60420592 j-j-chandrashekhar-docxqe

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GUPTA COLLEGE OF
MANAGEMENT & TECHNOLOGY
---------------------------------------------------------------------------
BANGALORE-85

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A STUDY ON
“MARKETING STRATEGY
OF
JOHNSON & JOHNSON”
Submitted by
CHANDRASHEKHAR M S
Under the guidance of,
Prof. B.S.PRAKASH
(INTERNAL GUIDE, FACULTY MEMBER, GCMAT)
TO,
INTERNATIONAL AMERICAN UNIVERSITY, LOS
ANGELES, USA.
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (IB)

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STUDENT DECLARATION
I hereby declare that research entitled “MARKETING
STRATEGY OF JOHNSON AND JOHNSON”
submitted to International American University in
fulfillmentof the requirement for the award of Master
in Business Administration, is a record of independent
research work carried out by me under the
supervision and guidance of Prof. B.S.PRAKASH,
GCMAT, Bangalore. This work has not formed the
basis for the award of any degree and has not been
submitted previously to any other College/University.
Place-Bangalore Chandrashekhar M.S.
Date-21-6-2011

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GUPTA COLLEGEOF
MANAGEMENT & TECHNOLOGY,
Bangalore-85
(Affiliated to Bangalore University, Bangalore & Edupartner of
IAU, Los Angeles, USA)
GUIDE CERTIFICATE
I certify that this research entitled “MARKETING STRATEGYOF
JOHNSON AND JOHNSON” submitted to International American
University in partial fulfillment of the requirements for the award of
Master in Business Administration is a record of independent
research work carried out by Mr. Chandrashekhar under my
supervision and guidance. This work has not formed the basis for the
award of any Degree and has not been submitted previously to any
other College/University.
Place-Bangalore Prof. B. S. PRAKASH
Date-21-6-2011

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GUPTA COLLEGE OF
MANAGEMENT & TECHNOLOGY,
Bangalore-85
(Affiliated to Bangalore University, Bangalore & Edu Partner of IAU, Los Angeles, USA)
CERTIFICATE
This is to certify that the project entitled “MARKETING STRATEGY
OF JOHNSON & JOHNSON” is an individual work of Mr.
CHANDRASHEKHAR.M.S, IInd
SEM MBA, GcMAT,Bangalore-85 have
successfullycompletedthe project work and submitted the report in partial
fulfillment of the requirements of MBA(INTERNATIONALBUSINESS)
prescribedby the IAU ,USA. under our supervision & guidance during the
academic year 2010-2011.
We further certify that the work is original & has not beensubmitted to any
other University wholly or in part for award of any other Degree.
1) Mr. B.S.Gupta 2) Dr. Ambashankar
Director Dean-Management Studies

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ACKNOWLEDGMENT
It is my pleasureto acknowledge my gratitude to my
guide Prof. B S PRAKASH, Prof. MANJUNATH GCMAT for their
calm & smiling guidance, which helped me in the smooth
progress of my dissertation.
I wish to thank Mr. Yogi S M –Sales Manager of J&J Company
for encouraging me to do my thesis.
I wish to thank Mr.B S Gupta-Director,Dr. M. AMBASHANKAR-
Dean GCMAT for encouraging me to do my thesis in this
college.
I would also like to thank Ms Roopa Mam & Manorama Mam, all
the employees & friends who have directly or indirectly helped
me in making this project a great success.
Last but not the least I would like to thank the members of my
family who have encouraged me to do the project & have
extended their valuable moral support towards the completion
of the project.
CHANDRASHEKHAR M S

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EXECUTIVE SUMMARY
The research on marketing strategy of J & J Company’s Products
has brought many things into light.
During the study, I was able to identify the marketing strategy of the company in
different markets for different products, how they are working in different areas,
how they are adopting strategy, what are the routes available, problems and
challenges faced by the company due to their promotional activities. The study
has provided the information and suggestions to improve the performance of
the company.
They are mainly targeting parents & they are mainly focusing on urban areas &
among the segmented population it targets those people, who care for their
health. The purpose of this research is to analyses the situation of J & J products
and provide forecasts for future market and product innovations.
A promotion strategy is an important element of market strategy. A key
ingredient in marketing campaigns consists of a diverse collection of incentive
tools, mostly short term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or trade.
After evaluating the strengths, weaknesses, opportunities and threats, I found
that competition was the single biggest threat to J & J success both nationally
and internationally. I concluded that J & J must undertake an intensive
advertising campaign to promote brand awareness, gain a better market share
and propel the image of its products in market.
In this the Global corporate-level profile with information on the company’s
business segments, major products and services, competitors, and locations and
subsidiaries.
The pharmaceuticals business has transformed its portfolio by expanding its
leadership in immunology, deepened its expertise in oncology and entered
vaccines. The company's pharmaceuticals businesses are in the process of
launching six significant new products between 2009 and 2011, some in multiple
geographies. Two of the new products are pending regulatory review in the
India, and two additional key compounds are in registration in key markets. Many
of these products could represent significant advances over the current
standards of care.

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LIST OF CONTENTS
TABLE OF CONTENTS
Sr. No. PARTICULARS Page No.
1 INTRODUCTION
9-27
2 RESEARCH METHODOLOGY
28-30
3 MARKETING STRATEGY
31-40
4 COMPANY MARKETING STRATEGY
41-58
5 FUTURE MARKETING STRATEGY
59-64
6 CONCLUSIONS & RECOMMENDATIONS
65-68
7 BIBLIOGRAPHY
69-70

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INTRODUCTION:
1.1) Pharmaceutical Industry:
Johnson & Johnson is a global American pharmaceutical, medical devices and
consumer packaged goods manufacturer founded in 1886. Its common stock is a
component of the Dow Jones Industrial Average and the company is listed
among the Fortune 500.
The corporation's headquarters is located in New Brunswick, New Jersey, United
States. Its consumer division is located in Skillman, New Jersey. The corporation
includes some 250 subsidiary companies with operations in over 57 countries.
Its products are sold in over 175 countries. Johnson & Johnson had worldwide
pharmaceutical sales of $24.6 billion for the full-year 2008.
Our Pharmaceuticals segment focuses on meeting important patient needs. With
sales of $22.4 billion, we saw rapid growth of recently launched products. For the
year, the segment experienced an operational sales decline of 1 percent.
Excluding the impact of generic competition and health care reform,
pharmaceutical sales would have increased by nearly 4 percent operationally.
Johnson & Johnson's pharmaceuticals business generated $22.4 billion in sales
last year, 36 percent of the company's total revenue, and it ranks as the world's
eighth largest pharmaceutical company and fifth largest biotech company. The
pharmaceuticals business saw over 6% operational growth in the first quarter of

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2011 as new products contributed to growth and core brands delivered solid
performance.
Johnson & Johnson's pharmaceuticals business has taken a disciplined
management approach to increasing its efficiency in order to invest in its pipeline
and new product launches. For example, the pharmaceuticals business has
seen a significant increase in productivity over the last two years based on the
ratio of sales per employee, and it continues investing in R&D at higher rates
than its competitive set.
Johnson & Johnson Consumer Products Division is one of the leading fast
moving consumer goods manufacturers in India. It is also among the most
consistent and successful enterprises not just in the J&J world-wide group of
companies, but also in India. Johnson & Johnson Consumer Products division
has been growing steadily over the last few years, and is one of the few
companies in the Indian market to grow at extremely healthy levels.
Specialized surgical staples are often used to connect tissue during certain
surgeries. They’re credited with quicker recovery times than suturing by hand.
But in emerging markets, it often costs too much to use specialized equipment
designed for developed markets. Dr. Zhao is excited about what the new surgical
tool could mean for his patients.
For a health care company passionate about meeting the unmet needs of
hundreds of millions more patients, Johnson & Johnson needs to challenge its
innovation capability to develop solutions that will be both appropriate and
affordable. To that end, Johnson & Johnson is strategically basing research and
development (R&D) centers in emerging markets to develop medical devices
and pharmaceutical and consumer products based on insights available in local
markets.
The Consumer Products Division owes its success to the strength of its brands,
and the loyalty they enjoy from consumers, a strong sense of values driven from
the Credo, and an environment, which sets the toughest standards of leadership.
Johnson & Johnson was founded more than 120 years ago on a revolutionary
idea: Doctors and nurses should use sterile sutures, dressings and bandages to

