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J J Chandrashekhar Docxqe
J J Chandrashekhar Docxqe
BANGALORE-85
A STUDY ON
MARKETING STRATEGY
OF
JOHNSON & JOHNSON
Submitted by
CHANDRASHEKHAR M S
Prof. B.S.PRAKASH
(INTERNAL GUIDE, FACULTY MEMBER, GCMAT)
TO,
STUDENT DECLARATION
Place-Bangalore
Chandrashekhar M.S.
Date-21-6-2011
GUPTA COLLEGE OF
MANAGEMENT & TECHNOLOGY,
Bangalore-85
(Affiliated to Bangalore University, Bangalore & Edupartner of
IAU, Los Angeles, USA)
GUIDE CERTIFICATE
Place-Bangalore
Prof. B. S. PRAKASH
Date-21-6-2011
4
GUPTA COLLEGE OF
MANAGEMENT & TECHNOLOGY,
Bangalore-85
(Affiliated to Bangalore University, Bangalore & Edu Partner of IAU, Los Angeles, USA)
CERTIFICATE
This is to certify that the project entitled MARKETING STRATEGY
1) Mr. B.S.Gupta
Director
2) Dr. Ambashankar
Dean-Management Studies
ACKNOWLEDGMENT
CHANDRASHEKHAR M S
EXECUTIVE SUMMARY
The research on marketing strategy of J & J Companys Products
has brought many things into light.
During the study, I was able to identify the marketing strategy of the company in
different markets for different products, how they are working in different areas,
how they are adopting strategy, what are the routes available, problems and
challenges faced by the company due to their promotional activities. The study
has provided the information and suggestions to improve the performance of
the company.
They are mainly targeting parents & they are mainly focusing on urban areas &
among the segmented population it targets those people, who care for their
health. The purpose of this research is to analyses the situation of J & J products
and provide forecasts for future market and product innovations.
A promotion strategy is an important element of market strategy. A key ingredient
in marketing campaigns consists of a diverse collection of incentive tools, mostly
short term, designed to stimulate quicker or greater purchase of particular
products or services by consumers or trade.
After evaluating the strengths, weaknesses, opportunities and threats, I found
that competition was the single biggest threat to J & J success both nationally
and internationally. I concluded that J & J must undertake an intensive
advertising campaign to promote brand awareness, gain a better market share
and propel the image of its products in market.
In this the Global corporate-level profile with information on the companys
business segments, major products and services, competitors, and locations and
subsidiaries.
The pharmaceuticals business has transformed its portfolio by expanding its
leadership in immunology, deepened its expertise in oncology and entered
vaccines. The company's pharmaceuticals businesses are in the process of
launching six significant new products between 2009 and 2011, some in multiple
geographies. Two of the new products are pending regulatory review in the
India, and two additional key compounds are in registration in key markets. Many
of these products could represent significant advances over the current
standards of care.
LIST OF CONTENTS
TABLE OF CONTENTS
Sr. No.
PARTICULARS
INTRODUCTION
RESEARCH METHODOLOGY
MARKETING STRATEGY
CONCLUSIONS &
RECOMMENDATIONS
BIBLIOGRAPHY
Page No.
9-27
28-30
31-40
41-58
59-64
65-68
69-70
CHAPTER 1
INTRODUCTION
INTRODUCTION:
10
2011 as new products contributed to growth and core brands delivered solid
performance.
Johnson & Johnson's pharmaceuticals business has taken a disciplined
management approach to increasing its efficiency in order to invest in its pipeline
and new product launches. For example, the pharmaceuticals business has
seen a significant increase in productivity over the last two years based on the
ratio of sales per employee, and it continues investing in R&D at higher rates
than its competitive set.
Johnson & Johnson Consumer Products Division is one of the leading fast
moving consumer goods manufacturers in India. It is also among the most
consistent and successful enterprises not just in the J&J world-wide group of
companies, but also in India. Johnson & Johnson Consumer Products division
has been growing steadily over the last few years, and is one of the few
companies in the Indian market to grow at extremely healthy levels.
Specialized surgical staples are often used to connect tissue during certain
surgeries. Theyre credited with quicker recovery times than suturing by hand.
But in emerging markets, it often costs too much to use specialized equipment
designed for developed markets. Dr. Zhao is excited about what the new surgical
tool could mean for his patients.
