Neutrogena Corporation, headquartered in Los Angeles, began its success story when, in 1930, founder, Emanuel Stolaroff, started a small specialty cosmetic company called Natone. In the early years, Natone was a supplier to Beauty salons usually associated with the glamour of the film industry. By the 1940’s, Natone began manufacturing and distributing cosmetics for the retail market. In 1954 on a business trip to Europe, Stolaroff heard of an unusual soap developed by Dr. Edmond Fromont, a Belgian cosmetic chemist.
Fromont’s patented formula produced an unusually mild, clear soap that rinsed quickly and easily from the skin, leaving essentially no soap residue. Eleven minutes after washing with this unique soap, the skin was able to return to its normal pH – just one minute more than if it had been washed with only plain water! Hence the name, “Neutrogena. ” Stolaroff believed there was a market for such a high quality soap and arranged to import and distribute the Neutrogena brand product in the United States.
Setting the course for future growth, he emphasized the transparency of the soap to clearly communicate its difference. In addition, he targeted sales to new distribution channels – department stores and better drug stores. By 1962, Neutrogena soap was so synonymous with the company image that the company name was officially changed to Neutrogena Corporation. Lloyd Cotsen, an integral member of the Neutrogena family, became President of the company in 1967 and made another key decision that would profoundly influence the future of the company – to promote the advantages of Neutrogena soap to the medical profession.
The strong relationship between Neutrogena Corporation and dermatologists gave the company an exceptional competitive advantage. As Neutrogena gained a unique acceptance by the medical profession, a new emphasis was directed toward marketing and research efforts to create a line of safe, mild, premium quality skin care products. In 1973, the company went public and by 1980, Neutrogena entered the hair care market. Today, Neutrogena Corporation manufactures and markets a line of premium priced skin and hair care products which are distributed in more than 70 countries.
The respect and credibility earned by Neutrogena Corporation led to its acquisition by Johnson & Johnson in 1994. As a member of the worldwide network of Johnson & Johnson companies, Neutrogena has the opportunity to preserve the “Neutrogenic way” while at the same time drawing on the breadth of Johnson & Johnson resources. Now more than ever, today’s consumers equate health with beauty, Neutrogena stands naturally poised for tremendous future growth and an ever increasing number of satisfied customers.
THE BEGINNING OF NEUTROGENA’S PROMOTIONAL STARTEGY Instrumental in the design of the first marketing strategies for the Neutrogena soap was Lloyd Cotsen. A former archaeologist with a history degree from Princeton, Cotsen married Stolaroff’s daughter, Joanne Stolaroff, in 1953, and then went to Harvard for his M. B. A. Beginning in 1957, he became an integral and personally invested player in the family business (he retained ownership of approximately half of Neutrogena’s stock until the company’s 1994 acquisition).
In fact, Cotsen’s strategies made the soap such an important aspect of Natone’s business that in 1962 the company name was officially changed to Neutrogena Corporation. In 1967 Cotsen became president of the company. Neutrogena’s sales in that year were approximately $3 million, with the major product being the glycerine soap. Soon after his presidency began, Cotsen created the niche marketing strategy that would shape the success of Neutrogena for almost three decades. According to Business Week, Cotsen’s motto has always been: “I’m not that smart, and I don’t like competition. Priced midway between soaps like Ivory and Clinique, and positioned between elite skin-care products and mundane toiletries, Neutrogena was safe from competitive price wars waged by bigger companies for most of the company’s history. Cotsen kept credibility high and marketing costs low (12 percent of sales in 1981, as compared to 20 percent at Clinique) by promoting Neutrogena soap through the cultivation of relationships with two institutions: dermatologists and luxury hotels.
Free samples left in dermatologists’ offices and repeated visits each year led to Neutrogena’s unrivaled success in the soap market. As of 1981, a dedicated force, comprising 16 out of 66 salespersons, was assigned the sole responsibility of visiting 5,000 dermatologists each year, developing personal relationships with advocates in the profession. Similarly, one-ounce bars of Neutrogena were distributed to luxury hotels and resorts, where–Cotsen theorized–businessmen’s wives would be likely to see them.
Cotsen insisted that the mini-bars of Neutrogena retain the company name and logo, promoting name recognition along with the soap’s unmistakable look and smell During the 1970s, the company began to explore marketing and research efforts to expand its skin care product line. Promotions for Neutrogena’s new acne cleansing soap in teen publications offered a free trial-size bar. The ads proclaimed, “If you have acne, we need your help,” and Neutrogena asked teens to send a quarter (to cover handling) and to give the company honest answers about the success of the soap.