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treat peoples’ wounds. Since then, we have brought to the world, new ideas and
products that have transformed human health and well-being.
Our Family of Companies is organized into several business segments
comprised of franchises and therapeutic categories - Consumer Health Care,
Medical Devices & Diagnostics and Pharmaceuticals.
In the 50 years of operating in India, Johnson & Johnson Limited, India has
gained a reputation for delivering high-quality products.
Today, we employ more than 2000 people and the businesses span Consumer,
Medical Devices and Diagnostics, Pharmaceuticals and Vision Care.
Johnson & Johnson India is an employer of choice and is a recipient of several
awards, which recognize it as one of the best employers in India.
Based on strong corporate values, Johnson & Johnson Medical is in the
business of caring and providing solutions to doctors, patients and nurses. A
leading Medical Devices provider in almost every segment, with undisputed
leadership in most of our businesses, what sets Johnson & Johnson Medical
apart is its constant focus on innovation. Johnson & Johnson Medical offers an
extensive range of high technology medical and surgical equipment, devices and
services, a name that is the preferred choice of the leading health care
professionals in India and indeed, the world over.
The business is organized into franchises to focus on target customer and better
service. J&J's fourth-quarter pharmaceutical division sales rose 5.4 percent to
$5.99 billion, medical device and diagnostic unit sales increased 11.8 percent to
$6.31 billion and consumer product sales rose 10.2 percent to $4.25 billion.
The earnings beat in the quarter was due in part to an extra week of sales in the
calendar year, as well as sharply lower taxes, the company said. The tax rate in
the quarter, of 15.3 percent, was well below the 22.8 percent rate in the year-ago
period.

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J&J predicted a full-year 2010 profit of $4.85 to $4.95 per share excluding items.
Analysts have expected $4.94 per share.
J&J's profit jumped almost 10 percent in 2008, but grew only 1.8 percent last
year as the recession crimped sales of many products and generic competition
took its toll. The company expects earnings to rise as much as 7 percent this
year -- helped by novel products such as its recently approved stellar psoriasis
drug. J&J shares were down 0.8 percent at $62.71 on the New York Stock
Exchange, off an earlier low at $62.22.
Johnson & Johnson engages in the research and development, manufacture,
and sale of various products in the health care field worldwide. The company
operates in three segments: Consumer, Pharmaceutical, and Medical Devices
and Diagnostics. The Consumer segment provides products used in baby care,
skin care, oral care, wound care, and women’s health care fields, as well as
nutritional, over-the-counter pharmaceutical products, and wellness and
prevention platforms under the brands.
1.1.1). Competitors:
Abbott Laboratories, Glaxosmith Kline, Becton, Dickinson Company, Colgate,
Palmolive Company, Pharmacia Corporation, The Procter & Gamble Company,
Unilever etc.
1.2) COMPANY PROFILE:
1.2.1) About company:
Johnson & Johnson spread its roots to the world’s largest democracy, India,
during the endemic post-independence turmoil of 1947. It was Mr. Patrick
Whaley who set about with confidence and determination during this period of
turbulence to begin the wok of establishing Johnson & Johnson in the

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subcontinent. Things progressed quickly and by 1948, Johnson’s Baby Powder
was being manufactured by British Drug House in Prabhadevi, Bombay, and
marketed by the company.
Other consumer products like TEK toothbrushes, Johnson’s Baby Cream and
Prickly Heat Powder followed suit. However, highly specialized products like
Belladonna plasters, pharmaceuticals and Premade Tapes were imported from
the parent company. It was only ten years later that the company began to
manufacture its own products.
In September 1957, a new company, Johnson & Johnson India Ltd. was created
and registered with twelve employees on its rolls.
In the 50 years since its establishment as a modest 12-employee outfit, Johnson
& Johnson Ltd. has gained a reputation for delivering high-quality products at
competitive prices. Our success, we believe, stems from our staunch
commitment to caring for and catering to the needs of our customers and
employees.
J&J has not always been vocal about its socially and environmentally
responsible efforts, even so it has gotten attention for its sustainability strategies,
including being #3 on Newsweek magazine’s Green Rankings List of green
companies.
In making the announcement, Robert Enterkin, Director of Sales and Marketing,
said, “We welcome Mark and Electronic Assembly Products to the JNJ Industries
sales team of manufacturers' representatives, and wish him continued success
in the Florida market. We believe his direct experience working for a distributor
as well as for a product manufacturer, coupled with his ample years of
experience working as a manufacturer’s representative, will enable him to
provide our customers with the high level of attention and support that they have
come to expect from JNJ.” Mark has already developed strong working
relationships with distributors and electronic manufacturers in the territory.

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Leading pharmaceutical company Johnson & Johnson Ltd. on Monday launched
its nicotine gum brand Nicolette in India. The sugar-free gum helps reduce
nicotine craving.
“Nicolette is not just a chewing gum, but a complete infrastructure and support
system that can help smokers quit the habit and lead a healthier life,” Tushar
Murdeshwar, Johnson & Johnson India general manager for marketing, said.
Beginning December 25, Nicolette will be available in packs of 4mg (10 gums)
for heavy smokers through a doctor’s prescription. Also available is an over-the-
counter product of 2mg (4 & 10 gums) for light smokers.
A nicotine replacement therapy (NRT) product, Nicolette provides therapeutic
and clean nicotine, slowly and in lesser quantities as compared to a cigarette. It
is just enough to satisfy the smoker’s nicotine craving.
Some interesting facts about J&J: it’s the largest corporate user of hybrid
vehicles, and it gets 30% of its energy from renewable sources. It’s also done a
lot to reduce its water footprint, reduce PVC content in products, sell waste as
raw materials, and use recycled paper in product packaging.
Recently, the company opened a new manufacturing facility in North India –
Baddi in Himachal Pradesh — which caters to both Medical and Consumer
sectors.
To those who have been following Johnson & Johnson, this shouldn’t come as
much of a surprise. For instance, during the 2007 shareholders meeting, Colleen
Goggins, the Worldwide Chairman of the Consumer Group, explained that
almost 80 percent of the sales of Johnson’s brand products are now outside the
US – and that the brand is growing at double-digit rates, more often than not, in
China, India and Brazil. Earlier this year, BabyCenter India was launched.

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Fifty years in India has their advantage. Speaking to people in Mumbai and on
my ferry to Elephanta Island, I found that the Johnson & Johnson name was
fairly well known – at least for its consumer products – and I noticed a few
products on the shelves of a local chemist.
Janssen India, a division of Johnson & Johnson, encourages high performance
culture amongst its 700+ employees. Its fast expanding pharmaceutical range
includes products in therapeutic areas of Pain, CNS (Central Nervous System),
Immunology, Derma and Gastrointestinal. This year the company has launched
a record 9 new product in India.
Janssen India is stepping up the pace and now it's making an entry into
Immunology. We believe its time you did too.
Despite all this good work, J&J wants to make sure it doesn’t overstate its
efforts. Specifically, it wants to make sure it adheres to the following:
 Don’t Say something you’re not: Don’t put yourself out there as the end all
and be all, because most likely that’s not true. Products can be “greener,”
but cannot always be 100% green because of the nature of consumer
products–so don’t say you are.
 Be Specific: Use LCAs to know the exact sustainability measures of your
products. Provide your consumers with real numbers that inform and
empower them.
 Transparency: Partner with NGOs that can hold your products
accountable and add credibility to your business. Follow the 7 Sins of
Green washing and check yourself before you go to market.
J&J wants people to know about their commitment to sustainability and they plan
to inform people in a way that’s honest and not misleading. That strategy is very
much in line with its famous Credo.