For a health care company passionate about meeting the unmet needs of
hundreds of millions more patients, Johnson & Johnson needs to challenge its
innovation capability to develop solutions that will be both appropriate and
affordable. To that end, Johnson & Johnson is strategically basing research and
development (R&D) centers in emerging markets to develop medical devices
and pharmaceutical and consumer products based on insights available in local
markets.
The Consumer Products Division owes its success to the strength of its brands,
and the loyalty they enjoy from consumers, a strong sense of values driven from
the Credo, and an environment, which sets the toughest standards of leadership.
Johnson & Johnson was founded more than 120 years ago on a revolutionary
idea: Doctors and nurses should use sterile sutures, dressings and bandages to
11
treat peoples wounds. Since then, we have brought to the world, new ideas and
products that have transformed human health and well-being.
Our Family of Companies is organized into several business segments
comprised of franchises and therapeutic categories - Consumer Health Care,
Medical Devices & Diagnostics and Pharmaceuticals.
In the 50 years of operating in India, Johnson & Johnson Limited, India has
gained a reputation for delivering high-quality products.
Today, we employ more than 2000 people and the businesses span Consumer,
Medical Devices and Diagnostics, Pharmaceuticals and Vision Care.
Johnson & Johnson India is an employer of choice and is a recipient of several
awards, which recognize it as one of the best employers in India.
Based on strong corporate values, Johnson & Johnson Medical is in the
business of caring and providing solutions to doctors, patients and nurses. A
leading Medical Devices provider in almost every segment, with undisputed
leadership in most of our businesses, what sets Johnson & Johnson Medical
apart is its constant focus on innovation. Johnson & Johnson Medical offers an
extensive range of high technology medical and surgical equipment, devices and
services, a name that is the preferred choice of the leading health care
professionals in India and indeed, the world over.
The business is organized into franchises to focus on target customer and better
service. J&J's fourth-quarter pharmaceutical division sales rose 5.4 percent to
$5.99 billion, medical device and diagnostic unit sales increased 11.8 percent to
$6.31 billion and consumer product sales rose 10.2 percent to $4.25 billion.
The earnings beat in the quarter was due in part to an extra week of sales in the
calendar year, as well as sharply lower taxes, the company said. The tax rate in
the quarter, of 15.3 percent, was well below the 22.8 percent rate in the year-ago
period.
12
J&J predicted a full-year 2010 profit of $4.85 to $4.95 per share excluding items.
Analysts have expected $4.94 per share.
J&J's profit jumped almost 10 percent in 2008, but grew only 1.8 percent last
year as the recession crimped sales of many products and generic competition
took its toll. The company expects earnings to rise as much as 7 percent this
year -- helped by novel products such as its recently approved stellar psoriasis
drug. J&J shares were down 0.8 percent at $62.71 on the New York Stock
Exchange, off an earlier low at $62.22.
Johnson & Johnson engages in the research and development, manufacture,
and sale of various products in the health care field worldwide. The company
operates in three segments: Consumer, Pharmaceutical, and Medical Devices
and Diagnostics. The Consumer segment provides products used in baby care,
skin care, oral care, wound care, and womens health care fields, as well as
nutritional, over-the-counter pharmaceutical products, and wellness and
prevention platforms under the brands.
1.1.1). Competitors:
Abbott Laboratories, Glaxosmith Kline, Becton, Dickinson Company, Colgate,
Palmolive Company, Pharmacia Corporation, The Procter & Gamble Company,
Unilever etc.
Johnson & Johnson spread its roots to the worlds largest democracy, India,
during the endemic post-independence turmoil of 1947. It was Mr. Patrick
Whaley who set about with confidence and determination during this period of
turbulence to begin the wok of establishing Johnson & Johnson in the
13
14
15
Fifty years in India has their advantage. Speaking to people in Mumbai and on
my ferry to Elephanta Island, I found that the Johnson & Johnson name was
fairly well known at least for its consumer products and I noticed a few
products on the shelves of a local chemist.
Janssen India, a division of Johnson & Johnson, encourages high performance
culture amongst its 700+ employees. Its fast expanding pharmaceutical range
includes products in therapeutic areas of Pain, CNS (Central Nervous System),
Immunology, Derma and Gastrointestinal. This year the company has launched
a record 9 new product in India.
Janssen India is stepping up the pace and now it's making an entry into
Immunology. We believe its time you did too.
