Background on Johnson & Johnson

In 1886, Robert Johnson joined his two brothers, James and Edward Johnson and went into business in 1886 in New Brunswick, New Jersey with 14 employees. They incorporated as Johnson & Johnson (JNJ) in 1887. One of JNJs most well known products was Johnsons Baby Powder, which was originally to sooth skin irritation in 1890. This led to a line of baby products with the marketing slogan, Best for your baby, best for you JNJ has been a publicly traded company on the New York Stock Exchange since 1944. The companys ticker is JNJ. They boast 72 consecutive years of increased sales and 44 consecutive years of dividend increases. Part of JNJs success is contributed to their innovation and continued development of new products. 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 Johnsons Baby Powder, and, over time, introduced other products like toothbrushes, Johnsons Baby Cream and Prickly Heat Powder. It is a baby care company set up in India.At present Johnson and Johnson holds 80% of the market share in the 800 crore and increasing baby market. The company is growing at a rate of 8% per annum. At present this company is celebrating the 125 years of Baby Celebration.

World Wide Key numbers for fiscal year ending December, 2010: Sales: $61,587.0M One year growth: (0.5%) Net income: $13,334.0M Income growth: 8.7% Employees: 114,000 Employee growth: (1.3%)
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
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 Ranked 1st among 50 top Pharmaceutical companies

252 subsidiary companies with operations in over 61 countries. Well-known consumer products are the BAND-AID Brand line of bandages, JOHNSON'S BABY Products Produced its first product 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)

Corporate Vision
The company has a corporate visionPartner with every mother around the world, to provide her baby with a happy , healthy start in life.

Mission
Understanding mothers and babys rational and emotional need. But still the mission is not all the company has something of its own called CREDO.

CREDO
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.In meeting their need everything we must do , must be of high quality .We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers orders must be serviced promptly and accurately.Our suppliers and distributors must have an opportunity to make a fair profit.

Goal

To continue to drive the Baby care market and successfully launch newer products for different end users in the 800 + industry. The fundamental objective of Johnson & Johnson is to provide scientifically sound,
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high quality products and services to help heal, cure disease and improve the quality of life. This is a goal that began with the Companys founding in 1886.

SEGMENTS OF BUSINESS
It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries. Its Medical Devices and Diagnostics division offers surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things. J&J's Pharmaceuticals division makes drugs for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and pain. Its Consumer segment makes over-the-counter drugs and products for baby, skin, and oral care, as well as first aid and women's health. Johnson & Johnson is organized into three business segments:-

Consumer Pharmaceutical Medical Devices and Diagnostics

PRODUCT MIX
J&J is known not only for the quality service & types of products but also for the variety & range of products. It has a huge list of Product Lines with enormous depth in each line. It also has a tremendous width & depth in its Product Mix. Its Product Lines are in the following segments:-

Baby & Child Care Skin Care Oral and Wound Care Womens Health Care Nutritional and Over-the-counter Pharmaceutical Products Medical Devices and Equipment.
Some of the Products in the Product Line of Baby & Child Care are :Baby Massage Oil ,Baby Hair Oil , Baby Soap, Baby Cream, Baby Body Lotion, Baby Powder, Baby Nappy Pads, Baby Shampoo, Baby wipes (NEW), Baby toothbrush, Top to toe

J&J has done the Brand Line extension in the products like Soap, Cream, lotion & Powder by launching these products in various fragrance & colors. In todays changing times, where people have become more conscious towards their health & thus moving towards natural products, they prefer using J&J products over other Brands. J&J has captured the customers by Positioning itself as a Company providing Natural products devoid of chemicals. Thus its graph of Customer Confidence Index is high as compared to other Brands. Not only the Kids & New Born, but also the teenagers & upper age group customers have been the Target of J&J. It has its products flowing for every age group & in every segment. Some of the products in the product line of Skin & Hair Care are:Clean & Clear face wash, Clean & Clear Moisturizer, Clean & Clear Deep Action Cleanser, Body Lotion etc., NEUTROGENA, JOHNSONS, SHOWER TO SHOWER, AVEENO, AMBI SKINCARE J&J also has its Oral Care (Mouth wash) products by the name Listerine in three variants i.e Cool mint, Mouthwash & recently launched Listerine Fresh Burst. Wound Care & Topicals Care for cuts, scrapes, rashes and itching. BAND-AID Brand Adhesive Bandages CALADRYL NEOSPORIN SAVLON DAKTARIN J&J also has several womens Health Care products. Women's Health Products for womens health care needs. STAYFREE CAREFREE Over-the-Counter Medicines Relief for pain, colds, coughs, allergies and more. NICORETTE
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 BENADRYL Nutritionals Products for a healthier diet SPLENDA VIACTIV Vision Care Products for vision care. ACUVUE Brand Contact Lenses

Thus J&J has segmented the market in a way so as to target Kids, Teenagers, Women & also people those are conscious about Natural products. It has strongly covered the market by diversifying itself into Pharmaceuticals & Manufacturer of Medical Equipments & devices.

