3/25/2019 Johnson & Johnson

Mujahid Iqbal
PROPIDE2017MPHILMS05
Marketing Theory and Practice

mujahid iqbal
JOHNSON & JOHNSON
 History
 1886- 3 brothers founded Johnson & Johnson in Brunswick, New Jersey.

 1888- Pioneered the first commercial First Aid Kit.

 1894- Launches first maternity kit to make child birth safer

 1898- First to mass produce dental floss.

 1921- An employee invents the first BAND-AID

 1937- Began international expansion with companies in Argentina & Brazil

 1954- Baby shampoo enter the market

 1978- The Company begins construction on their new World Headquarters in New Jersey.

 1990’s- Ethicon Endo-Surgery pioneers minimally invasive surgery.

 2002- Johnson & Johnson acquires Tibotec-Virco BVBA

 2006- Johnson & Johnson acquires Pfizer Consumer Healthcare

 2009- Acquisition of Mentor Corporation

Vision
“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.”

Mission
“Our mission is to make diversity & inclusion our way of doing business. We will
advance our culture of belonging where open s and minds combine to unleash the
potential of the brilliant mix of people in every corner of Johnson & Johnson.”

Strength
• Diverse business offering
• Forecast growth despite challenges
• Significant sales and marketing capabilities
• Robust financial position
• They have strong global presence operating in more than 57 countries with
250 subsidiary companies
• They have successfully employed strategies to differentiation that helps it
distinguish itself from its competitors.
Weaknesses
• Generic drug's exposure
• Private label exposure
• Quality issues in OTC products affecting consumer healthcare product sales
• Key product demand is shrinking.
• Theft and counterfeiting of drugs from internal staff as much as this is not
isolated to J&J.
• Pressure to reduce prices in accordance with medical budgets and maintain
patent expirations to help generic programs.

Opportunities
• Acquisition of Synthes could enhance J&J’s Failure of prospective products
to deliver leadership position in global orthopedics market
• Leveraging therapeutic coverage of non-prescription pharmaceutical
segments could provide cross-selling opportunities
• Addition of Crucell to broaden J&J’s position in biologics and vaccines
market
• R&D investment will add to the potential growth rate of the company in
surrounding markets.
• Economic recovery will be a boost in income thus company revenue will
increase.
• Global expansion
Threats
• Negative Impact of Recent Product Recalls
• Healthcare regulations
• Better research and development of competitors
• Low market growth rate.
• Strong competition from the generic market.
• Launch success in that newly launch products are uncertain because of
regulatory review, thus making the launch a potential threat if it fails.

SO Strategies
• S1, O1: JNJ Should aim to be an industry leader in all its diverse business
offerings.
• S2, O2: With the addition of new products in various departments, JNJ could
potentially still predict growth in challenging times.
WO Strategies
• W1, O1: Although there is a wide variety of generic drugs, JNJ should use
this as an opportunity to highlight the value and quality of their products and
 increase R&D in specific segments to increase market share in surrounding
markets.
W2, O2: OTC sales should be used as a prime opportunity to highlight the value
and worth of JNJ`s products
ST Strategies
• S1, T1: JNJ`s diversity should not be a means for its products to be valued as
"average", its diversified range should be known for the high quality.
• S2, T2: The prediction of increased sales in challenging times should be a
testament to JNJ`s value and quality of products.
WT Strategies
• W1, T1: Product recalls can seriously hinder the perceived value and quality
of JNJ.
• W2, T2: Healthcare regulations along with challenging economic times can
prove costly to JNJ as a whole.
 Weights Rating Weighted score

External Opportunities

Acquisition of Synthes could enhance J&J’s 0.07 2 0.14

failure of prospective products to deliver
leadership position in global orthopedics market
Leveraging therapeutic coverage of non- 0.09 2 0.18
prescription pharmaceutical segments could
provide cross-selling oppertunities
Addition of Crucell to broaden J&J’s position 0.11 3 0.33
in biologics and vaccines market
R&D investment will add to the potential 0.07 2 0.14
growth rate of the company in surrounding
markets
Economic recovery will be a boost in income 0.10 3 0.3
thus company will increase
Global expansion 0.06 4 0.24
External Threats
Negative Impact of Recent Product Recalls 0.09 3 0.27
Healthcare regulations 0.09 2 0.18
Better research and development of competitors 0.08 2 0.16
Low market growth rate 0.06 2 0.12
Strong competition from the generic market 0.10 3 0.3
Launch success in that newly launch products 0.08 3 0.24
are uncertain because of regulatory review, thus
making the launch a potential threat if it fails
Total 1 2.60