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Johnson & Johnson Consumer Products Division is one of the leading fast
moving consumer goods manufacturers in India. It is also among the most
consistent and successful enterprises not just in the J&J world-wide group of
companies in India.
Johnson & Johnson Consumer Products division has been growing steadily over
the last few years, and is one of the few companies in the Indian market to grow
at extremely healthy levels.
The Consumer Products Division owes its success to the strength of its brands,
and the loyalty they enjoy from consumers, a strong sense of values driven from
the Credo, and an environment, which sets the toughest standards of leadership.
Their Family of Companies is organized into several business segments
Today, they employ more than 2000 people and the businesses span Consumer,
Based on strong corporate values, Johnson & Johnson Medical is in the
business of caring and providing solutions to doctors, patients and nurses.
A leading Medical Devices provider in almost every segment, with undisputed
leadership in most of our businesses, what sets Johnson & Johnson Medical

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apart is its constant focus on innovation. Johnson & Johnson Medical offers an
extensive range of high technology medical and surgical equipment, devices and
services, a name that is the preferred choice of the leading health care
professionals in India and indeed, the world over. The business is organized into
franchises to focus on target customer and better service.
J&J headquarters at One Johnson & Johnson Plaza in New Brunswick.
1.2.2) History:
Robert Wood Johnson inspired by a speech by antiseptic advocate Joseph
Lister, joined brothers James Wood Johnson and Edward Mead Johnson to

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create a line of ready-to-use surgical dressings in 1885. The company produced
its first products in 1886 and incorporated in 1887.
Robert Wood Johnson served as the first president of the company. He worked
to improve sanitation practices in the nineteenth century, and lent his name to a
hospital in New Brunswick, New Jersey. Upon his death in 1910, he was
succeeded in the presidency by his brother James Wood Johnson until 1932,
and then by his son, Robert Wood Johnson II.
RWJ's granddaughter, Mary Lea Johnson Richards, was the first baby to appear
on a Johnson & Johnson baby powder label. His great-grandson, Jamie
Johnson, made a documentary called Born Rich about the experience of growing
up as the heir to one of the world's greatest fortunes.
“Patients who can now receive better health care at lower cost are certainly
grateful,” he says. “Now, patients don’t carry the psychological weight of financial
burden, so their recovery is complete.”
When you hear the name Johnson & Johnson, you might think about baby oil,
baby powder and band-aids–and not necessarily think of them as leaders in
sustainability. At a speaker panel at the Net Impact Conference on Friday,
several J&J company leaders spoke to how the company’s Credo is the
backbone of its sustainability strategy and how they have avoided green washing
as they implement their “Healthy Planet 2010 goals.”
Johnson & Johnson (J & J) is one of the largest healthcare firms in the world and
one of the most diversified. Its operations are organized into three business
segments: pharmaceutical, which generates 39 percent of revenues and 61
percent of operating income; professional, which accounts for 36 percent of
revenues and 27 percent of operating income; and consumer, which contributes
25 percent of revenues and 12 percent of operating income.
J & J's pharmaceutical products--which are sold under such brands as Janssen
Pharmaceutical, Ortho-McNeil Pharmaceutical, and Contactor--include drugs for
family planning, mental illness, gastroenterology, oncology, pain management,

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and other areas. The professional segment includes surgical and patient care
equipment and devices, diagnostic products, joint replacements, and disposable
contact lenses. The company's well-known line of consumer products includes
the Johnson's baby care line, the Neutrogena skin and hair care line, Tylenol
and Motrin pain relievers, o.b. and Stayfree feminine hygiene products.
The Reach oral care line, Band-Aid brand adhesive bandages, Imodium A-D
diarrhea treatment, Mylanta gastrointestinal products, and Pepsis AC acid
controller. J & J generates about half of its revenues outside the United States,
through its network of 190 operating companies in 51 countries and its marketing
organization that sells in more than 175 countries.
Company Perspectives:
Company 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 needs everything we 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. We are responsible to
our employees, the men and women who work with us throughout the world.
Everyone must be considered as an individual. We must respect their dignity and
recognize their merit. They must have a sense of security in their jobs.
Compensation must be fair and adequate, and working conditions clean, orderly
and safe. We must be mindful of ways to help our employees fulfill their family
responsibilities. Employees must feel free to make suggestions and complaints.
There must be equal opportunity for employment, development and

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advancement for those qualified. We must provide competent management, and
their actions must be just and ethical. We are responsible to the communities in
which we live and work and to the world community as well. We must be good
citizens--support good works and charities and bear our fair share of taxes. We
must encourage civic improvements and better health and education. We must
maintain in good order the property we are privileged to use, protecting the
environment and natural resources. Our final responsibility is to our
stockholders. 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. Reserves must be created to provide for adverse
times. When we operate according to these principles, the stockholders should
realize a fair return.
Environmental record:
Johnson & Johnson has set several positive goals to keep the company
environmentally friendly and was ranked third among the largest companies in
Newsweek's "Green Rankings". Some examples are the reduction in water use,
waste, and energy use and an increased level of transparency.
Johnson & Johnson agreed to change its packaging of plastic bottles due to
harmful chemicals used in the manufacturing process, switching their packaging
of liquids to safe non-polycarbonate containers. The corporation is working with
the Climate Northwest Initiative and the EPA National Environmental
Performance Track program. As a member of the national Green Power
Partnership, Johnson & Johnson operates the largest solar power generator in
Pennsylvania at its site in Spring House, PA.

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Key Dates:
1886: Johnson brothers begin producing dressings in New Brunswick, New
Jersey.
1887: Company is incorporated as Johnson & Johnson.
1893: Johnson's Baby Powder is introduced.
1921: Band-Aid brand adhesive bandages make their debut.
1924: Overseas expansion begins with the establishment of Johnson & Johnson
Limited in the United Kingdom.
1932: Robert Johnson, known as 'the General,' takes over leadership as
president.
1943: Johnson writes the company credo.
1944: Company goes public on the New York Stock Exchange.
1948 – The company started marketing Johnson’s Baby Powder, which was
manufactured by a local company, British Drug House, in Mumbai.
1957 — A new company, Johnson & Johnson (India) Limited was created and
registered – starting with just 12 employees on its rolls – and was licensed to
manufacture a broad range of consumer and hospital products.
1959: McNeil Laboratories, Inc. (McNeil Labs) is acquired.
1959 — Production began at the Mulund plant in Mumbai.
1960: McNeil Labs introduces Tylenol as an over-the-counter (OTC) pain
reliever.
1961: Janssen Pharmaceutical is acquired.
1966 – Production began at the Bhandup plant in Mumbai to make personal
products.
1970 – Ortho Diagnostics set up a manufacturing unit.
1975 –Ethnor Ltd set up a plant for manufacturing pharmaceutical and ethical
products of Ortho McNeil Laboratories and Cilag Chemie. A second

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manufacturing plant for personal products soon started in Bhandup in Mumbai.
1975: Through a significant price decrease, Tylenol is transformed into a mass-
marketed product.
1982: Tylenol tampering tragedy occurs.
1988: Acuvue disposable contact lenses are introduced.
1989: J & J and Merck form joint venture to develop OTC versions of Merck's
prescription medications.
1994: Neutrogena Corporation is acquired.
1995: Merck and J & J launch Pepcid AC; company acquires the clinical
diagnostics unit of Eastman Kodak Company.
1996: J & J acquires Cordis Corporation.
1998: DePuy, Inc. is acquired, and a companywide restructuring is launched.
1999: Centocor, Inc. merges with J & J.
1.2.3) Mission:
At Johnson & Johnson, good work is recognized through Performance
Management, a joint process that involves both the supervisor and the
employee. Performance is rewarded and recognized based on individual
contribution and potential. We reward these contributions, on the part of our
employees through salary, bonus, incentives, individual and team recognition
awards and stock options.
In addition to rewarding individual accomplishments, we also reward teams for
their outstanding performance, and the success of individual franchise and
division. Annualized performance-based incentives are attractively designed and
paid out in the company to incentivize individual performance.
We also have extensive awards and recognition programs for individual and
team excellence, based on the Standards of Leadership where we recognize the
extraordinary efforts of the employees that have a positive impact on
our business.

