Comparative study of Johnson & Johnson and Wipro

P.AKHILA SRI

Roll no : 128338

B.COM 3(P)

Marketing

ST.FRANCIS DEGREE COLLEGE FOR WOMEN

Begum pet, Hyderabad-500016

2014-2015

1
 Certificate
This is to certify that the project work entitled “comparitive study of Johnson& Johnson and
wipro” is a bonafide work carried out by Miss. P.Akhila Sri , B.COM 3(p) marketing,Roll
number 128338 students of St.Francis Degree College for Women , Begumpet, Hyderabad

It was undertaken during the academic year 2014-2015 in partial fulfillment of the degree of
Bachelors of Commerce (Professionals). The results embodied in this study have not been
submitted to any other institution or university for an award or diploma.

The students own work has been done under my supervision and guidance.

Date:

Project supervisor

Mrs.Latha.S

St.Francis College for women

Begumpet, Hyderabad-16

2
 Acknowledgement
I extend my sincere thanks to Mrs.Swaroopa and Mrs.Latha for her valuable guidance and
supervision in helping me out for completion of this project

My profound gratitude to the department of commerce,St.Francis Degree College,for giving

me an opportunity to take up this project which has been an excellent and rewarding
experience.

Finally , I thank all the respondents for their kind co-operation and valuable time spent in
responding to the questions which provided a base for the analysis of my project.

3
 Index
Chapter 1 Page numbers
1.1 Introduction 7-8
1.2 Objectives
1.3 Significance
1.4 Methodology
1.5 Scope
1.6 Limitations

Chapter2
2.1 History of the company 11-27
2.2 Introduction to marketing
2.3 Marketing 4 P’s
2.4 Marketing strategies
2.5 Review of articles
2.6 Product line of the company

Chapter3 29-40
3.1 Data analysis and interpretation
3.2 Swot analysis

Chapter4
42-48
4.1 Conclusions and suggestions
4.2 Annexure
4.3 Bibliography

4
Graph number Graph title Page number
1 Occupation 29

2 Amount spent on baby 30

products
3 Age profiles 31

4 Brand preferences 32

5 According to convienience 33
And availability
6 Paediatrician and family 34
recommendations
7 Brand value 35

8 Media used 36

9 Attractive ad promotions 37
10 Downfall of Johnson and 38
Johnson
11 After innovations 38

5
Chapter 1

6
Introduction:

Quality baby products and accessories are essential for infants. Comfort and toys are some of
the most important things in the baby world. They allow babies to enjoy a great time in their
small baby world. The many colourful baby products that are available in the market are
specially created to suit interests of the little ones. Baby accessories are also equally crucial
to add entertainment, fun and flavour to their little baby world. A wide variety of baby
products are required throughout a baby’s growing stages, from a bathing kit to toys. Parents
should be careful during choosing a product for the baby world. The cosmetics should not be
heavily perfumed or even remotely carcinogenic. pH balanced products are available in the
market. It is safest to go for those products only. Use of mild soaps, shampoos, wipes, lotions
and oil ensures the protection of the baby’s delicate skin. Every parent should keep a first aid
kit ready at all times. This saves a lot of trouble from fishing for supplies around the house
during an emergency. Maintenance of proper hygiene is very important. A very careful survey
of the best diapers for the child must be done. It’s essential that a child is comfortable in
his/her diapers. And lastly maintaining a scrapbook and saving all those memorable moments
of the parents’ and infant’s lives is imperative. They are memories of a lifetime!

Significance:

problem solving, research gathering, time management, information synthesizing, utilizing

high tech tools, With all these combinations , it helps to learn many Skills for Living
in a Knowledge-Based, Highly Technological Society . The study has been
undertaken to know and understand what are the consumers preferences, marketing
strategies adopted by both Johnson & Johnson and Wipro to analyse various factors
which influence the consumers preference and to gain insight into consumers
purchase patterns.

Objectives:
 To find out the fast moving brand through a consumer survey

 To find Satisfaction levels amongst the consumers which would help to predict the
future market

 To draw effective suggestions and conclusions

Methodology:
Primary data has been collected by means of questionnaire, interview.

7
 Whereas the secondary data has been collected from news papers, websites and
various articles and journals

Scope:
The scope of the study is limited to the number of respondents participating and is also
dependent on the findings from the interview with few personnel of the retail stores
the frontiers where the study is conducted is limited to that of a neighbourhood and
others.

The probability of getting absolute results is thus confined to a sample of 30 respondents with
in the age group of 20-40 years and income groups of lower middle class ,upper
middle class and other sections of people .

Limitations:
 A limited size of the sample has been taken.

 The accuracy of the findings is dependent on the interviewed parties .

8
Chapterisation
The study is divided into four chapters as follows

Chapter 1: Introduction

Chapter 2: Review of literature

Part A : Marketing strategies of the companies

Part B: Consumer reports on the companies

Chapter 3: Analysis and interpretation

Chapter 4: Conclusions and Suggestions

9
Chapter 2

10
Part A
History of the company :

Johnson and Johnson

Robert Wood Johnson joined his brothers James Wood Johnson and Edward Mead
Johnson to create a line of ready-to-use surgical dressings in 1885. The company produced its
first products in 1886 and incorporated in 1887.
Robert Wood Johnson served as the first president of the company. He worked to
improve sanitation practices in the nineteenth century, and lent his name to a hospital in New
Brunswick New Jersey. Upon his death in 1910, he was succeeded in the presidency by his
brother James Wood Johnson until 1932, and then by his son ,Robert Wood Johnson II.
Robert Wood Johnson's granddaughter, Mary Lea Johnson Richards, was the first baby to
appear on a Johnson & Johnson baby powder label. The brand has an reputation for making
baby products that are exceptionally “pure and safe” the first johnsons cream was launched in
the year 1921 , the gift box theme was introduced in the year 1922,johnsons baby oil was
introduced in the year 1938 and lotion in the year 1942 and it launched its key product in the
year 1953 i.e the shampoo and “no more tears” has been registered as a trade mark in 1959.

