J&J Chandrashekhar - Docxqe
J&J Chandrashekhar - Docxqe
J&J Chandrashekhar - Docxqe
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BANGALORE-85
Submitted by
CHANDRASHEKHAR M S
Prof. B.S.PRAKASH
(INTERNAL GUIDE, FACULTY MEMBER, GCMAT)
TO,
STUDENT DECLARATION
I hereby declare that research entitled MARKETING STRATEGY OF JOHNSON AND JOHNSON submitted to International American University in fulfillment of the requirement for the award of Master in Business Administration, is a record of independent research work carried out by me under the supervision and guidance of Prof. B.S.PRAKASH, GCMAT, Bangalore. This work has not formed the
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basis for the award of any degree and has not been submitted previously to any other College/University.
Place-Bangalore Date-21-6-2011
Chandrashekhar M.S.
GUPTA COLLEGE OF MANAGEMENT & TECHNOLOGY, Bangalore-85 (Affiliated to Bangalore University, Bangalore & Edupartner of IAU, Los Angeles, USA)
GUIDE CERTIFICATE
I certify that this research entitled MARKETING STRATEGY OF JOHNSON AND JOHNSON submitted to International American University in partial fulfillment of the requirements for the award of Master in Business Administration is a record of independent research work carried out by Mr. Chandrashekhar under my supervision and guidance. This work has not formed the basis for the award of any Degree and has not been submitted previously to any other College/University.
Place-Bangalore Date-21-6-2011
Prof. B. S. PRAKASH
CERTIFICATE
This is to certify that the project entitled MARKETING STRATEGY OF JOHNSON & JOHNSON is an individual work of Mr. CHANDRASHEKHAR.M.S, IInd SEM MBA, GcMAT,Bangalore-85 have successfully completed the project work and submitted the report in partial fulfillment of the requirements of MBA(INTERNATIONAL BUSINESS) prescribed by the IAU ,USA. under our supervision & guidance during the academic year 2010-2011. We further certify that the work is original & has not been submitted to any other University wholly or in part for award of any other Degree.
1) Mr. B.S.Gupta
Director Studies
ACKNOWLEDGMENT
It is my pleasure to acknowledge my gratitude to my guide Prof. B S PRAKASH, Prof. MANJUNATH GCMAT for their calm & smiling guidance, which helped me in the smooth progress of my dissertation.
I wish to thank Mr. Yogi S M Sales Manager of J&J Company for encouraging me to do my thesis. I wish to thank Mr. B S Gupta- Director, Dr. M. AMBASHANKARDean GCMAT for encouraging me to do my thesis in this college. I would also like to thank Ms Roopa Mam & Manorama Mam, all the employees & friends who have directly or indirectly helped me in making this project a great success. Last but not the least I would like to thank the members of my family who have encouraged me to do the project & have extended their valuable moral support towards the completion of the project.
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,
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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.
1 PARTICULARS Page No.
INTRODUCTION
9-27
RESEARCH METHODOLOGY
28-30
MARKETING STRATEGY
31-40
41-58
59-64
65-68
BIBLIOGRAPHY
69-70
CHAPTER 1 INTRODUCTION
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INTRODUCTION:
1.1) Pharmaceutical Industry: Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500. The corporation's headquarters is located in New Brunswick, New Jersey, United States. Its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008. Our Pharmaceuticals segment focuses on meeting important patient needs. With sales of $22.4 billion, we saw rapid growth of recently launched products. For the year, the segment experienced an operational sales decline of 1 percent. Excluding the impact of generic competition and health care reform, pharmaceutical sales would have increased by nearly 4 percent operationally. Johnson & Johnson's pharmaceuticals business generated $22.4 billion in sales last year, 36 percent of the company's total revenue, and it ranks as the world's eighth largest pharmaceutical company and fifth largest biotech company. The pharmaceuticals business saw over 6% operational growth in the first quarter of
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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.