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1.2.4) Vision:
At Johnson & Johnson, Performance Management is a joint process that
involves both the supervisor and the employee. Together, they identify common
goals, which align with the goals of Johnson & Johnson, in a process called the
Performance Planning and Evaluation Process (PPE). This revolves around
individual goals and the Standards of Leadership which provide the framework
for evaluating performances.
Apart from individual evaluation, the process aims at providing constructive
feedback to improve performance through the Development Planning process.
While the PPE focuses on the supervisor's feedback on individual performance
and behavior, LEAD-The 360 Program offers our managers an opportunity to
receive feedback on leadership abilities and personal effectiveness from all
important work relationships, namely superior, colleagues, external customers,
subordinates and self. This feedback is very essential for setting specific goals
for personal and professional development.
PPE at J&J is a foundation process used in spirit to enhance performance and to
build trust and teamwork in the organization.
“Our vision is to be a source of innovation for emerging markets and addresses
the unique needs of patients,” says Michael Del Prado, Company Group
Chairman, Medical Devices & Diagnostics, and Asia Pacific. “This might include
devices for specific disease states that are prevalent in Asia, simplified and
smaller instruments, multi-use or disposable products that are more economical,
or a product range for rural health centers.”
That its strength lays within the talent it attracts and retains. The Credo
espouses the responsibility of the company towards its key constituent
"employees". Managements all over the world and in India strive to create a
great work environment to help employees reach their potential through
Systematic Talent Management processes.
This 100-year-old company is built on a rock solid unchangeable core ideology,

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the Credo, that drives every aspect of how the company and manages its
employees.
Whether it is through well-entrenched Performance Management systems,
culture building tools like the Credo Survey and Feedback Process, Global
Standards of Leadership, 360 degree feedback, Formal Learning and
Development processes or Career Planning Processes, the attempt is always to
develop leaders who can build a transparent, trusting, performance oriented
culture.
The philosophy of decentralization that J&J is well known for across the globe
gives tremendous freedom at work and early responsibilities to all Johnsonian’s.
Entrepreneurial drive and a superior ability to work in an ever complex,
competitive and changing business environment along with uncompromising
values, is what makes a Johnsonian.
1.3) OPERATIONS STRATEGY OF J & J:
1. Research and Development:
Johnson & Johnson engages in the research and development, manufacture,
and sale of various products in the health care field worldwide. The company
operates in three segments: Consumer, Pharmaceutical, and Medical Devices
and Diagnostics. The Consumer segment provides products used in baby care,
skin care, oral care, wound care, and women’s health care fields, as well as
nutritional, over-the-counter pharmaceutical products, and wellness and
prevention platforms under the names JOHNSON’S.

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For JNJ, India is a base for manufacturing and launching many products. It has a
R&D center called Johnson and Johnson Technical Laboratory. JNJ’s focus on
their customers instead of their revenue has allowed customers to develop a
strong trust in JNJ. Their focus on their product development, their customers, a
decentralized organization, and Ethical practices has led to JNJ’s success.
Johnson & Johnson has also entered into pharmaceutical research partnerships
that connect biotech, medical and academic communities to its global research
centers.
In 2009, Johnson & Johnson established a first-of-its-kind late-phase chemical
entity facility, Analytical and Pharmaceutical Development Center, in Mumbai,
India. The center will play a key role in addressing major global health care
challenges, many of which also face Mumbai and the region.
Consumer Packaged Goods in India
Consumer Packages Goods (CPG) is often-referred to as Fast Moving
Consumer Goods (FMCG) in Asia. The CPG market is set to treble from $11.6
billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita
consumption in most product categories like jams, toothpaste, skin care, hair
wash etc in India is low indicating the untapped market potential. Burgeoning
Indian population, particularly the middle class and the rural segments, presents
an opportunity to makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading' in the matured
product categories.
Much of this emerging middle class has been raised in the post liberalization era
and has an optimistic view on growth and the economy as a whole. Apart from
basic needs being satisfied, many of these households with children are trying to
help their kids get ahead and are beginning to view certain consumer goods as a
sign of the good life. These consumers view price and value for their money as

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important aspects in their consumer purchasing and although many long for
western goods, they will not pay a premium for them.
Over 40 percent of the population in India is under 21 years of age. The
widespread presence of American media has made this market segment curious
about the outside world while still being rooted in Indian culture and traditions.
This curiosity has created a latent demand for the good life and for western style
convenience goods. Local distribution and logistics are still challenging but
continue to improve. Packaging and pricing requirements for the market are
unique. While multinationals like Unilever, Nestle and Pepsi have a long history
in India; large unmet opportunities exist for many others in the Indian economy.
The CPG sector has three key segments, each with its own hosts of products
that have relatively quick turnover and low costs:
• Household Care
• Personal Care
• Food & Beverage
Description
Johnson & Johnson is a holding company. The Company and its subsidiaries are
engaged in the research and development, manufacture and sale of a range of
products in the health care field. It has more than 250 operating companies
conducting business worldwide. The Company’s operating companies are
organized into three business segments: Consumer, Pharmaceutical and
Medical Devices and Diagnostics. The Company and its subsidiaries operate
139 manufacturing facilities occupying approximately 21.8 million square feet of
floor space.
2. Production:
Bringing Science to the Art of Healthy Living. At Johnson & Johnson Inc. they
build beloved Brands. Brands that stand for a trusted idea and emotion. Brands

28
that are backed by effectiveness and proven science. Brands the customers trust
to enrich their health and wellness every day.
Raw Materials
Raw materials essential to Johnson & Johnson’s operating companies’
businesses are generally readily available from multiple sources.
Market Entry to India
As growth opportunities abate in domestic markets, attention is shifting to new
and emerging economies. Numbers of western companies have received
substantial rewards from the newly prosperous and growing middle class in
India. Meanwhile, other companies are still wondering about the opportunities
that are lying ahead.
India, the fourth largest economy in the world (according to purchasing power
parity), presents lucrative and diverse opportunities for western companies with
the right products, services, and commitment. India’s requirements for
equipment and services for major sectors such as energy, environmental
services, healthcare, high-tech, infrastructure, transportation, and defense
Exceeds hundreds of billions of dollars in the mid-term as the Indian economy
further globalizes and expands. India’s GDP has potential for a sustained growth
of 8-10% for the next decade. Now is the time for many western companies to
enter the rising Indian market.
Early market entry to India has many advantages including:
 Ability to lock-up access to key resources and create higher entry barriers for
later entrants.

