Johnson and Johnson Marketing Mix 7 P’s

The roots for the Johnson & Johnson Company run deep. The company began
in1886. It incorporated one year later. By 1896 it had released its first major
product of note – a sterilizing technique for catgut sutures.

The firm branched out in 1919, with the establishment of an affiliate in Canada,
and in Britain in 1924. Next came a public launch and a listing on the New York
Stock Exchange in 1944.

Over the years Johnson & Johnson has grown substantially in part due to strategic
acquisitions ranging from large ones such as Neutrogena in 1994 and DePuy in
1998, to many smaller ones. From 1989 to 1999, the company made 45 such
acquisitions of companies and product lines. Today the firm can boast of revenues
exceeding $61,897 million during the financial year (FY) ended December 2009.

Product
• Johnson and Johnson products are basically in three main categories:
Pharmaceuticals, Medical Devices & Diagnostics, and Consumer Health
care.
• The following are examples of the Johnson & Johnson product inventory:
Feminine hygiene, Denture care, Contraceptives, Immunology, First aid,
Family planning, Oncology, Nutritionals, Diabetes care, Neurology, Vision
care, Allergy cold and flu treatment, Women’s Health, Medical devices and
diagnostics.

Price
• Johnson and Johnson strives to keep their net price increases for health care
products within the Consumer Price Index (CPI).
• Johnson and Johnson works with governments to develop differential
pricing approaches to help more people access their medical products.
Johnson & Johnson companies have agreements with the United Kingdom
for VELCADE ® (bortezomib), a treatment for multiple myeloma, and with
France for RISPERDAL® CONSTA® (risperidone long-acting injection) a
medication for the symptoms of schizophrenia. Companies and government
agencies are also entering other types of risk-sharing agreements in order to
help people gain access to new therapies sooner.
• The following are examples of Johnson and Johnson consumer product
prices: Bengay Pain Relief $12.99, (at Amazon), Listerine Oral Care $7.49
(Next Tag), Splenda Sweetener $7 (Drusstore.com).Tylenol Rapid Release
$12.95 ( Allegro Medical.com ).
 Place
• These are some companies that sell Johnson and Johnson products
wholesale: Over the Counter Wholesale.com, WUZ Group,
ShopatHome.com
• Johnson and Johnson products can be found at the following retail outlets:
Target, Walgreens, WalMart, Vons and Eversave, to name but a few.

Promotion
• Johnson and Johnson offers special discount coupons on products such as
baby care, and contact lens.
• Johnson and Johnson has run a “Beauty for All Ages” rebate promotion on
Coupons.com and some of the campaign products are available at Walgreens
and may also include buy one get one half off discount as well.
• Johnson & Johnson is involved with many causes and advertising campaigns
that encourage healthy lifestyles. Key initiatives include: The Campaign for
Nursing's Future, Having a Baby Changes Things, and Because We Care We
Act (China).

Process
• Johnson and Johnson employs what they call a “decentralized management
approach”. Employees are encouraged to be “entrepreneurial” with the
understanding that they will benefit from focusing on customer needs and
providing solutions.
• Johnson and Johnson seeks to turn insights into innovative new products and
sometimes whole new businesses. Their goal is to capitalize on scientific
breakthroughs, marketing insights and manufacturing expertise easily across
the full range their businesses. With more than 250 operating companies
have a local window into emerging customer needs, scientific developments,
and technologies throughout the world.
• The Executive Committee of Johnson & Johnson is the principal
management group responsible for the operations and allocation of the
resources of the Company. This Committee oversees and coordinates the
activities of the Consumer, Pharmaceuticals and Medical Devices and
Diagnostics business segments. Each subsidiary within the business
segments is, with some exceptions, managed by citizens of the country
where it is located.
 Physical Evidence
• The Johnson & Johnson Headquarters is located at One Johnson & Johnson
Plaza, New Brunswick, New Jersey.
• The Johnson& Johnson Consumer Division is located at 199 Grandview
Road, Skillman New Jersey.
• The Ortho-Biotech Division is located at 700 Route 202 Raritan, New
Jersey.
• The Lifescan Division is located at 1000 Gibralta Drive, Milpitas,
California.
• The VistaKon Division is located at 7500 Centurion Pkwy, Jacksonville,
Florida.
• The Endo Surgery Division is located at 4545 Creek Road Cincinnati, Ohio.
• The Independence Technology Division is located at 40 technology Drive,
Warren New Jersey.
• Company Subsidiaries, Codman and Shurlett as well as De Puy Acromed are
located at 325 Paramount Drive Raynham Massachusetts.
• The Johnson and Johnson logo is based on the signature of James Wood
Johnson, one of the two brothers originally who founded the company.
• Johnson & Johnson maintains a presence online via a number of websites
http://www.jnj.com/connect/others/sitemap/ which provide information on
company values, and management approach.
• Another Johnson and Johnson website http://www.jnj.com , provides
detailed information on various consumer products such as Listerine or
Tylenol.