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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. 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
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the quarter, of 15.3 percent, was well below the 22.8 percent rate in the yearago period. 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
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subcontinent. Things progressed quickly and by 1948, Johnsons Baby Powder was being manufactured by British Drug House in Prabhadevi, Bombay, and marketed by the company. Other consumer products like TEK toothbrushes, Johnsons Baby Cream and Prickly Heat Powder followed suit. However, highly specialized products like Belladonna plasters, pharmaceuticals and Premade Tapes were imported from the parent company. It was only ten years later that the company began to manufacture its own products. In September 1957, a new company, Johnson & Johnson India Ltd. was created and registered with twelve employees on its rolls. In the 50 years since its establishment as a modest 12-employee outfit, Johnson & Johnson Ltd. has gained a reputation for delivering high-quality products at competitive prices. Our success, we believe, stems from our staunch commitment to caring for and catering to the needs of our customers and employees. J&J has not always been vocal about its socially and environmentally responsible efforts, even so it has gotten attention for its sustainability strategies, including being #3 on Newsweek magazines Green Rankings List of green companies. In making the announcement, Robert Enterkin, Director of Sales and Marketing, said, We welcome Mark and Electronic Assembly Products to the JNJ Industries sales team of manufacturers' representatives, and wish him continued success in the Florida market. We believe his direct experience working for a distributor as well as for a product manufacturer, coupled with his ample years of experience working as a manufacturers representative, will enable him to provide our customers with the high level of attention and support that they have come to expect from JNJ. Mark has already developed strong working relationships with distributors and electronic manufacturers in the territory.
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Leading pharmaceutical company Johnson & Johnson Ltd. on Monday launched its nicotine gum brand Nicolette in India. The sugar-free gum helps reduce nicotine craving. Nicolette is not just a chewing gum, but a complete infrastructure and support system that can help smokers quit the habit and lead a healthier life, Tushar Murdeshwar, Johnson & Johnson India general manager for marketing, said. Beginning December 25, Nicolette will be available in packs of 4mg (10 gums) for heavy smokers through a doctors prescription. Also available is an over-thecounter product of 2mg (4 & 10 gums) for light smokers.
A nicotine replacement therapy (NRT) product, Nicolette provides therapeutic and clean nicotine, slowly and in lesser quantities as compared to a cigarette. It is just enough to satisfy the smokers nicotine craving. Some interesting facts about J&J: its the largest corporate user of hybrid vehicles, and it gets 30% of its energy from renewable sources. Its also done a lot to reduce its water footprint, reduce PVC content in products, sell waste as raw materials, and use recycled paper in product packaging. Recently, the company opened a new manufacturing facility in North India Baddi in Himachal Pradesh which caters to both Medical and Consumer sectors. To those who have been following Johnson & Johnson, this shouldnt come as much of a surprise. For instance, during the 2007 shareholders meeting, Colleen Goggins, the Worldwide Chairman of the Consumer Group, explained that almost 80 percent of the sales of Johnsons brand products are now outside the US and that the brand is growing at double-digit rates, more often than not, in China, India and Brazil. Earlier this year, BabyCenter India was launched. 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
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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.
Be Specific: Use LCAs to know the exact sustainability measures of your products. Provide your consumers with real numbers that inform and empower them.
Transparency: Partner with NGOs that can hold your products accountable and add credibility to your business. Follow the 7 Sins of Green washing and check yourself before you go to market.
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.
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.
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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 apart is its constant focus on innovation. Johnson & Johnson Medical offers an extensive range of high technology medical and surgical equipment, devices
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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.
1.2.1) History:
Robert Wood Johnson inspired by a speech by antiseptic advocate Joseph Lister, joined brothers James Wood Johnson and Edward Mead Johnson to
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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. RWJ's granddaughter, Mary Lea Johnson Richards, was the first baby to appear on a Johnson & Johnson baby powder label. His great-grandson, Jamie Johnson, made a documentary called Born Rich about the experience of growing up as the heir to one of the world's greatest fortunes.
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,
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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 advancement for those qualified. We must provide competent management, and
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their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens--support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
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.