MAJOR BRANDS

Some of the major Brands of J&J are:STAYFREE (Women health Care Products) BAND-AID (Adhesive Bandages) CLEAN & CLEAR ( Skin Care Products) JOHNSONS BABY (Baby Products) NEUTROGENA (Skin Care Products) LISTERINE (Oral Care Products) BENADRYL & CALADRYL (OTC)

JOHNSONS BABY POWDER

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It is the powder which offers complete protection to a babys sensitive skin.Not only it is sterlised, but also unlike adult

powders , the edges of the talc particles are smooth and will not penetrate the pores.This allows the babys skin to breathe easily and remain healthy. It is classic. Johnsons Baby Powder helps to eliminate friction while keeping skin cool and comfortable.Its made of millions of tiny slippery plates that glide over each other to help reduce the irritation caused by friction. Clinically Proven to be Safe, Gentle & Mild Allergy and Dermatologist Tested Clean , Classic scent In the beginning there was Johnsons Baby powder. The success of this however led to a wide range of other babycare products being launched.

Marketing Strategy
Johnsons Company has a leader strategy, as the steering wheel of the baby care market is in its hand.It does reach out to the lower income consumers through low cost outlay packs and innovative packaging options at a reasonable price.This is done mainly for Semi Urban & Rural Markets. All this is possible by means of study and research / analysis on the 4Ps of Marketing Mix

Product Price Place Promotion

Let us see the 4Ps analysed by J&J India for Johnsons Baby Powder

Product Strategy

It offers products which the public identify with them. This is possible because they have identified themselves with the product. all mothers, no matter where they are, are becoming more and more educated and seeking information about the products they use on their babies. They all want the products to be hypoallergenic and mild and prefer to use brands they trust. They are very receptive to quality branding. The first view in the company is Indianising products as per needs.In which the Baby Oil, Baby Powder, Baby Soaps were made as per the Indian Consumers needs. Johnsons Baby Powder is a very mild baby powder, found the most suitable and liked product for Baby skin. For Product Designing, There is use of light pastel shades on packs. Use of high quality non-toxic plastic / packaging material for product. The packing has a plain and simple design , without any caricatures etc. In the Beginning there was Johnsons Baby Powder.The succedd of it however led to a wide range of other baby care products being launched.This is called Product Extension. The Level of Penetration is very high as it is an All Year Long Market.

Price Strategy
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Johnson and Johnson strive to keep their net price increases for health care products within the Consumer Price Index (CPI).It is on

parity with competition and penetration in new markets / products. The price is fixed keeping the low income group in mind. A 500 gm pack of Johnsons Baby Powder comes at a price of Rs.110. J&J have offered the public with low-cost and considerably affordable products in the market. This doesnt only make their

product known to the majority of the public, but also the choice of many buyers. The good thing about J&Js recognizable brand name is that the buying public tends to trust their products. In this manner, this part of the marketing mix tends to contribute largely to the rest of the determinants of product choice.

PLACE STRATEGY
Along with the famous products of the company, it also shows how effectively they make these accessible to the public

