Johnson & Johnson

By: Sandhya Deepak

[MBA, 2nd Semester]
Submitted to: Mr. Sachin
Marketing Faculty

1
INTRODUCTION
Operating in over 50 countries with more than 100,000 people, Johnson & Johnson USA has been
ranked 4 times in the “Fortune Top 10” list of the most admired companies in the US.

Johnson & Johnson (J&J) India, a subsidiary of Johnson & Johnson USA, is one of the leading
players in the Indian pharmaceutical and consumer products business. It has employee strength of
over 1,800. It started business in India in 1947 in Bombay with Johnson’s Baby Powder, and, over
time, introduced other products like toothbrushes, Johnson’s Baby Cream and Prickly Heat Powder.

Briefing about this world class company, we can have a glimpse on the following points:-

• Global Manufacturer of Pharmaceuticals, Consumer Products and Medical Devices.

• Listed in Fortune 500 Companies

• Ranked 1st among 50 top Pharmaceutical companies

• 230 subsidiary companies with operations in over 57 countries.

• Well-known consumer products are the BAND-AID Brand line of bandages, Tylenol
Medications , JOHNSON'S BABY Products

• Produced its first products in 1886

• Incorporated in 1887

• ROBERT WOOD JOHNSON served as the first President of the company.

• In 1910, JAMES WOOD JOHNSON succeeded him as President.

• William C. Weldon is the President (since 2002 Onwards)

COMPANY STRUCTURE

• Based on the principle of Decentralized Management.

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 • Executive Committee is the principal management group.

• Committee is responsible for the operations and allocation of the resources.

• Oversees and coordinates the activities of the three segments.

• Each subsidiary within the business segments is, with some exceptions, managed by citizens
of the country where it is located.

SUBSIDIARY HOLDINGS

Johnson & Johnson is a highly diversified company with at least 230 subsidiaries, which it refers to
as the "Johnson & Johnson Family of Companies". Some of these subsidiaries include:

• ALZA Corporation
• Baby Center, L.L.C.
• Johnson & Johnson, Group of Consumer Companies, Inc.
• Johnson & Johnson Health Care Systems Inc.
• Johnson & Johnson - Merck Consumer Pharmaceuticals Co.
• Johnson & Johnson Pharmaceutical Research & Development, L.L.C.
• Pfizer Consumer

J&J in INDIA
• Spread its roots in India during 1947.
• It was Mr. Patrick Whaley who set the foundation.
• Launched Johnson’s Baby cream and Prickly Powder.
• Product like bellodomma, pharmaceutical tapes were imported from the parent company.
• In Sep. 1957, a new company Johnson & Johnson India Ltd. was created and registered.
• Recently this company celebrated its 50 years in India.

SEGMENTS OF BUSINESS

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Johnson & Johnson is organized into three business segments:-

• Consumer
• Pharmaceutical
• Medical Devices and Diagnostics

Consumer
J&J manufactures and markets a broad range of products used in the fields like:-

• Baby and Child Care

• Skin Care
• Oral and Wound Care
• Women’s Health Care
• Nutritional and Over-the-counter

MAJOR BRANDS
Some of the major Brands of J&J are:-

• BAND-AID (Brand Adhesive Bandages)

• CLEAN & CLEAR (Teen Skin Care Products)
• JOHNSON’S BABY (Baby Products)
• NEUTROGENA (Skin and Hair Care Products)
• REMBRANDT (Brand of Oral Care Products)
• SPLENDA (No Calorie Sweetener)

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BABBY CARE…
Baby Skin Care:

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Segmentation and Targeting:
Type of
Segmentati
Baby Skin Care Products
on
Geographi Metro Urban Semi Rural
c Urban
Demograp 40-
hic 0-4 5-8 8-12 12-18 18-25 25-40 above
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

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Baby Bath Time Products:

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Segmentation and Targeting:
Type of
Baby Bath Time Products
Segmentati
on
Geographi Metro Urban Semi Rural
c Urban
Demograp 40-
hic 0-4 5-8 8-12 12-18 18-25 25-40 above
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper

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phic Low Middle Middle Middle Upper
Social class

Their long-standing commitment to pure, mild and gentle baby skin care has driven us to set a new
standard: the BEST FOR BABY NATURALS™ Standard. The JOHNSON’S® Brand employs
hundreds of researchers, paediatric health professionals and baby care experts. And have
incorporated the insights of this core team into a rigorous new natural baby care standard.

Mother Care:

Segmentation and Targeting:

Type of
Segmentati
Mother Care Products
on
Geographi Metro Urban Semi Rural
c Urban
Demograp 40-
hic 0-4 5-8 8-12 12-18 18-25 25-40 above
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

In 1940s, Johnson & Johnson framed its famous credo, under the leadership of Chairman Robert
Wood Johnson. The Credo made a very bold statement that “We believe that our first responsibility
is towards doctors, nurses and patients, to mothers and fathers and all others who use our products
and services”. The credo made the company imbibe a customer oriented culture which is now
considered as a core competence. When the importance of customer service is impressed upon by the
highest level of management, it becomes a culture rather than a peripheral activity of a division.

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SKIN CARE…

Segmentation and Targeting:

Type of
Clean and Clear Products
Segmentati
on
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

Clean & Clear is the skin care brand from the house of Johnson & Johnson. The brand was
relaunched July 2008 marking the foray of J & J into the highly competitive skin care market in
India. It is a global brand of J &J with a presence in over 41 countries.
The company has rejuvenated the brand and ads are now running in many TV channels.
Clean & Clear is targeting the teens. The brand has launched a series of products like cleansers, oil

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and acne control creams. etc .The brand is using the cleansers as the flagship product to attract the
consumers. It is being positioned as a Teen Skincare expert. The campaigns are more functional
oriented and the endorsement by Johnson & Johnson further strengthens the brand positioning.
The brand has the tagline "Clean Clear and Confident" which has potential and flexibility for
creatives to work on. In fact confidence is a virtue that will attract the attention of Teens. Teenagers
have a view of themself as adults. So confidence can be a platform to attract these young minds into
this brand.