29
 Ability to set the pattern of buyer preference in both consumer and industrial
markets.
 Ability to avail of government concessions and incentives.
 Ability to observe and learn market attributes for a longer time period.
One might think that global markets are accessible only to large companies with
the deepest pockets. However, Amritt’s experience shows that smaller
companies (SMEs) also have potential to succeed in international trade due to
their flexibility and nimbleness.
In order to succeed in market entry to India, companies must carefully plan and
execute their go-to-market strategy since India is such a complex and
challenging country. India has various groups of consumers; their attitude,
requirements, expectations, and desires differ by region. Problems can arise
from a lack of market understanding and insufficient planning. Decisions made in
the early stage— including organizational structure, partnerships, staffing, and
market risks— will dramatically affect the success of the firm in the long run.
India is a fast growing economy, which many companies have leveraged to
improve their bottom-line. However, many organizations are not aware of
numerous simple steps that can be taken to avoid risks and ensure greater
success in their efforts to gain advantage working with India. Resolve significant
concerns in a confidential environment.

30
CHAPTER 2
RESEARCH
METHODOLOGY

31
2.1) RESEARCH METHODOLOGY
The research problem is “What is the marketing strategy of J&J”.
2.1.1) Type of Research-
Exploratory because I am exploring the strategies of company.
2.1.2) OBJECT OF THE WORK-
This work study provides extensive information about the position of company’s
brand in market.
2.2.) COLLECTION OF DATA-
Data has been collected from both primary and secondary sources. Primary data
is collected by personal discussions and personal observation. Secondary data
is collected by the company brochures, books, internet, magazines etc.
2.2.1) LIMITATION
· The data is collected only at the urban area.
· Time constraint
· Results are based on primary & secondary information
· The analysis and interpretation of data is made under many assumptions.

32
2.3) RESEARCH DESIGN
The research aim is to find out the company’s promotional effectiveness,
utilization, reachability, efficiency of message to customers delivered by the
Company.
The customer amazement through products and the awareness about the
company is based on personal discussions.
.

33
CHAPTER 3
MARKETING STRATEGY

34
3.1) SWOT Analysis:
Johnson & Johnson – SWOT Analysis company profile is the essential source
for top-level company data and information. Johnson & Johnson – SWOT
Analysis examines the company’s key business structure and operations, history
and products, and provides summary analysis of its key revenue lines and
strategy.
a. Strengths:
1. Johnson & Johnson is one of the world’s few companies having presence
before the 20 century.
It has higher customer satisfaction and strong R&D facilities.
2. The company has achieved economies of scale and economies of scope.
3. Johnson & Johnson is recognized for its corporate repute, strong
customer base, brand loyalty and brand image.
4. Johnson & Johnson has strong global presence by having 250 subsidiary
companies with operations in more than 57 countries.
5. The company products are sold in more than 175 countries and it had
global pharmaceutical revenues of $24.6 billion for the FY 2008.
6. Johnson & Johnson has successfully differentiated itself from competitors.
7. Johnson & Johnson is a vastly diversified company by having enormous
variety of products in medical devices, pharmaceutical, and consumer
packaged goods.
8. Johnson & Johnson has more than 29,925 internet domains over most of
the big Internet & technology companies.
b. Opportunities:
1. The Acquisition of Pfizer by Johnson & Johnson; will present the company
to support growth for the Johnson & Johnson.

35
2. Johnson & Johnson has opportunity to increase market share by product
development and product innovation globally.
3. Increase global presence by expanding globally through the joint ventures
and acquisitions.
4. Expansion and innovation into diagnostics and medical devices will grants
new markets to grow.
5. Financial economic recovery will boost the income of consumers which
will ultimately increase the company revenues.
6. Assimilate current acquisitions of different companies.
c. Weaknesses:
1. On April 30, 2010, one of the subsidiaries of J& J willingly recalled 43
OTC children’s medicines, including Benadr, Tylenol Plus, Tylenol, Motrin
and Cytec.
2. In 2010, U.S. Department of Justice filed suit against Johnson & Johnson
for illegally marketing its drugs throughout Omnicare (a firm that allot
medicines to nursing homes counting patients with dementia).
3. Johnson and Johnson’s key products demand is shrinking; several of
these products were branded and have been substituted by common
programmers at the finish of copyright.
4. Johnson & Johnson is wasting a lot of money and time during the hunt for
information. For example, workers are wasting a lot of time replying
cyclical enquiries, rather than moving out value-added actions.
5. Johnson & Johnson is facing strong pressure to reduce prices and
preserve copyright expirations in order to make sure that nonspecific
programs are reorganized within decisive lane activities.
6. The company has high dependence on the revenue of Dispersal and
CNS.

36
d. Threats:
1. This industry may be on the restore, but its revival could be slowed down
by heavy-handed regulation and more hurting in the housing market,
amongst other things.
2. Johnson & Johnson has strong global competitors. These competitors
provide alternative and substitute products at lower prices.
3. Johnson & Johnson is in the mature market with very low market growth
rate.
4. Major pharmaceutical companies are facing strong competition for the
generics markets from the local players.
5. Bio-technological expansion will potentially move the established
pharmaceutical process out of the market in the future.
6. All the global players are facing strong regulations in the pharmaceutical
industry by different respective countries.
7. Private label has increased the nonspecific drugs growth.
3.2) Scope of the Report:
- Provides all the crucial information on Johnson & Johnson required for
business and competitor intelligence needs
- Contains a study of the major internal and external factors affecting Johnson &
Johnson in the form of a SWOT analysis as well as a breakdown and
examination of leading product revenue streams of Johnson & Johnson
-Data is supplemented with details on Johnson & Johnson history, key
executives, business description, locations and subsidiaries as well as a list of
products and services and the latest available statement from Johnson &
Johnson.

37
3.3) INDUSTRY & COMPETITION–
3.3.1) Industry
Johnson & Johnson consistently ranks at the top of Harris Interactive National
Corporate Reputation Survey, ranking as the world's most respected company
by Barron's Magazine, and was the first corporation awarded the Benjamin
Franklin Award for Public Diplomacy by the U.S. State Department for its funding
of international education programs. A suit brought by the United States
Department of Justice in 2010, however, alleges that the company from 1999 to
2004 illegally marketed drugs including antipsychotics to Omnicare, a pharmacy
that dispenses the drugs in nursing homes. Johnson & Johnson responded that
the payments were lawful and appropriate.
The corporation's headquarters is located in New Brunswick, New Jersey, United
States. Its consumer division is located in Skillman, New Jersey. The corporation
includes some 250 subsidiary companies with operations in over 57 countries.
Its products are sold in over 175 countries. Johnson & Johnson had worldwide
pharmaceutical sales of $24.6 billion for the full-year 2008.
3.3.2) Competition
In their entire product lines, Johnson & Johnson’s operating companies compete
with companies both local and Global, located throughout the world. Competition
exists in all product lines without regard to the number and size of the competing
companies involved. Competition in research, involving the development and the
improvement of new and existing products and processes, is particularly
significant. The development of new and innovative products is Important to
Johnson & Johnson’s success in all areas of its business. This also includes
protecting the Company’s Portfolio of intellectual property. The competitive
environment requires substantial investments in continuing Research and in
maintaining sales forces. In addition, the development and maintenance of
customer demand for the Company’s consumer product involves significant
expenditures for advertising and promotion.

38
Mumbai, April 13: It is not only in the area of software or dotcoms where Indians
are being recognized Johnson & Johnson Vision Care general manager Rahul
Patani (the person responsible for introducing the concept of disposable contact
lenses in India) for one has been appointed as Senior Product Director, Global
Franchise, Johnson & Johnson Vision Care, USA, becoming the first J&J India
executive to be offered a global marketing position.
3.4) PORTER FIVE FORCES
a) New entrants-
· In case of home care segment the entry barriers are low since the costs to
Set up manufacturing facility is not very high.
· The exit barriers are low and thereby firms can enter and exit easily.
· But the entry barriers in terms of building a national brand as well the
Distribution network is high. So is the exit barrier.
b) Rivalry-
Existing players are entering new segments which will increase the
Competition e.g. Abbott Laboratories, Glaxosmith Kline, Colgate, Palmolive
Company, Pharmacia Corporation, Unilever.
c) Buyers-
Many drug companies available in market & buyer has many alternatives &
choices for products. Johnson & Johnson giving products at low price, good
advertising & quality products for their customers.

