Chesebrough-Pond's Inc. Vaseline petroleum jelly (VPJ) (2005)

Résumé du document

Robert Augustus Chesebrough, a 22-year-old chemist from Brooklyn, New York, created Vaseline Petroleum Jelly. "Oil rig workers discovered that rod wax, a petroleum by-product from oil rig pumps, healed their cuts and burns. Chesebrough extracted petroleum jelly from the rod wax and gave it to Brooklyn construction workers to treat their minor scratches and abrasions". Robert Chesebrough rented a small plant and spent years refining and testing the product. By 1870, he had received several patents on his petroleum jelly formula and Vaseline was a registered trademark. Vaseline Petroleum Jelly became a household staple. Chesebrough-Pond's Incorporated (CPI) was formed in 1955 through the merger of Chesebrough Manufacturing Company and Ponds Extract Company. The different uses of VPJ made CPI think about two various ways (jars and tubes), two forms (pure and carbolated) and different sizes to sell the product in order to meet consumers' needs. As Chesebrough Manufacturing Company and Therond Pond fused to form Chesebrough-Pond's Incorporated, VPJ became the cash cow of the company. The VPJ sales' records for the year 1976 was around 22.5 million dollars.

Extraits

[...] They could also influence patients by using VPJ as a reference product. This could lead to consumer acceptance. If VPJ hires medical consultants it would give the company a very good perception from the medical population. The company already has a good distribution coverage (intensive), but it means they have a little degree of control of the product. The company could work more closely with powerful retailers, trough trade promotions to be sure that they reverberate lower consumer prices. Marketing They first have to work on the force recall which is not high enough compare to the brand recognition. [...]

[...] Moreover competition could be realized by new market entrants into the petroleum jelly market from established companies. Changing the company marketing plan by modifying price promotions could lead to a deterioration of the relationships between traders and CPI. Competition for Vaseline Petroleum Jelly VPJ product benefits from a monopolistic position in the market segment since it represents 90% share of the petroleum jelly market. Direct competitors (selling private label petroleum jelly) who is mainly competing on price (usually 30% cheaper) holds the 10% share remaining. [...]

[...] This factor was the strength of the product. Place of distribution VPJ benefits from very good distribution coverage and an intensive penetration on the retailer market. Regular VPJ distribution generated 85% of the product's ounce volume of VPJ products are distributed through three principal retail outlets: grocery stores, drugstore and mass merchandisers are distributed through other outlets and variety stores. Nevertheless, this intensive distribution prevents them from having a good level of control on their products and some markets are not reached at all. [...]

[...] Marketing department need to find one line: a healthy and trustful product. They should use a doctor or a famous institute as a partner for their new identity and abandon the multifunctional use in order not to confuse the consumer. Another solution will be to change the name and the packaging of the VPJ for the only use of shoe polish and door hinges. Communication Advertising A clear slogan will help consumer to identify the brand as THE skin care moisture, for the family. [...]

[...] Chesebrough-Pond's Inc. Vaseline Petroleum Jelly (VPJ) (2005) What about VPJ's position in the firm? What about its position in the market? What analysis of the market segmentation implemented by VPJ so far? What suggestions do you have regarding this segmentation? What are the possible plans/courses of action open to Mary Porter? What do you suggest and why? (Marketing plan: what could be done in long and medium terms?) Product and company presentation VPJ uses VPJ position in the company Place, price and advertising VPJ SWOT analysis Competition for VPJ Segmentation for VPJ People in VPJ marketing mix Segmentation recommendations Possible plans of action open to Mary Porter Recommendations Conclusion Product and Company Presentation Robert Augustus Chesebrough, a 22-year-old chemist from Brooklyn, New York, created Vaseline Petroleum Jelly. [...]