This is a term project I just finished for a business course. I have a connection with the company in CH and have received critique from reputable business professionals and; despite the lack of detailed figure tables which were not required, all who have read it think it to be very good and useful should the company ever choose to implement it.

1. Johnson & Johnson
Marketing Plan for the Year Ending on December 31, 2015
Hannah Joy Stacy
MKT 456
November 5th
, 2015

2. I. Executive Summary
This marketing plan includes a detailed analysis of the current conditions of Johnson
and Johnson (JNJ). It also includes a SWOT analysis that address JNJ’s strengths in its
representation of one third of the health care marketplace and has increasing market
share value and future expansion. The plan discusses JNJ’s weaknesses which
address the Risperdal cases and future opportunities including how to rectify the
damage caused by the drug in a moral attempt to help the wounded patients. The
threats currently posing JNJ include cheaper, generic versions of prescriptions and
websites like GOODRX that provide significant medication discount coupons accepted
at most major pharmacies. Concerning all of these factors, there are three marketing
strategies at hand. The first is to implement a prescription savings program card that will
provide a competitive discount for all JNJ engineered medication. The second strategy
involves JNJ engineering a drug to treat EPS; a debilitating disease caused by years of
anti-psychotic usage and one of the long term effects of drugs like Risperdal. The third
strategy includes continuous expansion of third world countries by initiating meetings on
location with foreign officials in gaining market entrance into the country. 2016 net
revenues are projected in the plan and JNJ must be willing to take a temporary profit
loss in gaining integrity, customer loyalty and expansion. Ultimately, all three efforts will
prove beneficial for the 2017 fiscal year if implemented correctly.

3. II. Current Marketing Situation
1) Market Analysis
Along with the company’s domestic presence and continuous growth, JNJ has
accumulated global market presence by utilizing its competitive advantage by the
construction of products to fit specific and environmental needs targeted to the
individual consumer. JNJ’s net profit margin currently dominates one third of the global
health marketplace and has become a leader in pharmaceutical and product
engineering. JNJ’s global market presence now includes the BRIC markets with a
recent emphasis on expanding a 27 year long business partnership with China. Utilizing
its headquarters in Suzhou, JNJ has recently expanded its growth to reach other
Eastern markets such as India and Russia. With open availability to conduct product,
consumer and environmental research in international markets; JNJ has begun
pharmaceutical engineering for infectious diseases found in such regions and has
capitalized on disease prevention worldwide.
2) Product Analysis
Currently, JNJ offers a broad product span that reaches needs of multiple health care
categories and ranges from consumer and prescription products to medical devices.
JNJ’s consumer products include brands such as Neutrogena, Johnson’s Baby Care,
Band-Aid and Tylenol. Medical devices offered include surgical equipment and related
products used to treat maladies from diabetes, to aesthetics ranging from
cardiovascular to urological needs; as well as offering multiple brands of prescription
medication prescribed in categories including; Cardiovascular and Metabolism,

4. Immunology, Infectious Diseases and Vaccines, Oncology and Neuroscience. The table
below shows a sales diagram of the total revenues from the three different product
categories offered by JNJ for the year 2014. The second table shows JNJ’s net income
for the past five years.
Net Income 2010 2011 2012 2013 2014
(B) Billions 61.64B 65.04B 67.28B 71.26B 74.33B
3) Competitor Analysis
Despite JNJ’s dominance in the industry, its primary competitors include Colgate-
Palmolive Co., Procter and Gamble, Novartis AG, Pfizer Inc., and other independent
pharmaceutical and health care manufacturers. The top three manufacturers otherwise

