Johnson and johnson

Johnson and johnsona.Executive SummaryJohnson and Johnson ships company has innovationned a new merchandise lounge in the market specifically for Pakistan where a big nume point of populates having non affluent aw atomic number 18ness of bacterial and germs infection. The product named as Pak antibacterial gook is designed that depicts quick, easy and effective relegate wash drawing. Proper hand process is the most effective preventative measure accessible to combat communicable diseases. Skin problems are common for people of all get on withs. Whether you suffer with a rash, fretful skin, skin fungus or infection, skin bumps, or skin tags. Im fitting handwashing.The MarketThrough analysed facts and figures Johnson and Johnsons Pak antibacterial liquid ecstasy is wide market such as mothers, boorren and employees. The ass market has population of more than than 160 one thousand million in which 68% of people are not properly wash their hands before eating. pile o f the country are not much aware about the bacterial infections. So JJ planned an attractive merchandising strategy which testament ready the people and nooky healthy life in their own hands.Based on detailed financial projections,JJ give require22 million Pakistani Rupees and will generatepositive cash flowin start quarter, course 1.Sales Forecastb.Introduction1.aBackgroundJohnson and Johnson (JJ) is a global pharmaceutical product company. This company is a hale known organization. The company started its first outturn in 1886 and after one year in 1987 it is incorporated.The company headquarter is in New Brunswick located at prime location.b.bHistoryThe company Johnson n Johnson was free-base in 1886 (around 120 years ago) on a revolutionary idea by Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson when doctors and nurses started to using bandages and dressing, sterile suture for treating hurt peoples.The company has maintained friendly environment and v ery(prenominal)(prenominal) keen in health and safety from the beginning, they first time used non-polycarbonate containers instead of plastic bottles. JJ uses a largest solar power generator as a member of Green House for keeping the environment.b.cCorporate chairmanship of the Companyv Robert Wood Johnson I 1887-1910v James Wood Johnson 1910-1932v Robert Wood Johnson II 1932-1963v Philip B. Hofmann 1963-1973v Richard B. Sellars 1973-1976v James E. Burke 1976-1989v Ralph S. Larsen 1989-2002v William C. Weldon 2002-b.dCorporate Governance mesa of directors of Johnson Johnson are listed belowMary Sue Coleman, James G. Cullen, Dominic Caruso, Michael M.E. Johns, Ann Dibble Jordan, Arnold G. Langbo, Susan L. Lindquist, Leo F. Mullin, Christine A. Poon, Steven S. Reinemund, David Satcher, and William C. Weldon.http//cs.wikipedia.org/wiki/Johnson_%26_JohnsonIn the first period of their breeding during 1886 to 1926 they got success to establish a company in New Brunswick and they focuse d on sterile surgical dressing to save the lives of patients. They participate in saving peoples lives in1906 Francisco disaster. Their global expansion began in 1919 from Canada and 1924 from England.During Their second period of product lines expansion beenb.eCompany StructureJJ is with several business segments in all around the world with 250 companies in 57 countries. The companies are concerning with future(a) particular areasConsumer Health CareMedical Devices and DiagnosticsPharmaceuticalsProducts of JJMedical Devices and DiagnosticsJJ is helping hospitals with the technologies to restore the joys of precious life of human being who are detriment with diseases and chronic conditions all around the world. They are providing more than 20 kind of technological devices including Orthopedics, Implants, Joint Replacements, Sports Medicins, Heart and Vascular Diseases etc.b.fConsumer ProductsFor improving the quality of all day life the consumer companies of JJ target the impai r care, skin and hair care, oral care, nutritional, pain relief, topical care and much more. Their vision is very clear and the companys guide word is BRINGING SCIENCE TO THE ART OF HEALTHY LIVING.b.gThe Pharmaceutical segmentJohnson Johnson invested over $5 billion in 2008 on RD. This investments majority was in quintuple therapeutic areas where the Pharmaceutical segment is strategically focused and where there continues to be signifi piece of tailt unmet medical need. Following areas are included cardiovascular disease and metabolism, neuroscience (including pain) infective disease, immunology and oncology.b.hRecent ProductsJ J is continue to providing healthier life to their consumers. Here are some new-fangled products lounged by the companyAVEENO Intense Relief correct CreamAVEENO POSITIVELY AGELESS Firming Body LotionAVEENO POSITIVELY AGELESS Warming ScrubCLEAN CLEAR ADVANTGE Blackhead Eraser Exfoliating CleanserJOHNSONS HEAD-TO-TOE Foaming washablesJOHNSONS Baby Bubbl e Bath Wash1.Situation