What is marketing?
Marketing is the process that creates interest among customers in goods or services. It
generates the strategy that underlies sales techniques, business communication and business
developments. It is a process by which companies build strong customer relations and create
questionable value for their customers and for themselves,was said by Philip Kotler,; Gary
Armstrong, Veronica Wong, John Saunders (2008).
Marketing is basically used to make out the customer, to convince the customer, and to keep
the customer. The marketing concept is to achieve organizational goals depends upon
knowing the needs and satisfying the customer needs and also delivering the4 desired
satisfactions.
Marketing strategy means to allow an organization to focus on its related resources on the
greatest opportunities to increase sales and achieve a sustainable competitive benefit. The
strategy is centered on the key concept that the main goal is customer satisfaction.

11
4 P’s of marketing

Johnson & Johnson

Product, Place, Promotion, and Price

Most firms make a point of meeting the advertised prices of their competitors, and Johnson
and Johnson is no exception. J&J price strategy is not to lower prices below those of their
competitors, but instead to stimulate sales through special promotions.

Johnson and Johnson’s sales reinforce the company’s position as the largest and most
prominent health care organization in the world. J&J is committed to high quality standards
and achieves success despite intense competition from other health care product producers. In
1996, $1.91 billion was reinvested in research and development to achieve advances in new
products. Innovative advances are the driving force to become first in the market and in the
minds of consumers. In fact, J&J received the National Medal of Technology for the highest
science and engineering achievement in 1996. To develop products that improve the quality
of life, J&J is currently forming alliances with other companies through joint ventures,
acquisitions, and co-marketing agreements.

Johnson and Johnson have been very successful in creating products for the long-term such as
Band-Aid adhesive strips, Tylenol, and Baby care items. These three products are J&J's heart
and soul for maintaining their competitive global edge. Johnson and Johnson has 150
locations world wide, and their products are sold in a 155 countries.

With mature products like Band-Aid adhesive strips, Tylenol, and Baby care items, J&J has
built a financial cushion which allows them to experiment with new products such as
Neutrogena, Clean & Clear, Mylanta, and Nicatrol. These new product lines represent the
current tactics by J&J to ensure continued domination in the personal health care industry.

Product

Mass is produced on a large scale as intangible service or tangible object with a specific
volume of units. Service based products are intangible products like tourism industry and
hotel industry or codes based products like cellphone load and credits. Examples of tangible
object are motor car and the disposable razor. Packaging also needs to be considered.
Johnson and Johnson products are basically in three main categories: Pharmaceuticals,
Medical Devices & Diagnostics, and Consumer Health care.

12
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

The price is the amount paid by the customer for a product. It is firmed by a number of
factors including market share, competition, material costs, product identity and the
customer’s perceived value of the product. If other stores have the same product the prices
may be fluctuated in the business.

In the United States, 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.

Place
Place represents the location where a product can be purchased. It is also known as the
distribution channel. Any physical store as well as virtual stores can be included on the
Internet.
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 retail outlets ,super markets ,medical stores
etc

Promotion

Promotion has four distinct elements: advertising, public relations, idle talk and point of sale.
When promotion uses the four principal elements jointly, which is common in film
promotion, a certain amount of crossover occurs.
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
campaign products are made available in all the certified stores and outlets.

13
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). “clinically proven
mildness”(India)

Johnson & Johnson Strategies

Product Strategy
To improve the quality of day to day life Products from J&J Consumer company stand
ready. The company presents products and information targeting baby care, oral care,
nutritionals, pain relief, topical care, skin and hair care and much more. Within the Consumer
business franchise they create a meaningful innovation in healthcare which relies on a
research strategy equally entrenched in technology and consumer insights, in maintaining
with our vision: BRINGING SCIENCE TO THE ART OF HEALTHY LIVING.

Marketing Strategy
They Sell skin care products for mothers and children ,it secured name as the worlds most
trusted brand. Johnson and Johnson company is able to address all of the different segments
within the market, because each segment is different in terms of its users and equipment, its
products are helpful to all of the different segments.
Brand Values- Vision & Mission of Johnson and Johnson is that this is a global company, to
provide scientifically sound is the fundamental objective high quality products and high
standard of living. To provide a baby healthy life right from the start. Understanding mother’s
& baby’s balanced & emotional needs, so that every mother and baby can be a Johnson’s
mother or Johnson’s baby. It also recognizes the weight of healthcare professionals. To
enhance the position and facilitate the special connection between a mother and her baby
product attributes. The following steps done: Given utmost importance to safety, comfort, and
gentleness. It is clinically proven that Johnson and Johnson brand is a Seal of Mildness.

Product Innovation
 Make products as per the needs of the customers.
 Customized baby oil as per Indian consumer’s requirements.
 As per Indian preference providing fragrances in soaps / powder etc
On parity with competition Johnson and Johnson tries to bring new products in a new market
so that their marketing doesn’t leave the race. Using price analytics to identify opportunities
for policy and process change. Managing negotiations to avoid the “price trap”.