People
• William C Weldon is Chairman & Chief Executive Officer of Johnson &
Johnson.
• Dominic J. Caruso is the Chief Financial Officer and Vice President of
Finance.
• Johnson and Johnson has a Global Diversity and Inclusion program with a
goal of achieving a skilled, high performance workforce that is reflective of
the diverse global marketplace (workforce).
• Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50
Companies for Diversity.
• The company has ranked high Working Mother Magazines’ Top One
Hundred Companies for Working Mothers or 24 years.
Johnson & Johnson was founded more than 120 years ago on a revolutionary idea:
Doctors and nurses should use sterile sutures, dressings and bandages to treat
peoples’ wounds. Since then, we’ve brought the world new ideas and products that
have transformed human health and well-being. Every invention, every product,
every breakthrough has been powered by generations of employees who are
inspired to make a difference

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Company Perspectives:

Our Credo: We believe our first responsibility is to the doctors, nurses

and patients, to mothers and fathers and all others who use our products
and services. In meeting their needs everything we do must be of high
quality. We must constantly strive to reduce our costs in order to
maintain reasonable prices. Customers' orders must be serviced promptly
and accurately. Our suppliers and distributors must have an opportunity
to make a fair profit. We are responsible to our employees, the men and
women who work with us throughout the world. Everyone must be
considered as an individual. We must respect their dignity and recognize
their merit. They must have a sense of security in their jobs.
Compensation must be fair and adequate, and working conditions clean,
orderly and safe. We must be mindful of ways to help our employees
fulfill their family responsibilities. Employees must feel free to make
suggestions and complaints. There must be equal opportunity for
employment, development and advancement for those qualified. We
must provide competent management, and their actions must be just and
ethical. We are responsible to the communities in which we live and work
and to the world community as well. We must be good citizens--support
good works and charities and bear our fair share of taxes. We must
encourage civic improvements and better health and education. We must
maintain in good order the property we are privileged to use, protecting
the environment and natural resources. Our final responsibility is to our
stockholders. Business must make a sound profit. We must experiment
with new ideas. Research must be carried on, innovative programs
developed and mistakes paid for. New equipment must be purchased,
new facilities provided and new products launched. Reserves must be
created to provide for adverse times. When we operate according to
these principles, the stockholders should realize a fair return.

Key Dates:

1886: Johnson brothers begin producing dressings in New Brunswick, New

Jersey.
1887: Company is incorporated as Johnson & Johnson.
1893: Johnson's Baby Powder is introduced.
1921: Band-Aid brand adhesive bandages make their debut.
1924: Overseas expansion begins with the establishment of Johnson &
Johnson Limited in the United Kingdom.
1932: Robert Johnson, known as 'the General,' takes over leadership as
president.
1943: Johnson writes the company credo.
1944: Company goes public on the New York Stock Exchange.
1959: McNeil Laboratories, Inc. (McNeil Labs) is acquired.
1960: McNeil Labs introduces Tylenol as an over-the-counter (OTC) pain
reliever.
1961: Janssen Pharmaceutica is acquired.
1975: Through a significant price decrease, Tylenol is transformed into a
mass-marketed product.
1982: Tylenol tampering tragedy occurs.
1988: Acuvue disposable contact lenses are introduced.
1989: J & J and Merck form joint venture to develop OTC versions of
Merck's prescription medications.
1994: Neutrogena Corporation is acquired.
1995: Merck and J & J launch Pepcid AC; company acquires the clinical
diagnostics unit of Eastman Kodak Company.
1996: J & J acquires Cordis Corporation.
1998: DePuy, Inc. is acquired, and a companywide restructuring is
launched.
1999: Centocor, Inc. merges with J & J.
 SWOT ANALYSIS
Johnson & Johnson is a global American pharmaceutical, medical devices and
consumer packaged goods manufacturer founded in 1886. Its common stock is a
component of the Dow Jones Industrial Average and the company is listed among
the Fortune 500. Johnson & Johnson is known for its corporate reputation,
consistently ranking at the top of Harris Interactive's National Corporate Reputation
Survey, ranking as the world's most respected company by Barron's Magazine, and
was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy
by the U.S. State Department for its funding of international education programs. A
suit brought by the United States Department of Justice in 2010, however, alleges
that the company from 1999 to 2004 illegally marketed drugs to Omnicare, a
pharmacy that dispenses the drugs in nursing homes.
The corporation's headquarters is located in New Brunswick, New Jersey, United
States. Its consumer division is located in Skillman, New Jersey. The corporation
includes some 250 subsidiary companies with operations in over 57 countries. Its
products are sold in over 175 countries. J&J had worldwide pharmaceutical sales of
$24.6 billion for the full-year 2008.
Johnson & Johnson's brands include numerous household names of medications and
first aid supplies. Among its well-known consumer products are the Band-Aid Brand
line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin
and beauty products, Clean & Clear facial wash and Acuvue contact lenses.

Strengths
* Diversified product offerings: company operates in three segments: Consumer,
Pharmaceutical, and Medical Devices and Diagnostics
* Company covers the almost the full spectrum of the supply chain (research and
development, manufacture and sale of products)
* Support from non-pharmaceutical business
divisions
* Brand recognition
* Strong drug pipeline

Weaknesses
* Generic drug's exposure
* Private label exposure
* High reliance on sales of CNS and Risperdal
* Kills babies

Opportunities
* Leverage experience with therapeutic proteins and monoclonal antibodies across
other therapy areasasdfasfa
* Integrate recent acquisitions
* Global expansion

Threats
* Healthcare regulations
* Private label growth; generic drugs growth
* Weaker consumer environment expected in the US
* Spreading too thinly - made investments in non-core areas, like social media