Despite all this good work, J&J wants to make sure it doesnt overstate its
efforts. Specifically, it wants to make sure it adheres to the following:
Dont Say something youre not: Dont put yourself out there as the end all
and be all, because most likely thats not true. Products can be greener,
but cannot always be 100% green because of the nature of consumer
productsso dont say you are.
J&J wants people to know about their commitment to sustainability and they plan
to inform people in a way thats honest and not misleading. That strategy is very
much in line with its famous Credo.
16
Johnson & Johnson Consumer Products Division is one of the leading fast
moving consumer goods manufacturers in India. It is also among the most
consistent and successful enterprises not just in the J&J world-wide group of
companies in India.
Johnson & Johnson Consumer Products division has been growing steadily over
the last few years, and is one of the few companies in the Indian market to grow
at extremely healthy levels.
The Consumer Products Division owes its success to the strength of its brands,
and the loyalty they enjoy from consumers, a strong sense of values driven from
the Credo, and an environment, which sets the toughest standards of leadership.
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 have brought to the world, new ideas and
products that have transformed human health and well-being.
Their Family of Companies is organized into several business segments
comprised of franchises and therapeutic categories - Consumer Health Care,
Medical Devices & Diagnostics and Pharmaceuticals.
In the 50 years of operating in India, Johnson & Johnson Limited, India has
gained a reputation for delivering high-quality products.
Today, they employ more than 2000 people and the businesses span Consumer,
Medical Devices and Diagnostics, Pharmaceuticals and Vision Care.
Johnson & Johnson India is an employer of choice and is a recipient of several
awards, which recognize it as one of the best employers in India.
Based on strong corporate values, Johnson & Johnson Medical is in the
business of caring and providing solutions to doctors, patients and nurses.
A leading Medical Devices provider in almost every segment, with undisputed
leadership in most of our businesses, what sets Johnson & Johnson Medical
17
apart is its constant focus on innovation. Johnson & Johnson Medical offers an
extensive range of high technology medical and surgical equipment, devices and
services, a name that is the preferred choice of the leading health care
professionals in India and indeed, the world over. The business is organized into
franchises to focus on target customer and better service.
1.2.2) History:
18
Patients who can now receive better health care at lower cost are certainly
grateful, he says. Now, patients dont carry the psychological weight of financial
burden, so their recovery is complete.
When you hear the name Johnson & Johnson, you might think about baby oil,
baby powder and band-aidsand not necessarily think of them as leaders in
sustainability. At a speaker panel at the Net Impact Conference on Friday,
several J&J company leaders spoke to how the companys Credo is the
backbone of its sustainability strategy and how they have avoided green washing
as they implement their Healthy Planet 2010 goals.
Johnson & Johnson (J & J) is one of the largest healthcare firms in the world and
one of the most diversified. Its operations are organized into three business
segments: pharmaceutical, which generates 39 percent of revenues and 61
percent of operating income; professional, which accounts for 36 percent of
revenues and 27 percent of operating income; and consumer, which contributes
25 percent of revenues and 12 percent of operating income.
J & J's pharmaceutical products--which are sold under such brands as Janssen
Pharmaceutical, Ortho-McNeil Pharmaceutical, and Contactor--include drugs for
family planning, mental illness, gastroenterology, oncology, pain management,
19
and other areas. The professional segment includes surgical and patient care
equipment and devices, diagnostic products, joint replacements, and disposable
contact lenses. The company's well-known line of consumer products includes
the Johnson's baby care line, the Neutrogena skin and hair care line, Tylenol and
Motrin pain relievers, o.b. and Stayfree feminine hygiene products.
The Reach oral care line, Band-Aid brand adhesive bandages, Imodium A-D
diarrhea treatment, Mylanta gastrointestinal products, and Pepsis AC acid
controller. J & J generates about half of its revenues outside the United States,
through its network of 190 operating companies in 51 countries and its marketing
organization that sells in more than 175 countries.
Company Perspectives:
Company 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
20
Environmental record:
Johnson & Johnson has set several positive goals to keep the company
environmentally friendly and was ranked third among the largest companies in
Newsweek's "Green Rankings". Some examples are the reduction in water use,
waste, and energy use and an increased level of transparency.
