SWOT analysis of mouthwash company

Johnson & Johnson is a famous manufacturer evolved in global pharmaceutical, medical apparatus in America. it was founded in 1886 when Robert Wood Johnson was inspired by antisepsis advocator Joseph Lister, joined Edward Mead Johnson and brothers James Wood Johnson in 1885. It possesses many well-known consumer products such as Neutrogena skin and beauty products, Clean & Clear facial wash, of which, Listerine is one popular brand of antiseptic mouthwash in the world. It was initially produced by Lambert Pharmacia Company, and now manufactured by Johnson and Johnson in 2006.

2.0 The SWOT analysis of Listerine mouthwash

The following titles are the analysis and discussion of the strengths, weaknesses, opportunities and threats for Listerine mouthwash when faced in marketing.

2.1 Strength

2.1.1 High reputation of Johnson &Johnson

Johnson & Johnson is known for its corporate reputation. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. (Johnson &Johnson, 2010)

2.1.2 Long history of brand

Listerine mouthwash has more than 120 years of history, is the first brand mouthwash in the world.

2.1.3 R & D innovation

Its new and unique tastes are deeply loved by young people. New product development and packaging design make the brand value rise increasingly, which greatly incites the consumers to buy this product.

2.1.4 Sound effect

Listerine mouthwash contains thymol, menthol, eucalyptus oil alcohol and methyl salicylate and other active ingredients. It has a significant role in the inhibition of dental plaque and gingivitis. Listerine mouthwash is the only one currently on the market contains alcohol, clinical proof demonstrates that it can penetrate 99.9% of the oral area and maintain oral health. (Listerine, 2010)

2.1.5 A large amount of sales channels and superior marketing strategies

There are several sales channels, such as retail stores, shopping malls, internet, and supermarket, which make it readily available. It has superior marketing strategies. Besides advertising on TV, the media make the consumer aware of this product mainly through radio, magazines and newspapers.

2.1.6 Portability

The product, Listerine mouthwash 250 ml, is relatively small and hence is portable to be used.

2.2 Weaknesses

2.2.1 Cause health problem

It is reported that Listerine may lead to the risk of oral cancer. Although both the United States National Cancer Institute (NCI) and the American Dental Association (ADA) content that the antiseptic mouthwash which contains alcohol is safe and it is not a factor leads to oral cancers. A review of a study conducted in Cuba, Argentina, and Brazil reported by McCullough, M. J.& Farah, C. S.(2008, pp. 302-305) reveals that there is now sufficient evidence to demonstrate the use of alcohol-containing mouthwashes can contribute to oral cancer.

2.2.2 Special testing flavor

The original formula of Listerine mouthwash has notoriously strong flavor, although methods have been utilized to make it taste milder. However, 3 types flavour of Listerine mouthwash on the market, including sub-ice blue, cool and original flavor, may make some people uncomfortable.

2.2.3 Quality problems ever existed

On April 13, 2007, U.S. Food and Drug Administration (FDA) announced that, Johnson & Johnson will recall about 400 million bottles of Listerine mouthwash with the flavor of agent cool blue, because its oral formulation can not deal with all the harmful microorganisms that may endanger the people with weakened immune systems. (Health &Wellness, 2007)

2.3 Opportunities

2.3.1 Strong sense of health

With the improvement of living standard, people pay much more concerns on the oral health. Listerine mouthwash has a significant role in the inhibition of dental plaque and gingivitis to keep the oral health. Also, the perfect shape of self-image is a modern spiritual pursuit, and a good image of the breath is one most important aspect. Listerine mouthwash is just the product that makes breath fresh.

2.3.2 Price advantage

Among some famous brands of mouthwash, such as Colgate, Amway, Crest, Walch, Listerine mouthwash is relatively cheap. For example, on the famous online shopping website, BizRate, the price of Listerine Antiseptic Mouthwash 250 ml is $3.51 and another kind of mouthwash possesses the similar effect, Crest Pro-Health Mouthwash 250 ml, is $3.64. (BizRate, 2010)

2.3.3 Contribution to public welfare

Listerine mouthwash puts the needs and well-being of the people first and is active in public welfare. Considering its contribution, the U.S. State Department awarded it the Benjamin Franklin Award for Public Diplomacy for its huge funding given to international education programs. (Johnson &Johnson, 2010)

2.4 Threats

2.4.1 Other alternatives

Colgate, Amway, Crest, Walch, the enter of new brands leads to more intense competition, and market makers must pay more attention to the mouthwash brand to provide a variety of oral hygiene products to cover various consumer groups and seize more market share.