Company Analysis

14
To develop effective defense strategy, Johnson & Johnson had a capability to learn its rival’s
plan and also planned well-positioned competitive intelligence program. Johnson & Johnson
management faced problems in decreasing the prices however since in the course of the
conflict the company lost millions in profits. However, on long run, this change made capture
major market share and to turn into a biggest player on the market.

Credo:

Johnson and Johnson's Credo is given to their employees, ensuring their vision is shared by
all. This Credo states:

 Provide high quality products for doctors, nurses, patients, and parents.
 Treat employees as individuals with opportunities for development and advancement.
 Support good works and charities in each community .
 Meet the responsibility to the stockholders by making a sound profit, while continuing
research and development.

Wipro
History of the company:
The company was incorporated on 29 December 1945, in Mumbai by Mohamed Premji as
'Western India Vegetable Products Limited',later abbreviated to 'Wipro'. It was initially set up
as a manufacturer of vegetable and refined oils in Mumbai, Maharashtra, India under
the trade name of Kisan, Sunflower . The company logo still contains a sunflower to reflect
products of the original business.
In 1966, after Mohamed Premji’s death, his son Azim Premji returned home from Stanford
University and took over Wipro as its chairman at the age of 21.
During the 1970s and 1980s, the company shifted its focus to new business opportunities in
the IT and computing industry, which was at a nascent stage in India at the time. On 7 June
1977, the name of the company changed from Western India Vegetable Products Limited, to
Wipro Products Limited.
The year 1980 marked the arrival of Wipro in the IT domain. In 1982, the name was changed
from Wipro Products Limited to Wipro Limited. Meanwhile Wipro continued to expand in
the consumer products domain with the launch of "Ralak" a tulsi-based family soap and
"Wipro Jasmine", a toilet soap.

15
4 P’s of Wipro:
Product:
Product comprises of product variety, Quality, design, features, brand name, packaging, sizes,
services, warranties, returns. In short every thing that is required for a product to stand out in
the eyes of its target audience. The way people see and perceive a product is based on all the
above qualities. The loyalty solely lies on the product quality and service.
Wipro baby products are of great quality has a unique feature of natural ingredients suitable
for Indian consumers which makes it very convenient to use, the products are attached with
quality as well as quantity , provides satisfying service to its customers which result in the
brandloyalty.

Price :
Price comprises of the list price at which it is stated, discounts that the product offers and
other allowances and concessions that it gives.
Price is again an attractive component of any product after the attraction and
consuming desire that the advertising and branding sets for the customer , it is the price that
converts the desire to consumer into the desire to want the product which is backed by the
purchasing power of the consumer.Wipro baby products are reasonably affordable and is
available in various small and medium size sachets which are very convenient to carry and
use.

Promotion:

Promotion comprises of the sales promotions, product promotions, advertising, public

relations etc. Everything that is required by the company to pitch, promote and advertise its
product to make it reach to the masses and make people aware of the qualities and effects of
the product.
Celebrity endorsements are a big attraction for the consumers they then relate to the brand at
much greater levels
Wipro’s baby products pitches themselves as the mother and child products which caters to
the basic needs of the baby . Though there are no celebrity endorsements for the same but it
has carved out a decent place in the market world in terms of promotion

Place:
Place comprises of channels, coverage, locations, magazines etc wherever the product can be
promoted is a place for it.

16
Wipro baby care products manages to cover sufficient channels and magazines for its
promotions and has managed to place itself among the top 3 or 4 brands that deal with the
problem of babies and their common problems .

Part B

Review of literature :
Johnsons & Johnsons

Johnson & Johnson is an American multinationl medical devices, pharmaceutical 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 headquartered in New Brunswick, New Jersey with the consumer
division being located in Skillman, New Jersey. The corporation includes some 250
subsidiary companies with operations in over 57 countries and products sold in over 175
countries. Johnson & Johnson had worldwide sales of $65 billion for the calendar year of
2011.

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.

On December 31, 2012, the Food and Drug Administration approved Sirturo, a Johnson &
Johnson tuberculosis drug that is the first new medicine to fight the infection in more than
forty years.

Consumer reports on Johnson and Johnson:

Environmental pressure groups and consumer groups analyzed the contents of dozens of
products for children and found that many items contained two substances of particular
concern: formaldehyde and 1,4 dioxane, which has been linked to cancer in animal studies, is
created during a process commonly used to make other ingredients gentler on the skin.

17
Wipro:

Wipro Limited (Western India Products Limited) is an Indian multinational IT

Consulting and System Integration services company headquartered in Bangalore, India. In
the year 1990 it expanded its product line to consumer products and started manufacturing
toiletry soaps and other baby care products As of December 2014, the company has 154,297
employees servicing over 900 large enterprise & Fortune 1000 corporations with a presence
in 61 countries. On 31 January 2015, its market capitalisation was approximately 1.63
trillion ($26.3 billion), making it one of India's largest publicly traded companies and seventh
largest IT services firm in the World.
To focus on core IT Business, it demerged its non-IT businesses into a separate company
named Wipro Enterprises Limited with effect from 31 March 2013. The demerged companies
are consumer care, lighting, healthcare and infrastructure engineering which contributed
approximately 10% of the revenues of Wipro Limited in previous financial year. Recently
Wipro has also identified Brazil, Canada & Australia as rapidly growing markets globally and
has committed to strengthen the presence in the respective countries over the next 5 years.