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Segmentation and Targeting:

Type of
SegmentatiNeutrogena
on Cleanser/Moisturizer
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class Neutrogena
Cosmetics:

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Segmentation and Targeting:

Type of
Neutrogena Cosmetics/Hair
Segmentati
on Care
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

About Neutrogena

Neutrogena Corporation, a member of the Johnson & Johnson family of companies, is headquartered
in Los Angeles, California. The #1 Dermatologist recommended skincare brand, Neutrogena offers
some of the world's most loved beauty and skin care lines, and manufactures and markets products in
over 70 countries.

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Segmentation and Targeting:
Type of
Johnson’s Body Care
Segmentati
on
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper

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Social class

For over 100 years, JOHNSON'S® has been the first name in baby care, trusted by mothers and
healthcare professionals worldwide to care for the most delicate skin. JOHNSON'S® believes from
the moment you're born and throughout your life you need nurturing. That's why they’ve created
these JOHNSON'S® skin care products.

Everybody knows that baby skin and adult skin are very different. But only JOHNSON'S® has the
experience and expertise to develop moisturizing skincare products that restore your adult skin back
to beautiful baby softness.

WOUND CARE…

Savlon®

JohnsonPlast®

Segmentation and Targeting:

Type of
Wound Care Products
Segmentati
on
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 2-11 12-18 18-25 25-40 40+

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Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

BAND-AID® Brand Adhesive Bandages aims to protect you and your children for years and they are
continuously developing new products to help heal the wound fast and heal the hurt faster. They are
committed to staying the #1 bandage brand for now and years to come.

ORAL HEALTH CARE

Segmentation and Targeting:

Type of
Oral Care Products
Segmentati
on
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

Listerine globally is positioned on the germ killing plank. According to reports, when the brand was
first introduced in USA, it got a lukewarm response. To pep up the sales, the brand owners devised
an innovative strategy whereby they introduced the medical term for bad breath. The advertisers
introduced a faux term Chronic Halitosis to describe bad breath. Consumers fearing that bad breath is
a medical condition ran for the mouthwash cure.

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In India too, the brand started off as a cure for bad breath. Although the brand had excellent recall,
the promotion for the brand was erratic. The brand went on and off in the media and there was no
significant effort from the brand to penetrate the market. The brand usage was severely restricted to
certain consumer segments and the usage was also not regular.

Listerine is currently running a campaign positioning itself as a "Freshness Bomb". The new
campaign is featuring MTV VJ Cyrus.

WOMEN’S HEALTH
CARE

Segmentation and Targeting:

Type of
Women’s Health Care
Segmentati
on Products
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

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Stayfree, which was rather complacent from being the market creator and the leader during 1989,
was given a tough competition by whisper. By smart brand building, Whisper made Stayfree shudder
by garnering 40% share in the market.
The last two years has seen a brilliant marketing fight between Stayfree and Whisper. Johnson &
Johnson sharpened their marketing skills and regained its dominant position by waging a price war.
J&J knew that P&G was burdened with high cost and it could not lower the price of Whisper.
Further Whisper was positioned as a premium brand. The price was enabled Stayfree to retain the
leadership position in the Rs 700 crore Sanitary Napkin market in India.

VISION CARE

Segmentation and Targeting:

Type of
Vision Care Products/ Clear
Segmentati
on lens
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age

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Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

Acuvue is a major brand in the Rs 60 crore contact lens market. Although the market is led by
Bausch and Lomb with around 70% market share, Acuvue can be termed as the innovation leader in
this segment. Acuvue, the brand of the Johnson &Johnson is a pioneer in the disposable contact lens
category. Acuvue was the first disposable contact lens brand in India. The brand is the market leader
in the disposable lens category.

Segmentation and Targeting:

Type of
Vision Care Products/
Segmentati
on Colored lens
Geographi Metro Urban Semi Rural
c Urban
Demograp
hic 12-18 18-25 25-40 40+
Age
Income Low Middle Upper Upper +
Middle
Gender Male Female
Psychogra Lower Upper
phic Low Middle Middle Middle Upper
Social class

The target market for contact lens category is the SEC A B in metros ages anywhere between 15-35.
While the consumers aged below 20 will not have their say in the purchase of contact lens, it is the
working youngsters who show the maximum potential for a contact lens marketer.
Primary need that these lenses satisfy is the need for looking good. The brand is positioned as a
healthy and convenient brand stressing the comfort factor. The brand has also embarked upon an e-
trial initiative to prompt the potential consumers to try out this category. Acuvue was also an
innovation leader by coming out with lens that is bifocal and also color lens. One of the major
innovations was the Acuvue 1-day lens that was launched in 2006. The new variant is a use and
throw lens.

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“Whether you want to turn heads every day, make your eyes match your mood, or just change your
eye color for a special occasion, ACUVUE® 2 COLOURS™ Brand lenses has a color for you. Ultra-
thin and comfortable, ACUVUE® 2 COLOURS™ lenses have ten natural-looking colors to choose
from — with or without vision correction”

The target, which these marketers aim are those who will be using computers. Using lens while
working on a computer will cause irritation in the eyes. This is just one example of how product
problems can obstruct growth. Till the contact lens marketers sort out the product related limitations,
the category is going to remain a niche.

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