39
d) Suppliers-
There are so many suppliers in market for providing raw materials.
e) Substitutes-
Many alternatives available for customers in market for Pharmaceutical Industry
products.
3.5 EMERGING MARKET NEEDS
The Asia Pacific region is home to more than 4 billion people, almost 60 percent
of the world’s population. While the more affluent societies, such as Japan,
Australia, coastal China and metropolitan India, have access to innovative
products and services, a large segment of the population has been unable to
access or afford much beyond a very basic level of health care until now.
Recent health care reforms in India, spurred by continuing economic growth in
these countries, are creating possibilities for governments to deliver a higher
standard of care to many more people. Such reforms, along with the rise of a
middle class and expectations of a better quality of life, are providing
Johnson & Johnson with an enormous opportunity to address a previously
underserved market.
These mass markets are being addressed with a different business model that is
focused on bringing an appropriate portfolio of technology and products to
smaller and more rural health care settings, matching the specific range of
procedures offered. This approach has led to the development of high-quality,

40
affordable products that provide superior outcomes for patients who would not
otherwise have access to such technology.
3.5.1) ENABLING PERFORMANCE TODAY
The organizational design for JJSC includes a new operating model for Quality &
Compliance (Q&C) and a new structure for Supply Chain Strategy and Project
Management. Cross-sector collaboration that the new enterprise model helps
facilitate is already playing out in recovery plans related to manufacturing issues
experienced at McNeil Consumer Healthcare.
“The McNeil situation has all of us rethinking business continuity planning and
how we utilize our plants and partner suppliers,” says Robert Salerno, Vice
President, Supply Chain Strategy and Project Management, JJSC. “Rather than
plan around one operating unit, we can approach manufacturing from a
Johnson & Johnson vantage point. With the new supply chain model, we’re more
able to leverage assets, best practices, systems and technologies while offering
supply chain leader’s professional development opportunities across our
companies.”
The new operating model will also create a single framework for Q&C across
companies, inclusive of common quality standards by product types such as
devices, drugs and combination products.
“By standardizing processes in our quality systems and by providing greater
oversight in this area, we can reduce complexity and risk in the area of quality,”
says Kathy Wangle, Chief Quality Officer, and JJSC.
“Our supply chain organization is a large part of which we are as a company and
plays a vital role in our ability to meet the needs of our customers,” says Ajit
Shetty, Ph.D., Corporate Vice President responsible for JJSC. “We have
deployed a new supply chain operating model that will enable growth, drive
quality and compliance, and help us run more efficiently so we can more
effectively serve patients and consumers worldwide.”

41
CHAPTER 4
COMPANY MARKETING
STRATEGY

42
4.1) COMPANY PROFILE:
About company
The company has historically been located on the Delaware and Raritan Canal
in New Brunswick. The company considered moving its headquarters out of New
Brunswick in the 1960s, but decided to stay in town after city officials promised
to gentrify downtown New Brunswick by demolishing old buildings and
constructing new ones. While New Brunswick lost at least one historic edifice
(the inn where Rutgers University began) to the redevelopment, the gentrification
did attract people back to New Brunswick. Johnson & Johnson hired Henry N.
Cobb from Pei Cobb Freed & Partners to design an addition to its headquarters,
which took the form of a white tower in a park across the railroad tracks from the
older portion of the headquarters. The stretch of Delaware and Raritan canal by
the company's headquarters was replaced by a stretch of Route 18 in the late
1970s, after a lengthy dispute.
Johnson & Johnson spread its roots to the world’s largest democracy, India,
during the endemic post-independence turmoil of 1947. It was Mr. Patrick
Whaley who set about with confidence and determination during this period of
turbulence to begin the wok of establishing Johnson & Johnson in the
subcontinent. Things progressed quickly and by 1948, Johnson’s Baby Powder
was being manufactured by British Drug House in Prabhadevi, Bombay, and
marketed by the company.
Other consumer products like TEK toothbrushes, Johnson’s Baby Cream and
Prickly Heat Powder followed suit. However, highly specialized products like
Belladonna plasters, pharmaceuticals and Premade Tapes were imported from
the parent company. It was only ten years later that the company began to
manufacture its own products. .
In the 50 years since its establishment as a modest 12-employee outfit, Johnson
& Johnson Ltd. has gained a reputation for delivering high-quality products at
competitive prices. Our success, we believe, stems from our staunch

43
commitment to caring for and catering to the needs of our customers and
employees.
J&J has always had a tradition of developing an environment that is conducive
for learning both in a structured setting as well as on the job. On the job
coaching for us, forms the most important method of developing new skills and
competencies in all employees. Therefore a lot of emphasis is laid on developing
feedback and coaching skills among all Managers.
That apart, a number of innovative programs have been developed that come to
us from J&J Worldwide, Integrity Selling, Management Development Program,
Spreading the Credo, and Advertising Leadership Program are some such
programs.
Depending on his present and future needs, the development objectives of the
individual employee are culled in conjunction with the Training Partner( a specific
line individual who supports HR in need assessment and learning delivery), and
the Department of Learning and Development within HRD.
We also encourage the development of internal trainers who have in the past
delivered programs in the area of their expertise, thus honing their own
facilitation skills in the process. J&J also believes in the use of outbound fun
filled learning and development activities as means to build teams within the
organization.
4.2) Compensation & Benefits:
The Compensation & Benefits Committee, composed entirely of independent
Directors, establishes the Company’s executive compensation philosophy and
principles and approves the annual compensation and long-term incentives for
the Company’s directors and executive officers. The Committee also reviews the
philosophy and policies of the non-Board Management Compensation
Committee, which determines management compensation and establishes

44
perquisites and other compensation policies for non-executive employees.
Additionally, the Committee oversees the management of the various retirement,
pension, long-term incentive, savings, health and welfare plans that cover the
Company’s employees.
4.3) MARKETING STRATEGY (1.Segmentatiion 2.Targeting 3.Positioning)
a) Segmenting
Firstly they are segmenting on the basis of geographical location; that is the
different cities. Once the whole market is segmented on this basis we further
segment it on the basis of income that is the upper class and the middle class.
b) Targeting
They are mainly targeting on urban areas & among the segmented population it
targets those people who care for their health, people undergoing any
medication.

