SWOT analysis of Neutrogena

Neutrogena is a brand of skin care products and cosmetics owned by Johnson & Johnson. The products which are primarily catering to the skin problems of mature adults includes products like skin care creams, eye and face makeup, sunscreen lotions, hair care products and anti-aging products.

The product which was initially catering to the US market currently is sold in more than 70 countries. In addition to the brand Neutrogena in the premium segment in the skin care category, Johnson & Johnson also has the brand Clean & Clear in the economy segment.

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Strengths in the SWOT analysis of Neutrogena

The following are the strengths of Neutrogena:

Association with Johnson & Johnson: Johnson & Johnson already is a household name with their strong line of baby care products and the company has something for women of all ages with Johnsons Baby Products for babies and toddlers, Clean & Clear for teens and pre-teens and Neutrogena for women. Thus they grab a place in the minds of female customers and even children are made familiar with the name from a very tender age.
Comprehensive Product portfolio: Neutrogena has a wide product portfolio and it covers almost all genres of beauty, skin care, hair care and cosmetics.The products which are primarily catering to the skin problems of mature adults under Neutrogena includes products like skin care creams, eye and face makeup, sunscreen lotions, hair care products and anti-aging products
Advertising Strategy: Neutrogena has always used storytelling to convey strong messages to their target audience. The brand also addresses issues pertaining to women like anorexia, bulimia, depression, anxiety and stress relief in their advertisements.
Strong Positioning: Neutrogena uses either need versus benefit positioning for all their product lines. In order to under the correlation between the need and the benefits, detailed customer surveys are undertaken. This ensures that the customer is able to relate to the positioning statement clearly.
Product Innovation: Neutrogena has been a very innovative brand which addresses beauty and skin care problems of the modern woman through innovative products. Some of their latest innovations include Light Therapy Acne Mask and the Hydro Boost Water Gel.
Celebrity Association: Just like most other cosmetic brands Neutrogena also associates their products to leading celebrities and fashion models. Some of the celebrities who have endorsed their products include Emma Watson, Jennifer Garner, Mischa Barton, Olivia Holt etc.

Weaknesses in the SWOT analysis of Neutrogena

Some of the key weaknesses of Neutrogena are :

Price: Neutrogena is a product that targets the premium market. In countries like India where there are numerous products in the middle spectrum as well as economy cosmetic brands, people may not always want to purchase premium cosmetic brands even if they can afford to invest in them. This affects the sales of Neutrogena.
Lack of cultural sensitivity: Though Johnson & Johnson claims to be thinking global and acting local, the principle seems to be working only for lower end brands. Brands like Neutrogena continue to be highly Western in their outlook and cater primarily to Western skin types.
Balancing supply and demand: The competition is high in the skin and hair care products and new needs, as well as new products catering to those needs, are emerging. Most of the products are expensive and do not sell in huge volumes.Thus Neutrogena faces a lot of challenges in balancing supply and demand.
Low awareness: Neutrogena has a whole range of products serving special skin needs. Customers are either not aware that they have a problem for which a product is available or do not know how to find that product.Even salespersons in retail outlets are not trained adequately. This results in many of the specialized products being left unsold in huge quantities. Many products do not even sell because customers are not aware of their existence.

Opportunities in the SWOT analysis of Neutrogena

Some of the opportunities include :

Market Potential: the potential for cosmetics in emerging markets like India and China is huge and this is where the next spell of growth will happen. For example, in India, the cosmetics market is currently estimated at 15 billion USD and it is estimated to grow at a rate of 22 to 25 percent in the next five to six years. Neutrogena is not a known brand in India and thus they must work to increase their visibility here.