Key Dates:
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1886: Johnson brothers begin producing dressings in New Brunswick, New Jersey. 1887: Company is incorporated as Johnson & Johnson. 1893: Johnson's Baby Powder is introduced. 1921: Band-Aid brand adhesive bandages make their debut. 1924: Overseas expansion begins with the establishment of Johnson & Johnson Limited in the United Kingdom. 1932: Robert Johnson, known as 'the General,' takes over leadership as president. 1943: Johnson writes the company credo. 1944: Company goes public on the New York Stock Exchange. 1948 The company started marketing Johnsons Baby Powder, which was manufactured by a local company, British Drug House, in Mumbai. 1957 A new company, Johnson & Johnson (India) Limited was created and registered starting with just 12 employees on its rolls and was licensed to manufacture a broad range of consumer and hospital products. 1959: McNeil Laboratories, Inc. (McNeil Labs) is acquired. 1959 Production began at the Mulund plant in Mumbai. 1960: McNeil Labs introduces Tylenol as an over-the-counter (OTC) pain reliever. 1961: Janssen Pharmaceutical is acquired. 1966 Production began at the Bhandup plant in Mumbai to make personal products. 1970 Ortho Diagnostics set up a manufacturing unit. 1975 Ethnor Ltd set up a plant for manufacturing pharmaceutical and ethical products of Ortho McNeil Laboratories and Cilag Chemie. A second manufacturing plant for personal products soon started in Bhandup in Mumbai. 1975: Through a significant price decrease, Tylenol is transformed into a mass23
marketed product. 1982: Tylenol tampering tragedy occurs. 1988: Acuvue disposable contact lenses are introduced. 1989: J & J and Merck form joint venture to develop OTC versions of Merck's prescription medications. 1994: Neutrogena Corporation is acquired. 1995: Merck and J & J launch Pepcid AC; company acquires the clinical diagnostics unit of Eastman Kodak Company. 1996: J & J acquires Cordis Corporation. 1998: DePuy, Inc. is acquired, and a companywide restructuring is launched. 1999: Centocor, Inc. merges with J & J.
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.
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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,
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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.
1. Research and Development: 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 names JOHNSONS.
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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.
Consumer Packages Goods (CPG) is often-referred to as Fast Moving Consumer Goods (FMCG) in Asia. The CPG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. Much of this emerging middle class has been raised in the post liberalization era and has an optimistic view on growth and the economy as a whole. Apart from basic needs being satisfied, many of these households with children are trying to help their kids get ahead and are beginning to view certain consumer goods as a sign of the good life. These consumers view price and value for their money as important aspects in their consumer purchasing and although many long for western goods, they will not pay a premium for them.
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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 that are backed by effectiveness and proven science. Brands the customers trust to enrich their health and wellness every day.
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Raw Materials Raw materials essential to Johnson & Johnsons operating companies businesses are generally readily available from multiple sources.
Market Entry to India As growth opportunities abate in domestic markets, attention is shifting to new and emerging economies. Numbers of western companies have received substantial rewards from the newly prosperous and growing middle class in India. Meanwhile, other companies are still wondering about the opportunities that are lying ahead. India, the fourth largest economy in the world (according to purchasing power parity), presents lucrative and diverse opportunities for western companies with the right products, services, and commitment. Indias requirements for equipment and services for major sectors such as energy, environmental services, healthcare, high-tech, infrastructure, transportation, and defense Exceeds hundreds of billions of dollars in the mid-term as the Indian economy further globalizes and expands. Indias GDP has potential for a sustained growth
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.
Ability to set the pattern of buyer preference in both consumer and industrial markets.
Ability to avail of government concessions and incentives. 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
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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.
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2.1) RESEARCH METHODOLOGY The research problem is What is the marketing strategy of J&J. 2.1.1) Type of ResearchExploratory because I am exploring the strategies of company.
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2.1.2) OBJECT OF THE WORKThis work study provides extensive information about the position of companys brand in market.
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
The data is collected only at the urban area. Time constraint Results are based on primary & secondary information The analysis and interpretation of data is made under many assumptions.
The research aim is to find out the companys promotional effectiveness, utilization, reachability, efficiency of message to customers delivered by the Company.
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The customer amazement through products and the awareness about the company is based on personal discussions. .
