SEMESTER-1 FINAL PROJECT SUBMITTED BY:

REPORT NEHA SHARMA

MBA-1
 Revenue

SECTOR INFORMATION 5%
7% Hair & care
23%
6% Foods
Health care
9%
Oral care
 Fast Movable Consumer Goods sector (FMCG) is the 4th largest OTC & Ethicals
sector in India & the market size of FMCG in India is estimated 15%
19%
Home care
to grow to US $ 74 Billion in 2018. Digestives
16%
Skin care

 Hair Care market is the leading FMCG market segment

accounting for 23% followed by food accounting for 19% &
Health care for 16% & Oral care for 15% and so on.

 The sector is further expected to grow at a Compound Annual

Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion
by 2020.
 FMCG market in India is expected to reach US$ 103.7 billion
by 2020 from US$ reach US$ 103.7 billion by 2020.

 The rural FMCG market in India is expected to grow at a CAGR

of 14.6 per cent, and reach US$ 220 billion by 2025.

 Rural segment is a large contributor and thus, accounts for

45% of revenue share whereas Urban segment accounted for
a revenue share of 55% in the overall revenue generated by
FMCG sector of India.
 Industry Competition: Competitiveness among the

Porter’s 5 Force Indian FMCG players is high. With more MNCs entering
the country, the industry is highly fragmented.
Advertising spends continue to grow and marketing

Model budgets as well as strategies are becoming more

aggressive. Private labels offered by retailers at a
discount to mainframe brands act as competition to
undifferentiated and weak brands.

Supplier bargaining power: Prices are

generally governed by international commodity Barriers to Entry and exit: The Indian FMCG
markets, making most FMCG companies price Industry is characterized with modest entry
takers. Due to the long term relationships with and exit barriers. Integrated business model
suppliers etc., FMCG companies negotiate better and increasing capital requirement in the
rates during times of high input cost inflation industry restrict new entrants. Huge
investments in setting up distribution
networks and promoting brands and
competition from established companies.

Threat of substitutes: Being an essential

commodity the demand for consumer Buyer bargaining power: High brand loyalty
products is elastic. Multiple brands positioned for some products, thereby discouraging
with narrow product differentiation. customers’ product shift. But low switching
Companies entering a category /trying to gain cost and aggressive marketing strategies
market share compete on pricing which under intense competition within the FMCG
increases products substitution. Hence, threat companies, induce Customers to switch
of substitute is high in the industry between products, thereby driving value for
money deals for consumers
COMPANY OVERVIEW • Johnson & Johnson is an American multinational corporation
founded in 1886.
• Johnson & Johnson is headquartered in New Brunswick, New
Jersey, the consumer division being located in Skillman, New
Jersey.
• CEO & CHAIRMAN – Alex Gorsky
• FOUNDER – Robert Wood Johnson
SWOT ANALYSIS

• Broad brand portfolio

STRENGTHS • Supply chain
• Trusted brand & Strong brands

• Improper Positioning
WEAKNESSES • Strong competition
• High attrition rate in work force

• Acquisitions
OPPORTUNITIES • Increasing rural Penetration
• Diversification

• Fight against harmful ingredients

THREATS • Intense Rivalry
 BRANDS
Product portfolio of Bedtime
Baby Oil
Baby Shampoo
Baby Lotion
Baby Powder
Destin
Bebe
Clean & Clear
Shower to Shower
Pharmaceuticals
Neutrogena
Consumer Health • Immunology, Band-Aid
Medical Devices
Product
• Orthopedics
Cardiovascular & Savlon
Skin Health Product Metabolic Disease, Caladryl
• Self Care Product • Surgery
Pulmonary Hypertension
• Essential Health • Interventional Solutions
• •Infectious Diseases &
Purell
Product • Vision Listerine
Vaccines, Neuroscience,
Oncology Stayfree
Carefree
Visine
Acuvue Lenses
 Company News

• September 25, 2019:

4 Secrets for Fostering an Innovative Workplace
Johnson & Johnson's Chief Human Resources Officer reveals
• We foster an innovative mindset at every level.
• We believe inclusion drives innovation.
• We include those who will benefit from our innovations in the problem-solving
• process.
• We encourage employees to gain a breadth of experience at Johnson & Johnson—and beyond.

• July 22, 2019

The Quest for a Global Preventive HIV Vaccine Reaches an Exciting Milestone with the Mosaico
Study.
• July 01, 2019
Johnson & Johnson Signs the Military Spouse Employment Partnership to Help Service Member
Spouses Build Careers.
 COMPETITOR ANALYSIS (Market Share)

Market Share

MAJOR COMPETITORS :

• J&J -8.85% (Health Care) 1.98%

• Procter and Gamble – 4.56 %
• Pfizer – 1.98% (Consumer health care)
• Reckitt Benckiser -12 to 13% in cream 4.56%
8.85%
segment for
PAIN RELIEF (like – moov)

