Marketing Strategy of Johnson and Johnson

This article discusses the Marketing Strategy of Johnson and Johnson.

Johnson and Johnson is one of the most highest valued brands in the market
and has presence in various industries like Pharmaceutical industry,
consumer packaged goods industry and others. It is regularly ranked in
the Forbes top 500 and in fact ranks in the Forbes top 100 frequently too.
Without further ado, let us go through the Marketing Strategy of Johnson and
Johnson.

Segmentation, targeting, positioning in the Marketing strategy of Johnson and Johnson

Johnson has considered demographic (education-income-

occupation), geographic (urban-rural-further city wise segmentation),
and behavioral (lifestyle) factors to seek out the consumers.

Johnson’s baby care product targets young parents and positions itself as a
safe, mild and gentle product for babies.

Johnson’s Clean and Clear brand is a global skincare brand dedicated to teen
girls and promotes that beauty comes from being happy in their own skin.

Johnson has segmented the market for adult and has provided a range of
beauty productswhich positions itself to be perfect for all skin types.

Under psychographic segmentation, Johnson has the brand Neutrogena

which marketsitself on the basis of being recommended by dermatologists,
where customers who take expert advice when it comes to skin care are being
targeted.

Band-Aid which comes under health and healing product has positioned itself
as a staple in a family’s first aid kit as a source of care, comfort, and protection.

Listerine Mouthwash is purely centered on functional benefits that it offers

protection against plaque, gingivitis, and bad breath and has been positioned
as a ‘bomb of freshness’.
Mission in the Marketing Strategy of Johnson and Johnson

“Make diversity & inclusion how we work every day. Our mission is to make
diversity & inclusion our way of doing business. We will advance our culture of
belonging where opens and minds combine to unleash the potential of the
brilliant mix of people in every corner of Johnson & Johnson.”

Vision in the Marketing Strategy of Johnson and

Johnson
“Be yourself, change the world. Our vision at Johnson & Johnson is for every
person to use their unique experiences and backgrounds, together – to spark
solutions that create a better, healthier world.”

Competitive advantage in the Marketing Strategy of Johnson and Johnson

1) The brand itself

Johnson & Johnson was founded more than 120 years ago and it has around
250 companies located in 57 countries around the world. The legacy of the
brand and its dominance gives the brand a competitive edge.
2) Product

Gentleness, safety, and comfort have always been a topmost priority of J&J. It
uses harmless chemical and products go through rigorous clinical testing to
ensure the highest standard for their baby products. It has a strong presence in
the mind of the parents.

The company has a product-focused initiative called EARTHWARDS, which

challenges teams to incorporate sustainability across the entire product
lifecycle, from design, manufacturing and product use and bringing positive
change in sustainability space.

3) Innovation

Every year J&J invests billions of dollars in R&D, in 2014, it had invested 11.4%
of its total sales ranking it as one of the world’s top companies spending in R&D
and topmost in its industry.

Every year they come up with innovative products which helps it stay ahead of
the competition.

BCG Matrix in the Marketing Strategy of Johnson and Johnson

In baby care J&J has the complete portfolio of products that provide safe and
gentle products for babies in the form of the baby cream, diaper cream, oil etc.
It is widely recognized by all and it’s the brand that first comes in people’s mind
when they think about getting products for their babies. It is providing a relatively
stable cash flow thus it is the cash cow.

In wound care, Band-Aid has long been a staple in family’s first aid kit. J&J is
the leader in the Indian wound care market thus its cash cow in the BCG matrix

Under beauty products, J&J has Aveeno, Clean & Clear, Johnson’s Adult, and
Neutrogena. According to the reports by J&J, the worldwide consumer sales
increased by 2.2%, and primary contributors to growth were Neutrogena,
Aveeno, Tylenol. Neutrogena is a 40-year-old brand and offers over 400
products in the international market. In 2009 Johnson and Johnson introduced
skincare range of Neutrogena brand in India, however, the product is not able
to establish itself well in the Indian market, the leading brand are Dove, Fair &
lovely, Lakme etc. so in consideration of the Indian market, it is a question mark
in the BCG matrix.

In 2017, J&J introduced Aveeno with a baby and body care in India, since there
is an emerging segment of mothers who are seeking for products with natural
ingredients, Aveeno is expected to do well however since it will be competing
with other well-established brands, the uncertainty puts it in the Question Mark
category.

Distribution strategy in the Marketing Strategy of Johnson and Johnson

Employing more than 120,500 employees J&J sells products in more than 175
countries. Since it is one of the biggest consumer-oriented companies, J&J has
a huge network of distribution in India and the brand instills a feeling of pride
among the distributors that they are associated with J&J so it can exert coercive
power over the distributors.

