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Johnson

Johnson & Johnson (J&J) is a multinational company that manufacturers medical devices, pharmaceutical and consumer goods. It was founded in 1886 by three brothers, Robert, James and Edward Johnson. They were incorporated as Johnson & Johnson (J&J) in 1887. Johnson’s Baby Powder produced since the 1890s, sooths skin irritation and is one of J;Js most well-known products. Since this product J;J have produced many baby products and used the marketing slogan, ‘Best for your baby, best for you’. They have always been at the top when it comes caring for your baby. Other well know products and brands include Listerine, Band-aid and Tylenol.
J;J has a mission statement titled ‘Our Credo’. They are the values that guide their decision making and say how they challenge themselves to put the needs and well-being of the people they serve first. The first line of their ‘credo’ is, 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’. Their ‘credo’ is strong and really sets the tone on what their company is.
J&J is the parent to 230 companies. They employ over 116,000 employees in 57 countries worldwide and their products are sold in over 175 countries. Their headquarters are located in New Brunswick, New Jersey.
J&J is segmented into 3 areas; consumer, medical devices and diagnostic, and pharmaceutical. The product I will be looking at comes under the consumer segment and is a product line of Johnson’s Baby. The product is a 2 in 1 diaper. It is a diaper that is in conjunction with Balmex diaper rash cream. Doctors have been recommending Balmex for over 50 years. Balmex sooth rashes and reduces redness, especially those that have been created by diapers. J;Js new idea is to prevent the rash before the rash can even develop by getting balmex to the skin of babies before the rash can even develop.
SWOT analysis is done so that we can bring to light the strengths, weaknesses, opportunities, treats and trends with this new product J;J are to bring out.
Strengths –J;J is one the world’s leading manufacturers of health care products. As a result, along with the product comes J&Js name, product portfolio, image and resources. This gives the product a huge advantage. As well as this Balmex is a well established product, which generate millions in sales. They also have a line of nappies. By combing the two will hopefully just make an even better product. Also by having these products already research will not have to be done from top to bottom, they are just intertwining two.
Weaknesses – Time, money and resources, like any new product, must be spent on researching, developing and marketing. It will also be difficult to break into the market as Huggies and Pampers have dominated it for so long. As a result, lots of money will have to be spent marketing the product so that it can compete will the bigger brands and try to come out on top.
Opportunities – In 2016, the disposable nappy industry was valued at approximately $49 billion. (https://www.statista.com/statistics/664656/global-baby-diapers-market-value/). It is also expected to reach $64.62 billion by 2022 according to a new report by Grand View Research, Inc. increasing disposable income level coupled with increasing birth rates particularly in emerging markets is expected to remain a key driving factor for global baby diapers market. (https://www.grandviewresearch.com/press-release/global-baby-diapers-market). the new diaper will have the opportunity to tap into this and being a new innovative nappy can become a top brand, bettering J&Js financial position even further.
Threats – There are always safety concerns when bringing out a new product. J&J must be aware of preventing any misleading information/ advertisements, and be aware of the claims from inappropriate use of the product and allergic reaction. Lots and money must be spent in the clinical trials of the product so to reduce these claims.
Competition – Huggies and Pampers are the main competition. They have dominated the industry for many years. This new product may join these market leads and create a new demand. If this happens it won’t take long for Huggies or Pampers to make their own version of J;Js nappy. Consumers are always looking for products that will make their lives just the small bit easier. Today most parents both work or even raise a child as a single parent. Having this new product will just make a life a simple as possible, reducing the amount of steps in the task at hand. However one problem J;J has is that is the market they have picked out for the product actually going to buy it? And how much will one pay for the convenience of the product. J;J currently have no nappies on the market and the only facts they have are the effectiveness and popularity of Balmex.
J;J have made nappies in the past and so they are not completely new to them. J;J also have been able to study and gather information on what other companies have done and what works best. The nappy will be just as stretchy, comfortable and breathable as the other big brands but J;Js one will have an added extra. As well as this the diaper will be the same price as the most expensive brands.
