BUSINESS ANALYTICS

Assignment on the Consumption of Baby

Products
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.

Johnson and Johnson

About the company : 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’s baby powder label. The brand
has a reputation for making baby products that are exceptionally “pure and safe”
the first Johnson 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.

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 have 150 locations worldwide, 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 Nicator. These
new product lines represent the current tactics by J&J to ensure continued
domination in the personal health care industry.
 Analysis And Interpretation Of The
Data:

Sales ($) Of Johnson & Johnson Worldwide From 2011 To 2020, By

Segment

Sales Of Johnson & Johnson Worldwide From 2011 To 2020, By Segment

Year Medical Device & Diagnostics Pharmaceutical Consumer
2011 25779 24368 14883
2012 27429 25351 14447
2013 28490 28125 14697
2014 27522 32313 14496
2015 25137 31430 13507
2016 25119 33464 13307
2017 26529 36256 13602
2018 26994 40734 13853
2019 25963 42198 13898
2020 22959 45527 14053

Sales Of Johnson & Johnson Worldwide From 2011 To 2020, By Segment

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Medical Device & Diagonistics Pharmuceutical Consumer

REFRENCE -The pharmaceutical segment of Johnson & Johnson was the

company’s strongest segment during 2020, generating almost 45.6 billion U.S.
dollars in sales globally. The rise of pharmaceuticals as the company’s leading
segment began in 2013, when it was about even with the medical devices and
diagnostics segment for the first time. Johnson & Johnson’s third pillar is the
consumer health segment.

Total ($) Sales Of Johnson & Johnson 2011 To 2019

Total Sales Of Jhonson&Jhonson 2011-2019

Year Sales  
2011 65030  
2012 67224  
2013 71312  
2014 74331  
2015 70074  
2016 71890  
2017 76450  
2018 81581  
2019 82059    

90000 .
81581 82059
80000 74331 76450
71312 70074 71890
70000 65030 67224

60000

50000

40000

30000

20000

10000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Sales Of Jhonson & Jhonson 2011-2019 Sales

REFRENCE -The total sale of Jhonson&Jhonson increases to $17,029 from

2011 to 2019. There is no such great increase in between 2011 to 2019. There is
minor increase of sale $478 in between year 2018 to year 2019. The highest
increase in sale is in 2017-2018 of $5131. After analysing the data, I can say
that the sales of Jhonson&Jhonson is constant there is not much difference in
every year’s sale.
 Total Cost ($) Of Johnson & Johnson 2011 To 2019
Total Cost($) Of Product Sale Of
Jhonson&Jhonson 2011-2019
Yea Cost of Advertiseme Total  
r Product nt
2011 20,219 20,800 41,01  
9
2012 21,515 20,697 42,21  
2
2013 22,181 21,650 43,83  
1
2014 22,684 21,887 44,57  
1
2015 21,426 21,079 42,50  
5
2016 21,789 20,067 41,85  
6
2017 25,439 21,520 46,95  
9
2018 27,091 22,540 49,63  
1
2019 27,556 22,178 49,73  
4

TOTAL COST
50,000
45,000
40,000
35,000
AMOUNT ($)

30,000
25,000
20,000
15,000
10,000
5,000
0
1 2 3 4 5 6 7 8 9

Cost Advertisement

REFRENCE -The total cost of product of Jhonson&Jhonson increases to

$8,715 from 2011 to 2016. From year 2011 to 2016 The amount of expenditure
in cost of product and advertisement is closely same but from 2017 to 2019 the
amount of cost of product is greater then cost of advertisement. In two
consecutive years 2015-2016 total cost of product drops from $44,571 to
$42,505 to $41,856. In 2017 total cost of product increased by $5,103 and by
$2,672 in 2018.

Percent increase (decrease) in Sales to Customer over previous year:

Percent increase (decrease) over previous year:

Year Sales  
2011 5.6  
2012 3.4  
2013 6.1  
2014 4.2  
2015 -5.7  
2016 2.6  
2017 6.3  
2018 6.7  
2019 0.60%    

Percent increase (decrease) over previous

year:

6.3 6.7
5.6 6.1
4.2
3.4
2.6

2011 2012 2013 2014 2015 2016 2017 2018 0.01

2019

-5.7
 2019 Sales by Geographic Region (in billions)

Geographical Area Sales  

Europe 18.5  

Asia-Pacific, Africa 15.6  

Western Hemisphere 5.9  

U.S 42.1      

REFRENCE – Customer Sales goes to negative in 2015 to (5.7%) and there is

minimum sales of 0.6% in 2019. There is maximum sale of 6.7% in 2018. In
between 2011 to 2014 highest sale is of 6.1%. After analysing the data I can say
that in the span of 9 year from 2011-2019 sales goes down various time even
goes negative and there is no as such great increase of sale in between 9 year of
span.