Over 57,000 teenagers sent in their quarters, constituting the highest response in the company’s history, and a newly penetrated market. In 1973 the company went public, with a market value of $11 million and the story continues….. BRAND AMBASSADORS Bollywood actress Prachi Desai is the new face of international skincare brand Neutrogena in the Indian market. US-based pharmaceuticals company Johnson & Johnson launched Neutrogena in the Indian market on Sept 3, offering around 25 beauty items ranging from fairness creams, face cleansing lotions to sun protection and hand and body care products.
Speaking about the endorsement, Prachi said: “The arrival of Neutrogena in the Indian market is going to be a gift for thousands of consumers who have waited long for products that really work. ” The range is meant especially for the Indian skin type and the company has been testing the product for the past two years to suit Indian skins. “We are bringing science to the art of beauty. For the past two years, we were understanding the needs of Indian customers because we wanted to give our consumers only the best,” said Swami Raote, managing director Johnson & Johnson (J&J), at a press conference. We are targeting mainly women living in metro cities. Therefore, our products will be available in major Indian cities and towns,” he added. According to a survey, the skin care market in India is around $67 billion. This is because of the fact that women have become beauty conscious over the years. “People want to look good and are concerned about fairness, ageing, blemishes – in short they want to look beautiful. We have products that not only give complete solutions but also complete satisfaction as well,” explained Tina Mistry, vice president of J;amp;J. The Indian skin care market is still in a nascent stage because there was a time when women were very indifferent about the way they looked. Things have changed today and young women want products that give them results,” she added. The product range starts at Rs. 85 and goes up to Rs. 500. Deepika Padukone has been signed to endorse the NEUTROGENA FINE FAIRNESS range. Deepika Padukone spoke about her association with neutrogena fine FAIRNESS saying, “It is an honour to be associated with a brand like NEUTROGENA”.
She joins the league of other bollywood actresses who have endorsed fairness products. She looked radiant in a peach colored strapless dress accompanied by J&J’s marketing head. SALES STRATEGY The Director, Sales Strategy – Neutrogena Cosmetics is responsible for leading and coordinating the efforts all brand segments within the Neutrogena Cosmetics product group and is responsible for supporting the achievement of Brand sales objectives by providing marketing strategies and action steps, analytics and insights to customer teams for the brand/category.
The incumbent is responsible for delivering best-in-class strategies and marketplace approaches to maximize business results while increasing market share and growth within the categories of Neutrogena Cosmetics. The Director, Sales Strategy is accountable for overseeing the development of category strategic trade plans aligned with Marketing objectives. PACKAGING Classy new PET bottles with clear labels helped Neutrogena Corp. boost sales by more than 15% for its personal care products. And effective coordination between packaging and marketing helped realize ‘significant’ savings because of the change.
The Rainbath line includes body oil, shower and bath gel, and body lotion. Key steps in the packaging change included (1) creating a new proprietary bottle whose rounded shape replaced a tapered square on an older container; (2) using clear labels to let products show through and increase visual presence on store shelves MARKETING PLANS Johnson & Johnson, catering to the vanity needs of Generation Y, aging baby boomers and those in between, will spend more than $60 million this year behind new offerings under its Neutrogena skincare banner.
The most notable of Neutrogena’s new lineup: a super-specialty item, Healthy Skin Anti-Wrinkle Anti-Blemish cream, for women with pimples and wrinkles or those eager to stave off both. While acne products have long ruled at drugstore counters, they are slowly making headway into department store and specialty boutiques as more upscale lines including Estee Lauder’s Clinique and Origins seek ways to add incremental sales from younger buyers.
Set to hit shelves in July, J&J will spend $10 million on TV and print, with 60% of those ads angling for the anti-wrinkle crowd. Targeting females up to age 44, the oil-free cream contains retinol and salicylic acid (a common anti-acne ingredient) with print breaking in August beauty books, as it aims to be the first marketer to satisfy the 40% of women from 25 to 39 who have wrinkles and blemishes.
J&J is looking to the teen market to boost Neutrogena acne sales to $100 million from about $80 million now, backing its three new items with advertising, sampling and a back to school promotion with Fox. Neutrogena, the leading oily skin/acne care brand, which most directly competes with J&J’s own Clean and Clear and Andrew Jergen’s Biore, seems to be staying true to its heritage, positioning the newcomers as effective yet non irritating.
Its Oil-Free Acne Wash Foam Cleanser, with 2% salicylic acid, will be touted for effective yet gentle acne cleaning; Clear Pore Soothing Gel Astringent, is dedicated to creating a “deep clean while soothing irritated skin,” with aloe and chamomile gel and 70% less alcohol than leading astringents; and Clear Pore Shine-Control Gel “instantly absorbs oil, treats and prevents breakouts and control shine all day. ” The 19-SKU line will get $21 million in media this year, with $10 million allocated to three newcomers rolling out in late spring targeted to 12-to-24 year olds.