Consumer reports on Wipro:

Though wipro uses environment friendly products as much as possible. The same products
may not cater to all he babies as the skin type and other factors like seasons also influence the
usage of the products. Wipro diapers are causing many problems for the babies as the diaper
tends to drop off from the babies body and after few hours. It becomes loose and the diaper
becomes too bulky. It is actually the inserts that are bulky. That is so uncomfortable for new
born babies. The wetness tends to go through the diaper after an hour or two which is a big
concern for the mothers. Though The outside covering is mentioned as water proof. The
mothers feel it is very difficult to handle during journey. Hence Wipro should make the outer
covering more water proof.
The consumers also have a problem with the soap as it is not suitable for the babies during the
winter seasons. And it is also causing minute rashes and redness for the babies if used more
than twice in a day.

Review of Articles:

Johnson & Johnson comes clean:

Aug 22, 2012, New York times

18
Johnson & Johnson, which makes a range of personal care products like baby shampoo, acne
cream and antiwrinkle lotion, announced to remove a host of potentially harmful chemicals,
like formaldehyde, from its line of consumer products by the end of 2015, becoming the first
major consumer products company to make such a widespread commitment. By 2015,
consumer products will be reformulated.

Johnson & Johnson already vowed to remove certain chemicals from baby products, like its
shampoo, by 2013.
Environmental and consumer groups have for years pressured Johnson & Johnson and its
competitors to remove questionable ingredients from their products. In 2009, the Campaign
for Safe Cosmetics, a coalition that includes the Environmental Working Group, analyzed the
contents of dozens of products for children and found that many items contained two
substances of particular concern: formaldehyde and 1,4 dioxane.
Consumers won't find either listed on the back of their shampoos or lotions because neither is
technically an ingredient. Formalde-hyde, which last year was identified by government
scientists as a carcinogen, is released over time by common preservatives like quaternium-15
and DMDM hydantoin, which do appear on labels.

And 1,4 dioxane, which has been linked to cancer in animal studies, is created during a
process commonly used to make other ingredients gentler on the skin.
The company also plans to phase out other ingredients that have been linked to health
problems, including phthalates, which have a variety of uses, like lessening the stiffening
effects of hair spray; several fragrance ingredients; and triclosan, an antibacterial substance
used in soaps.

Johnson and Johnson gained it back:

May 6, 2013 |By Jane Kay and Environmental Health News

At a small ceremony in February, Johnson & Johnson executives were handed a scroll of
30,000 signatures from consumers. But, in an unusual twist, these consumers weren’t
complaining; they were thanking the company.Just four years ago, the company had to
answer to a round of laboratory testing by the Campaign for Safe Cosmetics, a nonprofit
watchdog group. Testing revealed that its gentle, mild baby shampoo contained the
carcinogen formaldehyde. In recent years, its customers have been asking questions about
chemicals in the products, said Samantha Lucas, a corporate spokeswoman, in an interview
from its New Brunswick, N.J., headquarters.

Lucas said “We've found agreeable alternatives,”. “We're committed to absolute transparency
about what's in the product, and what's on the label. We're very involved in the complete
supply chain, including holding our suppliers and our raw materials providers to our high
standards.”

For example, their chemists said they reformulated products in a way that would extend shelf
life and prevent the growth of bacteria without using preservatives that release the alcohol
form of formaldehyde.

19
 They also eliminated parabens, which also serve as preservatives, but only in baby products;
the company did not answer questions about why parabens remain in its other products. The
world's biggest maker of health care products had a 10 per cent jump in profits and gained
back its loyal consumers

Here’s the science behind Johnson's Baby's 'aww'-inspiring advertising

Ravi Balakrishnan, EconomicTimes Bureau Jul 16, 2014.

The advertising template for Johnson's Baby appears to be absurdly simple: happy mothers
enjoying the time they spend with infants. Through several decades of ads — and the brand
has been here since 1948 — we've seen babies bathed, take their first steps, gurgle and coo at
their mothers and commiserate with them

However, under the hood, these ads have been driven by a strategy that's helped the brand
maintain a leadership position. Today, it has a 90% plus share ,according to Mr. Ganesh
Bangalore, general manager - marketing, consumer products division, Johnson &
Johnson.The ads capture the joy that every new mom faces the first time she holds her child.
The fact that babies are the most precious gift of all leads into why you need to care for the
baby's skin and why J&J products are the safest."

He observes, "We ensure that we perform the due diligence of checking if the insight is
locally relevant. We recognise the fact that you can't take an American ad and slap it on here."
One of the early brands to bank on activation, J&J has been running Healthy Baby contests or
get-togethers for three decades. Paediatricians are present at these events where the focus is
on infant health and consumer education.

The Present
The marked difference between previous campaigns and J&J's most recent work is the
appearance of the "buddhu papa." The Power of Gentle acknowledges that babies change
lives of both parents. While the basics of parenting remain unchanged, there are larger
societal shifts at play. Company also admits, "The challenge is to be relevant to every new set
of moms."

Report: Johnson & Johnson pulls products from Amazon.com

November 10, 2013|New York Times

NEW YORK - Johnson & Johnson stopped selling some of its products through Amazon.com
Inc because it felt the online retailer was not doing enough to stop third-party merchants from
selling damaged or expired J&J merchandise, the Wall Street Journal reported on Sunday.
Citing people familiar with the matter, the newspaper said J&J has resumed selling some of
the items on Amazon.com, but the disagreements have yet to be fully resolved.