J&J P&G Pfizer

Product Information
• Johnson’s® Cotton touch™ Face & Body Lotion is
Ultra light and gentle for newborn’s sensitive* skin.
• Your baby's skin is up to 30% thinner than yours so
it needs ultra gentle and delicate care.
• Gentle for newborn sensitive* skin (*vs. adult skin)
• Unique water-based lotion blended with natural
cotton
• Light weight; Leaves no unwanted residue
• Clinically proven safe for newborns
• Nourishes baby skin from first use
• Available in Different Sizes at Different Prices:
 50 ml – Rs. 136
 200 ml – Rs. 453
 400 ml – Rs. 415
 800 ml – Rs. 576
SWOT ANALYSIS OF
LOTION (COTTON TOUCH)
STRENGTHS
• J&J is available in attractive packaging
• Excellent advertising and brand visibility in baby care market makes it a top-
of-the-mind brand.
• Excellent distribution network
• Presence in all the shops all over the country

WEAKNESSES
• Sensitive skins have fear of skin reactions
• Rural presence is not that wide

OPPORTUNITIES
• Developing different varieties of lotions
• Developing similar kind of products for mothers.
• Approaching rural market

THREATS
• Other brands in this segment like-Genttel, Himalaya herbal, Mother care, Chicco
• Substitutes such as milk cream and oils
 Marketing Mix
Product
Basically, Johnson & Johnson has three main products categories including Pharmaceutical, Medical
Device & Diagnostic, and Consumer Healthcare. Some of the products are Feminine hygiene, Denture
care, First aid, Family planning, Nutritionals, Diabetes care, Allergy cold and flu treatment, and Women’s
Health.

Price
Johnson & Johnson attempt to keep their net price increases for healthcare products within the
consumer price index in United Stated. Consequently, the company has cooperated with the
government to develop differential pricing approach so that people are helped to access their
medical products

Place
Johnson & Johnson product can be found in wholesale companies like Over the Counter
Wholesale.com, WUZ Group, and ShopatHome.com. Its products can also be bought in retail outlet.

Promotion
Johnson & Johnson has engaged in advertising campaigns which encourage healthy lifestyles. For
example: The Campaign for Nursing’s Future, having a Baby Changes things, and Because We Care
We Act (China).
PRODUCT LIFE CYCLE OF JOHNSON BABY
LOTION
STP OF JOHNSON’S BABY LOTION

CUSTOMER SEGMENT
•Almost all segment parents who are above the poverty line with respect
to
income
•Family groups in tier 1,2,3 cities; rural areas (town & panchayat)
TARGET GROUP
•Mothers of age group (24-32)
POSITIONING
•Point of parity: Smoothens the skin
•Point of difference: available in various categories like before sleep &
after bath lotion for baby.
•Positioned at different stages as it has given variety of baby lotion for for
different time using the following taglines:
For the most delicate days of life – Choose gentle
Made with real cotton
Giving the best, first time, every time!
 ORGANISATIONAL STRUCTURE
CEO &
DIRECTOR
CHAIRMAN

Vice Chairman
Chief LEGAL Chairman Global corporate Chief of the Executive
Chief Financial Chief HR committee
Officer Information (General (Medical affairs & Chief Scientific
Officer Officer counsel) Devices) Communication officer (Deputy CEO)
Officer

VP • Chief Design officer

Global Public • Chief Technological
VP Officer & VP,
Relations Global Service Technology Services
Excellence & • Chief Global Supply
VP Experience Chain Officer
• Worldwide Chairman,
of Innovation
Pharmaceuticals
• VP , Global Marketing
World Wide & Experience
President, Surgical • VP, Global Technology
Infrastructure &
Commercial
Development
• VP, Product
Innovation & Delivery
• President, Skin
Health
 FINANCIAL ANALYSIS

• WORKING CAPITAL OF THE YEAR

For the year 2018 • FIXED ASSETS ADDED DURING THE YEAR
Working capital = Total current assets – Total current Liabilities Total assets (2018) = 152,954.00 US million $
= 46,033.00-31,230.00 Current assets (2018) = 46,033.00 US million $
=14,803 US million $ Fixed assets (2018) = Total assets – Current assets
• GROSS PROFIT MARGIN = 152,954.00-46,033=106,921 US million $
Johnson & Johnson's Gross Margin for the year that ended in Dec. 2018 is calculated as
Gross profit = 54,490 US Million $; Sales = 81,581 Total assets (2017) = 157,303.00 US million $
2018 Calculation Current assets (2017) = 43,088.00 US million $
• Gross profit margin = 100 × Gross profit ÷ Sales to customers Fixed assets (2017) = Total assets – Current assets =
= 100 × 54,490 ÷ 81,581 = 66.79% 157,303.00-43,088.00 = 114,215 US million $
2018-2017=106,921-114,215 = -72194 (decline)
• Johnson & Johnson, net profit margin calculation
Net earnings = 15,297 US million $; Sales to customers = 81,581 US million $ Johnson & Johnson total assets for 2018 were $152.954B,
2018 Calculation a 2.76% decline from 2017.
Net profit margin = 100 × Net earnings ÷ Sales to customers Johnson & Johnson total assets for 2017 were $157.303B,
= 100 × 15,297 ÷ 81,581 = 18.75% a 11.4% increase from 2016.
Operating profit margin = 24.27% Johnson & Johnson total assets for 2016 were $141.208B,
Return on Investment a 5.84% increase from 2015
• Return on equity (ROE) = 25.60%; Return on assets (ROA) = 10.00%
Johnson & Johnson ROE for the three months ending September 30, 2019 was 39.81%.
JOB DESCRIPTION & JOB SPECIFICATION

MARKETING
FINANCE
HUMAN RESOURCE