MARKETING MIX

INTRODUCTION
Johnson & Johnson was founded more than 120 years ago on a revolutionary idea: Doctors and nurses should use sterile sutures, dressings and bandages to treat peoples wounds. Since then, weve brought the world new ideas and products that have transformed human health and wellbeing. Every invention, every product, every breakthrough has been powered by generations of employees who are inspired to make a difference
Johnson & Johnson manufactures a wide variety of health products that are used by millions of people worldwide. The company has the broadest array of health care products from simple sniffles or skin blemish to a severe medical condition. In laboratories and operating rooms, nurses and doctors alike depend on the products from the company and its medical technology. Such products are utilized in coronary stent implants, hip replacements, carrying out tests for metastatic cancers of the breast all of these services have greatly contributed to the longer life of individuals. The company s products are also very useful in enabling individuals to overcome life threatening diseases life colon cancer, diabetes and obesity. In addition the company manufactures pharmaceutical products and prescription medicine that are used in treating a variety of conditions that range from simple rheumatoid arthritis and migraines to serious infections and cancer.

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. Atp resent this company is celebrating the 100 years of Baby Celebration.

Briefing about this world class company, we can have a glimpse on the following points:Global Manufacturer of Pharmaceuticals, Consumer Products and Medical Devices.

Product
Johnson and Johnson products are basically in three main categories:Pharmaceuticals, MedicalDevices &Diagnostics, and Consumer product division. The following are examples of the Johnson & Johnson product inventory:Fem in in hygiene, First aid, Family planning,Diabetes care, Vision care, Allergy and flu treatment, Medical devices and diagnostics.

Price
Johnson and Johnson strive to keep their net price increases for health care products within the Consumer Price Index (CPI). Johnson and Johnson work withGovernment to develop differential pricing approach to help more people access their range of products. The following are examples of Johnson and Johnson consumer product prices in Indian markets:Johnson s baby lotion (200ml)Rs93,Listerine mouth wash (250ml)Rs 85, Johnson s baby powder (400g)Rs 110, NeutrogenaExtra gentle cleanser (200m)Rs 320 etc.

Place
Johnson and Johnson products can be found atRetailers,Wholesaler & Modern trade markets like Metro Cash & Carry, Dmart,Wal-Mart, Bigbazar,Reliance fresh, Hypermarket viz

SEGMENTS OF BUSINESS
y y y y y y y y y y y y 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 andWound Care Womens Health Care Nutritional and Over-the-counter (OTC) Pharmaceutical Product

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 ProductLines with enormous depth in each line. It also has a tremendous width & depth in its Product Mix. Its ProductLines are in the following segments:Baby & Child Care Skin Care Oral andWound Care Women s Health Care Nutritional and Over-the-counter Pharmaceutical Products Medical Devices and Equipment.

Some of the Products in the ProductLine of Baby & Child Care are as:o aby Massage Oil Baby Hair Oil Baby Soap Baby Cream Baby BodyLotion Baby Powder BabyNappy Pads Baby Shampoo Baby wipes( NEW) Baby toothbrush Top to toe J&J has done the BrandLine extension in the products like Soap, Cream, lotion & Powder by launching these products in various fragrance & colors. In today s 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 providingNatural 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 Care are:Clean & Clear face wash Clean & Clear Moisturizer Clean & Clear Deep Action Cleanser Neutrogena (Skin Care products) BodyLotion etc. Shower to shower J&J also has its Oral Care (Mouth wash) products by the nameListerine in three variants i.e Cool mint, Mouthwash & recently launchedListerine Fresh Burst. ProductLineLength of J&J inPha rmac euticals is huge. The products are for various Therapeutic uses such as:Anti Fungal \ Anti-Infective Cardiovascular Contraceptive Dermatology Gastrointestinal and many more

ProductLine of J&J in Medical Devices & Equipments is also quiet impressive. It includes a broad range of products distributed toWh olesa le rs,H o spit a ls &Ret ai le rs. Used principally in the professional fields byPh ysi ci an s,Nu rse s,Therapists, Dermatologists,H o spit a ls, Diagnostic Laboratories andC li ni cs.

Products includeC o rdi s circulatory disease management products,DePu y s orthopedic joint reconstruction and spinal care products. Vistakon's ACUVUE Disposable Contact Lens. One Touch Brand BloodGlucose Meters fromLifeScan, Inc. J&J also has several women s Health Care products. Thus J&J has segmented the market in a way so as to target Kids, Teenagers,Women & also people those are conscious aboutNatural products. It has strongly covered the market by diversifying itself into Pharmaceuticals & Manufacturer of Medical Equipments & devices

BRANDING &ADVERTISING:
J&J has been doing the following types of branding in the market: Glow shine board Hoardings One care vision Posters & Danglers

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) JOHNSON S BABY (Baby Products) NEUTROGENA (Skin Care Products) LISTERINE (Oral Care Products) BENADRYL & CALADRYL (OTC) J&J also sponsor the programs (on Indian tele) likeNeutrogena presentstere mere bich mein etc.

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.

