Wednesday, August 21, 2019
Johnson and johnson
Johnson and johnson a.        Executive Summary Johnson and Johnson company has planned a new product lounge in the market specifically for Pakistan where a big number of peoples having not enough awareness of bacterial and germs infection. The product named as Pak antibacterial soap is designed that provides quick, easy and effective hand washing. Proper hand washing is the most effective preventative measure available to combat communicable diseases. Skin problems are common for people of all ages. Whether you suffer with a rash, itchy skin, skin fungus or infection, skin bumps, or skin tags. Improper handwashing. The Market Through analysed facts and figures Johnson and Johnsons Pak antibacterial soap is wide market such as mothers, children and employees. The target market has population of more than 160 million in which 68% of people are not properly wash their hands before eating. People of the country are not much aware about the bacterial infections. So JJ planned an attractive marketing strategy which will educate the people and provide healthy life in their own hands. Based on detailed financial projections,JJwill require22 million Pakistani Rupees and will generatepositive cash flowin first quarter, Year 1. Sales Forecast b.        Introduction 1.a        Background: Johnson and Johnson (JJ) is a global pharmaceutical product company. This company is a well known organization. The company started its first production in 1886 and after one year in 1987 it is incorporated. The company headquarter is in New Brunswick located at prime location. b.b        History: The company Johnson n Johnson was found in 1886 (around 120 years ago) on a revolutionary idea by Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson when doctors and nurses started to using bandages and dressing, sterile suture for treating wounded peoples. The company has maintained friendly environment and very keen in health and safety from the beginning, they first time used non-polycarbonate containers instead of plastic bottles. JJ uses a largest solar power generator as a member of Green House for keeping the environment. b.c        Corporate chairmanship of the Company v Robert Wood Johnson I 1887-1910 v James Wood Johnson 1910-1932 v Robert Wood Johnson II 1932-1963 v Philip B. Hofmann 1963-1973 v Richard B. Sellars 1973-1976 v James E. Burke 1976-1989 v Ralph S. Larsen 1989-2002 v William C. Weldon 2002- b.d        Corporate Governance: Board of directors of Johnson Johnson are listed below: Mary Sue Coleman, James G. Cullen, Dominic Caruso, Michael M.E. Johns, Ann Dibble Jordan, Arnold G. Langbo, Susan L. Lindquist, Leo F. Mullin, Christine A. Poon, Steven S. Reinemund, David Satcher, and William C. Weldon. http://cs.wikipedia.org/wiki/Johnson_%26_Johnson In the first period of their development during 1886 to 1926 they got success to establish a company in New Brunswick and they focused on sterile surgical dressing to save the lives of patients. They participate in saving peoples lives in1906 Francisco disaster. Their global expansion began in 1919 from Canada and 1924 from England. During Their 2nd period of product lines expansion been b.e        Company Structure: JJ is with several business segments in all around the world with 250 companies in 57 countries. The companies are concerning with following particular areas: Consumer Health Care Medical Devices and Diagnostics Pharmaceuticals Products of JJ: Medical Devices and Diagnostics: JJ is helping hospitals with the technologies to restore the joys of precious life of human being who are suffering with diseases and chronic conditions all around the world. They are providing more than 20 kind of technological devices including Orthopedics, Implants, Joint Replacements, Sports Medicins, Heart and Vascular Diseases etc. b.f        Consumer Products: For improving the quality of every day life the consumer companies of JJ target the baby care, skin and hair care, oral care, nutritional, pain relief, topical care and much more. Their vision is very clear and the companys slogan is BRINGING SCIENCE TO THE ART OF HEALTHY LIVINGâ„ ¢. b.g        The Pharmaceutical segment: Johnson Johnson invested over $5 billion in 2008 on RD. This investments majority was in five therapeutic areas where the Pharmaceutical segment is strategically focused and where there continues to be significant unmet medical need. Following areas are included: cardiovascular disease and metabolism, neuroscience (including pain); infectious disease, immunology and oncology. b.h        Recent Products: J J is continue to providing healthier life to their consumers. Here are some recent products lounged by the company: AVEENO ® Intense Relief Repair Cream AVEENO ® POSITIVELY AGELESSâ„ ¢ Firming Body Lotion AVEENO ® POSITIVELY AGELESSâ„ ¢ Warming Scrub CLEAN CLEAR ® ADVANTGE ® Blackhead Eraserâ„ ¢ Exfoliating Cleanser JOHNSONS ® HEAD-TO-TOE ® Foaming Wash JOHNSONS ® Baby Bubble Bath Wash 1.        