20
In July, Amazon's CFO said business generated from third-party merchants accounted for
about 40 percent of items sold in the second quarter.Amazon finally took proper measure in
transactions related to bulk purchases.

Wipro’s market :

Financial daily from The Hindu group of publications

September 2003

In the late '90s, Wipro came up with household penetration panels for a region-specific
growth approach. While an analyst with a European brokerage firm says the regional slant is
a deliberate move to avoid expensive head-on collisions with the FMCG biggies at the
national level, Wipro insists that it was a strategic ploy to drive growth through innovation
and value delivery by understanding the differing needs and expectations of the consumer.
Among the national players, Wipro was perhaps the first to launch smaller 50 gm packs of
toilet soaps (priced at Rs 5) to propel growth in the rural pockets. The micro marketing focus
also helped the company in using distribution strategically to power its brands and sales. The
case in point includes the use of the grocery store route to sell electrical products such as
bulbs and baby care products.

This finds reflection in other FMCG segments as well. Take talc. Wipro's overall market
share is only three per cent, while its presence in Andhra Pradesh and Kerala is significantly
higher at eight per cent. In baby care, Wipro Baby Soft soap, pitted against global giant
Johnson & Johnson, accounts for 30 per cent share of the segment in Andhra Pradesh. The
pattern repeats itself in the lighting business where Wipro has a 16 per cent share of the bulbs
market in Kerala followed by Andhra Pradesh and Karnataka with 12 and nine per cent
respectively.

The other side of wipro:

May 16, 2007

Wipro's consumer care business is usually overshadowed by its faster growing IT business.
Although the consumer care business is growing on a much smaller base, stock analysts and
consumer products industry experts agree that 36 per cent is to be considered as a stabilised
growth.
Especially considering that 38 percent stabilised growth in IT , while 36 per cent is
exceptional in an industry that's been recording 20-25 per cent growth rates for some time
now. Mr. Nagender Arya, general manager, business development, Wipro, said"We spend
around 30 per cent on advertisements," he adds, which is less when compared to other

21
companies,but we are trying to increase it to 50 percent which helps to capture the rural
markets.

Baby care market:

Aug 04, 2009

Wipro Baby soft, which accounts for 7 per cent market share, always believed it can play the
price card.It's test-marketing its baby products in Andhra Pradesh, and hopes to convince
customers that a lower price need not mean lower quality. According to a survey conducted it
is estimated that in urban households parents buy baby care products until babies are 1-and-
a-half year old. Then, they use their own personal care products on children. And that cross
use of non-baby brands has restricted the category's growth to 7 per cent.
After the allegations on Johnson and Johnson baby products Wipro took the lead and had a
chance to expand its markets.
Even so, the company is betting on stores. They expect that a better visibility; competitive
pricing and branding will help to grow the market and their market share.

Johnsons &Johnsons products :

Jhonsons baby head to toe wash :

Gently cleanses without drying.

Baby’s skin is 10 times more sensitive than adults. JOHNSON’S baby HEAD-TO-
TOE wash is an ultra-mild cleanser for your baby’s delicate skin and sensitive eyes. The
NO MORE TEARS formula is as gentle to the eyes as pure water that soothes the baby
during bath time. It’s the first choice of hospitals and designed to be gentle enough .

Available in: 88 mL, 266 mL, 444 mL, 828 mL and 1 L

Baby lotion :

Nourishes baby’s skin for 24 hours. It is the first choice of hospitals.

22
Baby’s delicate skin loses moisture nearly two times faster than adults skin. JOHNSON’S
baby lotion softens and nourishes the baby’s skin, and is gentle enough to use in the
morning and night. This CLINICALLY PROVEN MILDNESS formula is designed gentle
for newborns. With a classic JOHNSON’S Baby fresh scent, this hypoallergenic lotion
soothes and softens while moisturizing your baby’s skin.

Available in: 88 mL, 266 mL, 444 mL, 798 mL

Baby shampoo:

As gentle to the eyes as pure water.

Baby’s delicate eyes need special care during bath time. JOHNSON’S baby shampoo is as
gentle and mild to the eyes as pure water. This baby shampoo’s NO MORE TEARS
formula cleanses gently and rinses easily, leaving the baby’s hair soft, shiny, manageable
and clean while smelling baby-fresh.

Available in: 88 mL, 444 mL, 592 mL

Baby bed time bath :

Clinically proven to help baby sleep better.

Sometimes babies have trouble sleeping. This 3-step night time baby bath routine is
clinically proven to help the baby go to sleep easier and sleep better through the night in
just 7 days after using the product. JOHNSON’S baby BED TIME bath helps in providing,
a gentle massage, and a few minutes of quiet time, it can let the baby drift off to a better
night’s sleep. Making bath time a gentle and calming time, with
NATURALCALM essences that blend aromas to soothe the baby to a better sleep.

Available in: 266 mL, 444 mL, 828 mL

Bed time lotion :

Clinically proven to help the baby sleep better.

Sometimes babies have trouble sleeping. This nighttime routine is proven to help the baby
go to sleep easier and sleep better through the night in just 7 days.

With a bath using JOHNSON’S baby BEDTIME BATH, a gentle massage

using JOHNSON’S baby BEDTIME lotion and a few minutes of quiet time, can help the
baby drift off to a better night’s sleep. Clinically shown to last all night long to leave the
baby’s skin feeling touchably soft and smooth, johnsons lotion is a mild and gentle formula
for baby’s delicate skin.

23
Available in: 266 mL, 444 mL, 798 mL

Baby powder:

Absorbs excess moisture for silky-soft skin.

