Team project paper with highlighted information and tips

¶ … Susan Orr

From: Skin & Hair Care SBU -- Team B

Recommendation for Project D

Project D. Application of Portfolio Process AKEEL

Our team wishes to propose a strategy for introducing Project D -- the Neutrogena® New Mineral Interchangeable Compact -- into Johnson & Johnson's existing Skin & Hair Care portfolio, alongside the three currently committed product lines, for the remaining three quarters of this fiscal year.

The Neutrogena® New Mineral Interchangeable Compact includes six shades of mineral foundation powder and applicators for use as eye shadow. The mineral shades are designed to highlight eyes while smoothing away wrinkles and blemishes. The foundations include vitamins, silk, and soy for skin protection. They come in a light, portable compact. The target market for Project D. is women aged 25 to 50 in the U.S., Europe and Asia.

In short, we propose allocating $5.5M total for Project D. over the remaining three quarters -- $1M for the second, $2.5M for the third, and $2.0M for the fourth quarter. We recommend prioritizing Project D. above Project B (Acquisition of Essentials Spa®) and Project C (Clean & Clear® Advantage® Acne Control), while maintaining Project A (Aveeno Max® for Men) as the highest priority.

We will make a case below for the immediate launch of Project D, as it promises better returns measured against the projected returns of Projects B. And C, based on an evaluation according to standards recommended by the governance council. Project D scores favorably against current products when risks and benefits are considered.

The expected annual revenue increase is $25M over the next 15 months, while the expected cost is approximately $20M. We have calculated the impact our recommendation will have on the rest of the program. This memo summarizes our calculations and projections.