5. known as the “dividend kings” include JNJ as the leader, Procter and Gamble as
second and Colgate-Palmolive Co. as being third. The title “dividend king” is relatable to
stockholders as being a company whose title has acquired over 50 years of consecutive
dividend increases in the stock market. When assessing what makes JNJ the lead
competition, several factors hindering Procter and Gamble and Colgate Palmolive are
currency devaluations in key markets, slower consumer acceptance rates of new
products, and margin pressures as a result of higher input costs. JNJ is generating
higher acceptance rates and profit margins on new products and medical devices;
primarily a direct result of brand loyalty from long standing product lines such as Band-
Aid, Tylenol and Johnson’s Baby Care. Because of its industry prevalence, JNJ poses a
greater opportunity of worldwide expansion and improvement.
4) Distribution Analysis
JNJ’s Procurement Organization is globally recognized and has its own procurement
mechanism that partners with line management to provide a greater supplier network for
the company. With the attempt to leverage overall knowledge, infrastructure and
spending, JNJ has implemented two key categories in their distributional system. JNJ’s
Regional Indirect Procurement Centers of Excellence (COEs) are locations that focus
on the marketing, HR and management efforts of the company; while JNJ utilizes
Category Teams that provide exceptional quality products and services to buyers at low
costs and offer innovative ideas and solutions, superb supply continuity and manage
suppliers by providing a focus on environmental and social responsibility. Additionally,
JNJ recognizes the importance of having a diverse supplier base that reflects JNJ
consumers around the world. JNJ established the Supplier Diversity Program in 1998

6. which portaged JNJ distribution with a variety of potential small and large business
owned by a diverse demographic including veteran, female and minority. With the
recognition of JNJ products, such businesses have obtained highly profitable
opportunities by their partnerships while JNJ is further promoting its diversity and
growth.
5) Macro-environmental Analysis
Competitive opportunities involving new opponents to compete against JNJ and its
other pharmaceutical engineering competitors proves very difficult as JNJ shows steady
longevity, top manufacturing capabilities and highly efficient distribution systems since
1886. The issue at hand in the upcoming expiration of a multitude of JNJ prescription
patents. Once each prescription expires, generic manufacturers are quick to reverse
engineer the drug and make it a bioequivalent comparison as required by FDA
regulations. Additionally; 19 million Americans are without healthcare and have limited
insurance options. Newest technologies include cheaper RX alternatives for the non-
insured or co-paying consumer include websites such as GoodRX that offer coupons on
already genetically engineered prescriptions and pose the greatest threat on the brand
name pharmaceutical industry.
III. SWOT (Strengths, Weakness, Opportunities, Threats) Analysis
1) Strengths
Despite the current issue with brand name pharmaceuticals; the number of aging
individuals is on the rise which creates a greater need for health care. As research
progresses, health care concerns and diseases are also rising which ultimately prove

7. opportunistic for companies such as JNJ to find solutions and research pharmaceutical
treatment options. Ultimately, JNJ should continue to utilize its competitive advantage
by its ability to construct products to the consumer needs as a method in which to profit
by molding pharmaceutical engineering solutions to the various and contemporary
health conditions that arise.
2) Weaknesses
In 2013, JNJ admitted to illegally promoting the drug “Risperdal” to consumers when it
had never been FDA approved and was deemed unsafe by the administration. JNJ paid
more than $2.2 billion in order to resolve the matter. JNJ officials had been giving
prescribers and both elderly and adolescence mental health care facilities incentives to
prescribe the drug to vulnerable patients. In addition to court costs, JNJ agreed to the
Corporate Integrity Agreement with the department of Health and Human Services
Officer of Inspector General to increase legal accountability and transparency to prevent
future occurrences.
3) Opportunities
In relevance to the criminal cases, profits for JNJ did not face any consequences as
sales continued to rise due to a continuance of brand loyalty for all other products of the
company; as well as its international focus on expansion while obtaining negative
domestic attention. Here inlays the opportunity to begin research on a disease called
“Extrapyramidal Symptoms (EPS)” which includes disease categories such as Dystonia
and Tardive Dyskinesia. A psychiatric patient can acquire this incurable disease after
years of taking anti-psychotic medication such as the drug Risperdal. Limited research

