Sunday, February 21, 2010

1989: J&J in the Philippines

In some way, J&J applies their target marketing in the Philippines which is during that time political aspect is unstable. The administration focused the campaign to the misdeeds of Marcos by setting a new direction in economic policy but the Board members resolved the issue by concluding that they have to work to improve the business performance of the country by devoting their efforts to increasing the business performance.

The seemingly segmenting marketing strategy of J&J touched the factors particularly demographic, economic and mostly political and legal factors. It has been probably assessed that there is sufficient demand in the market for a cheaper product that could satisfy the currently untapped young female market. With the 1989 political condition, there were no enormous entrant and exit barriers since the government needs investments that could emphasize a central role for foreign enterprise.

Economy of the Philippines at that time also is not doing well which is basically altered by the political instability. PhilippinesGDP in 1989 had lagged behind that of their partners. Naturally, both consumers and investors attempted to regain what had been lost in the depressed atmosphere of the 1983-85 periods. Because of the unstable economy, J&J’s classifications were based on the occupation of the household head, total monthly household appliances, housing ownership and its general physical appearance, monthly rental amortization of the house, housewife education, and number of household “helpers “economic category- AB & C category economic households. J&J’s bargaining power can be justified by the uniqueness of the product that yields lower initial costing that is also affordable for the target audience.

Having the customs of having the mother as the decision maker in shopping activities especially when it concerns to facial and health care for the family, this kind of convenience products appear to be sold effectively in supermarkets. It was found out that Johnson’s Baby Powder among teens and young adults was much lower than that of mothers. Also, 80% of the chosen class stated that they applied it to their face. This also opened the idea that “Filipino young people are no different than their counterparts in many other countries. They want to put distance between themselves and their childhood on some dimensions…” Knowing that there was strong interest among female teens and young adults in J&J baby powder they come up with research-based findings which conclude that the behavioural factor is strongly inviting them to capture the target audience based on their customary usage.

The age distribution of Philippine Population in 1989 aids the J&J Company to forecast their potential buyers based on the percentage of population per age. The age bracket also helps them identify the percentage of target audience that possess particular consumer knowledge, attitude, use or response to their product.

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