In order for J;J to come above their direct competitors they must focus on the benefit of the product and bring it to the attention of the buyer. The company must market their product that reveals a need the buyer didn’t even know he/she had. In this way they will profit more from the product. In all, the more J&J know more about their competitors and their customers, the more successful they will be.
Market research/macro- environment analysis- finding the right consumer for their product is of huge importance for J&J and the success of the new product. To be able to do this segmentation must be done. This is narrowing down of consumers into the same needs and buying behaviours so that you can find the best target market for your product. The ways of segmenting include geography, the psychographics, demography, and social-cultural graphics. J&J will use these to segment the population and find their ideal consumer.
Geographical base- this factor is not very important as the other factor have a much larger effect. Here it says how where a consumer effects they buy. Let’s say someone living in a very rural area, distribution of the product to the area may not be possible. However with the internet today, consumers are able to buy products that are not sold in their area.
Psychographics – this is the most important factor. The new product is all about convenience and prevention so to see what consumers it it directed to we have to find out the lifestyle of them. This prosuct is looking at parents ‘on the go’, but also concerned about their child’ healthcare. It would suit very active parents who look at ways to complete task at a fast convenient manner.
Social graphics- here they provide a sense of reassurance to all current J&J customers. Many people buy J&J products because they have been around for so long, have a loyalty to them, and have a certain amount of trust in them. Therefore when a new product comes out they do give it a try.
Demographics- this is the most important factor. This generally tells us what age group most consumers will be in. Older parent range from 25-35 and have the means to take care of their childs heathcare needs than the younger parents from about 18-25 years. The older parents generally have full time careers, both working and always on the go, while younger parents are just trying to get a head start and cannot afford the convenience.
Family size is another factor which will affect a parents spending. Generally the larger the faily the more a parent is concerned with the cost. For parents with a single child or maybe 2, they are more will to try new expensive products. A larger family will have to spend a lot to see if even the new product is for them. Lastly within demographics, occupation is another factor. Today most families need two sets of income as the cost of living is so high these days. As a results, parent have less time and therefore pay extra for a product that will save just a small bit of time and one that is easier to use.
After looking at all the bases, the best consumer for this product are older parents between 25 and 35 that have one or two children. The parents will have dual incomes and looking for a convenient product like ours. Market will buy our product because J&J is a well established brand, with loyal customers that are willing to try convenient products. They also have trust in the product because of J&Js name and the brand is recommended by paediatricians. Most parent will live in built up areas who have ease of access to the product as a results of our distribution. Most importantly our taget market are parent who just want to make their child happy and heathy and free from infections but at the same time have a product where they can do 2 things at once – a 2 in one product.
Using the SMART principles, a route to market for the new product has been developed. The first step is the most important and it involves setting objectives by having a clear understanding on what research is required to get the product into the market. To find out if the consumers will actually buy the product casual research is used. Casual research is the investigation of cause-and-effect relationships and is used here as J&J already have a very good product Balmex that is already profiting and doing very well. By mixing this with another product the company hopes to have the best product in the market that will meet the needs of the target market.
The next step is to develop the research plan; so how will you collect the data, and what could stop you from collecting data. Time and money is something that could stop you finishing the research plan. Although a budget will be set, J&J is a large company with plenty of money and resources so this should not be a problem. The data that is collected will be from those who will use/buy the product, and so a target market is selected and sampled. This is called probability sampling.
Step three is to collect primary data by placing questionnaires into magazines or internet surveys that will target parents. These usually have incentives which can be free samples which is also a way of marketing. In this way J&J will collect relevant information as well as market their new product.
Step four is the final step and it involves analysing all the data that has been collected. Once analysed, a marketing action is taken and carried out. Results will be noted constantly and compared with profits.
