1. JOHNSON’s BABY Case Group 2 Julie Copaken Tim Falvey Juan Carlos Fregoso Luis Mendoza Mimi Preciado Pamela Pucci

2. GROUP OF CONSUMER COMPANIES Executive Summary Johnson´s Baby is seeking to increase penetration and product usage among CD consumers (preferably in the DTT channel) We are recommending an approach that “earns” our way in, balancing PUSH and PULL strategies. – Includes delivering the right product at the right price – Incentivizing distributors and store owners – As well as driving awareness, trial and equity among CD consumers – Recommending a test and learn geographic rollout – Explore partnership with complementary company

3. GROUP OF CONSUMER COMPANIES Problem Statement How can we increase penetration and product usage among CD consumers? 68% Total Population

4. GROUP OF CONSUMER COMPANIES Alternative Solutions 1.Focus on Distributors/Stores (PUSH) 2.Focus on Consumers (PULL) 3.PUSH / PULL Strategy J&J Distributors StoreConsumer

5. GROUP OF CONSUMER COMPANIES Key Assumptions DDT in Baby Care accounts for 50% of market sales (validation needed) No need to develop new SKU’s

6. GROUP OF CONSUMER COMPANIES Wholesalers / Distributors Store Owner C/D Class Consumer Select Priority Segments o Size o Wipes (US$108) o J&J Core Competencies o Shampoo (US$20M) o Soaps (US$10M) Right Product e.g. 50ml Shampoo & 10 ml sachets & 10 ct Wipes Incentives Plan Strategy: Push Product into stores Sales Contest (Distribution) Partnership with NESTLE Better Absolute Margin + than category leader Incentives Plan Free Goods, Gimmicks, CRM Product Seeding Ready to trade displays Increase visibility Right Price Strategy: Low Out-of-Pocket Sampling Program Neighborhood Hospitals & Clinics Educational Program Partner with day cares, hospitals & doctor offices New-moms training @ usual touch points (mall, etc) Multiplying program – Hospitals “Train the trainers” Local Media / Consumer Promo Mass media - Soap Operas Ensure budget is focused on CD consumers Promotions

7. GROUP OF CONSUMER COMPANIES Disruptive Alternatives Direct Selling – Door to Door (AVON Model) J&J pop up Kiosks Build our own distribution

8. GROUP OF CONSUMER COMPANIES Risks o Investment without ROI o Competitors strengthening investment in DTT o Bodega complaining on competitive disadvantage – same product! Mitigation o Test & learn model, geographically phased deployment o Provide Wal-Mart with tailor made program

9. GROUP OF CONSUMER COMPANIES Key Take-aways! o Deliver the right product at the right price o Incentivize distributors and store owners o Drive awareness, trial and equity among CD consumers o Test and learn geographic rollout o Seek partnership with complementary company

10. GROUP OF CONSUMER COMPANIES VOTE for #2 VOTE por el #2 VOTE no #2