8. has been conducted by physiatrists and the disease proves to be debilitating and often
irreversible in most cases. With a primarily domestic advertising focus, JNJ could
reprehend their former misuse of anti-psychotic medication with a remedy that would
help life-long sufferers from behavior disorders that are now dealing with excruciating
physical pain from EPS. Such unique identification and promise to resolve the disease
with medication that does not contain debilitating side effects such as blurred vision of
which all types of anti-spasmodic medication result in would prove greatly beneficial to
those suffering and would additionally promote a better sense of customer integrity on
behalf of JNJ.
4) Threats
The biggest threat that currently faces JNJ is consumer accessibility of cheaper,
generic-engineered prescriptions by use of available technology such as GoodRX for
consumers without insurance or whose insurance does not cover all brand names
prescriptions and for those who seek value over brand when purchasing their
medication. Also, JNJ competitors are engineering similar forms of further advanced
pharmaceuticals. Another potential threat for JNJ includes the previously mentioned
Risperdal lawsuits. Risperdal was introduced to the market in 2003 and concerning
JNJ’s illegal and aggressive marketing efforts in promoting the drug they paid a mere
$2.2M that was split between the government and each of the 50 states. The concern is
relatively new and television commercials are continuing to promote free legal help for
Risperdal-effected patients. This is one of the two options for Risperdal sufferers. The
patients that are unaware of drug manufactures and whose medical knowledge focuses
on their doctors and pharmacists will began to notice symptoms such as tardive

9. dyskinesia; a form of EPS which is a permanent side effect known from taking
Risperdal. These un-deserving patients will be prescribed even more medication to treat
additional and debilitating symptoms that ultimately render their lives useless. Being the
consumer conscious company that JNJ promotes itself, greater measures should be
taken to assure the welfare of affected patients.
5) Issues Analysis
- Is it possible for JNJ to offer prescription discounts for individuals without health
care or to those who must pay higher co-pays?
- Can JNJ engineer a medication to treat EPS with no side effects in order to
rectify the damage caused by the Risperdal incident?
- How can JNJ expand its products to more third world markets and enhance its
European presence?
IV. Objectives
1) Financial
- To increase Net Income/Revenue to above 75,50B
- To increase market share by 20%
- To be willing to take an increase in profit in taking responsibility for Risperdal
offenses
2) Marketing
- Create a prescription savings program and other incentives for those who do not
have health care or would prefer to buy generic due to the lower cost
- Create and promote a medication that would be effective in treating EPS
symptoms with no side effects and offer the medication to patients with
documented tardive dyskinesia, dystonia or other forms of EPS at no cost in an
attempt to reconcile the damage done by the illegally advertised drug Risperdal.
- Discover health issues that are prevalent in countries without JNJ market
presence and seek to treat those illnesses by ideally targeting government

10. official’s environmental health issues therefore allowing entrance into the country
to treat the citizens.
V. Strategy
Strategy Statement for Johnson and Johnson
Target Market:
1- Uninsured or value seeking health patients buying prescription
2- EPS patients
3- Foreign Officials in countries without JNJ market presence
Positioning:
1- Promote TV ads and brochures that list all of the medications manufactured by
JNJ and offer discounts and promotions on brand name prescriptions. Also check
online RX discount websites and position the savings program as offering even
lower costs than the websites.
2- Engineer a drug to treat EPS symptoms that has much less side effects than the
drugs already on the market that all cause blurred vision; rendering the patient
unable to function and can also increase muscle spasms and pain depending on
the progression of the disease.
3- Make cordial arrangements with foreign officials in that specific country and
question them about their own health care problems and those they see effecting
their country. Also show graphs of how many countries are already using JNJ
products.
Product Line
1- Offer savings cards that will be accepted by all major pharmacies with the JNJ
logo on the front
2- Attempt to make the EPS drug as an injection as the symptoms require
immediate relief