2.4.2 The existence of chewing gum

The market price of chewing gum is lower than mouthwash, so the average family can afford. And the packaging of chewing gum is much more “thinner”, “smaller”, which makes the chewing gum much easier to be carried with.

The SWOT Matrix

Strengths

High reputation of Johnson &Johnson

Long history of brand

R & D innovation

Sound effect

A large amount of sales channels and superior marketing strategies

portability

Weaknesses

Cause health problem

Special testing flavor

Quality problems ever existed

Opportunities

Strong sense of health

Price advantage

Contribution to public welfare

Threats

Other alternatives

The existence of chewing gum

3.0 The 4P’s Analysis

Listerine mouthwash has variety of marketing strategies on product, price, place and promotion. Several aspects are analysed in this report.

Product

Quality, package, innovation

Price

Price of the product

Place

Sales locations

Promotion

Advertise, Network marketing

3.1 Product

Listerine mouthwash places great concerns on the brand, which is deemed as the most important asset. The quality of this mouthwash keeps consistent over the years, and hence the package design is critical in its sales. There are several endeavours on the adjustment, modification and improvement of the package, aiming at the adaptation of the increasingly developed market. Considering different needs in consumers, there are several package of Listerine mouthwash. Each kind of package can meet customer demand, and hence increase the satisfaction. For example, the package of 250 ml is portable, so it can be used conveniently wherever you go.

3.2 Price

The price of Listerine mouthwash is relatively low when compared to its similar product. People around the world can afford it, so it can keep high sales even in economic depression and market slump period.

3.3 Place

Listerine mouthwash is for sale as long as there is a place for mouthwash. Such as convenience stores, supermarkets, hypermarkets, supermarkets, grocery store, and it can be readily available on all kinds of online marketplace.

3.4 Promotion

Take a successful advertise of Listerine mouthwash as an example. A menthol flavor of Listerine mouthwash has been designed for young people who pay attention to dental health, but before they could not stand the strong taste. The biggest challenge is to increase market share on the basis of the original brand. Media plan aims at 18 to 34-year-old young consumers. In a year the company spent nearly 300 million dollars in TV advertising. Advertise combines the effectiveness and taste, advocating the property of treatment without losing the refreshing taste. Through all kinds of sales channels, such as retail stores, shopping malls, internet, its sales increased by 13%, exceeding the second-largest competitor Scope. For those consumers who do not often watch TV, the media make them aware of products mainly through radio, magazines and newspapers. As a result, the minty flavor of Listerine mouthwash is the most successful new products this company launched at the history. Minty flavor and original Listerine brand benefit together. Minty mouthwash market share reaches 10.9%, jumping to the third place mouthwash brand, more than Plax, and the entire Listerine brand increased 3.2%. There emerged high trial rate and high re-purchase rate. Many families in the United States try to use it when it had just been introduced. At the same time, this promotions expanding the use of consumer groups. People who use minty flavor Listerine brand mouthwash have progressively increased, and according to statistics, young people who use this product are more than the people who use the original product. (Johnson &Johnson, 2010)

4.0 Conclusion

Listerine mouthwash stands in the highly competitive market place and becomes the first brand mouthwash, not only because it is on the basis of Johnson &Johnson, there are several other reasons to ensure its success: first, it places great emphasis on the research and development of new product as well as the innovation of the packaging, which make the brand value rise increasingly; second, it possesses a large amount of sales channels and superior marketing strategies, which make this product readily available; third, it has the advantage on price, which is relatively low when compared to its similar product, so people can afford it; fourth, it checks the quality strictly to guarantee the safety of its product; fifth, it has a great interest in public welfare undertakings, so that those who received its help will remember it and further become its loyal customers.