Exhibit 7.21 An advertisement of Johnson’s Body Wash and
Johnson’s H&B lotion.
Johnson’s, a brand that
cuts across multiple categories, is a leading brand in hand & body (H&B)
lotion and body wash — two categories where market dynamics differs greatly.
H&B lotion is a small relatively quiet market where Johnson’s often
maintains a dominant leadership position. Body wash on the other hand is a cutthroat
business with thin margins, as big global brands jostle for market share.
Some years back Johnson’s regional leadership was
exploring ways to exploit the synergy of the brand across the two categories.
They had a few questions on their minds — Could Johnson’s equity transcend
categories? Could they leverage the brand’s equity from one category to
another? If so, that would open opportunities to strengthen the brand as well
as optimize costs in brand building.
Exhibit 7.22 Cross-category overlap analysis: Johnson’s Hand
& Body and Body Wash.
At Nielsen, we picked the Singapore market for
in-depth study of the Johnson’s brand. One analysis, depicted in Exhibit
7.22, provides a break-up of the 21% Johnson’s buyers into three buyers groups
— those who bought Johnson’s H&B only (H&B only — 24% of
buyers), those who bought Johnson’s Body Wash only (BW only — 56% of
buyers) and those who bought both Johnson’s H&B and Johnson’s Body Wash (H&B
+ BW — 20% of buyers). For each of the three buyer groups,
we examined their behavioural loyalty to the Johnson’s brand within H&B and
body wash.
Considering Johnson’s dominant position in H&B,
it did not come as a surprise that loyalty for Johnson’s H&B was high (65-66%)
for both H&B only and H&B + BW buyer
groups. What caught our attention, however, was the much higher loyalty of 46%
for Johnson’s Body Wash, among H&B + BW buyers, compared to
the 28% loyalty, among BW only buyers.
Also revealing was the cross-basket analysis
of Johnson’s H&B buyers. Exhibit 7.23 depicts the body wash basket
of purchases by the Johnson’s H&B buyers’ buyer group. Within this
group, Johnson’s Body Wash had a commanding share of 27.5% — which is
exceptionally high when compared with the 9.5% market share of Johnson’s Body
Wash, within the panel population as a whole.
In the context of buyer groups, the share of
Johnson’s Body Wash in total market (9.5%) is called the “fair share” — i.e.,
the share we would expect if there was nothing extraordinary about the buyer
group. The index 27.5/9.5 (= 290 re-based to 100), called the fair share
index, is extraordinarily high. It tells us that the propensity of a
Johnson’s H&B buyer to buy (in terms of value) Johnson’s Body Wash, is 2.9
times greater than that for the average brand buyer.
The cross-category overlap analysis,
and the cross-basket analysis suggested that Johnson’s brand equity transcended
the categories; that there existed a strong synergistic relationship. Consumers
buying both Johnson’s product were much more loyal to Johnson’s Body Wash. This
synergy was leveraged via subsequent marketing efforts such as the joint Johnson’s
body care ad in Exhibit 7.21, which jointly advertised
Johnson’s Body Wash and Johnson’s H&B lotion.