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Johnson and Johnson Company Analysis

1747 words (7 pages) Essay in Marketing

5/12/16 Marketing Reference this

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This assignment is on the company called Johnson and Johnson. I have collected marketing information of this company as my topic is marketing research on Johnson and Johnson. I have covered marketing strategy, product strategy, product innovation. Also I have mentioned a case study of Brystol-Myers and explained it in this assignment below. Johnson and Johnson company sponsors brands for women health care child health care etc. This brand is most popular in child health care segment. Mother’s fist choice is Johnson and Johnson for her baby’s health. Their products are uninfected to baby’s skin. Now Johnson and Johnson company has started giving baby’s products in a kit so that all the useful products for a baby can be available in one kit only. In this assignment I have also done company analysis as what is the condition and position is in market. SWOT analysis is also been covered. Johnson and Johnson company help mothers and infant survive childbirth and analyze their own products that how they are making the differences in the peoples’ lives. Johnson & Johnson and its many operating companies support community-based programs that improve health and well-being. The company’s desire to make people healthier and safer, this is included in company’s giving. J&J Corporation has a very good perception of India. This has been supported by good results in the country. J&J is also exploring the opportunities for setting up BPO operations in the country.


Johnson & Johnson was founded on more than 120 years ago on a radical idea. It provides medical & diagnostic sections which offer surgical equipment orthopedic products, monitoring devices and contact lenses. The team brought the new ideas & products that can transform human health and well being to use the hygienic sutures, dressings and bandages to pleasure peoples’ wounds. They have grown to meet worldwide since 1886. Because of the mergers, the formation of new companies and acquisitions, they are now world’s largest and most largely based health care company.

In the consumer sections they manufactures & markets a high range of products used in baby care, child care, skin care, oral and women’s health care fields. The medical diagnosis sections cover products utilized by or under the direction of physicians, nurses, hospitals and clinics. It is a company of continuing strength. Its products, services, ideas are giving the touch to the lives of billions of people every day. They like to share small stories of the people and they have also introduced new ideas their passion and stories and introduced stands a team of people. Johnson and Johnson cares the world however one person at a time this inspires and unites the people of this company. J&J had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008.

Robert Wood Johnson served as the first president of the company. 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. CEO of Johnson and Johnson is William C. Weldon.

Literature Review (Johnson and Johnson)

Marketing is the process that creates interest among customers in goods or services. It generates the strategy that underlies sales techniques, business communication and business developments. It is a process by which companies build strong customer relations and create questionable value for their customers and for themselves. ^ a b Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). 

Marketing is basically used to make out the customer, to convince the customer, and to keep the customer. The marketing concept id to achieve organizational goals depends upon knowing the needs and satisfying the customer needs and also delivering the4 desired satisfactions.

Marketing strategy means to allow an organization to focus on its related resources on the greatest opportunities to increase sales and achieve a sustainable competitive benefit. The strategy is centered on the key concept that the main goal is customer satisfaction.

4Ps of Marketing

Product – Mass is produced on a large scale as intangible service or tangible object with a specific volume of units. Service based products are intangible products like tourism industry and hotel industry or codes based products like cellphone load and credits. Examples of tangible object are motor car and the disposable razor. Packaging also needs to be considered.

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

Place – Place represents the location where a product can be purchased. It is also known as the distribution channel. Any physical store as well as virtual stores can be included on the Internet.

Promotion -May be used by the marketer in the marketplace as represents all of the communications. Promotion has four distinct elements: advertising, public relations, idle talk and point of sale. When promotion uses the four principal elements jointly, which is common in film promotion, a certain amount of crossover occurs.

Case Overview (Block Marketing Strategy)

Johnson & Johnson’s well-executed competitive intelligence (CI) strategy and following marketing defensive block against Bristol-Myers during Tylenol – Datril argument on the market is considered as a typical example of the CI effective use.

Bristol-Myers has not executed any kind of counterintelligence strategy, as a result the company failed to notice the Johnson & Johnson’s competitive intelligence activities.

Then James Burke, a President of Johnson & Johnson Domestic Operations, called Chairman Richard Sellars and convinced him that emergency defense block marketing strategy should be executed. It was discussed to slice Tylenol’s price immediately to match Datril’s contributions (Hoover’s, 2008). Johnson & Johnson announced dipping the retail price of Tylenol by 30% 2 weeks before.

Johnson & Johnson Strategies

Product Strategy

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

Marketing Strategy

Sell skin care products for mothers the worlds over which are of trusted brands. Johnson and Johnson able to address all of the different segments within the market, because each segment is different in terms of its users and equipment, its products are helpful to all of the different segments.

Brand Values- Vision & Mission of Johnson and Johnson is that this is a global company, to provide scientifically sound is the fundamental objective high quality products and high standard of living. To provide a baby healthy life right from the start. Understanding mother’s & baby’s balanced & emotional needs, so that every mother and baby can be a Johnson’s mother or Johnson’s baby. It also recognizes the weight of healthcare professionals. To enhance the position and facilitate the special connection between a mother and her baby product attributes. The following steps done: Given utmost importance to safety, comfort, and gentleness. It is clinically proven that Johnson and Johnson brand is a Seal of Mildness.

Source : The Hindu Business Line, June 19,2009

Product Innovation

Make products as per the needs of the customers.

Customized baby oil as per Indian consumer’s requirements.

As per Indian preference providing fragrances in soaps / powder etc.

Pricing Promotional & Pricing Strategy Advertising

On parity with competition Johnson and Johnson tries to bring new products in a new market so that their marketing doesn’t leave the race. For economic value determining the products or services. Creation of tiered offerings to drive growth and margin. Using price analytics to identify opportunities for policy and process change. Managing negotiations to avoid the “price trap”.

SWOT Analysis

Company Analysis

The success of Johnson and Johnson in blocking the Bristol-Myers product Datril’s penetration on the numbing market and extending its own brand reputation in the market can be attributed to the following factors:

To develop effective defense strategy Johnson & Johnson had a capability to learn its rival’s plan and also planned well-positioned competitive intelligence program. Johnson & Johnson management faced problems in decreasing the Tylenol’s prices however since in the course of the conflict the company lost millions in profits. However, on long run, this change made capture major market share and to turn into a biggest player on the market. As Johnson and Johnson could not anticipate so fast this was one of the reasons that Bristol Myers dismissed the Johnson and Johnson’s warning as a

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Every day, many people enjoy the products and benefits of Johnson and Johnson. The ethical practices of this brand is leading to a strong brand however they should also focus on customers as well as on product development. For this brand baby care market is growing at 8% per annum. Johnson and Johnson is the 2nd largest player in Dabur India Ltd with Kimberly-Clark Corporation in third place. Very strong franchise has been led amongst doctors and patients in the country by the consistent practices over the period of time. The cases like waiting 3 months for a heart surgery to use a newly introduced stent by Johnson and Johnson as this can be concluded that it is one of the most trustable brand and equity that the people are enjoying today in India. It can also be concluded by the above research that it helps in understanding the consumers, doctors and medical professionals about its products and its great importance in the market. J&J makes investments to educate and train doctors and nurses. These types of initiatives resulted in augmenting the brand image of Johnson and Johnson. I have also concluded for this brand that research and develop a brand through supply teams and partnership

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