analysisOur antibacterial soap is specially produced to protect people from germs and bacteria. Especially in Pakistan where is not a complete understanding of peoples about the bacterial infection. People in third World countries are not fully aware of these kinds of problems. Even in bucolic areas of Pakistan where people are not literate, they are facing new skin problems every day.Our new product targets those areas of the third world where people are not aware of bacterial defense. First we focus people who are aliment in rural areas of Pakistan especially interior Balochistan.1.1Market Summary1.1.1Market Demographic tally to a survey population and emergence rate of Pakistan is under the followingPopulation of the country 172,800,000 ( jibe to July 2008 best estimation)Growth rate of population 2.2% (according to 2008 estimation)Birth balance 31 births per 1,000 population (2008 est.)Death ratio 8 deaths per 1,000 population (2008 est.)Net migratio n ratio -1.0 migrant(s)/1,000 population (2008 est.)Refrwiki http//en.wikipedia.org/wiki/Demographics_of_PakistanIn this survey more than 68% population of Pakistan is living in rural areas where people are not aware about the bacterial infections.1.2External summary1.2.1Political AnalysisConstant political instability does coin the company in terms of building relations with the governments. It is very punishing to maintain long term relations with all the governments. Pakistan is aligning with US against the terrorism and because of this their peoples are victims of terrorism and are stressed.1.2.2Environmental AnalysisSolid waste burning, bad-quality fuels, and the growing use of motor vehicles are contri preciselying towards in air pollution that in some cities as exceeded levels deemed safe by the World Health Organization. The country is suffering a tidy sum from the dry climates.The country has poor water alkali even more than 70% population dont have refined water for d rinking. Moreover country has not a proper sewerage system.1.2.3Social AnalysisJJ has to be very careful according to implementation of its promotional private road. Since the social culture of Pakistan is very conservative and any suggestive advertisement face a lot of reactions on the part of consumers.1.2.4Technological AnalysisPakistan is a big consumer of new technology. Internet companies are providing a wide range of coverage. Transportation is cheaper than other big countries plainly there is a big problem of electricity. Existing infra mental synthesis is unable to fulfil the complete requirements of the country.1.2.5Economical AnalysisThe economic condition of Pakistan will always call for the company. As Pakistan inflation rate is going high and high and income of peoples is not increasing as pricing of products are going up.Pakistan has a semi-industrialized economical country. The growth poles of the countrys economy are situated along the Sindh River (Indus River), diversified economies of Karachi, Lahore and Faisalabad are located with less developed areas in other parts of the country. Pakistans economic growth rate has been increased in last 40 years and getting salutary as compare to 1947. But still there are not equal facilities that fulfil economic requirements of the population.1.2.6Legal AnalysisThere are no legal issues in Pakistan for JJ as company meets all the legal requirement of the country.1.3 SWOT Analysis1.3.1StrengthsThe major strength of JJ in Pakistan is affiliation and support from the Johnson and Johnson global organization which has a good reputation in health sector.Another advantage is accessibility of high technology infrastructure.JJ never compromise on the quality of services and the products, they provide to the consumer.1.3.2WeaknessesJJ have only a weakness that they are coming in that market where already have sinewy competitors and they are well known and have very strong relations with the consumers. Accor dingly JJ is not enough strong in that market so capturing new market is very challenging goal for the company.1.3.3OpportunitiesAlthough the existing antibacterial soap manufactures have already started the campaign to be aware peoples of the country about the bacterial infection but there is still a big market to start out. We believe that JJ have an opportunity to attach rural areas of the country where people have not mentally prepared to bargain these antibacterial products.In urban areas people of Pakistan already familiar with JJ baby shampoo and other valued products for baby care, they will automatically buy these products.1.3.4ThreatsIn every market there is a chance of new reaching in the same field. Soap industry has very good margins and growing up and up day by day, so there is always a chance to have more competitors.Other main players in the antibacterial soap category (Safeguard by PG, Dettol by Reckitt Benckiser and Lifebuoy by Unilever) in Pakistan have strong positioned their cracks