestigious corporation such as JNJ. The development of a diaper that prevents diaper rash will create a renewed awareness for the JNJ Corporation and all of its products. This product will remind people of JNJ trueness to quality and innovation.Channel ManagementChannel management is as important as setting a reasonable price, providing a quality product and having adequate promotion. JNJ must get the product to the customer in a convenient and timely fashion. Essentially JNJ must keep the selves stock wherever perspective customers expect to find diapers. JNJ will utilize a variety of distribution brings from direct to verifying. JNJ will use a mix of selective channels as well as extensive channels.JNJ will use direct and indirect channels to reach the consumer. For example JNJ will sell directly to large hospitals and medical groups. Since hospitals and medical groups are going to be parents first introduction to baby products JNJ will directly touching these organizations and attempt to form contracts with them. Having JNJs new diaper being used in hospitals and clinics is also a type of promotion for the new product. JNJ will not rely on a middleman to gain such an important business relationship.Another direct channel JNJ will use is their subsidiary, Baby Center. Through the website, Baby Center, JNJ has embrace technology as a form of reaching perspective customers. Baby Center is an interactive information center on the Internet. In addition to researching and networking with others parents can order products directly from the Internet site.An indirect channel of distribution will be large retailer stores. JNJ will not deal with small stores, as they do not move enough inventory. These retail durance have huge distribution centers strategically located to service their stores. JNJ would deliver their product to these largedistribution centers and they the individual chains would worry about getting the product to the selves. Ideally, JNJ wants to move as much product as possible to as few locations as possible. Then the middlemen or retail chains would take it from that point forward.JNJ will practi ce intensive channel distribution. JNJ expects the majority of retail stores that historically carry baby products to carry JNJs baby diaper. Examples of retailer stores JNJ may use are Wal-Mart, Target, Kmart, Costco, Sams Club, Walgreens, Sav-On and Rite-Aid. All large supermarket chains would also carry the new diaper. JNJ wants this new diaper to be as available to the consumer as any other diaper. JNJs position is not to make the diaper a specialty item that is difficult to locate. JNJs aim is to make their diaper a wise and simple alternative to the conventional diapers.JNJ will utilize contractual agreements whenever possible. Contracts will enable JNJ to monitor their inventories coming in from China. These inventories can be trucked directly from the docks to the various regional retailer distribution centers. Storing inventory is very expensive therefore JNJ will strategically plan return levels based on contractual agreements. JNJ will use the same distribution channels used for other baby products therefore shipping costs will be nominal.One way to create a channel is if the retailer is motivated to sell JNJ product. Initially JNJ may have to offer a better profit margin for their diapers than the competitors. This will create channel motivation where the retailers will push JNJs diaper over the competitors. By creating this channel motivation, some of the retailers may even promote the diaper on their own to make more sales.The other way to create a channel of motivation is if the consumer is asking for the product. This is why the marketing mix is integrated. If JNJ created a quality product, the price is right and it has been promoted well then there will be a consumer demand for the product. This demand will pull the product through the distribution channel to the selves. When the customerbegins pulling the product through the distribution channels JNJ will not have to push so much and lower the retailers profit margin.Fortunately JNJ already has a full range of baby products. JNJ will continue to use the same format for their diapers as they do for their other baby products. JNJ Sales and Logistics division will be the primary contact for JNJ retail customers. These teams will take orders and ship directly to the retailers regional distribution centers.Budget PlanIn 2005, JNJ spent approximately $6.5 billion in research and development for future products. The amount of this investment for research & development shows that JNJ deems it imperative to invest heavily in order to realize company goals and future growth. JNJ showed impressive sales at $50 billion in their 2005 Statement of Earnings, 29% of these sales were contributed to their consumer goods sector. Using this information and ratios to sales we will promise a budget plan for the product development of Balmex Diapers.The following is a projected forecast for the hit and Loss Statement of Balmex Diapers for Q1Johnson & Johnson Balmex Diapers (Dollars in Mill ions)Consolidated Statement of EarningsSales to customers $ 375Cost of products sold 104Gross profit 271ExpensesSelling, general, marketing andadministrative expenses 158Research expense 48Purchased in-process research anddevelopment 13219Net earnings 52Our projections take into account the heavy investment costs associated with product development like new capital assets, additional personnel, market research, patents and testing processes to launch the new product. We forecast that we will make a profit in the Q1 of $52 million. However, continuous research will be needed throughout the product cycle to gain superiority and growth in the diaper industry.MonitoringIt is vital in the marketing plan for researchers to continue to monitor the expectations, wants, and needs of their consumers since they change constantly. By having a monitoring process in place they are able to stay within the competitive market. However, this is not the only monitoringprocess they will have, there ar e several other monitoring processes JNJ will have in place in order to achieve success with their new product. The use of the SWOTT analysis also helps to monitor the out-of-door and internal marketing environs and what factors affect it. Business behavior must also be monitored and evaluated periodically because it affects the production of the product. This new product will also be monitored through the pharmaceutical alliances in order to reassure they are within medical compliance standards.The internet has helped in the monitoring process. This is where the consumers will find out more about JNJs products and issues. They can also find opinions, other consumer insights, feedback on the products strengths and weaknesses, comparing prices, customer satisfaction, and distribution concerns. Because the internet has such a broad space for