It’s a classic. JOHNSON’S baby powder gently absorbs excess moisture with a clean,
classic scent, this incredibly soft baby powder formula glides over the baby’s skin to
eliminate friction and leave it feeling delicately soft and dry while providing soothing
comfort.

Available in: 113 g, 425 g, 623 g

Baby lotion with vanilla and oat meal :

Comforts & moisturizes skin.

Baby’s dry skin can make them uncomfortable. JOHNSON’S baby moisture wash with
vanilla oatmeal is a gentle baby skincare cleanser that goes beyond cleansing to comfort
and nourish the baby’s skin with moisture. It combines oatmeal, an ingredient long known
to help moisturize, with an essence of vanilla for baby-soft skin. JOHNSON’S baby
moisture wash with vanilla oatmeal with NO MORE TEARS formula is allergy-tested and
gentle enough for everyday use.

Available in: 444 mL, 828 mL

Baby moisture wash with shea butter and cocoa :

Helps protect sensitive and dry skin.

A baby’s skin loses moisture quickly. JOHNSON’S Baby Wash soothes and relieves the
baby’s dryand sensitive skin with a smooth touch of shea and cocoa butters. This cleanser’s
rich and creamy lather nourishes as it cleans, leaving baby’s skin feeling soft. This
hypoallergenic wash can be used anytime to and helps in bonding with the baby.

Available in: 444 mL

Wipes:

Helps to wipe away 95% of dirt and germs.

Baby’s hands and face can get messy. That’s why JOHNSON’S hand & face wipes were
designed to gently and effectively remove dirt and germs from baby’s delicate hands and
face anywhere, anytime. These baby wipes are alcohol free and as gentle to baby’s eyes as
pure water.

Available in: 25 count

24
Destini (multi purpose ointment):

Protects and treats minor skin irritations

DESITIN multi-purpose ointment is a patented white petrolatum enriched with vitamins

A&D. It forms a protective layer on skin to immediately soothe and start to relieve minor
skin irritations, such as dry, chapped skin and minor cuts and burns, and rash discomfort.
This hypoallergenic formula glides on easily, goes on clear, and is gentle on baby's tender
skin. This clear, easy to apply formula makes it perfect for using at every diaper change to
help prevent diaper rash from even occurring.

Available in: 3.5 oz

Safety swabs:

A safer way to clean hard to reach areas with expertly designed tips.

The unique shape of the safety swabs makes baby care and cleaning the delicate area
around the baby's ears safer and easier.

Available in: 55 count, 185 count

Diapers:

Little Snugglers Diapers, formerly Gentle Care and originally Supreme, are designed for
newborn infants, and available in step sizes of Preemies, Newborn, 1, and 2.

Little Movers, formerly known as Natural Fit and Supreme, are designed for infants who
have outgrown Little Snugglers size 2.

Snug & Dry Diapers, formerly known as Ultratrim, are marketed with the "LeakLock"
feature, which is claimed to capture to help prevent leaks. Available in step sizes of 1 through
6.

Overnites Diapers are designed to absorb nighttime leaks, and available in step sizes of 3
through 6.

Pure & Natural Diapers were introduced in 2009, and marketed as an environmentally
friendly alternative to traditional Huggies diapers. They are available in step sizes of
Newborn, and 1 through 5.

Pull-Ups toilet training pants for toddlers transitioning from diapers to underwear, and are
avaviable in three sizes, 2T-3T, 3T-4T, and 4T-5T.

25
Wipro baby care products:
1.Wipro Baby Soft Oil:

This oil from the house of Wipro comes enriched with olive oil and vitamin E.

 Both these ingredients are extremely important in replenishing and nourishing your
baby’s skin better.
 Olive oil and Vitamin E are known to strengthen the baby’s skin while keeping it
young, soft and supple.
 It comes in an easy flip top bottle of 50 ml, 100 ml and 200 ml.

2. Wipro Baby Soft Tulsi And Almond Soap:

Tulsi is known for its anti-bacterial properties while almond is famous for its moisturizing
capabilities.

 Together these two make for an ideal baby soap to keep the baby’s skin clean and
beautiful.
 The special thing about this soap is that it helps maintain pH balance of your baby’s
skin.

3. Wipro Baby Soft Diapers:

Wipro baby soft diapers come with a unique Super Gel absorbent formula.

 This special system helps quickly absorb all the moisture and keeps the baby’s skin
soft and dry.
 These diapers are specially designed to make it leak proof.
 It also has anti-bacterial absorbents, making it all the safer for the baby.
 The contours and elastic also add to its benefits, making it more easy and comfortable
to wear for longer hours.

4. Wipro Baby Soft Powder:

Baby Soft Powder from Wipro offers the enriching quality of olive oil.

 This helps nurture your baby’s soft skin.

26
  It is known for its soft, gentle and smooth texture.
 The gentle baby perfume in the powder makes it work as a great deodorant too.
 It is made in strict accordance with the quality standards which make it safe for baby
use and doesn’t clog pores.

5. Wipro Baby Soft Feeding Bottles And accessories:

Wipro’s baby accessories are made keeping the best baby accessories quality in mind.

 They are made from the best food grade poly carbonate and polypropylene
materials to ensure baby’s safety.
 The bottle print is non-toxic.
 The bottles come with a special strainer cup. This prevents nipple clogging.
The nipple is also made from special liquid silicon. This nipple is brilliant in preventing the
baby from swallowing air with the feed.