Johnson & Johnson agreed to change its packaging of plastic bottles due to
harmful chemicals used in the manufacturing process, switching their packaging
of liquids to safe non-polycarbonate containers. The corporation is working with
the Climate Northwest Initiative and the EPA National Environmental
Performance Track program. As a member of the national Green Power
Partnership, Johnson & Johnson operates the largest solar power generator in
Pennsylvania at its site in Spring House, PA.
21
Key Dates:
1.2.3) Mission:
At Johnson & Johnson, good work is recognized through Performance
Management, a joint process that involves both the supervisor and the
employee. Performance is rewarded and recognized based on individual
contribution and potential. We reward these contributions, on the part of our
employees through salary, bonus, incentives, individual and team recognition
awards and stock options.
In addition to rewarding individual accomplishments, we also reward teams for
their outstanding performance, and the success of individual franchise and
division. Annualized performance-based incentives are attractively designed and
paid out in the company to incentivize individual performance.
We also have extensive awards and recognition programs for individual and
team excellence, based on the Standards of Leadership where we recognize the
extraordinary efforts of the employees that have a positive impact on
our business.
23
1.2.4) Vision:
At Johnson & Johnson, Performance Management is a joint process that
involves both the supervisor and the employee. Together, they identify common
goals, which align with the goals of Johnson & Johnson, in a process called the
Performance Planning and Evaluation Process (PPE). This revolves around
individual goals and the Standards of Leadership which provide the framework
for evaluating performances.
Apart from individual evaluation, the process aims at providing constructive
feedback to improve performance through the Development Planning process.
While the PPE focuses on the supervisor's feedback on individual performance
and behavior, LEAD-The 360 Program offers our managers an opportunity to
receive feedback on leadership abilities and personal effectiveness from all
important work relationships, namely superior, colleagues, external customers,
subordinates and self. This feedback is very essential for setting specific goals
for personal and professional development.
PPE at J&J is a foundation process used in spirit to enhance performance and to
build trust and teamwork in the organization.
Our vision is to be a source of innovation for emerging markets and addresses
the unique needs of patients, says Michael Del Prado, Company Group
Chairman, Medical Devices & Diagnostics, and Asia Pacific. This might include
devices for specific disease states that are prevalent in Asia, simplified and
smaller instruments, multi-use or disposable products that are more economical,
or a product range for rural health centers.
That its strength lays within the talent it attracts and retains. The Credo
espouses the responsibility of the company towards its key constituent
"employees". Managements all over the world and in India strive to create a
great work environment to help employees reach their potential through
Systematic Talent Management processes.
This 100-year-old company is built on a rock solid unchangeable core ideology,
24
the Credo, that drives every aspect of how the company and manages its
employees.
Whether it is through well-entrenched Performance Management systems,
culture building tools like the Credo Survey and Feedback Process, Global
Standards of Leadership, 360 degree feedback, Formal Learning and
Development processes or Career Planning Processes, the attempt is always to
develop leaders who can build a transparent, trusting, performance oriented
culture.
The philosophy of decentralization that J&J is well known for across the globe
gives tremendous freedom at work and early responsibilities to all Johnsonians.
Entrepreneurial drive and a superior ability to work in an ever complex,
competitive and changing business environment along with uncompromising
values, is what makes a Johnsonian.
25
For JNJ, India is a base for manufacturing and launching many products. It has a
R&D center called Johnson and Johnson Technical Laboratory. JNJs focus on
their customers instead of their revenue has allowed customers to develop a
strong trust in JNJ. Their focus on their product development, their customers, a
decentralized organization, and Ethical practices has led to JNJs success.
Johnson & Johnson has also entered into pharmaceutical research partnerships
that connect biotech, medical and academic communities to its global research
centers.
In 2009, Johnson & Johnson established a first-of-its-kind late-phase chemical
entity facility, Analytical and Pharmaceutical Development Center, in Mumbai,
India. The center will play a key role in addressing major global health care
challenges, many of which also face Mumbai and the region.
26
important aspects in their consumer purchasing and although many long for
western goods, they will not pay a premium for them.
Over 40 percent of the population in India is under 21 years of age. The
widespread presence of American media has made this market segment curious
about the outside world while still being rooted in Indian culture and traditions.
This curiosity has created a latent demand for the good life and for western style
convenience goods. Local distribution and logistics are still challenging but
continue to improve. Packaging and pricing requirements for the market are
unique. While multinationals like Unilever, Nestle and Pepsi have a long history
in India; large unmet opportunities exist for many others in the Indian economy.
