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Reflections on Concept Applications - Johnson & Johnson

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  • "Brand - Johnson & JohnsonQ.1. Store, type of business, brief history etc. (300 words approx.)Johnson and Johnson has been the most preferred baby products brand for decades.Johnson and Johnson is a Multinational Company found in 1886 and based o..

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  • "Brand - Johnson & JohnsonQ.1. Store, type of business, brief history etc. (300 words approx.)Johnson and Johnson has been the most preferred baby products brand for decades.Johnson and Johnson is a Multinational Company found in 1886 and based out in NewBrunswick, New Jersey, United States of America. This company has expanded its wings intomany sectors like pharmaceutical, medical devices and consumer packaged goods. Thisconglomerate has been listed among the Fortune 500. But until 1959, Johnson and Johnson company wasn’t very popular in the field ofpharmaceutical Industry. Johnson and Johnson company was started by three brothers whowere inspired by hearing a speech by Antiseptic Advocate Joseph Lister. The first productwhich was designed by Johnson and Johnson was First aid kits to treat railroad workers. Onlyin 1894, Johnson and Johnson entered the baby product market by introducing Maternitykits. The main purpose of the maternity kit was to make the childbirth process safe to boththe mother and the baby. In the very same year, they introduced their successful Babypowder which is actually popular till date. In the following year they introduced manysanitary protection products for the women. Ethicon, A subsidiary of J&J’s was created tomanufacture surgical suture and wound closure devices. Later this Ethicon was incorporatedas a separate company. In the year 1959, after acquiring two major pharmaceutical companies, J&J’s showed itssignificant presence in the field of pharmaceutical medicines. In the following decadesJohnson and Johnson expanded its wings worldwide and became a Multinationalconglomerate. As of now the Johnson and Johnson Corporation have over two hundred andfifty subsidiary companies. It has spread its operations over fifty seven countries and itsproducts are available for sale in over One hundred and Seventy five countries. The mostfamous consumer products of Johnson and Johnson Corporation are Band-Aid, Listerine,Johnson’s baby, Neutrogena, Clean and Clear, etc. Q.2. Branded product chosen and why (300 words approx.)The branded product chosen for this report is Johnson and Johnson baby product brand. Theexact brand name is “Johnson’s”. I have chosen this brand for its unique category. Johnsonand Johnson Corporation create a niche market for the baby products industry. They clearlyknew the potential of the baby care market. They expanded theory product all over theworld, this segment isn’t limited to a community or country. The UNICEF estimates thatevery day more than 350,000 babies set foot on the planet. Johnson’s products include Baby powder, baby shampoo, Baby oil, Baby soap, baby wipes,baby moisturizer, etc. The first baby product introduced by the Johnson and JohnsonCorporation was Johnson’s Baby powder. After the success of the brand’s baby powder,then went on to produce soaps, creams, moisturizers, lotions, etc. The company was calledby its consumers a baby company owing to their huge success in the baby care productindustry. The legacy of the product was passed on to generation; any new productintroduced by Brand Johnson’s carried the legacy and trust. Consumer identification of theproduct is still growing strong for the brand. The Johnson and Johnson Corporation is usuallyreferred as a “Baby company”, which clearly states the significance of its baby productscategory thought they started out as a medical supply company. The most significant criteriafor choosing this brand are the brand’s customer base. Johnson and Johnson made everymother to believe in their product for its quality. Every consumer who bought this producthad a huge trust factor on Johnson’s brand because they were going to use in on their newborn bay. This was main criteria which attracted me to consider this brand for detailedanalysis.Q.3. Segmentation (type - e.g. relative to popularity/customer's needs etc.) (300 wordsapprox.)Market Segmentation at its most essential levelmeans subdividing a market into small unitsbased on their shared characteristic. Johnson and Johnson Corporation had carefullysegmented it’s product in Baby care and Mother care segment. The product is fixed inconsumer’s mind with parent-infant band. The baby products were marketed along withmaternity and obstetric kits. The objective of this strategy was to address the needs of themother