Situation analysis: Our antibacterial soap is specially produced to protect people from germs and bacteria. Especially in Pakistan where is not a complete understanding of peoples about the bacterial infection. People in third World countries are not fully aware of these kinds of problems. Even in rural areas of Pakistan where people are not literate, they are facing new skin problems every day. Our new product targets those areas of the third world where people are not aware of bacterial protection. First we focus people who are living in rural areas of Pakistan especially interior Balochistan. 1.1        Market Summary: 1.1.1Market Demographic: According to a survey population and growth rate of Pakistan is under the following: Population of the country: 172,800,000 (according to July 2008 best estimation) Growth rate of population: 2.2% (according to 2008 estimation) Birth ratio: 31 births per 1,000 population (2008 est.) Death ratio: 8 deaths per 1,000 population (2008 est.) Net migration ratio: -1.0 migrant(s)/1,000 population (2008 est.) Refr:        wiki http://en.wikipedia.org/wiki/Demographics_of_Pakistan In this survey more than 68% population of Pakistan is living in rural areas where people are not aware about the bacterial infections. 1.2        External Analysis: 1.2.1Political Analysis: Constant political instability does affect the company in terms of building relations with the governments. It is very difficult to maintain long term relations with all the governments. Pakistan is aligning with US against the terrorism and because of this their peoples are victims of terrorism and are stressed. 1.2.2Environmental Analysis: Solid waste burning, bad-quality fuels, and the growing use of motor vehicles are contributing towards in air pollution that in some cities as exceeded levels deemed safe by the World Health Organization. The country is suffering a lot from the dry climates. The country has poor water infrastructure even more than 70% population dont have refined water for drinking. Moreover country has not a proper sewerage system. 1.2.3Social Analysis: JJ has to be very careful according to implementation of its promotional campaign. Since the social culture of Pakistan is very conservative and any suggestive advertisement face a lot of reactions on the part of consumers. 1.2.4Technological Analysis: Pakistan is a big consumer of new technology. Internet companies are providing a wide range of coverage. Transportation is cheaper than other big countries but there is a big problem of electricity. Existing infrastructure is unable to fulfil the complete requirements of the country. 1.2.5Economical Analysis: The economic condition of Pakistan will always affect the company. As Pakistan inflation rate is going high and high and income of peoples is not increasing as pricing of products are going up. Pakistan has a semi-industrialized economical country. The growth poles of the countrys economy are situated along the Sindh River (Indus River), diversified economies of Karachi, Lahore and Faisalabad are located with less developed areas in other parts of the country. Pakistans economic growth rate has been increased in last 40 years and getting strong as compare to 1947. But still there are not enough facilities that fulfil economic requirements of the population. 1.2.6Legal Analysis: There are no legal issues in Pakistan for JJ as company meets all the legal requirement of the country. 1.3 SWOT Analysis: 1.3.1Strengths: The major strength of JJ in Pakistan is affiliation and support from the Johnson and Johnson global organization which has a good reputation in health sector. Another advantage is availability of high technology infrastructure. JJ never compromise on the quality of services and the products, they provide to the consumer. 1.3.2Weaknesses: JJ have only a weakness that they are coming in that market where already have strong competitors and they are well known and have very strong relations with the consumers. Accordingly JJ is not enough strong in that market so capturing new market is very challenging goal for the company. 1.3.3Opportunities: Although the existing antibacterial soap manufactures have already started the campaign to be aware peoples of the country about the bacterial infection but there is still a big market to capture. We believe that JJ have an opportunity to capture rural areas of the country where people have not mentally prepared to buy these antibacterial products. In urban areas people of Pakistan already familiar with JJ baby shampoo and other valued products for baby care, they will automatically buy these products. 1.3.4Threats: In every market there is a chance of new comer in the same field. Soap industry has very good margins and growing up and up day by day, so there is always a chance to have more competitors. Other main players in the antibacterial soap category (Safeguard by PG, Dettol by Reckitt Benckiser and Lifebuoy by Unilever) in Pakistan have strong positioned their brands for everyday use against bacteria. They are offering some sort of additions in their products by regular basis, they can challenge JJ by providing new improvements and they also reduce their prices to beat JJ in competition. 