J&J COMPETITORS-

Hindustan UnileverLtd.(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

About Receivables Turnover Ratio

The receivable turnover ratio quantifies a company's ability to collect liabilities/debts. It helps investors gauge the efficiency of a company's collection and credit policies. A high ratio value indicates an efficient and effective credit policy, and a low ratio indicates a debt collection problem. The way to read the receivables turnover ratio is as follows. Assume that a company has a receivables turnover ratio of 10. We say that "the company turns over its receivables 10 times during the year." In other words, on average the company collects its outstanding receivables 10 times per year.

Receivables Turnover
Dec 31, 2010 Selected Financial Data (USD $ in millions) Sales to customers Accounts receivable trade, less allowances for doubtful accounts Receivables Turnover, Comparison to Industry Johnson & Johnson Industry, Health Care
Source: Based on data from Johnson & Johnson Annual Reports

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

Dec 31, 2006

61,587 61,897 63,747 61,095 53,324 9,774 9,646 9,719 9,444 8,712

6.30 7.07

6.42 6.61

6.56 7.36

6.47 7.16

6.12 7.38

Ratio Receivables turnover

The company Johnson & Johnson's receivables An activity ratio equal to revenue turnover deteriorated from 2008 divided by receivables. to 2009 and from 2009 to 2010.

Description

Payables Turnover
Dec 31, 2010 Selected Financial Data (USD $ in millions) Sales to customers Accounts payable Payables Turnover, Comparison to Industry Johnson & Johnson Industry, Health Care
Source: Based on data from Johnson & Johnson Annual Reports

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

Dec 31, 2006

61,587 61,897 63,747 61,095 53,324 5,623 5,541 7,503 6,909 5,691 10.95 13.85 11.17 12.85 8.50 13.84 8.84 13.60 9.37 13.23

Ratio Payables turnover

Description An activity ratio calculated as revenue divided by payables.

The company Johnson & Johnson's payables turnover increased from 2008 to 2009 but then slightly declined from 2009 to 2010.

Promotion
y y

Johnson and Johnson offers special discount coupons on products such as baby care, and contact lens. Johnson and Johnson has run a Beauty for All Ages rebate promotion on Coupons.com and some of the campaign products are available at Walgreens and may also include buy one get one half off discount as well. Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles. Key initiatives include: The Campaign for Nursing's Future, Having a Baby Changes Things, and Because We Care We Act (China).

Process
y

Johnson and Johnson employs what they call a decentralized management approach . Employees are encouraged to be entrepreneurial with the understanding that they will benefit from focusing on customer needs and providing solutions. Johnson and Johnson seeks to turn insights into innovative new products and sometimes whole new businesses. Their goal is to capitalize on scientific breakthroughs, marketing insights and manufacturing expertise easily across the full range their businesses. With more than 250 operating companies have a local window into emerging customer needs, scientific developments, and technologies throughout the world. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations and allocation of the resources of the Company. This Committee oversees and coordinates the activities of the Consumer, Pharmaceuticals and Medical Devices and Diagnostics business segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.

People
y y y

y y

William C Weldon is Chairman & Chief Executive Officer of Johnson & Johnson. Dominic J. Caruso is the Chief Financial Officer and Vice President of Finance. Johnson and Johnson has a Global Diversity and Inclusion program with a goal of achieving a skilled, high performance workforce that is reflective of the diverse global marketplace (workforce). Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50 Companies for Diversity. The company has ranked high Working Mother Magazines Top One Hundred Companies for Working Mothers or 24 years.

Baby's skin are susceptible to irritating friction. Friction is caused by clothes rubbing against skin and folds of skin rubbing against each other. JOHNSON'S Baby Powder Blossoms is made of millions of tiny slippery plates that glide over each other eliminating friction. Skin is left feeling cool and comfortable. JOHNSON'S Baby Powder is unsurpassed in softness and is hypoallergenic, dermatologist and allergy tested. And only JOHNSON'S has that special clean, fresh scent.Touch of love. Delicately scented with a long-lasting fragrance. Sprinkle powder onto your palm and smooth onto baby's skin. Keeps baby soft and smooth, dry and happy. Best for baby. Best for you. Ingredients: Talk, Fragrance. sodium Sesquicitrate. Skin powder for infants.

Does not irritate baby's eyes. For those first few months, new born babies do not have normal tear secretions that protect their eyes from irritants. Johnson's baby shampoo has a special No More Tears formula that is gentle on baby's eyes and does not sting. In fact it is as gentle to the eyes as pure water! Its also the fastest selling shampoo in India, used and liked by parents and babies alike!

Good quality Baby Soap for your cute little baby. The Johnsons Baby Soap is pure, mild and gentle to the baby's skin. It does not contain any harsh chemicals or perfumes and is made from only the purest ingredients. It does not irritate baby's sensitive skin. It has no strong perfumes, no colouring agents or any harsh chemicals that will strip away the skin's natural microbial flora. Causing no allergy or irritation to baby's skin. Enriched with Coconut oil, this is the mildest gentlest and is a completely safe soap to use on baby's delicate skin.