27
Chapter3

28
Analysis and interpretation of the data:

The
occupations
of the sample
collected
constituted of
40% of

housewives,36%were working mothers and 24% of the mothers are self employed(business).
The number of housewives were little higher when compared to working women and self
employed women .And the reasons for more number of housewives is , many women tend to
take a break from their jobs after having a child. They continue their professional life once
the baby is grown up and has a better support. Working mothers are the next highest because
these days the companies are allowing the women to work from home adding as a
convenience for the mothers to continue with their work life and motherhood. The self
employed women are really less and they have a better convenience when compared to the
working women.

29
On an average every family spends minimum 10-25% of their monthly income on baby
products. Consumers spending 1000-2000 rupees get a monthly income of 15-20000 rupees,
and 2000-3000 rupees are spent by people who have a monthly income of 20000-30000
rupees, and 3000-4000 rupees are spent by the consumers who receive around 30000-40000
rupees monthly, finally 4000 and above are spent by people who get a monthly salary of more
than 40000.according to survey the expenditure gradually reduces as the baby grows older.
And the data has been collected from the families who have babies of just born to 1year age.

30
Majority of the consumers i.e, 66% are of the age group 20-30 and rest of the consumers
were of 26% between 30-40 i.e, the consumers who have a second child. And the rest are 40
above which is very less, about 8% and these are the consumers who are having second child
and also adoptions.

31
Majority of the consumers prefer Johnson and Johnson i.e , 57% as their most preferred brand
when compared to Wipro which is preferred by 30% of the consumers .

Around 13%are comfortable with other brands like Himalaya , libero etc due to various
factors . This shows Johnson and Johnson has influenced consumers choice in terms of brand
image , quality and other factors .

32
Factors influencing preference of Johnson and Johnson preference:
According to convenience and availability:

Most of the consumers are preferring Johnson and Johnson brand because of its vast
availability of product line and its famous tag line “head to toe” gives the mothers more
satisfaction . Whereas Wipro is just offering the basic essentials like soap , lotion ,powder
,shampoo, diapers, etc .Wipro has a very conventional product line which may not cater to all
the skin types of requirements for the babies.

Johnson and Johnson availability and distribution is also high, it is available in all the retail
store, medical stores and general stores, Wipro availability is comparatively less.

33
Paediatrician and family recommendations:

The experienced and old doctors with in the age group of 50-60 adviced the mothers to use
Johnson and Johnson as they believe the quality and standards are well maintained by the
brand , and though wipro is a well established brand the consumers are facing minute
problems like rashes , redness etc . Wipro also has a very less product differentiation and
product line so the basic products may not cater to all the babies, and young doctors with in
the age group of 35-45 has the same opinion with wipro and other products . there has been a
majority of acceptance for Johnson and Johnson, as the mothers believe that their parents
have been using the same product for them when they were infants (mothers with age group
20-30) and the quality of the product was always high and demand for the product remains
the same irrespective of introduction of various other new brands.

34
Brand value:

Fifty four percent of the consumers feel Johnson and Johnson brand has a great value for the
money spent on the products, and these consumers told that price is secondary but quality is
prime concern. The other 31% of consumers felt wipro was satisfying their basic needs of the
baby and the prices are reasonable so they prefer wipro and 15% of the people prefer other
products due to various reasons like low price and other attributes like herbal ingredients

35
Most impactful media in advertising the baby products:

Television had a larger impact in advertising the baby products and next higher impact is
through magazines as they have special magazines for women and mothers , other medias
like internet and social websites are playing a major role these days as everybody are
connected to internet and smart devices , outdoor media plays a minor role compared to other
channels. And according to the survey Johnson’s is the major user of all the effective media
channels.

36
Attractive ads (promotions):

Mothers in nuclear families have radically different sources of information: the internet,
family, friends or maybe even groups on WhatsApp. Often, the support system offered by
mothers or mothers-in-law is absent and the young moms are racked by self doubt. Johnson
and Johnson recognised the changing scenario and tried to make sure that the right
information is offered to the young mothers. Another front that's opening up is parents in
small towns and villages where Johnson's Baby is known but not always a part of people's
lives due to various constraints Johnson & Johnson several campaigns over the years have
highlighted the mother child relationship and particular product benefits. One of the landmark
ads according to consumers is the 'clinically proven mild' film starring actress kajal
(bollywood actress). She says, “It beautifully captures the life changing events”. On the other
hand Wipro doesn’t use celebrity endorsements much or repetitive advertisements hence it
failed to create an impact on consumer’s mind and purchases.

37
Downfall of Johnson & Jonson:

Johnson and Johnson continued to lead the market till 2009 and in the months of august to
October there had been reports on Johnson and Johnson shampoo which contains two
potentially harmful chemicals, formaldehyde and 1,4-dioxane, that have come under
increasing scrutiny by consumers and environmental groups , after this the company’s sales
went down drastically which helped wipro and other brands to boost their sales.

In response to consumer pressure , the

company pledged to remove both chemicals from
its baby products by the end of 2013, and the
company had met that goal in the month of
September 2013

As a result, it gained back its loyal consumers and new consumers.

Johnsons executives and the research team stated that formaldehyde occurs naturally in many
products — a person’s exposure to formaldehyde in an apple, or any other product they
claim, is greater than it is in 15 bottles of baby shampoo. And 1,4-dioxane is found in their
products at levels low enough to be safe.

