Neutrogena Face Wash

Zachary Berg

History

Founded in the 1930’s by Emanuel Stolaroff

“Natone” – soap company

Officially changed to Neutrogena in 1962

Tied soap and medicine together

Created a good relationship with Dermatologists

In 1994 acqiured by Johnson & Johnson

Company Analysis

• Product – Face wash to prevent acne and have clear skin

• Promotion – Online, television ads, and WOM

• Place – Convenience Stores, Retail Stores, & Online

Company Analysis

• Price – Range from $5 - $7

• Many coupons are offered (Walgreens, Wal-Mart, etc.)

• Profit Condition – Guaranteed to bring in money due to loyal customers and profitable brand name

• If marketed to others would raise sales

Neutrogena’s Other Products

Body Wash

Make-up remover

Sunscreen

Moisturizers

Shampoo / Conditioner

Company Image

• Positive & Negative

• Over priced strong (irritating) acne medication

• Comes from #1 Dermatologist recommended brand (Neutrogena)

• Multiple celebrity models for face wash

Competitor Analysis

Major Players

The Procter and Gamble Company

Unilever

Johnson & Johnson

Neutrogena

Merkl and Co., Inc

Competitor Analysis

Competitive Landscape

Market Share Concentration

Internal

Price

Quality

Research and Development

External

Customer Analysis

Market Segments

Department Store

Strong influence

Increasing through 2013

Supermarkets and Grocery Stores

Largest market segment

Decreasing through 2013

Customer Analysis

Target Markets

Women

Largest market, increasing older population

Men

Increasing Market, up 11% in 2011

Hispanic

Growing population, driving future sales

Product Market

Facial Skin Care

23.7% of market

Neutrogena Oil FreeAcne Wash

$43 million in 2012

2.3% growth

SWOT Analysis

STRENGTHGood working productLoyal customer baseNeutrogena is a dominate player in skincareHigh amount of advertising

WEAKNESSNot marketed to teenage boys and college menHigh price compared to competitors

OpportunitiesProsper in lower middle class marketsProsper in rural marketsTie up with hotel chainsMen’s Products

THREATSStrong competitorsEconomic downturn

Critical Weaknesses

The product is too harsh on skin

The price is a little too high compared to competitors

The bottle (packaging) is not appealing to men

The product is not promoted towards males (13 – 24)

There are many opportunities to further advance sales

New Marketing Strategy

Product - Use a neutral colored bottle , create a new less intense scent, make for sensitive skin as well

Price – Lower price to be affordable for lower middle class (under $5) , buy one get one first time

Promotion – Promote to males more (use men spokesperson) , make business connection with hotels

Place – Be available in every convenience store