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± Six divisions.
± Net sales of $747 million.
± After-tax profits of $54 million.

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± 1.75 oz. / 3.75 oz. /
7.50 oz. / 12.0 oz.
15.0 oz.
 §
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± 1.00 oz. / 3.75 oz.
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± Regular.
± Medicated.
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± Heavy users are women aged 45+ (multifunctional
skin care) and mothers (baby care). Other specific
uses are for chapped lips and sunburns.
± Direct competition is mainly from private label
petroleum jellies which compete on price.
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± Distributed mainly through grocery, drug, and mass
merchandise stores.
± Current distribution penetration is 92% for
grocery stores and 96% for drug stores.
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± Believe product is mature and requires price
promotion to stimulate trade interest.
± Focus is on the ³headquarter accounts´ rather
than individual outlets.
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± Advertising
± Consumer promotion
± Trade promotion
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± Advertising has historically shown the versatility of
VPJ as a skin care product for adults and children.
 
  



± VPJ brand management has spent relatively little
money on consumer promotion.
 § 



± Primary method of VPJ promotion.
± In 1976, there were 223 days with a promotion
and 70% of trade sales were on promotion.
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± Success of company
± Large market share (90%)
± Strong brand recognition (97%)
± High distribution penetration
± 70% of homemakers view VPJ as economical
± No significant direct competitive petroleum jelly
products that effect VPJ market share
± Versatility of product

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± Low brand visibility- 23% recall recent ads.
± Terms and timing of trade promotion
 Trades get discounted price without requiring advertising.
 In 1976, 70% of factory shipments sold on promotion
± Lack of sustained budget for advertising
 4th qtr. advertising often cut to meet profit targets.
 1977 plan to cut advertising budget by 50%.
± Salespeople focused on ³headquarter accounts´
rather than individual retail outlets.

 9§%
-'
 Opportunity
± Consumer advertising rather than trade promotion
will lead to pull rather than push demand.
± Capitalize on Vaseline brand name to reinvent
VPJ and diversity the product line.
± Eliminate multiple-brand promotions and dedicate
advertising to VPJ exclusively.
± Turn light users into heavy users.
± Target VPJ to institutional users such as
hospitals.

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-'
 Threats:
± Uncontrollable economic conditions.
± Specific-use products which compete against the
versatility of VPJ (baby care, sunburn cream, etc.)
± Shift in trade promotion philosophy can lead to a
deterioration of relationship with trades.
± Direct competition in petroleum jelly market from
new brands of existing companies, such as
Johnson & Johnson.
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± Reengineer VPJ with additional ingredients
to target specific-uses
 Skin care
 Lip therapy
 Baby care
 Medicated
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± Marketing focus;
± Product segmentation; and
± Refocused sales staff.
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