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.
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[...] This is why they should be thanked and motivated through an incentive event. Distribution The distribution network of VPJ focuses only on retail outlets. VPJ sale force should target other distributors and users such as institutional users. It is thus important to aim at hospitals for example. Indeed, those would represent large VPJ users because they would place order in great quantity. They could also influence patients by using VPJ as a reference product. This could lead to consumer acceptance. [...]
[...] Vaseline is used by many types of sportive people (rugby men, gymnasts The best way to make the brand known by this target is sponsoring. Possible plans of action Product's Packaging Size We should adapt the size of the product regarding the type of consumers: medical structures need huge quantities ( 15.0 oz or even more) whereas a working girl will need the smaller size to carry with her in her purse ( 1.75 oz). The family mother will need middle sizes ( 12.0 oz or 15.0 oz) for a family use. [...]
[...] Opportunities Because Vaseline Petroleum Jelly is the leader of its category, opportunities exist to reinforce VPJ brand name by launching new VPJ products on the market. This opportunity would allow the company to change its marketing plan relying more on consumer demand than on trade promotion to stimulate sales. Moreover, further sales growth could be realized by turning current light users into heavy users and refocusing salespeople on targeting institutional users. Another opportunity for VPJ would be to reach new markets such as snowboarders who need protection against wind burns and chapped lips. [...]
[...] For instance, no particular effort and strategy have been implemented to enter the institutional market, which is a high potential market for VPJ, especially for carbolated VPJ as a first aid product. Price Prices for VPJ were approved by the division general manager, whose key aim was profit improvement. Those approved prices allowed retailers an important gross margin most of the time. Between 1974 and 1977, soaring petroleum costs made price increased. According to Pure VPJ factory shipments by size, VPJ sales were mainly made in 1.75 oz oz. and 7.515 oz jar sizes between 1974 and 1977. [...]
[...] Vaseline Petroleum Jelly SWOT Analysis[2] Strengths Vaseline benefits from a dominant position on the petroleum jelly market. In its product category, VPJ is a product well known for its versatility. It has become a household staple. CPI has maintained a high level of success with an incredible market share and high brand recognition The company has kept prices low whereas consumers are not price-sensitive and perceive VPJ as being inexpensive: 70% of respondents believe that “Vaseline Petroleum Jelly is economical”. [...]
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