a marketing audience, the product must be clearly defined to the targeted audience. The audience will give continuous feedback so it will be c ritical for JNJ to keep the monitoring of the internet communication, maintenance, and sales results.Continually observing and analyzing the SWOT of JNJ will allow them to remain on the competitive market as a new product line is launched. Analyzing and preparing for the internal and external factors that are affecting their business with this new medicated diaper will put them into a lead position. break out of the monitoring process will also have them seek out potential sources that will provide them strength and filter through marketing weaknesses. The marketing environment is constantly changing therefore JNJ will have to develop knowledge on the current trends of their specific industry. Johnson and Johnson strongly believes in protecting the environment and the natural resources they use and in order to stay true to their promise they must continue environmental monitoring for their products.Monitoring consumer expectations and satisfaction is important to the success of a n ew product as well. The company will want to ensure the customers are satisfied with the product. By monitoring these results they will be able to determine whether production will need to make more or less of the item.Sales results can be monitored through how many rebates or coupons have been redeemed during purchases. In the beginning phases of the new launch, more production will be needed in order to advertise it. But once it is being advertised, monitoring the satisfaction of the customer through surveys will give feedback. As feedback is being given, they are able to amend any errors or oversights right away.The company behavior is closely observed because this is where the ethical and social responsibilities of Johnson and Johnson employees are involved. All the focus has now turned to the consumers and JNJ needs to ensure their buyers are pleased with the service and quality of their products they have purchased.Johnson and Johnson will consider outsourcing a third party ve ndor such as an scrutinize team to assess their customer performance versus the companys performance. This can also be done through recent purchase surveys and having a customer satisfaction phone number on the product for a consumer to call in to voice their opinion about the product. It can be set up in an open forum to allow for comments, suggestions, or complaints. On the other hand an audited account team can also be set up for the medical part of product. This audit will make certain JNJ is within medical guidelines since this new product will have medication.EvaluatingIn order for a large company such as JNJ to be successful with a new product, they must have adequate control processes in place. JNJ will have the four major control plans in place which are annual-plan control, profitability control, efficiency control, and strategic control. There will be different job families responsible to ensure they have control over these. As they all work together it will meet the ob jectives to produce results.According to the textbook, Marketing Management, in chapter 2 is states companies can use Market Opportunity Analysis (MOA) to determine the attractiveness and probability of success. In this case JNJ will be able to exercise this lark in order to measure out the effectiveness of themarketing plan they are looking for. They will be able to mostly narrow down the targeted audience and reach them more cost-effectively. JNJ will also be able to analyze whether they will be able to provide the best products for their consumers rather than the competitors and will it still meet the companys budget.All these factors must be evaluated during the MOA. (Kotler and Keller 2006)It is clearly mostly important for JNJ to evaluate and consider their strengths and weakness in their SWOT analysis. They will want to improve on their weak points. If they are not aware of their major weaknesses and opportunities it can damage the brand element and image they have work so h ard to set. If during an evaluation process they realize sales numbers are not coming in as they projected, they will have to analyze the corrective action to the problem. Some things they may want to consider might be to drop the production down on the item until they can figure out where the problem is and why people are not interested in it.Part of the evaluation process is the company must understand and evaluate what the consumer is looking for. Customers are always looking for benefit to satisfy a need. As consumers are making purchases they will go through a list of alternatives on which product they should purchase. As they are doing this, this is where JNJ must come in strong with they brand element such as their logo, symbol, character, and slogan. Since JNJ has been around for many years people are familiar with their products and services. Customers will also evaluate and associate one bad experience as a lifetime connection. If something ever went wrong, they would reme mber that when evaluating whether they would by a JNJ product.ControlMaking sure all controls are in place will ensure profitability and results. An annual-plan control ensures that JNJ stays within their goal according to their annual plan of sales, profits, and any other goals they might have set. Senior management will set a goal for the company as a whole and then goals will be dispersed between all other groups within the companies to stay within the group goal. Profitability control ensures they company is always making a profit. They is main responsibility of the marketing director since this person is who get the name and product out to the public which will generate more sales and profits for a company.If theyare able to create an excellent marketing strategy and consumers are consistently buying in, they will have successfully completed the job requirements. efficiency control makes sure the entire staff is aware of the staying within a budget of marketing expenses which will increase the advertising campaigns, sales force, and distribution of the new item. Lastly, strategic control accounts for pursing the best opportunities on which markets to search for and the channels to get there can be done through a meticulous audit team.ReferencesGPOABS (2005). Diaper Evolution Time Line. Retrieved June18, 2006, from http//www.gpoabs.comJohnson & Johnson (2006). Johnson & Johnson. Retrieved June 18, 2006, from http//www.jnj.comKerin, R. A., Hartley, S. W., Rudelius, W., & Berdowitz, E. N. (2006). Marketing (8th ed.). New York McGraw-Hill.Kotler, K. (2006). Marketing Management (12th ed.). New York Prentice-Hall.Perreault, W. D., & McCarthy, E. J. (2004). Basic Marketing (15th ed.). New York McGraw-Hill.United States Department of Commerce Census Bureau (2005, December 22). Retrieved June 21, 2006, from http//www.census.gov