Swot analysis

38
Johnson & Johnson
Strengths:

1. Johnson & Johnson is one of the World’s Most Admired Companies.

2. The United Nations awarded Johnson & Johnson the 2011 Humanitarian of the Year Award
for our leading role in its Healthy Mother, Healthy Child initiative.
3. One of the “Top 100 Companies for Working Mothers” every year since the list was
initiated 26 years ago.
4. Brand presence in form of advertising media and print media for a number of products.
5. Excellent distribution network as the brand is supplied to remote villages and faraway
places.
6. Johnson and Johnson is a brand trusted by mothers the world over.
7. Has an excellent product portfolio and high quality offerings.
8. It includes some 250 subsidiary companies with operations in over 57 countries and
products sold in over 175 countries.

Weaknesses:

1. Maintaining a global brand can be problematic as retailers may stock the products
exceeding shelf life.
2. Being a global brand means operations are disturbed by market fluctuations.

Opportunities:

1. Acquisitions of other smaller companies and increasing broad brand presence.

2. Bringing out a range of more portable products for economy class and increasing rural
penetration.

Threats:

1. Excessive promotion of any product making it almost generic.

2. Spurious brands with the name similar to existing brand name.
3. Availability of cheap substitutes and low priced competitors. This can be expressed as a
major threat to Johnson and Johnson

Wipro:

39
Strengths:
1. A well established brand.
2. Brand acceptance.
3. Natural care/herbal ingredients Product line.
4. Leading company in IT and other areas of the market share.
5. Core knowledge of technology and innovations as competitive advantage.
6. Strong Brand Image.
7. Good Distribution Network.
8. Extensive Supply Chain.
9. R & D - a key Strength.

Weaknesses:

1. Wipro is uneven across product line.

2. very low Penetration in rural markets.
3. Limited product differentiation.
4. Celebrity endorsements are less.
5. Spends very less on advertisements.
6. High customer grievances regarding diapers.
7. Not mostly convenient for working mothers.

Opportunities:

1. Extend wipro baby soft brand to new categories like Skin Care and body wash
segments.
2. Market Development.
3. Export Opportunities/spread globally.
4. Product Innovation.
5. Increasing income level of the middle class.
6. Creating additional consumption pattern.
7. Increasing the number of advertisements.

Threats:

1. Existence of hard core competition from Johnson and Johnson.

2. Demand for new products/brands.
3. Low price substitutes

Chapter4
40
Conclusions:

41
  Johnson and Johnson had been the market player since 1959-2009.
 Wipro has always maintained stability in the market.
 Toxic ingredients in the Johnson and Johnson shampoo led to a downfall of
the company for 2-3 years.
 Wipro took its place and the sales have increased rapidly in the year 2009-
2013.
 Johnson and Johnson successfully came back with effective solutions and as
result gained back its loyal customers.
 In the present scenario its facing a downfall due to lack of proper ad
promotions and lack of convenience for the mothers in the product line.
 Wipro is not able to capture the market due to availability of low priced
substitutes of same quality.

Suggestions:

42
 Johnson and Johnson should try to reach the economy class by creating the
product of the same quality and removing the unimportant ingredients for
fragrances and providing the product at lower cost.
 Wipro should concentrate on rural markets and frame affective strategies for
rural penetration rather than wasting its investments in expanding its product
line.
 Wipro should also create appealing ads to attract the young mothers.

43
Annexure

44
Name-

Occupation-

Income range-

Age-

1.Which brand do you currently prefer for your baby care products ? List them out.

2.Do you prefer “natural” baby care products ?

Yes

No

3.When you hear the term natural baby care products what does that mean to you

The products are safe for my baby

The products do not contain any chemical

The products are made from organic ingredients

The term natural doesn’t mean anything or does it make any difference to your purchase

others please specify:

4.How did you find out about the products which you are currently use for your baby ?

The brand has been around forever

Friends /family told me

Advertisements

Paediatrician’s advice

5. How do you rate the following

45
 Very Important Important Not Important

Natural ingredients

Petroleum products

Paediatrician recommended

No tears

Non toxic

6.Why do you prefer the brand which you are currently using

Convenience {they cater all needs of my baby }

Quality

Price

Brand value

Other opinions:

7. Are you loyal to the brands you use for your baby’s personal case needs (or) are you
willing to try new products .

I am always will to try something new

I will try a new product if it costs less

I would try a new product if I receive a sample

Once i find something that works I am sticking to it

Price is secondary but the quality is the prime concern

8. What type of diapers do you typically use?

Cloth diapers

Disposable

No diapers

Pant style

46
Bibliography

47
References

 Articles
 http://articles.economictimes.indiatimes.com/2012-08-22/news/33322604_1_baby-
products-consumer-products-campaign-for-safe-cosmetic
 http://articles.economictimes.indiatimes.com/2014-07-16/news/51600425_1_healthy-
baby-johnson-johnson-jj-products
 http://articles.chicagotribune.com/2013-11-10/business/chi-johnson-johnson-pulls-
products-from-amazoncom-20131110_1_johnson-johnson-amazon-com-jj
 http://www.scientificamerican.com/article/johnson-and-johnson-removes-some-
chemicals-from-baby-shampoo-other-products/
 http://ibnlive.in.com/news/marico-redefining-strategy-for-baby-care-market/46201-
7.html
 http://articles.economictimes.indiatimes.com/keyword/baby-care/featured/5

Webliography:

 www.wipro.com
 www.jnj.com
 www.johnsonsbaby.com
 www.wikipedia.com
 www.infoentrepreneurs.org
 www.realreviews.in

48