The CPG sector has three key segments, each with its own hosts of products
that have relatively quick turnover and low costs:
Household Care
Personal Care
Food & Beverage
Description
Johnson & Johnson is a holding company. The Company and its subsidiaries are
engaged in the research and development, manufacture and sale of a range of
products in the health care field. It has more than 250 operating companies
conducting business worldwide. The Companys operating companies are
organized into three business segments: Consumer, Pharmaceutical and
Medical Devices and Diagnostics. The Company and its subsidiaries operate
139 manufacturing facilities occupying approximately 21.8 million square feet of
floor space.
2. Production:
Bringing Science to the Art of Healthy Living. At Johnson & Johnson Inc. they
build beloved Brands. Brands that stand for a trusted idea and emotion. Brands
27
that are backed by effectiveness and proven science. Brands the customers trust
to enrich their health and wellness every day.
Raw Materials
Raw materials essential to Johnson & Johnsons operating companies
businesses are generally readily available from multiple sources.
of 8-10% for the next decade. Now is the time for many western companies to
enter the rising Indian market.
Early market entry to India has many advantages including:
Ability to lock-up access to key resources and create higher entry barriers
for later entrants.
28
Ability to observe and learn market attributes for a longer time period.
One might think that global markets are accessible only to large companies with
the deepest pockets. However, Amritts experience shows that smaller
companies (SMEs) also have potential to succeed in international trade due to
their flexibility and nimbleness.
In order to succeed in market entry to India, companies must carefully plan and
execute their go-to-market strategy since India is such a complex and
challenging country. India has various groups of consumers; their attitude,
requirements, expectations, and desires differ by region. Problems can arise
from a lack of market understanding and insufficient planning. Decisions made in
the early stage including organizational structure, partnerships, staffing, and
market risks will dramatically affect the success of the firm in the long run.
India is a fast growing economy, which many companies have leveraged to
improve their bottom-line. However, many organizations are not aware of
numerous simple steps that can be taken to avoid risks and ensure greater
success in their efforts to gain advantage working with India. Resolve significant
concerns in a confidential environment.
29
CHAPTER 2
RESEARCH
METHODOLOGY
30
2.2.) COLLECTION OF DATAData has been collected from both primary and secondary sources. Primary data
is collected by personal discussions and personal observation. Secondary data
is collected by the company brochures, books, internet, magazines etc.
2.2.1) LIMITATION
31
32
CHAPTER 3
MARKETING STRATEGY
33
b. Opportunities:
34
1. The Acquisition of Pfizer by Johnson & Johnson; will present the company
to support growth for the Johnson & Johnson.
2. Johnson & Johnson has opportunity to increase market share by product
development and product innovation globally.
3. Increase global presence by expanding globally through the joint ventures
and acquisitions.
4. Expansion and innovation into diagnostics and medical devices will grants
new markets to grow.
5. Financial economic recovery will boost the income of consumers which
will ultimately increase the company revenues.
6. Assimilate current acquisitions of different companies.
c. Weaknesses:
1. On April 30, 2010, one of the subsidiaries of J& J willingly recalled 43
OTC childrens medicines, including Benadr, Tylenol Plus, Tylenol, Motrin
and Cytec.
2. In 2010, U.S. Department of Justice filed suit against Johnson & Johnson
for illegally marketing its drugs throughout Omnicare (a firm that allot
medicines to nursing homes counting patients with dementia).
3. Johnson and Johnsons key products demand is shrinking; several of
these products were branded and have been substituted by common
programmers at the finish of copyright.
4. Johnson & Johnson is wasting a lot of money and time during the hunt for
information. For example, workers are wasting a lot of time replying
cyclical enquiries, rather than moving out value-added actions.
35
d. Threats:
1. This industry may be on the restore, but its revival could be slowed down
by heavy-handed regulation and more hurting in the housing market,
amongst other things.
2. Johnson & Johnson has strong global competitors. These competitors
provide alternative and substitute products at lower prices.
3. Johnson & Johnson is in the mature market with very low market growth
rate.
4. Major pharmaceutical companies are facing strong competition for the
generics markets from the local players.
5. Bio-technological expansion will potentially move the established
pharmaceutical process out of the market in the future.
6. All the global players are facing strong regulations in the pharmaceutical
industry by different respective countries.