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3.1) SWOT Analysis: Johnson & Johnson SWOT Analysis company profile is the essential source for top-level company data and information. Johnson & Johnson SWOT
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Analysis examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. a. Strengths:
1. Johnson & Johnson is one of the worlds few companies having presence
before the 20 century. It has higher customer satisfaction and strong R&D facilities. 2. The company has achieved economies of scale and economies of scope. 3. Johnson & Johnson is recognized for its corporate repute, strong customer base, brand loyalty and brand image. 4. Johnson & Johnson has strong global presence by having 250 subsidiary companies with operations in more than 57 countries. 5. The company products are sold in more than 175 countries and it had global pharmaceutical revenues of $24.6 billion for the FY 2008. 6. Johnson & Johnson has successfully differentiated itself from competitors. 7. Johnson & Johnson is a vastly diversified company by having enormous variety of products in medical devices, pharmaceutical, and consumer packaged goods. 8. Johnson & Johnson has more than 29,925 internet domains over most of the big Internet & technology companies.
b. Opportunities: 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.
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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. 5. Johnson & Johnson is facing strong pressure to reduce prices and preserve copyright expirations in order to make sure that nonspecific programs are reorganized within decisive lane activities. 6. The company has high dependence on the revenue of Dispersal and CNS.
d. Threats:
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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.
3.2) Scope of the Report: - 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.
3.3.1) Industry Johnson & Johnson consistently ranks at the top of Harris Interactive National Corporate Reputation Survey, ranking as the world's most respected company by Barron's Magazine, and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department for its funding of international education programs. A suit brought by the United States Department of Justice in 2010, however, alleges that the company from 1999 to 2004 illegally marketed drugs including antipsychotics to Omnicare, a pharmacy that dispenses the drugs in nursing homes. Johnson & Johnson responded that the payments were lawful and appropriate. The corporation's headquarters is located in New Brunswick, New Jersey, United States. Its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008. 3.3.2) Competition 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
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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.
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.
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e) Substitutes-
Many alternatives available for customers in market for Pharmaceutical Industry products.
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 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,
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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. By standardizing processes in our quality systems and by providing greater oversight in this area, we can reduce complexity and risk in the area of quality, says Kathy Wangle, Chief Quality Officer, and JJSC. Our supply chain organization is a large part of which we are as a company and plays a vital role in our ability to meet the needs of our customers, says Ajit Shetty, Ph.D., Corporate Vice President responsible for JJSC. We have deployed a new supply chain operating model that will enable growth, drive quality and compliance, and help us run more efficiently so we can more effectively serve patients and consumers worldwide.
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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 subcontinent. Things progressed quickly and by 1948, Johnsons Baby Powder was being manufactured by British Drug House in Prabhadevi, Bombay, and marketed by the company. Other consumer products like TEK toothbrushes, Johnsons Baby Cream and Prickly Heat Powder followed suit. However, highly specialized products like Belladonna plasters, pharmaceuticals and Premade Tapes were imported from
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the parent company. It was only ten years later that the company began to manufacture its own products. . In the 50 years since its establishment as a modest 12-employee outfit, Johnson & Johnson Ltd. has gained a reputation for delivering high-quality products at competitive prices. Our success, we believe, stems from our staunch commitment to caring for and catering to the needs of our customers and employees. J&J has always had a tradition of developing an environment that is conducive for learning both in a structured setting as well as on the job. On the job coaching for us, forms the most important method of developing new skills and competencies in all employees. Therefore a lot of emphasis is laid on developing feedback and coaching skills among all Managers. That apart, a number of innovative programs have been developed that come to us from J&J Worldwide, Integrity Selling, Management Development Program, Spreading the Credo, and Advertising Leadership Program are some such programs. Depending on his present and future needs, the development objectives of the individual employee are culled in conjunction with the Training Partner( a specific line individual who supports HR in need assessment and learning delivery), and the Department of Learning and Development within HRD. We also encourage the development of internal trainers who have in the past delivered programs in the area of their expertise, thus honing their own facilitation skills in the process. J&J also believes in the use of outbound fun filled learning and development activities as means to build teams within the organization.
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The Compensation & Benefits Committee, composed entirely of independent Directors, establishes the Companys executive compensation philosophy and principles and approves the annual compensation and long-term incentives for the Companys directors and executive officers. The Committee also reviews the philosophy and policies of the non-Board Management Compensation Committee, which determines management compensation and establishes perquisites and other compensation policies for non-executive employees. Additionally, the Committee oversees the management of the various retirement, pension, long-term incentive, savings, health and welfare plans that cover the Companys employees.