for everyday use against bacteria.They are offering some sort of additions in their products by regular basis, they can challenge JJ by providing new improvements and they alike trim back their prices to beat JJ in competition.1.4Competitor AnalysisThe following are three big companies are already operating in this area.1.4.1PGProctor Gamble has positioned to provide every day new advertisement and they have 20 percent of market share. A series of merchandise campaign distinguished safeguard soap to all other market competitors. They have variety of types and different flavours of products.1.4.2UniliverUniliver have 10 percent market share in the target market. They started merchandising campaign and competing with PG but their marketing strategy is not as effective as PG has.1.4.3Reckitt BenckiserReckitt Benckiser are producing antibacterial soap named Dettol Soap, they have 5 percent of market share. They are well behind the both top companies product s (Unilivers Lifebouy and PGs Safeguard).1.5 scattering Pattern AnalysisRegional providers are providing distribution in the soap industry. These distributors serve a large atom of the market based on the size of the market and delivering to the organizations monthly and weekly depending on the demand of the company and usage patterns.Food services deliveries typically of cleansing products once in a month. Hospitals have a different distribution system they win monthly a large amount of money of soaps.Restaurants typically receive once in a week delivery of soaps and the stores receives some times weekly and some times after two week according to the demand.3.Objectives modernise a complete prototype which meets regulatory standards by June2010.Become thespecialty soap of choice for day cares across the Pakistan by December 2010.Achieve gross revenue of Rs10 million by the end of 2010.4.Mission StatementJohnson and Johnson believe on the launching of new products.Business must make a sound profit.We must investigate with new ideas.Research must be carried on, innovative programs developed and mistakes paid for.New equipment must be purchased, new facilities providedand new products launched.Johnson and Johnson is an innovative consumer company which provide new products and new ideas in health sector. Johnson and Johnson never compromise on quality and have well reputation around the world.5.VisionJohnsons Johnsons vision is very clear. There vision is-Keeping children free of infectionWe partner with Task Force for Global Health so children can stay healthy-Focussing on wellness and preventionWe remain commited to expand the ways we care the people through out the World.-Fulfilling new need of new marketsOur vision is to improve the quality of peoples unremarkable life. Peoples and values are our companys biggest assets. We know that our companys every invention and every product is powered by the people. We also recognise that different age, national ity and sexual orientation, physical ability, idea ability and backgrounds bring richness to our work environment.6. outlineOur executive team willbuild loyaltyfor our products withdecision-level managers of the organizations in the target markets, and they will create such a strategy in which target people directly target. For this purpose they will make some effective advertisement and will use children, male and mothers to deliver the specific messages to the audience.6.1 outline PyramidOurultimate strategyisto build JJ products intothe standard forhome and workplacehand washing and bathing for cleanings and free of bacteria by targeting daily routine of children, mothers and workers. We will contract the insurance, advertising companies as well as government companies to start strong branding campaign to make aware of the peoples of the brand.6.2Competitive StrategyTo achieve good results we need to concentrate on the quality price and the same time on the competitors. PG is pr oviding a good product with cheap price. According to the Porters Generic Strategy we will use diversification because our product and market is new, where risk of level is high we need to provide low cost soap and with some new and different attributes of our new brand soap.Reckitt Benckiser is also lounged a campaign through advertisement to educate children about the bacterial infection. Same time Uniliver is playing vital role and they are also focusing on the school level children.In accordance to above factors Johnson Johnson is very keen on pricing and quality of products.6.3Marketing StrategyFor our initial target market of home consumers, JJ will implement two parallel marketing efforts. One is aimed to the parents of young children who use this antibacterial soap and other is to educate the children regarding bacterial infection.We need to create a push factor by effectively convincing the mothers of children that our product provides an ideal solution for the bacterial infection to the hand