7. Private label has increased the nonspecific drugs growth.
36
- Provides all the crucial information on Johnson & Johnson required for
business and competitor intelligence needs
- Contains a study of the major internal and external factors affecting Johnson &
Johnson in the form of a SWOT analysis as well as a breakdown and
examination of leading product revenue streams of Johnson & Johnson
-Data is supplemented with details on Johnson & Johnson history, key
executives, business description, locations and subsidiaries as well as a list of
products and services and the latest available statement from Johnson &
Johnson.
In their entire product lines, Johnson & Johnsons operating companies compete
with companies both local and Global, located throughout the world. Competition
exists in all product lines without regard to the number and size of the competing
companies involved. Competition in research, involving the development and the
improvement of new and existing products and processes, is particularly
significant. The development of new and innovative products is Important to
Johnson & Johnsons success in all areas of its business. This also includes
protecting the Companys Portfolio of intellectual property. The competitive
environment requires substantial investments in continuing Research and in
maintaining sales forces. In addition, the development and maintenance of
customer demand for the Companys consumer product involves significant
expenditures for advertising and promotion.
Mumbai, April 13: It is not only in the area of software or dotcoms where Indians
are being recognized Johnson & Johnson Vision Care general manager Rahul
Patani (the person responsible for introducing the concept of disposable contact
lenses in India) for one has been appointed as Senior Product Director, Global
Franchise, Johnson & Johnson Vision Care, USA, becoming the first J&J India
executive to be offered a global marketing position.
a) New entrants In case of home care segment the entry barriers are low since the costs to
Set up manufacturing facility is not very high.
The exit barriers are low and thereby firms can enter and exit easily.
But the entry barriers in terms of building a national brand as well the
Distribution network is high. So is the exit barrier.
38
b) RivalryExisting players are entering new segments which will increase the
Competition e.g. Abbott Laboratories, Glaxosmith Kline, Colgate, Palmolive
Company, Pharmacia Corporation, Unilever.
c) BuyersMany drug companies available in market & buyer has many alternatives &
choices for products. Johnson & Johnson giving products at low price, good
advertising & quality products for their customers.
The Asia Pacific region is home to more than 4 billion people, almost 60 percent
of the worlds population. While the more affluent societies, such as Japan,
Australia, coastal China and metropolitan India, have access to innovative
39
products and services, a large segment of the population has been unable to
access or afford much beyond a very basic level of health care until now.
Recent health care reforms in India, spurred by continuing economic growth in
these countries, are creating possibilities for governments to deliver a higher
standard of care to many more people. Such reforms, along with the rise of a
middle class and expectations of a better quality of life, are providing
Johnson & Johnson with an enormous opportunity to address a previously
underserved market.
These mass markets are being addressed with a different business model that is
focused on bringing an appropriate portfolio of technology and products to
smaller and more rural health care settings, matching the specific range of
procedures offered. This approach has led to the development of high-quality,
affordable products that provide superior outcomes for patients who would not
otherwise have access to such technology.
3.5.1) ENABLING PERFORMANCE TODAY
The organizational design for JJSC includes a new operating model for Quality &
Compliance (Q&C) and a new structure for Supply Chain Strategy and Project
Management. Cross-sector collaboration that the new enterprise model helps
facilitate is already playing out in recovery plans related to manufacturing issues
experienced at McNeil Consumer Healthcare.
The McNeil situation has all of us rethinking business continuity planning and
how we utilize our plants and partner suppliers, says Robert Salerno, Vice
President, Supply Chain Strategy and Project Management, JJSC. Rather than
plan around one operating unit, we can approach manufacturing from a
Johnson & Johnson vantage point. With the new supply chain model, were more
able to leverage assets, best practices, systems and technologies while offering
supply chain leaders professional development opportunities across our
companies.
The new operating model will also create a single framework for Q&C across
companies, inclusive of common quality standards by product types such as
devices, drugs and combination products.
40
CHAPTER 4
COMPANY MARKETING
STRATEGY
41
About company
The company has historically been located on the Delaware and Raritan Canal
in New Brunswick. The company considered moving its headquarters out of New
Brunswick in the 1960s, but decided to stay in town after city officials promised
to gentrify downtown New Brunswick by demolishing old buildings and
constructing new ones. While New Brunswick lost at least one historic edifice
(the inn where Rutgers University began) to the redevelopment, the gentrification
did attract people back to New Brunswick. Johnson & Johnson hired Henry N.