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.
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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.
4.4) MARKETING MIX (4 Ps) 4.4.1). Product Strategy 4.4.1.1) PRODUCT ANALYSIS: Featured Products: 1. One Touch Ping Glucose Management System One Touch Ping is the first full feature insulin pump that wirelessly communicates with a blood glucose meter-remote. The system allows a person to calculate and opt to wirelessly deliver insulin doses without touching the pump at all, giving patients more freedom, discretion, and flexibility. 2. ACUVUE OASYS Brand Contact Lenses Eyes feeling tired and dry? Soothe the discomfort with ACUVUE OASYS Brand Contact Lenses, the contact lens that feels almost like youre wearing no lens at all. 3. LISTERINE WHITENING Quick Dissolving Strip
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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.
Global corporate-level profile with information on the companys business segments, major products and services, competitors, and locations and subsidiaries.
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.
Comprehensive coverage of the latest financial deals involving the company and its subsidiaries, if any - Mergers & Acquisitions (M&A), Asset Transactions, PE/VC, Equity Offerings, Debt Offerings, and Partnerships.
Nicoderm Nicorette
Shower to Shower
Coach
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4.6.1) Johnson & Johnson to import Neutrogena into India: After almost eight years, healthcare and FMCG Major Johnson& Johnson is looking to add a new brand to its consumer goods portfolio. In India, J&J's consumer business contributes to over 50% of total sales and apart from its core baby care products, also spans brands like band-aid, savlon, carefree, Stayfree and clean and clear. When introduced Neutrogena will be J&J India's most premium product line & may be distributed only in large format and boutique stores. The luxury skin care and beauty products market is still a miniscule Rs 150 crore, but demand has been growing over the last few years with brands like LOreal expanding their range and international majors like Boots, Elizabeth Arden and Clarions entering the country.
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Incidentally the last brand that Johnson & Johnson introduced in the market was clean & clear - all the way back in 1997. Dealers say - it has since fallen behind because of lack of brand support. It remains to be seen what the kind of push J&J's gives Neutrogena given that it will be the company's first new brand in close to a decade.
NURTURING GROWTH TOMORROW In addition to improving quality and compliance, the new model is designed to enable growth and improve efficiency and effectiveness. Again, cross-sector collaborationkey to bringing forth health care technologies that draw on expertise from more than one business segmentwill flourish as manufacturing and quality experts from various business units have opportunities to combine their talents. Campus Ireland is one example. There are six manufacturing facilities in Ireland across our Medical Devices and Diagnostics and Pharmaceutical businesses. The close proximity of these facilities enables the companies to work collaboratively on a range of projects while facilitating the transfer of employees between sites for specific projects, career development and promotion opportunities. Campus leaders in Ireland are also working toward creation of a shared state-of-the-art manufacturing facility for convergent medical technology products. Our journey to coordinate our supply chain organizations is under way, Shetty says. The operating model has the potential to benefit those we serve by driving quality, efficiency and effectiveness in all we do and touchingand transforminglives for years to come.
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4.7) BRAND EQUITY: 4.7.1) BRANDING TERMS: A). Trademark details: J&J is a registered trademark used for Pens, Document Portfolios and Stationery-Type Portfolios Tote Bags Coffee Mugs Clothing, Namely, Caps, Hats, Socks, and Pants and owned by Johnson & Johnson.
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.
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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.
c. Baby Cream
JOHNSON'S baby cream contains lanolin, which nourishes a baby's tender, delicate skin and protects it from chafing, rubbing, cold etc. The cream contains Vitamin A and Glycerin which moisturizes the baby's skiing and is great for the mothers too.
d. Baby Lotion
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JOHNSON'S baby lotion is specially formulated to protect and nourish a babys tender skin from the drying effects of the environment. Unlike ordinary lotions, Johnsons baby lotion is mild, pure and gentle on a babys skin. It works both as a moisturizer and cleanser. It is an oil-in-water emulsion, which makes it less greasy than creams and other lotions.
e. Baby Shampoo
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!
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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
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
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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.