While selecting the channel members, J&J selects channels on the basis of its
relevance rather than the economic criteria that is the reason why J&J products
are found even small shops of rural areas. The brand has been distributing the
products through Wholesalers/distributors, Retailers, supermarket chains
and e-commerce websites.

It has more than 350,000 SKUs, more than 350 distribution centers around the
world catering to the needs of thousands of customers.

J&J has recently made a major development in Europe, It has invested 33

million in the construction of a European distribution center which acts as a
European Supply chain hub. Since the company has mostly grown through
acquisition each has its own management, structure and distribution network
which tends to complicate matters. So this center has helped to harmonize the
companies by streamlining its warehouses whilst maintaining a good
relationship

Brand equity in the Marketing Strategy of Johnson and Johnson

The company uses emotional and mental communication developing trust and
creating feelings to convince its customers to buy their products. J&J the
brand’s success in India is due to its sharp focus on mothers. It focuses on
reliability in the market where that is a premium when it comes to baby products.
The Johnson’s baby brand offers the promise of recognized and quality product.

Neutrogena launched a global campaign with the tagline “See What’s Possible”,
directed towards female-empowerment and it was the first time Neutrogena
Launched ads that were not product focused. The equity campaign was used
to unite Neutrogena Brand known for different product strength in different
countries.
Band-Aid focused on Brand Equity with its new #CoveringIsCaringEffort
focusing on what the brand means rather than its product-differentiating
category stating caring is pretty much universal.

The brand personality is edgy and also projects perfectionism. The edgy
personality comes through its efforts towards innovation and with the product
that offers consumer high quality and completely reliable product depicts
perfectionism.

Market analysis in the Marketing Strategy of Johnson and Johnson

In 2017, Johnson & Johnson’s share of the global baby care market was
estimated to be 21.3%. The franchise’s sales fell 7.2% to $2.0 billion in 2016,
including an operational decline of 2.7% US market. Strong competition is
limiting the growth of Johnson’s baby products. Unilever has launched baby
care products under the brand Dove. Strong sales were reported by Aveeno
baby products because parents are preferring products with more natural
ingredients.

Oral Care franchise reported growth due to successful marketing campaigns

and the geographical expansion of the Listerine brand.

The beauty franchise sales rose 7.9% to ~$3.9 billion in 2016, with the
good performance by Neutrogena brand.

Customer analysis in the Marketing Strategy of Johnson and Johnson

Customers of Johnson’s baby care products are almost all the parents with
medium income and also the pension earning grandparents. Clean & Clear
works in the anti-acne market and has developed its presence among the teens.

The Neutrogena targets youths and working professionals both male and
female who trust dermatologist when it comes to skin care.

The customer of Band-Aid are from all segments and people from all age
groups and is a top-of-the-mind product.
Promotional strategy in the Marketing Strategy of Johnson and Johnson

J&J has managed to interest a large community of followers by creating an

independent content platform. Content Marketing Strategy for their baby
product has been well defined through a sharp audience profile of young
parents and expectant mothers who want reading about parenthood and
information about babies and want to connect with peers, facing similar issues.
The Clean & Clear brand has recently launched a new campaign called
#ForEveryFace in Indonesia empowering teen girls to be more confident. With
“See Whats possible” campaign under the brand Neutrogena J&J has pulled
efforts towards female-empowerment.

Johnson & Johnson Marketing Mix (4Ps) Strategy

Marketing Mix of Johnson & Johnson analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Johnson & Johnson marketing strategy. The article elaborates the
pricing, advertising & distribution strategies used by the company.
Let us start the Johnson & Johnson Marketing Mix:

Product:
The product strategy and mix in Johnson & Johnson marketing strategy can be explained as follows:
Johnson & Johnson has an extremely wide and elaborate product portfolio. Johnson & Johnson
focuses majorly on three product categories:
1. Pharmaceuticals
2. Medical devices
3. Consumer products.
According to the recent study the above mentioned categories contributed around 35%, 19%, 44%
respectively of the total revenues earned for Johnson & Johnson. These offerings of Johnson &
Johnson are the product strategy in its marketing mix. The company mainly caters the consumer
product lines. Majorly the product category of Johnson & Johnson includes:
• Baby Category Johnson & Johnson products which include different types of massage oils, body
lotions, soaps, creams, powders, nappy pads and shampoos. Within these products also there are
various categories and types available.
• Johnson & Johnson Skin Care products include Clean Care facewash which are available in
different flavour like apple, strawberry, lemon etc. clean care face creams, clean and clear
moisturizers, cleansers etc. it also has a new category of products under Neutrogena brand name
which also brings in skin care products.
• Wound care segment brings in products like Johnson & Johnson Band aid
• Oral care like mouth washes with different flavours like fresh mint, cool mint
• Pharmaceuticals products are also one of the major segment of Johnson & Johnsons. They are used
for Dermatology, anti-fungal, contraceptive etc.
• Medical equipments are also produced by Johnson & Johnson which are mainly includes products
for spinal care, circulatory diseases etc. also including disposable contact lenses and diabetes testers.