Cobb from Pei Cobb Freed & Partners to design an addition to its headquarters,
which took the form of a white tower in a park across the railroad tracks from the
older portion of the headquarters. The stretch of Delaware and Raritan canal by
the company's headquarters was replaced by a stretch of Route 18 in the late
1970s, after a lengthy dispute.
Johnson & Johnson spread its roots to the worlds largest democracy, India,
during the endemic post-independence turmoil of 1947. It was Mr. Patrick
Whaley who set about with confidence and determination during this period of
turbulence to begin the wok of establishing Johnson & Johnson in the
42
a) Segmenting
Firstly they are segmenting on the basis of geographical location; that is the
different cities. Once the whole market is segmented on this basis we further
segment it on the basis of income that is the upper class and the middle class.
44
b) Targeting
They are mainly targeting on urban areas & among the segmented population it
targets those people who care for their health, people undergoing any
medication.
c) Positioning
They would like to position themselves as the manufacturers who really care for
their customers health and who produces quality and vital health supplements
required to maintain a good health.
Free yourself from messy gels and whitening trays. LISTERINE WHITENING
Quick Dissolving Strips dissolve as they work. In as little as two weeks, all youre
left with is whiter teeth.
4. The One Touch Ultra Mini Blood Glucose Monitoring System
A simple way to check your blood sugar on the go. Comes in great colors and is
small enough to fit in a purse or pocket. Features 500-test memory to review
recent results and two-way scrolling buttons for simple navigation. Uses One
Touch Ultra Blue Test Strips.
J & J other products are CLEAN & CLEAR, JOHNSONS Adult, NEUTROGENA,
LUBRIDERM, Vendome, LISTERINE, REACH, BAND-AID, PURELL,
CAREFREE, STAYFREE. The Pharmaceutical segment offers products in
various therapeutic areas, such as anti-infective, antipsychotic, cardiovascular,
contraceptive, dermatology, gastrointestinal, immunology, neurology, oncology,
urology, and virology. Its products include REMICADE, a biologic approved for
the treatment of immune mediated inflammatory diseases; PROCRIT, a
biotechnology-derived product that stimulates red blood cell production;
LEVAQUIN, which is used in the anti-infective field; RISPERDAL CONSTA, a
inject able for the treatment of schizophrenia; CONCERTA, a product for the
treatment of attention deficit hyperactivity disorder; ACIPHEX/PARIET, a proton
pump inhibitor; DURAGESIC/Fantasy Transversal, a treatment for chronic pain;
VELCADE for the treatment of multiple myeloma; PREZISTA for treating
HIV/AIDS patients; and INVEGA, an atypical antipsychotic. The Medical Devices
and Diagnostics segment primarily offers circulatory disease management
products; orthopedics joint reconstruction, spinal care, and sports medicine
products; surgical care, aesthetics, and womens health products; blood glucose
monitoring and insulin delivery products; professional diagnostic products; and
disposable contact lenses. The company was founded in 1886 but its launch in
India 1999.
4.4.2) Scope
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Global company shares (in Revenues) information for the key markets
Johnson operates in - Surgical Equipment, Diabetes Care Devices,
Orthopedic Devices, Ophthalmic Devices, Cardiovascular Devices,
Neurology Devices, Wound Care Management and In Vitro Diagnostics.
Johnsons company shares (in Revenues) information for all the key
market categories the company has presence in - Surgical Sutures,
Glucose Monitoring, Orthopedic Accessories, Interventional Neurology,
Joint Reconstruction, Spinal Surgery, Peripheral Vascular Devices,
Interventional Cardiology, Wound Closure Devices, Orthobiologics,
Traditional Wound Management, Clinical Chemistry, Vision Care, Trauma
Fixation and Immune Chemistry.
The company profile is also supplemented with a SWOT Analysis with indepth information and analysis of the companys value proposition and
the business climate it operates in.
4.5) Products:
Consumer products
Acuvue
Delfen
Mylanta
Rembrandt
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Actifed
Desitin
Nasalcrom
Remicade
Ambi
Dolormin
Neko
RoC
Aveeno
E.P.T.