Channel Management
JNJ use direct and indirect channels to reach the consumer. For example: JNJ sell directly to large hospitals and medical groups. Since hospitals and medical groups are going to be parents first introduction to baby products; JNJ will directly contact these organizations and attempt to form contracts with them. Having JNJs new diaper being used in hospitals and clinics is also a type of promotion for the new product. JNJ does not rely on a middleman to gain such an important business relationship.
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Another direct channel JNJ will use is their subsidiary, Baby Center. Through the website, Baby Center, JNJ has embrace technology as a form of reaching perspective customers. Baby Center is an interactive information center on the Internet. In addition to researching and networking with others; parents can order products directly from the Internet site. An indirect channel of distribution will be large retailer stores. JNJ will not deal with small stores, as they do not move enough inventory. These retail chains have huge distribution centers strategically located to service their stores. JNJ would deliver their product to these large distribution centers and they the individual chains would worry about getting the product to the selves. Ideally, JNJ wants to move as much product as possible to as few locations as possible. Then the middlemen or retail chains would take it from that point forward. JNJ will practice intensive channel distribution. JNJ expects the majority of retail stores that historically carry baby products to carry JNJs baby diaper. Examples of retailer stores JNJ may use are: Big Bazar , Future Bazar , Subhiksha. All large supermarket chains would also carry the new diaper. JNJs position is not to make the diaper a specialty item that is difficult to locate. The company through its marketing and sales department makes sure that the product is available almost everywhere (from low income areas to high income areas) JNJ will utilize contractual agreements whenever possible. One way to create a channel is if the retailer is motivated to sell JNJ product. Initially JNJ may have to offer a better profit margin for their diapers than the competitors. This will create channel motivation where the retailers will push JNJs diaper over the competitors. By creating this channel motivation, some of the retailers may even promote the diaper on their own to make more sales.

Promotion Strategy
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BRAND MAKING & ITS EFFECTIVENESS

J&J Brand making is done through by increasing consumer awareness, through advertising & promotional activities, good product visibility and availability in the market. J&J provides good visibility, consumer offer to the shoppers, better service to retailers, good competitive schemes, and better quality products at reasonable rates. Thus, making its brand effective in the market in terms of other brands.

BRANDING & ADVERTISING:

J&J has been doing the following types of branding in the market: Glow shine board Hoardings One care vision Posters & Danglers By the mid sixties Baby Powder advertising in the US began to focus on the profound emotional bond between mother and new-born child a theme which continues in todays advertising. A typical execution featured the image of a small child kissing his mother, accompanied by the words: Your touch tells him everything. Thats why we make our baby powder so pure and soft and soothing. It feels like love.Johnsons baby invests heavily in quality television and press advertising, point of sale material, educational literature and product sampling. The strategies used to promote products covers the entire range of J & J reinforcing the company equity as a portfolio of products branded by mothers trust. It does focus on product features.The company puts a lot of efforts in creating a need of gifting J & J gift packs during Naming Ceremonies , Birthdays etc.

Gift Pack
J & J Baby Deluxe Kit - This kit is very useful as it is an all-in-one pack an includes a Baby powder of
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200 gms, a 50 ml Baby shampoo, one Baby lotion of 50 gms, a 100ml Baby oil, one Baby cream weighing 30 gms and a 100gms baby moisturizing soap. J & J Baby Economy Kit - This kit packs in a Baby powder of 100 gms, one 75 gms Baby soap, a 30 gms Baby cream, one 50 ml Baby oil, one baby bib, one baby T-shirt and booklet for baby care. This makes a good gift pack also.
The company promotes in parenting sessions it educates new parents about baby care. It also arranges free baby check-ups in hospitals , playschools and nursing homes where the company has tie-ups.There are also J&J kiosks at many malls and supermarkets. This is to create awareness and availability of its product. TV is the predominant vehicle for advertising campaign that encourage healthy lifestyle. Help of new technology is also taken to promote Baby Powder BABYCENTER.COM - Baby centers unique model engages moms and provides a valuable targeted marketing platform. Ecoupons to promote online purchase for educated moms. Johnson and Johnson offers special discount coupons on products such as baby Soap, Powder, Stayfree Secure & others. Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles. Key initiatives include: The Campaign for Nanhi Kali, Nursing's Future, Dermatologists training, Having a Baby Changes Things, Clean and Clear Fresh Face (Currently Shown in times of India and other leading news papers). Post articles in magazines , news-papers , or blogs a great tool to remind post, present and future customers about products and services , facebook etc. Mobile marketing , SMS marketing. To increase its Sales the company has to emphasize on More Usage More Per Use More Number of Times Use. That is why the company introduced refill packs of powder at a trial price to get more users to the Johnsons Fold

OLYMPIC SPONSERSHIP
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SWOT ANALYSIS :
STRENGTH
The strengths of Johnson Baby Powder are It is a product from a very well known company. It has got Customer Loyalty. Almost every mother use Johnson baby Powder for her new born baby. Continued above market growth in sales and profitability Insights and scientific innovation Geographic expansion particularly in emerging markets Our Mission :To make every baby a Johnsons Baby COLLABORATION , JOINT VENTURES , MERGERS , ACQUISITION , & PARTNERSHIP JNJ is one of the worlds leading manufacturers of health care products. The company has a strong product portfolio and has developed a well recognized name amongst parents for their child care needs. This strong brand image puts the company at an advantage when it comes to launching new products. The company is in a healthy financial position that allows the company to provide the resources necessary to exploit opportunities and promote their products heavily.