washing compliance and bathing.A branding campaign will build awareness and provide education the children of rural areas where children do not have a proper education of germs and bacteria in their daily life.6.4Market Segmentation6.4.1DemographicOur antibacterial soap targets the children, adult and households. According to CIA World Fact book age structure of Pakistan isAge structure 0-14 years 36.7% (male 33,037,943/female 31,092,572)15-64 years 59.1% (male 53,658,173/female 49,500,786)65 years and over 4.2% (male 3,495,350/female 3,793,734) (2009 EST.)Our primary target are children and females those are more than 50% of total population who want to fulfil an everyday needs. Females are very conscious about their health and skin diseases. They want full protection against bacteria.We also believe that children are potential agents of change in life and imparting education of the importance of hand washing with antibacterial soap will bring healthy habits i n their early life.6.4.2Market GrowthThe overall market of soap is growing up by 10% in recent scenario and particularly 7% growth in antibacterial soap in Pakistan.6.4.3SocioeconomicMiddle class and upper middle class will be the main target of the product.Primary target will be cities and surrounding areas of the cities. Rural market penetration is limited and is primarily driven through wholesalers.PsychographicIn this we can target young house wives and mothers who care about the health of whole family and can educate their children about bacterial infections, health and hygiene.6.4.4Positioning StrategyOur strategy is to provide healthy life with low cost product and high quality. Our product provides conclusive evidence every time a child washes his or her hands for only a marginally higher cost than traditional soaps. The cost is significantly less than gloves or other hand washing liquids available in the market.6.5Product6.5.1Product NamePak Soap6.5.2Product TypeAnti-bacter ial Soap6.5.3Ingredients Tricloson Palm Oil Water sodium laurel Sulphate Laura Mide DEA Glycole Disterate Cocamidopropyl betaine Sodium Sulphate Fragrance Guar Hydroxypropyltrimonium Chloride Citric Acid Hydanation Tetra Sodium EDTA FCD Red No 4 FDC yellow No 5 Alovera Vitamin E6.5.4Physical and chemical Properties Boiling PointAbove 21 oF Specific Gravity1.02 Volatile by Volume80% approx Solubility in WaterComplete vaporisation RateSame as Water6.5.5Convenience goodThe product will provide complete protection from all seen and unseen germs and bacteria.6.6Pricing Strategyretail pricing for anti bacterial soap will generally be around Rs8/eachand will command a 30% price premium overother available conventional liquidsoaps available in the market. Our values product will not be only attractive toextremely price sensitive customers it will also capture the buyers who are very much caring of their health. The soap market is generally inelastic, but we offer some different benefits o vercurrent available soaps that justify the different qualities and price.6.7 forwarding6.7.1Agency SelectionAround 135 advertising agencies working in the market but Johnson Johnson has selected Manhattan International Limited (MIL) Advertising Company because the company has quaint technology and well reputation with government and civil sector in Pakistan. TV Advertisement Radio Ads News Paper and Magazines Sign Boards6.8PlacePak soap has also planned an in-store placement strategy to promote and market their product so to have maximum visibility to the consumer they have assigned dedicated shelves to the product and are also promoting their product in metro and makro as well. Their placement strategy is mainly focused onv Place Pak Soap succeeding(a) to Safeguardv Equal or more faces than Safeguard, Dettol and Lifebouy.v Place between Dettol Safeguard where Possible.v Build brand block wherever possible.6.9Distribution StrategyInitially our distribution strategy will involve a combination of both distributors and direct sales through some available transmit in the market.Relationships with local Pakistani distributors then will be established for promotional reach and potential users. Our executive team will get the first order after direct delivery to the wholesalers and will give some discount to them.In the future entirely outsourcing distribution will allowJohnson Johnson to focus its efforts on marketing and expanding as quickly as possible.6.10Action Plan6.10.1Gantt chart6.11Financial Strategy (Budgeting)Johnson Johnson pvt ltd is a sub company of Johnson Johnson which operates in the country. This project is only for Rs22 million. We will buy machinery for output signal of soap which will cost only Rs120,000 and purchase for Raw material is only cost for Pakistani Rs.40000. So all other expenses and salaries of employees for production for the first quarter is can be seen in the followingPak soap is a Rs 1 billion brand annually and so the m arketing reckon