Neutrogena Paper

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|Johnson & Johnson | |Neutrogena | |Entrance into China |

|Ted Baskerville | |5/31/2011 |

Executive Summary4
Situation Assessment4
Operation/Action Plan4
Our Company5
Project Description and Objectives5
Team Description6
Situation Assessment6
External/Macro Environmental Factors6
Internal Assessment of Neutrogena (Johnson and Johnson)8
Market Analysis10
Target Market11
Strategies and Programs11
Generic Business Strategy11
Marketing Mix13
Financial Information15
2011-2013 Pro Forma Projections of Profit and Loss15
Budget and Financing15
Operational/Action Program16
Operational and Action Elements16
Appendix A: SWOT Analysis18
Appendix B: Map of District Clusters19
Appendix C: Product lists with prices in Yen and US dollar20 Appendix D: Budget Tables21
Work Cited22

Executive Summary


Neutrogena is a producer of skin care products for men and women and has been around for over 80 years. It started back in 1930 and flourished with its development of a soap that could neutralize the skin’s pH after only eleven seconds. The company was eventually bought out in 1994 by the world’s leader in health care products, Johnson & Johnson, but this only benefitted both companies, helping them to grow and remain competitive over the years.

Situation Assessment

The Chinese market has been expanding in recent years and their love of skin care products has grown as well. Both men and women are becoming more interested in taking care of their skin by use of several-step skin care product. We have decided to focus our penetration approaches in China are men and women aged 18-35. There is great opportunity for Neutrogena to expand into the market because of this fact. The Chinese market is very penetrable at the moment and the Chinese people are very receptive to new products as long as they are packaged appealingly and appropriately and placed in the correct outlets. We have decided to place our products in retailers such as Carrefore, Wal-Mart, and Watsons. Our main competitors currently have some advantage because they have been in the Chinese market for several years, however our products are high quality and with the research done, we believe we can overcome the competitors and face the challenges of entering a new market. Based on the SWOT analysis we performed, Neutrogena’s main strength is their years experience while their main threat is their lack of experience in the Chinese market and facing American competitors who have been in the market longer and have already figured out how to overcome some of the challenges of entering a new market.


We plan to introduce 38 new products into the market to start and over time expand the lines based on how the initial introduction goes. We first want to focus on introducing our products to affluent areas like the Jinginji district which is composed of Shanghai, Tianjin, and Shijiazhang and has a potential customer base of over 2 million.

Operation/Action Plan

We plan to implement our introduction into the Chinese market in 2012. We plan to do this with a bureaucratic structure which will ensure speed and precision and will help to reduce friction with regards to materials and...
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