and the infant. We have to also keep this in mind, those days childbirth took place athome. The maternity kit carried a clear instruction booklet. The main use of the product wasto prevent infection in mother and baby. The mothers were satisfied with the product andbelieved in the quality of the product and were ready to use the brand’s baby products ontheir new born babies. Now parent are very keen to give the best product to their child and till now Johnson andJohnson leads the race. In the current advertisement campaign the company highlights thefeatures of their products. Thus this product is clearly segmented based on Demographics. Gender, income, age,education, etc. are the most common demographic variables. Age plays a major role withregard to Johnson’s Brand.This segment is “Baby care product”, the growing population inthe age group between 0 to 5 years provides the ever going need for the baby care products.A recent ad campaign of the company says that Johnson’s baby products can be used for kidsabove five years also. This brand targets the new mothers and the end consumer is thebabies. Parents are the target audience in this case. And the mother is the Decision maker inthis brand’s purchase. The Well-defined segmentation of this product is also significantfactor in the success of the brand.Q.4. Target Marketing (marketing tactics to attract potential customers) (300 wordsapprox.)Though Johnson’s have become a renowned brand in the baby care product segment, it hasto continuously market its products and target its customers to lead the market. Thepotential competitors for the brand are listed below;? Abbott Labs? Pigeon? Lilly Elli & Co? Himalaya? Nivea? Novartis A G? Wipro? Procter & Gamble? Hindustan Unilever? ColgateThe target consumer group of this brand is Mothers of the age group twenty four to thirtytwo and every new mother who tries to take good care of the health of child. The marketing tactics of the Johnson’s brand to attract the target customers have beendiscussed in detail in the following paragraphs. Target marketing mainly refers to marketingthe product to a small unit of likeminded people. Here obviously the target groups are thenew mothers. In all the advertisement campaign of the Johnson’s brand products, thefollowing features were present:? Infant and mother bonding? Father taking care of the baby? Grandparents and baby bonding? Smooth skin babies and mother’s touching the smooth skin of the baby ? Active babied were portrayed in all adsThus the brand used holistic marketing by emotionally attaching the product with theconsumers. And making the family members getting attached to the brand for the well-beingof the family’s new born. Once the brand also tried experiential marketing, they rolled out4.3 million newspaper copies smelling Johnson’s Baby powder. This campaign was executedin India. Times of India and Hindu newspapers executed this campaign. Johnson’s productsare distributed through hospitals, medical shops and supermarkets. Distributing the productthrough hospitals and medical shops is also strategy to make people believe that usingJohnson’s product control infection in babies and promotes well-being of the new born. Q.5. Positioning/Price (in store, on special etc) Perhaps "impulse positioning" nearcheck-out counters etc. (300 words)Market positioning involves positing a product in its competitive edge to attract its targetcustomers. Market positioning in simple words is nothing but how the product is positionedin the minds of the target group which it aims at.Johnson's baby powder at different stagesof its life cycle was positioned differently and the positioning statements include 'Mother'sChoice', 'Like Father, Like Child', 'Smooth skin, guaranteed', etc.Johnson's baby products have been promoted in all the mediums available forpromotion in the past. After entry of various competitors, Johnson’s products faced a slightdecline in sales in the early 2000s’ and after this setback they concentrated more on theprint medium and digital online campaign. Pop up advertisements and Video advertisement.Online ad campaigns main objective was to bloggers and online forum members. Impulsepositioning isn’t done in this brand as this product falls under the baby care category. Pricing StrategiesPricing is the element based on which the brand in placed in the mind of the consumer. TheMajor target group of the product with regard to income is parents who are above povertyline, grandparents and family who live in cities and rural areas. With regard to pricing, theprices of the products are fixed, so that they are affordable to above target group. Johnsonand Johnson fix its net price of the product based on the Consumer Price Index (CPI). "

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