4.4 PROMOTION STRATEGY: 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.
VARIABLES Marketing variables
A). ADVERTISING:
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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. 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.
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.
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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.
C).PUBLIC POLICY RELATIONSHIP: The Public Policy Advisory Committee reviews the Companys policies, programs and practices on public health issues regarding the environment and the health and safety of employees. The Committee also reviews the Companys governmental affairs and policies and other public policy issues facing the Company. The Committee advises and makes recommendations to the Board on these issues as appropriate. The Public Policy Advisory Committee is composed of independent Directors; one of the Company's Vice Chairmen, Executive Committee; and the Vice Presidents for Corporate Affairs, Government Affairs and Policy, and Johnson & Johnson Supply Chain.
D). Internet communication: Johnson & Johnson is known for having registered many high profile internet domains during the early internet years 1996 to 2000. The Johnson & Johnson internet portfolio includes 29,925 internet domains, more than most of the large internet and technology companies. The portfolio includes generic expressions like Babypowder.com as well as a couple of very short domains; 2 of the 676 two letter domains, jj.com and ky.com, are owned by Johnson & Johnson.
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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.
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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5.1)
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The pharmaceuticals business' prioritized investments in internal R&D, strategic licensing arrangements, partnerships and select acquisitions continue to build a robust pipeline for the long-term. The company's pharmaceuticals businesses expect to file 11 new products and over 30 important line extensions between 2011 and 2015. The company's pharmaceuticals business is strengthening leadership capabilities locally, regionally and globally. A key component involves rotating key talent into important roles to quickly accelerate skills development to address a growing and complex business environment. The pharmaceuticals business is also building R&D capabilities in new technology areas and emerging markets. In recent years, 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. J&J Corporation has a very good perception of India. This has been supported by good results in the country. The outlook is bullish, and is supported by a high level of confidence in the Indian management team and more investments likely in the coming years. Double-digit growth is forecast for the India operations. India would be a key growth driver for J&J worldwide. J&J is also exploring the opportunities for setting up BPO operations in the country.
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6.1) RECOMMENDATIONS
Company should follow a different way of advertising media and channel. Since customer is spending most for their leisure time with their family and television, company should continue with mass marketing and start advertising aggressively on television and magazine.
Company should try to use its strength, and position the company in
consumers or customer mind. Company should try to use its strength, and position the company in consumers or customer mind.
Growth of the company depends on the FMCG product so they should focus on product category like Cosmetics, Baby care products & also other products. Company advertisements should focus more of these products.
Doctors will recommend for mothers & all mid-age people to use the
Company should organize to create very attractive advertisements and try to pull customer attention either by Television or by Print. J & J can rope in good advertisement agency.
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The sales promotional activities give the desired effect only when they are Flexible.
While the company is focusing on upper middle class and upper class customers, offers like free lunch box on purchase of honey is not suitable. Thus the offers should be made flexible giving an equal amount of price discount on rejecting the gift.
Company should also provide a discount at the outlets on bulk
The company should strictly ask the customers feedback about the
The company should sales their products in sachets instead of pet bottles in Rural & Semi Urban areas.
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6.2) CONCLUSIONS
In the study of project, the products, promotional & marketing strategy observations were made. According to they are, In Urban, Advertisement made a greater impact when compared to other mode of communication.
In rest of the area, all the mean of awareness creation as worked out
Equally and effectively. J & J has four product categories i.e., Personal care, Medicine, Toiletries, Cosmetics, among these four categories, Personal care like Baby soaps, Baby powder, cosmetics is highest selling products in market & having more than 60% of the total sales. More than half of the sales are through medical category for the company, so its very important that company should concentrate on Medical Representative as vital channel member for its product. Only with sufficient product knowledge the sales executives can give proper guidance to customers. The sales executives must be able to give the information in a way the customer can understand. The telephone orders can be accepted only if the calls are attended. If the lines are always busy the customers will never try to avail this service. The orders should be properly noted for prompt delivery of service and products.
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CHAPTER 7 BIBLIOGRAPHY
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BOOKS
Marketing Management by Philip H Kotler
Consumer Behavior by Schiff man Service Marketing by Valarie A Zeithaml & Mary Joe Bitnar Logistic & SCM by Martin Christopher
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