11. 3- Bring “goody” bags filled with common JNJ products and pass them out to all
government officials to try and use at home.
Price
1- Require a minimum purchase to obtain the savings card or a monthly fee
2- Ideally, the drug JNJ should engineer should be distributed to all documented
EPS sufferers at no cost.
3- Research the currency of that country and adjust prices accordingly. For
government officials, offer initial products as a gift for entrance into the country to
treat lower class citizens.
Distribution Outlets
1- Offer the registration process online or by mail which would require the initial
payment upon registering
2- Attempt to distribute EPS medication to as many in-patient facilities as possible,
promote it just as fiercely as JNJ did with Risperdal in an attempt to gain and
improve brand integrity.
3- Utilize JNJ employee connections to set up meetings in official’s home countries.
Salesforce
1- Send representatives to doctors and pharmacies to discuss savings program
2- Utilize HR employees to publicly discuss apology and what JNJ plans to do to
rectify the situation.
3- Send JNJ representatives fluent in language of foreign country
Service
1- 24-hour customer service line available to all card holders
2- Detailed description of new EPS drug mailed to all patients

12. 3- JNJ employees ready to re-locate to new markets and willing to work with foreign
diseases
Advertising
1- Emphasis on social media platforms as the majority of Americans without health
care utilize them the most. Will promote the savings program and design an app
where customers can search the different JNJ medications to see if theirs is
covered under the savings program.
2- Promote the new drug to legal firms that currently represent Risperdal patients as
well as in patient facilities and physiatrists worldwide
3- Design ads that are culturally acceptable in foreign country once entry has been
permitted.
Sales Promotion
1- Offer a special discount for the first 500 customers that register for the savings
program
2- Emphasize to physicians that the new EPS drug has less debilitating side effects
3- Create partnerships with foreign countries and agree to sale products in
reputable stores
Research and Development
1- Research and target the demographic without healthcare
2- Collect case studies of individual, out-patients dealing with EPS and how to treat
those functioning in society with the disease
3- Assure that the country’s governmental officials are not of a selfish nature and
strive to keep all outside help, benefits and technological advances to
themselves.
Marketing Research
1- Make constant improvements to savings program app and advertisements on
social media platforms

13. 2- Perform studies of in-patients and out-patients and the specific type of drug that
must be engineered to bring hospitalized individuals back into society and be
successful.
3- Study the trends, cultures, and nature of the country and how JNJ presence
would benefit both the company and its new markets.
VI. Action Programs
In order to achieve these three different strategies, JNJ must be willing to consider
ethical values at the cost of losing profit but gaining future business as a result. For
the savings program, it is necessary for JNJ to realize that both generic drugs and
more efficient competitor drugs pose a great threat for future business and must
implement this savings program not only to help the un-insured, but to acquire brand
loyalty in the quest for value. As for the EPS drug; once it has been constructed by
at least May 2016, JNJ must recognize the damage caused by Risperdal and utilize
compassion in rectifying the damage it caused to patients. For the third strategy, JNJ
clearly dominates the international health care market; however, there is always
room for expansion.
VII. Projected Basic Income Statement
Total Revenues for 2016
$72,000,000,000
Total Revenues for 2017
$80B,000,000,000
If JNJ should decide to implement these strategies, there will be a minor financial
drop in total revenues at the cost of the savings program losses, delivering the EPS
medication to wounded patients at no cost, and the money that is put into expanding
markets. Although the amount for 2016 is a significant drop from 2015, the loss will
have been well worth the advantages and new customers obtained.
VIII. Controls

14. In order for this marketing plan to be implemented, certain controls must be
addressed. It is necessary to adhere to both the SWOT analysis and the marketing
strategy when considering the future of JNJ. Ultimately, implementing the three
strategies will prove worth any financial loss as sales should project higher the
following year and the company will have increased and expanded customer loyalty
and sales.

15. Sources:
"Factors Affecting Johnson and Johnson." Factors Affecting Johnson and Johnson.
Web. 6 Nov. 2015.
"Justice News." Johnson & Johnson to Pay More Than $2.2 Billion to Resolve Criminal
and Civil Investigations. Web. 6 Nov. 2015.
"Johnson & Johnson Strategic Framework." Johnson & Johnson Strategic Framework.
Web. 6 Nov. 2015.
"Our Performance." 2014 Data Summary Report. Web. 6 Nov. 2015.
"Our Approach." Our Approach. Web. 6 Nov. 2015. jnj.com
"Our Health Care Products." J&J Health Care Products and Services. Web. 6 Nov.
2015.