Neosporin
Rogaine
Bactidol
Efferdent
Neutroga
Rolaids
Band-Aid
Nizoral
Nicoderm
Shower to
Shower
Benadryl
Benecol
Sinutab
Nicorette
Simply Sleep
Simponi
Splenda
Bengay
St. Joseph
Benylin
Stayfree
Bonamine
Steri-Pad
Clean &
Clear
Coach
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JOHNSON'S baby powder is the only powder which offers complete protection
to a baby's sensitive skin. Not only is it sterilized, but also, unlike adult powders,
the edges of the talc particles are smooth and will not penetrate the pores. This
allows your baby's skin to breathe easily and remain healthy.
b. Baby Oil
JOHNSON'S baby oil contains Aloe Vera extract and Vitamin E acetate. It is
Clinically Proven Mild for use on babies. It is a light, non-staining oil that can be
used before bath and for moisturizing after bath.
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c. Baby Cream
d. Baby Lotion
e. Baby Shampoo
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No more tears, Johnson's baby shampoo do not irritate baby's eyes. For
those first few months, new born babies do not have normal tear
secretions that protect their eyes from irritants. Johnson's baby shampoo
has a special No More Tears formula that is gentle on baby's eyes and
does not sting. In fact it is as gentle to the eyes as pure water!
Johnson & Johnson baby hair oil is the first hair oil to contain Pro-Vitamin B5.
Its skin conditioning properties helps prevent flaking of soft skin from baby's
scalp. The Pro-Vitamin B-5 nourishes hair roots and strengthens the hair.
g. Baby Soap
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JOHNSON'S baby soap does not irritate baby's sensitive skin. It has no strong
perfumes, no coloring agents or any harsh chemicals that will strip away the
skin's natural microbial flora. Causing no allergy or irritation to baby's skin.
Enriched with Coconut oil, this is the mildest gentlest and is a completely safe
soap to use on baby's delicate skin.
h. JOHNSON'S Buds
JOHNSON'S Buds are soft and easy on your ears. The stems of the buds are
flexible, and the cotton swabs around the ends are sealed onto serration, which
hold the swab in place.
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Marketing variables
1. Display items
2. Other
A). ADVERTISING:
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 lines of bandages, Tylenol medications, Johnson's baby
products, Neutrogena skin and beauty products, Clean & Clear facial wash and
Alcove contact lenses.
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 have brought to the world, new ideas and
products that have transformed human health and well-being.
Johnson & Johnson India is an employer of choice and is a recipient of several
awards, which recognize it as one of the best employers in India.
In order to maintain the Essential Baby website, including our popular Forums,
Essential Baby must display revenue-generating advertisements across the site.
We do our best to ensure these advertisements are relevant to the content
beside which they appear.
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B).DIRECT MARKETING:
Online and home shopping specialty channels are showing tremendous growth
globally in the premium skin care and beauty category. These include TV and
mobile-enabled shopping, branded stores and door-to-door sales. The
advantages specialty channels offer, including discounts and fast delivery, make
them attractive to price-sensitive loyal customers and early adopters.
The Consumer business is moving into these alternate channels and building
organizational capabilities to support the strategy. The Korean skin care market
is one example.
In 2010 the NEUTROGENA brand saw double-digit growth in Korea by
engaging consumers with content and solutions for acne through a clear-skin
website. Products specifically designed for sale online, with direct links to
purchase, were the brands main revenue drivers. Strategic alliances with top
online retailers helped make CLEAN & CLEAR the No. 1 teen skin care brand
in major online channels in Korea. And the AVEENO Baby site has become the
hub for sharing the AVEENO product experience as well as for viral marketing.
Efforts like these in Korea contributed to growth outside the India in 2010.
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Reasons to Purchase:
- Support sales activities by understanding your customers businesses better
- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors business structure, strategy and
prospects
- Obtain the most up to date company information available.
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CHAPTER 5
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FUTURE MARKETING
STRATEGY
5.1)
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CHAPTER 6
CONCLUSIONS &
RECOMMENDATIONS
6.1) RECOMMENDATIONS
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The company should strictly ask the customers feedback about the FMCG
products, baby care products once in 6 months.
The company should sales their products in sachets instead of pet bottles
in Rural & Semi Urban areas.
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6.2) CONCLUSIONS
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The orders should be properly noted for prompt delivery of service and
products.
CHAPTER 7
BIBLIOGRAPHY
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WEBSITES
www.google.com
www.scribd.com
www.pdfsearch.com
www.wikipedia.com
www.europa.com
www.j&j.com
WWW.YAHOO.COM
WWW.TUTOR2.NET
BOOKS
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