1.4        Competitor Analysis: The following are three big companies are already operating in this area. 1.4.1PG Proctor Gamble has positioned to provide every day new advertisement and they have 20 percent of market share. A series of marketing campaign distinguished safeguard soap to all other market competitors. They have variety of types and different flavours of products. 1.4.2Uniliver Uniliver have 10 percent market share in the target market. They started marketing campaign and competing with PG but their marketing strategy is not as effective as PG has. 1.4.3Reckitt Benckiser Reckitt Benckiser are producing antibacterial soap named Dettol Soap, they have 5 percent of market share. They are well behind the both top companies products (Unilivers Lifebouy and PGs Safeguard). 1.5Distribution Pattern Analysis Regional providers are providing distribution in the soap industry. These distributors serve a large portion of the market based on the size of the market and delivering to the organizations monthly and weekly depending on the demand of the company and usage patterns. Food services deliveries typically of cleaning products once in a month. Hospitals have a different distribution system; they receive monthly a large amount of soaps. Restaurants typically receive once in a week delivery of soaps and the stores receives some times weekly and some times after two week according to the demand. 3.        Objectives Develop a complete prototype which meets regulatory standards by June2010. Become thespecialty soap of choice for day cares across the Pakistan by December 2010. Achieve sales of Rs10 million by the end of 2010. 4.        Mission Statement: Johnson and Johnson believe on the launching of new products. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Johnson and Johnson is an innovative consumer company which provide new products and new ideas in health sector. Johnson and Johnson never compromise on quality and have well reputation around the world. 5.        Vision: Johnsons Johnsons vision is very clear. There vision is: -Keeping children free of infection We partner with Task Force for Global Health so children can stay healthy -Focussing on Wellness and prevention We remain commited to expand the ways we care the people through out the World. -Fulfilling new need of new markets Our vision is to improve the quality of peoples daily life. Peoples and values are our companys biggest assets. We know that our companys every invention and every product is powered by the people. We also recognise that different age, nationality and sexual orientation, physical ability, thinking ability and backgrounds bring richness to our work environment. 6.        Strategy Our executive team willbuild loyaltyfor our products withdecision-level managers of the organizations in the target markets, and they will create such a strategy in which target people directly target. For this purpose they will make some effective advertisement and will use children, male and mothers to deliver the specific messages to the audience. 6.1        Strategy Pyramid Ourultimate strategyisto build JJ products intothe standard forhome and workplacehand washing and bathing for cleanings and free of bacteria by targeting daily routine of children, mothers and workers. We will contract the insurance, advertising companies as well as government companies to start strong branding campaign to make aware of the peoples of the brand. 6.2        Competitive Strategy: To achieve good results we need to concentrate on the quality price and the same time on the competitors. PG is providing a good product with cheap price. According to the Porters Generic Strategy we will use diversification because our product and market is new, where risk of level is high we need to provide low cost soap and with some new and different attributes of our new brand soap. Reckitt Benckiser is also lounged a campaign through advertisement to educate children about the bacterial infection. Same time Uniliver is playing vital role and they are also focusing on the school level children. In accordance to above factors Johnson Johnson is very keen on pricing and quality of products. 