45
c) Positioning
They would like to position themselves as the manufacturers who really care for
their customer’s health and who produces quality and vital health supplements
required to maintain a good health.
4.4) MARKETING MIX (4 P’s)
4.4.1). Product Strategy
4.4.1.1) PRODUCT ANALYSIS:
Featured Products:
1. One Touch® Ping™ Glucose Management System
One Touch® Ping™ is the first full feature insulin pump that wirelessly
communicates with a blood glucose meter-remote. The system allows a person
to calculate and opt to wirelessly deliver insulin doses without touching the pump
at all, giving patients more freedom, discretion, and flexibility.
2. ACUVUE® OASYS™ Brand Contact Lenses
Eyes feeling tired and dry? Soothe the discomfort with ACUVUE® OASYS™
Brand Contact Lenses, the contact lens that feels almost like you’re wearing no
lens at all.
3. LISTERINE® WHITENING® Quick Dissolving Strip
Free yourself from messy gels and whitening trays. LISTERINE WHITENING®
Quick Dissolving Strips dissolve as they work. In as little as two weeks, all you’re
left with is whiter teeth.
4. The One Touch® Ultra Mini® Blood Glucose Monitoring System
A simple way to check your blood sugar on the go. Comes in great colors and is
small enough to fit in a purse or pocket. Features 500-test memory to review

46
recent results and two-way scrolling buttons for simple navigation. Uses One
Touch® Ultra® Blue Test Strips.
J & J other products are CLEAN & CLEAR, JOHNSON’S Adult, NEUTROGENA,
LUBRIDERM, Vendome, LISTERINE, REACH, BAND-AID, PURELL,
CAREFREE, STAYFREE. The Pharmaceutical segment offers products in
various therapeutic areas, such as anti-infective, antipsychotic, cardiovascular,
contraceptive, dermatology, gastrointestinal, immunology, neurology, oncology,
urology, and virology. Its products include REMICADE, a biologic approved for
the treatment of immune mediated inflammatory diseases; PROCRIT, a
biotechnology-derived product that stimulates red blood cell production;
LEVAQUIN, which is used in the anti-infective field; RISPERDAL CONSTA, a
inject able for the treatment of schizophrenia; CONCERTA, a product for the
treatment of attention deficit hyperactivity disorder; ACIPHEX/PARIET, a proton
pump inhibitor; DURAGESIC/Fantasy Transversal, a treatment for chronic pain;
VELCADE for the treatment of multiple myeloma; PREZISTA for treating
HIV/AIDS patients; and INVEGA, an atypical antipsychotic. The Medical Devices
and Diagnostics segment primarily offers circulatory disease management
products; orthopedics joint reconstruction, spinal care, and sports medicine
products; surgical care, aesthetics, and women’s health products; blood glucose
monitoring and insulin delivery products; professional diagnostic products; and
disposable contact lenses. The company was founded in 1886 but its launch in
India 1999.
4.4.2) Scope
 Global company shares (in Revenues) information for the key markets
Johnson operates in - Surgical Equipment, Diabetes Care Devices,
Orthopedic Devices, Ophthalmic Devices, Cardiovascular Devices,
Neurology Devices, Wound Care Management and In Vitro Diagnostics.
 Johnson’s company shares (in Revenues) information for all the key
market categories the company has presence in - Surgical Sutures,
Glucose Monitoring, Orthopedic Accessories, Interventional Neurology,
Joint Reconstruction, Spinal Surgery, Peripheral Vascular Devices,

47
Interventional Cardiology, Wound Closure Devices, Orthobiologics,
Traditional Wound Management, Clinical Chemistry, Vision Care, Trauma
Fixation and Immune Chemistry.
 Global corporate-level profile with information on the company’s business
segments, major products and services, competitors, and locations and
subsidiaries.
 The company profile is also supplemented with a SWOT Analysis with in-
depth information and analysis of the company’s value proposition and
the business climate it operates in.
 Comprehensive coverage of the latest financial deals involving the
company and its subsidiaries, if any - Mergers & Acquisitions (M&A),
Asset Transactions, PE/VC, Equity Offerings, Debt Offerings, and
Partnerships.
4.5) Products:
Consumer products
 Acuvue
 Actifed
 Ambi
 Aveeno
 Bactidol
 Band-Aid
 Benadryl
 Benecol
 Bengay
 Benylin
 Bonamine
 Clean &
Clear
 Coach
 Delfen
 Desitin
 Dolormin
 E.P.T.
 Efferdent
 Nizoral
 Sinutab
 Splenda
 St. Joseph
 Stayfree
 Steri-Pad
 Mylanta
 Nasalcrom
 Neko
 Neosporin
 Neutroga
 Nicoderm
 Nicorette
 Rembrandt
 Remicade
 RoC
 Rogaine
 Rolaids
 Shower to
Shower
 Simply Sleep
 Simponi

53
4.6.1) Johnson & Johnson to import Neutrogena into India:
After almost eight years, healthcare and FMCG Major Johnson& Johnson is
looking to add a new brand to its consumer goods portfolio.
In India, J&J's consumer business contributes to over 50% of total sales and
apart from its core baby care products, also spans brands like band-aid, savlon,
carefree, Stayfree and clean and clear. When introduced Neutrogena will be J&J
India's most premium product line & may be distributed only in large format and
boutique stores.
The luxury skin care and beauty products market is still a miniscule Rs 150
crore, but demand has been growing over the last few years with brands like
L’Oreal expanding their range and international majors like Boots, Elizabeth
Arden and Clarions entering the country.

54
Incidentally the last brand that Johnson & Johnson introduced in the market was
clean & clear - all the way back in 1997. Dealers say - it has since fallen behind
because of lack of brand support. It remains to be seen what the kind of push
J&J's gives Neutrogena given that it will be the company's first new brand in
close to a decade.
NURTURING GROWTH TOMORROW
In addition to improving quality and compliance, the new model is designed to
enable growth and improve efficiency and effectiveness. Again, cross-sector
collaboration—key to bringing forth health care technologies that draw on
expertise from more than one business segment—will flourish as manufacturing
and quality experts from various business units have opportunities to combine
their talents.
“Campus Ireland” is one example. There are six manufacturing facilities in
Ireland across our Medical Devices and Diagnostics and Pharmaceutical
businesses. The close proximity of these facilities enables the companies to
work collaboratively on a range of projects while facilitating the transfer of
employees between sites for specific projects, career development and
promotion opportunities. Campus leaders in Ireland are also working toward
creation of a shared state-of-the-art manufacturing facility for convergent medical
technology products.
“Our journey to coordinate our supply chain organizations is under way,” Shetty
says. “The operating model has the potential to benefit those we serve by driving
quality, efficiency and effectiveness in all we do and touching—and
transforming—lives for years to come.”

55
4.7) BRAND EQUITY:
4.7.1) BRANDING TERMS:
A). Trademark details:
J&J® is a registered trademark used for Pens, Document Portfolios and
Stationery-Type Portfolios Tote Bags Coffee Mugs Clothing, Namely, Caps,
Hats, Socks, and Pants and owned by Johnson & Johnson.
B). BRAND PORTFOLIO:
a. Baby Powder
JOHNSON'S® baby powder is the only powder which offers complete protection
to a baby's sensitive skin. Not only is it sterilized, but also, unlike adult powders,
the edges of the talc particles are smooth and will not penetrate the pores. This
allows your baby's skin to breathe easily and remain healthy.

56
b. Baby Oil
JOHNSON'S® baby oil contains Aloe Vera extract and Vitamin E acetate. It is
Clinically Proven Mild for use on babies. It is a light, non-staining oil that can be
used before bath and for moisturizing after bath.
c. Baby Cream
JOHNSON'S® baby cream contains lanolin, which nourishes a baby's tender,
delicate skin and protects it from chafing, rubbing, cold etc. The cream contains
Vitamin A and Glycerin which moisturizes the baby's skiing and is great for the
mothers too.

57
d. Baby Lotion
JOHNSON'S® baby lotion is specially formulated to protect and nourish a
baby’s tender skin from the drying effects of the environment. Unlike ordinary
lotions, Johnson’s baby lotion is mild, pure and gentle on a baby’s skin. It
works both as a moisturizer and cleanser. It is an oil-in-water emulsion, which
makes it less greasy than creams and other lotions.
e. Baby Shampoo
No more tears, Johnson's baby shampoo do 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!

58
f. Baby Hair oil
Johnson & Johnson® baby hair oil is the first hair oil to contain Pro-Vitamin B5.
Its skin conditioning properties helps prevent flaking of soft skin from baby's
scalp. The Pro-Vitamin B-5 nourishes hair roots and strengthens the hair.
g. Baby Soap
JOHNSON'S® baby soap does not irritate baby's sensitive skin. It has no strong
perfumes, no coloring 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.