WEAKNESS
The weaknesses could be none

OPPORTUNITIES
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The opportunities in front of Johnson are Emerging Market in Consumer Care , Health care products. Additional Fragrances in existing Products. Raise of Capital from Stake Holders.

THREATS

Threats could beImmitation of JNJ products by small scale industries. Duplication. Quality Control. Safety concerns are always an issue especially when developing a product used by children. JNJ needs to be prepared for claims associated with misleading advertising, inappropriate use of the product and allergic reactions that some babies may develop. JNJ invests plenty of money on trials and developing their products, however; does not always guaranty that something will not go wrong. Competition is also a major threat for JNJ. Huggies and Pampers have dominated the diaper industry for quite sometime

RESEARCH & DEVELOPMENTS

JOHNSON'S BEST FOR BABY Standard
As a parent, you're committed to providing the very best care for your baby. And so are we. From our choice of essential ingredients to our safe, gentle and mild formulas, we've been applying the highest JOHNSON'S Brand standards in baby care to our products for over 100 years. Today the JOHNSON'S Brand family includes more than 50 products, all of them carefully formulated and designed with you and your baby in mind. Developing a new product takes years of research, review and testing. Importantly, this involves talking to moms throughout every phase of the process to better understand their needs. Over the years, we've listened to feedback and carefully studied how moms interact and bond with their babies. These insights help us design new products that assist you with everyday baby care needs -- from skin and hair care to even routines that help your baby sleep better. Our on-going partnership with pediatricians, pediatric dermatologists, midwives and nurses helps guide our new product development. Beyond these partnerships with health care professionals, we also turn to leading scientific experts to gather valuable information on the latest discoveries, trends and technologies to bring innovation to our baby skin and hair care products. Before any new JOHNSON'S product becomes available for your baby, it must first pass a comprehensive assessment that adheres to the JOHNSON'S BEST FOR BABY Standard.

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To help parents and healthcare providers give the best care, the JOHNSON'S Brand is committed to finding out all there is to know about babies. In fact, they conduct fundamental research to further the understanding of the unique and special needs of baby's eyes, skin, and hair. And their hundreds of scientists worldwide use this knowledge to help create products that are safe, gentle, and mild. J & J pioneer the science in understanding babies Credo: Their Guiding Philosophy The overarching philosophy that guides our business is Our Credo, a deeply held set of values that have served as the strategic and moral compass for generations of Johnson & Johnson leaders and employees Being broadly based gives them a number of advantages. Their more than 250 operating companies have a local window into emerging customer needs, scientific developments, and technologies throughout the world. They turn those insights into innovative new products and sometimes whole new businesses. It allows them to transfer scientific breakthroughs, marketing insights and manufacturing expertise easily across the full range of their businesses. This broad base has helped them bring more science to the consumer health products that people use every day.

You only have to touch a baby's amazingly soft skin to know it is more delicate and fragile than your own. And the JOHNSON'S Brand research has shown just how different a baby's skin is from an adult's. Skin acts as a protective barrier, the first line of defense against outside organisms, toxins, irritants and allergens. Determining what makes your baby's delicate skin unique and how best to protect it has been the focus of years of JOHNSON'S research. To this day, we continue to study baby's skin of all types, using non-invasive measurement techniques and clinical assessments by dermatologists and pediatricians. Thanks to years of ongoing research, we know that skin needs appropriate hydration to remain healthy, and skin that is too dry can lead to skin barrier disruption and even infection Our highest priority is you and your baby. That's why we take the greatest care in developing baby-safe products that are mild and gentle products that are best for your baby, naturally.

