Johnson Wax
Case: Johnson Wax: Enhanced
Case analysis:
Define the problem
John Sherman, the product development manager of Johnson & Company, had to take a decision about the future of Enhanced, a new instant hair conditioner. The issues faced by Johnson Wax are whether to launch 'Enhance' right now, launch it after some modifications or abandon the product.
They wanted a new product with the same success that Agree, the company first care product but they also wanted to reduce the costs of the product development process.
Formulate the alternatives
1. Launch Enhance as it is right now
2. Make some modifications to the product or its positioning
3. Abandon the product
Analyze the alternatives
Current situation
Johnson Wax is successful in a specific segment of the hair conditioning market with his product Agree. So they decided to offer another personal-care product line being Enhanced. This is an instant hair conditioner targeted toward woman 25-45 years old with dry hair and was formulated to appeal to that audience.
Market potential
The market of the conditioner in which Johnson Wax want to introduce Enhance counts 6 important companies in 1978: Johnson’s Agree (15,2%), Wella Balsam (4,7%), Clairol Condition (9,95), Flex (13,4 %), Tame (5,4%), and Sasson. The firm has previously done Blind-Use test, which actually showed that the consumers don’t distinguish great differences between different brands of conditioner. Tests have shown that one of the most important dimensions for the customers is the conditioning factor. But during the phase of callback the respondents mentioned most frequently manageability and conditioning came third. This means that the company should reposition itself. The market is open for new products that focus on manageability. An incentive to launch the product is that Agree would lose less than half a share point to Enhance.
Product design
Enhance was available
Case analysis:
Define the problem
John Sherman, the product development manager of Johnson & Company, had to take a decision about the future of Enhanced, a new instant hair conditioner. The issues faced by Johnson Wax are whether to launch 'Enhance' right now, launch it after some modifications or abandon the product.
They wanted a new product with the same success that Agree, the company first care product but they also wanted to reduce the costs of the product development process.
Formulate the alternatives
1. Launch Enhance as it is right now
2. Make some modifications to the product or its positioning
3. Abandon the product
Analyze the alternatives
Current situation
Johnson Wax is successful in a specific segment of the hair conditioning market with his product Agree. So they decided to offer another personal-care product line being Enhanced. This is an instant hair conditioner targeted toward woman 25-45 years old with dry hair and was formulated to appeal to that audience.
Market potential
The market of the conditioner in which Johnson Wax want to introduce Enhance counts 6 important companies in 1978: Johnson’s Agree (15,2%), Wella Balsam (4,7%), Clairol Condition (9,95), Flex (13,4 %), Tame (5,4%), and Sasson. The firm has previously done Blind-Use test, which actually showed that the consumers don’t distinguish great differences between different brands of conditioner. Tests have shown that one of the most important dimensions for the customers is the conditioning factor. But during the phase of callback the respondents mentioned most frequently manageability and conditioning came third. This means that the company should reposition itself. The market is open for new products that focus on manageability. An incentive to launch the product is that Agree would lose less than half a share point to Enhance.
Product design
Enhance was available