allocated to it approx 20 % of total Net revenue, not much resources have been allocated to Pak soap marketing efforts due to its squeezed margins and close competition with other antibacterial soaps, it mainly derives its sales from the brand equity of Pak Soap.6.12Sales Forecast7.Evaluation and ControlJohnson Johnson is a family company that prides itself on improving the health and well being of its consumers. By targeting all age groups, socioeconomic statuses, and partnering consumers, the new product will provid 22 million of net profit for the first quarter after the launching of the antibacterial soap, which is the actual amount of the projectDomestic sales increased .2%, while international sales increased 13.8% (2.6% from operations and 11.2% from currency). These figures represent Johnson Johnson meeting and exceeding consumer needs, which is partly the reason why it is a fortune 500 company.8.Conclusion and RecommendationsWe have carefully research an d analysed the market strategies adopted by Johnson Johnson Pakistan to boost the sales of new anti-bacterial soap () in the country and in first quarter Johnson Johnson will capture the 20% of market share.Following are the some suggestions for Johnson Johnson Pakistan Pvt. Ltd.Price of soap will be set the according to the competitors. If competitors reduce their price they reduce their margin and should reduce the price.After successfully launched they should provide some flavours in the soap, so customers can enjoy different flavours as the other competitor Safeguard have 7 flavours in the market.Start a program in which they can educate children, industrial workers and mothers by hiring teams which will go door to door.9.Individual Critical Reflection ReportMarketing Management subject was never interested for me before studying this module. When I started to learn, very first class creates my interest in this subject in which tutor gave us an assignment to analyse the marke t, which was the turning point for me. And we visited some clothing stores than I get knowledge about how to analyse the different things.Before starting my MBA I was not familiar with the appropriate terminologies used in the marketing field, but I was very much sure that I will understand these concepts.I have managerial experience but not in marketing field and I wasnt know even about to write the different types of marketing. As module was passing day by day I looking at many things change in myself, for example when I visit any place or store I started to analyse the things around me. This is the first development which I quality in myself.The concept of learning through case studies was very effective. It polished my reading and implementation of concepts and I come to know how the concepts can be taken out from the printed and electronic Medias. This developed my reading power and I learned how we extract the main points from a whole passage. Initially when I start to read a passage I feel difficulties to take out specific points from the articles, but day by day I feel change in myself, I feel confident and really enjoy reading articles and magazines.Presenting on the front of the class is another opportunity which I got from marketing management module which is very important for a marketing manager or MBA student, because people says presentation is very important for sell some thing. By preparing Wilkinson case study in early classes and presenting on the front of the tutor was an awesome experience which developed a self confidence level and intensify my presentation and speaking skills.By learning in very depth of the marketing concepts I understand how the all stakeholders are very important in the process of marketing such as how the competitors can effect on the business.After completing this module I can write the marketing plan for any organization as I did in this assignment. Now I know how to use the marketing mix and how we can analyse the performance and how can we position an organization in the marketing.Porters Generic Studies, Ansoffs matrix, consumer behaviour, segmentation strategy and decision power of buyers were new for me and now I completely understand that how these models can be implemented in the marketing strategy of a company.Evolution of marketing metrics, ethics and social responsibilities and managing a marketing team is now not difficult for me as I am planning to start my own business after my MBA, I am very happy that I have enough knowledge of measurement and control a marketing plan and how to write a project plan by assigning different tasks to different teams.As a conclusion the whole module was very helpful to build and develop marketing concepts for me.References and BibliographyCourse Bookhttp//www.jnj.comwww.wikipedia.comwww.uniliver.comhttp//www.marketingprofs.com/http//www.articlesbase.com/marketing-articles/https//www.cia.gov/library/publications/the-world-factbook/fields/2010.htm l1 / 27LSBF (MBA)