The product life cycle- the product life cycle involves 4 phases. The first stage is the beginning, when the nappy has been introduced to the market. At this stage sales are low as customers are not aware of the new product. Marketing and promotion is essential at this stage so that consumers know at the product and know about the advantages it has over J&Js competitors. This will cost the company time and money. The next stage is the market growth stage. This is when new parents start to buy and experience the product. Sales increase and so do profits. As new customers arise it is important to try hold onto to them and never to ignore the competition that could easily snatch them up. The third stage is the maturity stage. Here there is an increase in competition and J&J would expect to lower their prices. The last stage is the sales decline stage. The reason for this is because of huge competition with its competitors. J&Js competitions will have made a nappy similar to J&J new product, and have it at a reduced price and spend more marketing it. As a results sales decline. However it is very unlikely J&J will be driven out completely as it is such a large company.
Marketing Mix – Product Strategy – the product is a high quality diapers made form high quality cotton. It is a comfortable, breathable diaper that can soak up to 500ml of fluid. In the inside of the nappy there is a small layer of Balmex. The nappy has children skin care in mind and so is tested on different skin types of any allergens. It meets the consumers’ needs as it takes take of a childs healthcare by preventing diaper rash to form. It a 2:1 product that makes it convenient to the parents.
Place strategy- J;J sees this product to be sold as a retail idem sold in large retail store in densely populated areas. We have already found the right target market which is explained above which is the place J;J want to be distributing to. Surveys will be carried out to better understand locations that we will make our product available. What we need to be aware of is retail store are about the revenue that come in. If a product is not being sold and not making them money, it will be dropped. For this reason we must come up with a price that not only suit the consumers, but also the organisational buyer.
Another area to reach the consumers is in hospitals and daycare centres. When families leave the hospitals with their new born baby, they are often given care packs which contain diapers and coupons. We can add our new product to this pack. Also hospitals and day care centres, as they take care of children, are stocked up with baby care products. They will expect some promotional products which is will help us establish a relationship with the consumer.
Pricing strategy – the cost of J;Js new product depends on the pricing of the competition. J;J have decided that their new product will be the same price as the leading brands with the hope that the consumer will go for the convenience without the extra cost. In theory the diapers will cost more to produce and therefore make less profit per diaper sold. However, J;J needs to gain in the market place and by having the highest prices they will not be able to do so. J;J also plan to offer the diapers at a discount to new mothers. This will results in some loss at first but hope that in the long run it will gain a new customer base.
Promotional strategy – just before the product is launched into the market J;J will give away free samples to hospitals and day care centres to be given to families. The product will be brought into the market in August –September. At this stage parents a busy preparing older children for getting back to school. The new diaper will appeal to these mothers who are looking to save time while they a getting older children back to school. Also it is during this time, families go on holidays or go to other children’s parties. By having the 2 in 1 diapers, mothers or fathers will have less supplies to be caring around with them. By the time competitors have developed a similar product, J&J will already have a solid loyal customer base.
Advertisement- J&J will advertise the product intensely through commercials in the first four months of product release. The commercials will main point will be the health of babies skin but also reiterate on how messy creams are, and how life is so hectic and how this new product will bring about solution to this.
Monitoring is of huge importance when it comes to the success of a new product. J&J will want to know if their customers are satisfied with the product, and if not what are the steps it could takes before the product is forgotten altogether. There are a few ways J&J could monitor. Sales results can be monitored though how many coupons have been redeemed during purchases. The internet is a place where J&J can find customers opinions, complaints and feedback on the product. Lastly J&J can continue doing SWOT analysis to help them know their weaknesses, so that they can be improved, and their strengths so that they can be built on, and be able to market their product at the best of their ability.
Control- Control must be in place to maximize profits and ensure good results. One way to ensure control is to make an annual-plan. This records all goals set by J&J on their sales, profits and other goals set. Senior management will set goals for the company as a whole and these will be dispersed throughout the different sections of the company. Profitability control ensures the company is making a profit.
When bringing a new product to market there is once sentence to keep in mind which is what was kept in mind in this marketing plan, ‘it is all about putting the right product in the right place, at the right time, and at the right price’.

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