RECENT DEVELOPMENTS
Touch is your baby's very first language. To enhance that special communication with your baby, it's important to maintain healthy and hydrated skin. For just that reason, the JOHNSON'S Brand pioneered research into the unique nature of infant skinresearch that provides the foundation for product development. Introduced in 1953, JOHNSON'S Baby Shampoo was the first specially formulated product to be as mild to a baby's eyes as pure water. We know just how different a baby's still developing eyes are, and we also know that they need to be

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protected from potential irritationlike accidental splashes in the bath or during shampooing. Our unique knowledge of babies and the importance of developing products designed specially for their unique needs, including their eyes, led our scientists to invent JOHNSON'S Baby Shampoo with its NO MORE TEARS formula. And since that time, we've developed NO MORE TEARS formula body cleansers, too, like JOHNSON'S HEAD-TO-TOE Baby Wash and JOHNSON'S Baby Bubble Bath & Wash. The NO MORE TEARS trademark is more than just a symbol on a bottle. It tells mothers that the product is gentle and mild for her baby. Each product that carries this trademark has passed rigorous and comprehensive evaluation to ensure its safety and mildness in the case of accidental splashes. We've even tested competitor products against our standards and found failureseven when their label says "no tears" or "no sting." Our four-stages are: Ingredient & Formulation Review Every single one of our ingredients and the combined formulation are all rigorously evaluated for safety. Pre-clinical safety evaluation Our safety groups comprehensively examine these products in the laboratory to ensure safety. Clinical testing on eyes Board-certified ophthalmologists perform over 150 evaluations, including tearing, stinging, and redness. Medical Review We conduct a thorough review of all data to ensure the product has earned the NO MORE TEARS trademark. Johnsons baby is committed to constant product development and innovation throughout its products preparation,packaging and design. Some examples include the Bedtime Bath, Softwash and Softlotion, oil gel and spray, Top To Toe wash, Skincare and Extracare wipes, Johnsons Junior range for toddlers and many others. The baby care market is a particularly fast moving one. In order to be successful, they constantly keep pace with an increasingly mobile population, shifting lifestyles and growing health awareness. Johnson & Johnson is a company of enduring strength.Its products, services, ideas and giving now touch the lives of at least one billion people everyday.

Questionnaire
How we hold our products to the highest standards
Because we have the highest ideals for your baby, every JOHNSON'S product available to moms and babies is guided by our "BEST FOR BABY Standard." That means safety is our priority. However, when it comes to what's ideal for babies, we go well beyond safety to ensure that every product builds in the highest levels of comfort. That's why we promise to deliver only products designed specially for baby that are gentle and mild. The JOHNSON'S Brand values the trust that moms and health care professionals have placed in us for over 100 years. We conduct ongoing research and continually review the latest scientific findings. We actively engage with external experts, like pediatricians, pediatric dermatologists, midwives and nurses. We make sure our standards are always set highand work every day to ensure that we meet them. All JOHNSON'S Baby Products must pass comprehensive evaluation to ensure they're appropriate for your baby. Our safety process involves four well-defined stages:

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We determine exactly how the product will be used. Our Safety Team considers who the product is intended for, its intended use, what areas of the body the product will come in contact with, how often it will be used, and whether the product will be rinsed off or remain on the skin. We carefully assess ingredients and formulations. When developing new products, the JOHNSON'S Brand applies rigorous and internally high standards that set us apart in the industry. Our Safety Team carefully considers each ingredient and its impact on a product's final formulation. This assessment involves ongoing review of the latest scientific information, including staying fully abreast of current and pending regulations in each country where we market our products. We thoroughly review and assess information for each ingredient, including supplier information and independent safety analyses, including clinical data. We conduct real-world evaluations with moms. Our ingredients are carefully selected and reviewed for safety, and our product formulations are clinically evaluated with appropriate testing. We ensure each product displaying the NO MORE TEARS or CLINICALLY PROVEN MILDNESS trademark has the right body of research and support behind it and that claims like "hypoallergenic" and "designed gentle enough for newborns" have appropriate data behind them. Products that make it through our rigorous assessment and become "candidates" for the marketplace are placed with real moms to use in the real world. This helps us learn how the product will really be used and lets us know if there is anything more we need to do before the product can go to market. We never stop monitoring what you say about our products. After a product becomes available for your baby, the Safety Team continues to conduct ongoing research and seeks your feedback. Based on that information, we continue to improve and develop the next generation of safe, quality products.

J&J COMPETITORSo o o o o o o o Hindustan Unilever Ltd.(Ponds, Pears, Vaseline) Procter & gamble (Whisper, Pamper, Olay) Himalaya (Baby care) Pigeon (Baby care) Zydus cedilla (Everyouth) Wipro (Baby soap) Colgate Palmolive (plex mouth wash, Colgate brush) Nivea (Lip balm, Cream, lotions)

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