6.3        Marketing Strategy For our initial target market of home consumers, JJ will implement two parallel marketing efforts. One is aimed to the parents of young children who use this antibacterial soap and other is to educate the children regarding bacterial infection. We need to create a push factor by effectively convincing the mothers of children that our product provides an ideal solution for the bacterial infection to the hand washing compliance and bathing.A branding campaign will build awareness and provide education the children of rural areas where children do not have a proper education of germs and bacteria in their daily life. 6.4Market Segmentation: 6.4.1        Demographic: Our antibacterial soap targets the children, adult and households. According to CIA World Fact book age structure of Pakistan is: Age structure: 0-14 years: 36.7% (male 33,037,943/female 31,092,572) 15-64 years: 59.1% (male 53,658,173/female 49,500,786) 65 years and over: 4.2% (male 3,495,350/female 3,793,734) (2009 EST.) Our primary target are children and females those are more than 50% of total population who want to fulfil an everyday needs. Females are very conscious about their health and skin diseases. They want full protection against bacteria. We also believe that children are potential agents of change in life and imparting education of the importance of hand washing with antibacterial soap will bring healthy habits in their early life. 6.4.2        Market Growth: The overall market of soap is growing up by 10% in recent scenario and particularly 7% growth in antibacterial soap in Pakistan. 6.4.3        Socioeconomic Middle class and upper middle class will be the main target of the product. Primary target will be cities and surrounding areas of the cities. Rural market penetration is limited and is primarily driven through wholesalers. Psychographic: In this we can target young house wives and mothers who care about the health of whole family and can educate their children about bacterial infections, health and hygiene. 6.4.4        Positioning Strategy Our strategy is to provide healthy life with low cost product and high quality. Our product provides conclusive evidence every time a child washes his or her hands for only a marginally higher cost than traditional soaps. The cost is significantly less than gloves or other hand washing liquids available in the market. 6.5Product 6.5.1        Product Name: Pak Soap 6.5.2        Product Type: Anti-bacterial Soap 6.5.3        Ingredients: Tricloson Palm Oil Water Sodium laurel Sulphate Laura Mide DEA Glycole Disterate Cocamidopropyl betaine Sodium Sulphate Fragrance Guar Hydroxypropyltrimonium Chloride Citric Acid Hydanation Tetra Sodium EDTA FCD Red No 4 FDC yellow No 5 Alovera Vitamin E 6.5.4        Physical and Chemical Properties: Boiling Point:        Above 21 oF Specific Gravity:        1.02 Volatile by Volume:        80% approx Solubility in Water:        Complete Evaporation Rate:        Same as Water 6.5.5        Convenience good: The product will provide complete protection from all seen and unseen germs and bacteria. 6.6Pricing Strategy Retail pricing for anti bacterial soap will generally be around Rs8/eachand will command a 30% price premium overother available conventional liquidsoaps available in the market. Our values product will not be only attractive toextremely price sensitive customers it will also capture the buyers who are very much caring of their health. The soap market is generally inelastic, but we offer some different benefits overcurrent available soaps that justify the different qualities and price. 6.7        Promotion: 6.7.1        Agency Selection Around 135 advertising agencies working in the market but Johnson Johnson has selected Manhattan International Limited (MIL) Advertising Company because the company has extraordinary technology and well reputation with government and civil sector in Pakistan. TV Advertisement Radio Ads News Paper and Magazines Sign Boards 6.8        Place Pak soap has also planned an in-store placement strategy to promote and market their product so to have maximum visibility to the consumer; they have assigned dedicated shelves to the product and are also promoting their product in metro and makro as well. Their placement strategy is mainly focused on v Place Pak Soap next to Safeguard v Equal or more faces than Safeguard, Dettol and Lifebouy. v Place between Dettol Safeguard where Possible. v Build brand block wherever possible. 6.9        Distribution Strategy Initially our distribution strategy will involve a combination of both distributors and direct sales through some available channels in the market.Relationships with local Pakistani distributors then will be established for promotional reach and potential users. Our executive team will get the first order after direct delivery to the wholesalers and will give some discount to them.In the future entirely outsourcing distribution will allowJohnson Johnson to focus its efforts on marketing and expanding as quickly as possible. 6.10        Action Plan 6.10.1Gantt chart 6.11Financial Strategy (Budgeting): Johnson Johnson pvt ltd is a sub company of Johnson Johnson which operates in the country. This project is only for Rs22 million. We will buy machinery for production of soap which will cost only Rs120,000 and purchase for Raw material is only cost for Pakistani Rs.40000. So all other expenses and salaries of employees for production for the first quarter is can be seen in the following: Pak soap is a Rs 1 billion brand annually and so the marketing budget allocated to it approx 20 % of total Net revenue, not much resources have been allocated to Pak soap marketing efforts due to its squeezed margins and close competition with other antibacterial soaps, it mainly derives its sales from the brand equity of Pak Soap. 6.12Sales Forecast 7.        