Prices range from $5. 50-10. 50 for the acne products and under $20 for the anti-wrinkle items, to undercut competitors like Procter & Gamble’s Olay. The back-to-school promo includes a chance to win a trip to Fox’s Teen Choice Awards and an opportunity to hang out with Gen Y actress Jennifer Love-Hewitt and teen pop princess Mandy Moore, who both stay on as Neutrogena’s acne spokesgirls. Additional print and TV runs from June through yearend. Separate pitches to dermatologists and pediatricians are planned for the whole year, plus a 400,000 sample drop via Seventeen and Self magazines.
The additional SKUs complement Neutrogena’s planned spend of $30 million to launch Healthy Skin Visibly Firm night cream and eye cream (Brandweek, Dec. 4), its largest introduction on a single product. J&J will tout the SKUs active cooper content–an ingredient currently not yet available in any mass product–and its patented delivery system which “stimulates collagen, elastin and jumpstarts the skin’s own abilities to repair itself. ” ADVERTISING Star Plus has launched an new emotional and heart warming chat show, called Tere Mere Beach Mein, which speaks about celebrities lives away from the arc lights.
It premiered on August 23 at 9 pm and will air every Saturday and Sunday. Farah Khan, choreographer, scriptwriter and director, takes on a new role with this show that of a talk show host. J&J’s skin brand Neutrogena has joined hands with Star Plus to get a national exposure. DDB Mudra, the advertising agency for Neutrogena is leaving no stones unturned to drive the maxim mileage out of Tere Mere Beach Mein as its title sponsor. The show is treated as an innovation, which is expected to be twice as effective at reaching consumers compared to traditional advertising.
An J;amp;J official explains, “We are looking to get a strong foothold in an arena dominated by MNC as well as Indian brands by creating a bouquet of advertising offerings, which includes the association with Star India, which gives us the much needed boost to capitalise on. ” CONTESTS From around the globe : Neutrogena® Explorers Promotion “neutrogena rejuvenation getaway” contest feb 23/09 Neutrogena Cosmetics Flaunt Your Inner Celebrity NEUTROGENA® Gift Baskets Contest “Flaunt Your Inner Celebrity” Contest Neutrogena – Fresh Faces of Music Sweepstakes
Neutrogena’s Facebook Contest! PRIZES There are five unique travel experiences to be awarded are: A) A tale of three cities – A two-week trip to Egypt, India and China to explore the cities of Cairo, Delhi and Tianjin, with a professional local guide. B) Island hopping in the Arctic: –A two-week tour of the islands of northern Norway, deep within the arctic circle, activities include a winter safari to spot reindeers and polar bears in their natural habitat, sea-fishing with Norwegian Fishermen and exploring Viking life in Nordland.
C) Ceylon and Celebrations in Sri-Lanka –A two-week tour of Sri-Lanka includes a visit to Kandy for the Esala Perahera festival before transferring to the Peradeniya (tea-country) D) Planes, trains and automobiles through Canada –A tour of Canada’s west coast taken by rail, motorcoach and ferry. E) A culture-vultures guide to Europe –A two-week European rail adventure, departing from London and staying for three nights in each of the following cities: Paris, Venice, Rome and Milan.
RESEARCH To introduce Neutrogena Norwegian Formula® Deep Moisture range, Neutrogena conducted extensive research : *Upper layer of the epidermis **Consumer In Use Test GfK Customer Research, France, 2009 142 women. 87% of women reported long-lasting moisturisation** The unique fast-absorbing, non-sticky formula is proven to penetrate 10 layers deep* and lock moisture in immediately providing 24 hour moisturisation. 96% of women experienced immediate moisturisation**
Whether you suffer from dry skin, or just need extra hydration when the weather changes, Deep Moisture is the ideal everyday body moisturising solution. 92% reported absolutely no greasy after-feel** This means that you can moisturise and get dressed straight away – good for when you’re getting ready in a hurry! CONCLUSION The brand Neutrogena launched with a big bang which brought about huge awareness among the urban women. Working together with expert dermatologists for over 25 years, these products are clinically proven to deliver real results.
Wide varieties of products are appealing to consumers and bring about huge competition to other brands especially with large number of advertisements and brand ambassadors. These products are divided into three categories of men, women and teens but some international varieties are yet to be launched in India. But in general the linage of Neutrogena is very impressive and it is here to stay!! (Example of a complete range offered at a discounted price on its website. ) BIBLIOGRAPHY www. neutrogena. com Brandweek magazine Indo-Asian News Service www. wikipedia. org www. google. com The Bombay Times THANK YOU