Image: flickr-photos/opengridscheduler/

Price:
Below is the pricing strategy in Johnson & Johnson marketing strategy:
Johnson & Johnson is a renowned brand and still it has maintained its pricing to an affordable rate so
that the common man can buy the products. Johnson & Johnson follows a very well planned pricing
policy in its marketing mix pricing strategy, mainly keeping it in the range of the consumer price
index. As we know the major part of the company’s market is from consumer products so it keeps n
mind the affordability criteria of the consumers in the market before setting its pries.
Johnson & Johnson has also followed a psychological pricing technique keeping its prices in the
multiples of 99 or 49. Although Johnson & Johnson products are known for its superior quality with
proper packaging etc, the company has decided on affordable prices.
In its medical products category, working along with government they have priced them thee
products at a reasonable rate. This also depicts the companies socially responsible intentions.
Johnson & Johnson has efficient team appointed for the pricing of the products. This teams take into
account different factors like target segment, their production cost, demand, supply, and also the
ability to pay of the customers. After all the proper evaluations and calculations, the prices are fixed
for the products.
There are certain Johnson & Johnson products like the baby care products and consumer goods
where the prices charged are little high. This is because people buying such products are ready to pay
even a certain high price given good quality and good health for their family.

Read more about Johnson & Johnson marketing strategy: Johnson & Johnson SWOT Analysis
& Competitors

Place:
Following is the distribution strategy of Johnson & Johnson:
Johnson & Johnson products are available extensively because of a strong distribution network. With
a total of around two hundred and thirty subsidiaries and with operations in around sixty countries it
is a well-known brand with its name spread even in the remote parts of the country. Johnson &
Johnson has an advantageous stand of the local windows of the operating countries which helps them
link easily with the customers.
A well organised and efficient team is appointed by Johnson & Johnson who look into all the
operation and distribution of the products. They supervise and coordinate all the activities and strive
to reach every targeted customer. There are also conditions in which the local manage the
subsidiaries thus giving an edge over the competitors. Decentralisation technique of management is
followed by the company, engaging the employees.
Johnson & Johnson has a wide and well distributed distribution network as a part of its marketing
mix strategy. With the growing trend of online shopping and advancement in technology Johnson &
Johnson has rightly captured the opportunity and sell their products via different online portals and
shopping sites.
Johnson & Johnson products are easily available almost everywhere, retail stores, wholesalers and
market.

Promotion:
The promotional and advertising strategy in the Johnson & Johnson marketing strategy is as follows:
Johnson & Johnson has followed a very good marketing strategy, creating awareness through
advertisements via different medias which are generally very eye catching. The marketing mix
promotional strategy of Johnson & Johnson is to have a 360 branding. This appeals the customers to
buys the products. Johnson & Johnson have realised the importance of spreading awareness about the
production the market and have utilised their full capacity to reach out to people.
The Johnson & Johnson ads are placed everywhere and through all mediums, like hoardings,
magazines, newspapers etc. Their advertisements also carry an emotional content majorly focussing
on quality and care. Johnson & Johnson have also focussed on coming up with very good packaging
which is environmental friendly.
Johnson & Johnson have come up with various kinds of campaigns also as a part of the promotional
activities. Few of them being “Having a Baby Changes Things”, “The Campaign for Nursing’s
Future” etc. the leading tv actress Prachi Desai has also been associated with the company’s ads.
Johnson & Johnson ads generally focus cute babies and kids which people love to see and depicts
love and care from a mother’s perspective. The mother baby connection is strongly shown there.
Also few cartoon characters are used to attract the customers.
Johnson & Johnson also comes up with various kinds of offers like get a soap free on purchase of
two etc. several kinds of discounts coupons are also given along with baby products and on buying
all in one packs. Hence, this summarizes the Johnson & Johnson marketing mix.

About Johnson & Johnson:

Johnson & Johnson, founded in 1886 is an American company manufacturing mainly medical
products and devices, pharmaceutical, and consumer packaged goods. Johnson & Johnson has its
headquarters in New Brunswick, New Jersey. It has around 250 subsidiaries selling its products in
around 175 countries. Johnson & Johnson is one of the leading companies of the world and listed
among the fortune 500. With a very good targeting strategy followed Johnson & Johnson caters the
need of all the segments of the society, from babies to adults.
Browse 4Ps Analysis of more brands and companies similar to Johnson & Johnson Marketing Mix.
The Marketing Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.