2019 Sales by Geographic Region (in billions)

Sales
Europe

U.S

Asia-Pacific, Africa

Western
Hemisphere

Europe Asia-Pacific, Africa

Western Hemisphere U.S
REFRENCE – Geographical sale of Jhonosn&Jhonson is highest in US and
lowest in Western Hemisphere and other to region Asia-Pacific, Africa and
Europe has not much difference in sales.

*Note: This Statistics and data depict the total product mix sale Jhonson&Jhonson based on
geographical region

Major Consumer Franchise Sales($) :

Major Consumer Franchise Sales($)
(Dollars in Millions) 2019 2018
Beauty 4,593 4,382
OTC 4,444 4,334
Oral Care 1,675 1,858
Women’s Health 1,528 1,555
Women’s Health 986 1,049
Wound Care/Other 671 675
 Major Consumer Franchise Sales($)
4,593 4,444
4,382 4,334

1,858
1,675 1,528 1,555
986 1,049
671 675
2019 2018

Beauty OTC Oral Care

Women’s Health Women’s Health Wound Care/Other

REFRENCE – There is only increase of 0.3% consumer franchise sales.

Among the following franchise the highest drop of (9.9%) is in baby products
and highest increase of 4.8% is in beauty products. On comparing 2019 with
2018 we analyse that baby care falls by 9.9%, oral care falls by 1.7%, women’s
health fall by 6.0% and wound care/other falls by 0.6%.

Total Sale of Baby Care Product World wide

 Total Sale of Baby Care Product World wide
Total Sale of Baby Care Product World wide
1,916
Year Billion
1,858
2017 1,916
2018 1,858
2019 1,675

1,675

2017 2018 2019

REFRENCE – In these three consecutive year sales of baby product keep on

falling. And there is a fall of (3.3%) during 2018vs2017 and fall of (9.9%)
during 2019-2018. There is a huge fall of (12.5%) during 2019vs2017.
 Recommendation To CEO
To Alex Gorsky,
Respected Sir,

I am writing this letter to provide you some recommendation after

analysing the last few years work pattern and growth our company.
Here are my few recommendation :
J&J should aim to be an industry leader in all its diverse business
offerings. With the addition of new products in various departments,
J&J could potentially still predict growth in challenging times.
Although there is a wide variety of generic drugs, J&J should use this
as an opportunity to highlight the value and quality of their products
and increase research and development in specific segments to
increase market share in surrounding markets. OTC sales should be
used as a prime opportunity to highlight the value and worth of J&J`s
products. J&J`s diversity should not be a means for its products to be
valued as "average", its diversified range should be known for the
high quality. The prediction of increased sales in challenging times
should be a testament to J&J`s value and quality of products. Product
recalls can seriously hinder the perceived value and quality of J&J.
Healthcare regulations along with challenging economic times can
prove costly to J&J as a whole.

CONCLUSION
“Johnson & Johnson” company is so omnipresent in the market that without it
even the world of the baby products and health care product sounds incomplete.
They believe their first responsibility is to the doctors, nurses and patients, to
mothers and fathers and all others who use Johnson and Johnson products and
services. In meeting their needs everything they do are in high quality. When
we talk about baby products Johnson and Johnson products is what comes first
in our mind. Everything related to the brand, be its advertisements, products,
after sale services are all example of perfect excellence. The company has
rooted itself as much stronger than it did when it first entered the Market. Every
time they make an advertisement they make it sure that it leaves a long lasting
impact on the users, and the company is always successful in doing so. The
taglines of the company always leave a lasting impression on the viewers. The
sequences they show are so similar to our daily lives that people can easily
connect to it. The catchy slogans have always helped the company to enhance it
brand quality and brand loyalty. Johnson and Johnson deal with all kind of baby
care products, cosmetic products etc. The marketing strategy of such a global
company is real vast and global in nature. The company very well knows that
different countries have different people who again have different set of minds,
so they built marketing strategies based on the people they deal with. The
company for several years has been the favourite amongst nursing mothers and
now is continuing its position amongst the mothers. The main area of concern is
cosmetic products, health care products and oral care products though the
company is ace in manufacturing and trading its products, cosmetics, oral and
health care products have constantly failed to find consumers in the market. The
company has been taking several steps to enhance its sales of cosmetics and
health care products. The sales report of the company has shown increase in the
sales of such products though not in vast quantity. The company still is
struggling to set its base in India for its health care, oral and cosmetic products.
Johnson and Johnson have successfully transformed its brand image globally
amongst different types of people by convincing people that the service they
provide is best and superior to any of their present competitors. This has led to a
major thrust in increasing the number of distributors and retailers across the
country with the result that Johnson and Johnson products are available in every
medicine, cosmetics and grocery shops of the market.