59
h. JOHNSON'S Buds
JOHNSON'S® Buds are soft and easy on your ears. The stems of the buds are
flexible, and the cotton swabs around the ends are sealed onto serration, which
hold the swab in place.
4.4 PROMOTION STRATEGY:
A promotion strategy is an important element of market strategy. A key
ingredient in marketing campaigns consists of a diverse collection of incentive
tools, mostly short term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or trade.
VARIABLES
Marketing variables
1. Display items
2. Other
A) Sales Promotion variables
1. Discount for retailers.
2. Scheme for retailers.

60
A). ADVERTISING:
Johnson & Johnson's brands include numerous household names of
medications and first aid supplies. Among its well-known consumer products are
the Band-Aid Brand lines of bandages, Tylenol medications, Johnson's baby
products, Neutrogena skin and beauty products, Clean & Clear facial wash and
Alcove contact lenses.
In order to maintain the Essential Baby website, including our popular Forums,
Essential Baby must display revenue-generating advertisements across the site.
We do our best to ensure these advertisements are relevant to the content
beside which they appear.
Our Family of Companies is organized into several business segments
Today, we employ more than 2000 people and the businesses span Consumer,
B).DIRECT MARKETING:
Online and home shopping specialty channels are showing tremendous growth
globally in the premium skin care and beauty category. These include TV and

61
mobile-enabled shopping, branded stores and door-to-door sales. The
advantages specialty channels offer, including discounts and fast delivery, make
them attractive to price-sensitive loyal customers and early adopters.
The Consumer business is moving into these alternate channels and building
organizational capabilities to support the strategy. The Korean skin care market
is one example.
In 2010 the NEUTROGENA® brand saw double-digit growth in Korea by
engaging consumers with content and solutions for acne through a clear-skin
website. Products specifically designed for sale online, with direct links to
purchase, were the brand’s main revenue drivers. Strategic alliances with top
online retailers helped make CLEAN & CLEAR® the No. 1 teen skin care brand
in major online channels in Korea. And the AVEENO® Baby site has become the
hub for sharing the AVEENO® product experience as well as for viral marketing.
Efforts like these in Korea contributed to growth outside the India in 2010.
C).PUBLIC POLICY RELATIONSHIP:
The Public Policy Advisory Committee reviews the Company’s policies,
programs and practices on public health issues regarding the environment and
the health and safety of employees. The Committee also reviews the Company’s
governmental affairs and policies and other public policy issues facing the
Company. The Committee advises and makes recommendations to the Board
on these issues as appropriate. The Public Policy Advisory Committee is
composed of independent Directors; one of the Company's Vice Chairmen,
Executive Committee; and the Vice Presidents for Corporate Affairs,
Government Affairs and Policy, and Johnson & Johnson Supply Chain.
D). Internet communication:
Johnson & Johnson is known for having registered many high profile internet
domains during the early internet years 1996 to 2000. The Johnson & Johnson

62
internet portfolio includes 29,925 internet domains, more than most of the large
internet and technology companies. The portfolio includes generic expressions
like Babypowder.com as well as a couple of very short domains; 2 of the 676 two
letter domains, jj.com and ky.com, are owned by Johnson & Johnson.
In order to maintain the Essential Baby website, including our popular Forums,
Essential Baby must display revenue-generating advertisements across the site.
We do our best to ensure these advertisements are relevant to the content
beside which they appear.
Reasons to Purchase:
- Support sales activities by understanding your customers’ businesses better
- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors’ business structure, strategy and
prospects
- Obtain the most up to date company information available.

63
CHAPTER 5
FUTURE MARKETING
STRATEGY

64
5.1) FUTURE MARKETING STRATEGY
The pharmaceuticals business' prioritized investments in internal R&D, strategic
licensing arrangements, partnerships and select acquisitions continue to build a
robust pipeline for the long-term. The company's pharmaceuticals businesses
expect to file 11 new products and over 30 important line extensions between
2011 and 2015.
The company's pharmaceuticals business is strengthening leadership
capabilities locally, regionally and globally. A key component involves rotating
key talent into important roles to quickly accelerate skills development to address
a growing and complex business environment. The pharmaceuticals business is
also building R&D capabilities in new technology areas and emerging markets.
In recent years, the pharmaceuticals business has transformed its portfolio by
expanding its leadership in immunology, deepened its expertise in oncology and
entered vaccines. The company's pharmaceuticals businesses are in the
process of launching six significant new products between 2009 and 2011, some
in multiple geographies. Two of the new products are pending regulatory review
in the India, and two additional key compounds are in registration in key markets.
Many of these products could represent significant advances over the current
standards of care.
J&J Corporation has a very good perception of India. This has been supported
by good results in the country. The outlook is bullish, and is supported by a high
level of confidence in the Indian management team and more investments likely
in the coming years. Double-digit growth is forecast for the India operations.
India would be a key growth driver for J&J worldwide. J&J is also exploring the
opportunities for setting up BPO operations in the country.

65
CHAPTER 6
CONCLUSIONS &
RECOMMENDATIONS

66
6.1) RECOMMENDATIONS
 Company should follow a different way of advertising media and channel.
Since customer is spending most for their leisure time with their family
and television, company should continue with mass marketing and start
advertising aggressively on television and magazine.
 Company should try to use its strength, and position the company in
consumer’s or customer mind.
 Company should try to use its strength, and position the company in
consumer’s or customer mind.
 Growth of the company depends on the FMCG product so they should
focus on product category like Cosmetics, Baby care products & also
other products. Company advertisements should focus more of these
products.
 Doctors will recommend for mothers & all mid-age people to use the
company’s products & more focus to print media Advertisements.
 J & J are not very attractive advertisement to the customers mind.
Company should organize to create very attractive advertisements and try
to pull customer attention either by Television or by Print. J & J can rope
in good advertisement agency.
 The sales promotional activities give the desired effect only when they are
Flexible.

67
 While the company is focusing on upper middle class and upper class
customers, offers like free lunch box on purchase of honey is not suitable.
Thus the offers should be made flexible giving an equal amount of price
discount on rejecting the gift.
 Company should also provide a discount at the outlets on bulk purchases.
 The company should strictly ask the customers feedback about the FMCG
products, baby care products once in 6 months.
 The company should sales their products in sachets instead of pet bottles
in Rural & Semi Urban areas.

68
6.2) CONCLUSIONS
 In the study of project, the products, promotional & marketing strategy
observations were made. According to they are,
 In Urban, Advertisement made a greater impact when compared to other
mode of communication.
 In rest of the area, all the mean of awareness creation as worked out
Equally and effectively.
 J & J has four product categories i.e., Personal care, Medicine, Toiletries,
Cosmetics, among these four categories, Personal care like Baby soaps,
Baby powder, cosmetics is highest selling products in market & having
more than 60% of the total sales.
 More than half of the sales are through medical category for the company,
so it’s very important that company should concentrate on Medical
Representative as vital channel member for its product.
 Only with sufficient product knowledge the sales executives can give
proper guidance to customers. The sales executives must be able to give
the information in a way the customer can understand.
 The telephone orders can be accepted only if the calls are attended. If the
lines are always busy the customers will never try to avail this service.
The orders should be properly noted for prompt delivery of service and
products.

70
 WEBSITES
 www.google.com
 www.scribd.com
 www.pdfsearch.com
 www.wikipedia.com
 www.europa.com
 www.j&j.com
 WWW.YAHOO.COM
 WWW.TUTOR2.NET
 BOOKS
 Marketing Management by Philip H Kotler
 Consumer Behavior by Schiff man
 Service Marketing by Valarie A Zeithaml & Mary Joe Bitnar
 Logistic & SCM by Martin Christopher

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