Evaluation and Control Johnson Johnson is a family company that prides itself on improving the health and well being of its consumers. By targeting all age groups, socioeconomic statuses, and partnering consumers, the new product will provid 22 million of net profit for the first quarter after the launching of the antibacterial soap, which is the actual amount of the projectDomestic sales increased .2%, while international sales increased 13.8% (2.6% from operations and 11.2% from currency). These figures represent Johnson Johnson meeting and exceeding consumer needs, which is partly the reason why it is a Fortune 500 company. 8.        Conclusion and Recommendations: We have carefully research and analysed the market strategies adopted by Johnson Johnson Pakistan to boost the sales of new anti-bacterial soap () in the country and in first quarter Johnson Johnson will capture the 20% of market share. Following are the some suggestions for Johnson Johnson Pakistan Pvt. Ltd.: Price of soap will be set the according to the competitors. If competitors reduce their price they reduce their margin and should reduce the price. After successfully launched they should provide some flavours in the soap, so customers can enjoy different flavours as the other competitor Safeguard have 7 flavours in the market. Start a program in which they can educate children, industrial workers and mothers by hiring teams which will go door to door. 9.        Individual Critical Reflection Report: Marketing Management subject was never interested for me before studying this module. When I started to learn, very first class creates my interest in this subject in which tutor gave us an assignment to analyse the market, which was the turning point for me. And we visited some clothing stores than I get knowledge about how to analyse the different things. Before starting my MBA I was not familiar with the appropriate terminologies used in the marketing field, but I was very much sure that I will understand these concepts. I have managerial experience but not in marketing field and I wasnt know even about to write the different types of marketing. As module was passing day by day I feel many things change in myself, for example when I visit any place or store I started to analyse the things around me. This is the first development which I feel in myself. The concept of learning through case studies was very effective. It polished my reading and implementation of concepts and I come to know how the concepts can be taken out from the printed and electronic Medias. This developed my reading power and I learned how we extract the main points from a whole passage. Initially when I start to read a passage I feel difficulties to take out specific points from the articles, but day by day I feel change in myself, I feel confident and really enjoy reading articles and magazines. Presenting on the front of the class is another opportunity which I got from marketing management module which is very important for a marketing manager or MBA student, because people says presentation is very important for sell some thing. By preparing Wilkinson case study in early classes and presenting on the front of the tutor was an awesome experience which developed a self confidence level and enhanced my presentation and speaking skills. By learning in very depth of the marketing concepts I understand how the all stakeholders are very important in the process of marketing such as how the competitors can effect on the business. After completing this module I can write the marketing plan for any organization as I did in this assignment. Now I know how to use the marketing mix and how we can analyse the performance and how can we position an organization in the marketing. Porters Generic Studies, Ansoffs matrix, consumer behaviour, segmentation strategy and decision power of buyers were new for me and now I completely understand that how these models can be implemented in the marketing strategy of a company. Evolution of marketing metrics, ethics and social responsibilities and managing a marketing team is now not difficult for me as I am planning to start my own business after my MBA, I am very happy that I have enough knowledge of measurement and control a marketing plan and how to write a project plan by assigning different tasks to different teams. As a conclusion the whole module was very helpful to build and develop marketing concepts for me. References and Bibliography: Course Book http://www.jnj.com www.wikipedia.com www.uniliver.com http://www.marketingprofs.com/ http://www.articlesbase.com/marketing-articles/ https://www.cia.gov/library/publications/the-world-factbook/fields/2010.html 1 / 27 LSBF (MBA)
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