Johnson Johnson PPT

1
Madhuparna Datta
PGDM 1
DM16A24
Pune Institute of
Business Management

Sector analysis 2
 The FMCG sector has grown at an annual average of about 11% over the last
decade.
 The overall FMCG market is expected to increase at (CAGR) of 14.7% to touch
US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to
increase at a CAGR of 17.7% to reach US$ 100 billion during 2012-2025.
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About FMCG Sector 3
 FMCG is the fourth largest sector in the Indian economy
 Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the sector
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Main Segments of FMCG Sector 4
19% 33% 48%
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Trends in the FMCG Revenue over the
Years (USD billion)
5
17.8 21.3 24.2
30.2
34.8 36.8
44.9 47.3
103.7
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012 2013 2015 2020E
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GDP Contribution
17.20%
29.10%
52.70%
12%
GDP
Agriculture Industry Service FMCG
6
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The Key Growth Drivers For Growth
 Growing awareness
 Easier access
 Changing lifestyles
 The Government of India's policies and regulatory frameworks.
7
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Historical Growth Degrowth
Pattern(USD Billion)
30.2 34.8
36.8
44.9 47.3
49
0
10
20
30
40
50
60
2010 2011 2012 2013 2015 2016
Sales www.ibef.org
8

Potter’s Five forces Model
Rivalry
among
competitors
(High)
Bargaining Power
of Suppliers
(Low)
Threat
of Substitute
(High)
Bargaining Power
of customer
(High))
Threat
New Entrance
(Moderate)
9

Company Information
 Johnson & Johnson (J & J) is a Fortune 500 pharmaceutical and consumer
packaged goods manufacturer multinational company.
 Founded in 1886 by three brothers, Robert Wood Johnson, James Wood
Johnson and Edward Mead Johnson.
 Johnson & Johnson have more than 265 operating companies in more than
60 countries employing approximately 126,500 people.
 Johnson & Johnson embrace research and science - bringing innovative
ideas, products and services to advance the health and well-being of
people.
10
www.jnj.com

Vision and Mission 11
 To bring healthy vision to everyone, everywhere, every day.
 To lead the world in quality, customer experience, innovation and
growth.

Products
 Consumer Products
 Medical devices
 Pharmaceutical Products
12
www.jnj.com

Competitors
Major Competitors are
 Pfizer
 Merck
 Novartis
14

Market Share
8.20%
8.90%
22.80%
Sales
Merck & Co Johnson & Johnson Pfizer
15

Marketing Strategy
Strengths
 Brand name and positive word of mouth.
 Johnson & Johnson extensive reach across the world
 Such high is the product quality, that even adults use
the product extensively.
 Effective advertisement and distribution channel.
Weaknesses
 Limited presence in the rural market.
 People prefer indigenous alternatives for babies
with sensitive skin.
Opportunities
 Well reputed and established global brand, every
chance to grow further in the emerging
economies as well
 Tie-ups with hotel chains, children playhouses,
crèches
Threats
 Other popular brands in the segment
 Threat of cheap local brands and imitations
16
www.jnj.com

Marketing Mix 17
Product  Gives smooth skin to the baby
 Protects the baby from rashes
 Looks - cylindrical packaging with pores on the top, cuboid with curved edges.
 Twist and unlock
 Available in different Variants.
Price  Johnson's baby powder are priced at an amount ranging from Rs 25 to Rs 250 based
on the sizing of the product in this case from 50gms to 700gms.
Place Baby powder as product related to child care and wellness is broadly distributed not only
in medical stores but also in many of the fancy and grocery stores near children care
hospitals
Promotion Promoted through Print , Electronic and Digital media.

Sector-Targeting-Positioning
Customer segment
 Almost all segment parents who are above the poverty line with respect to the
income
 Pension earning grand parents
 Family groups in Tier 1,2,3 cities, rural areas (Town and panchayat)
Target group
Mothers of age group (24-32)
Positioning
Johnson's baby powder at different stages of its life cycle as used different positioning
statements like 'Mother's Choice', 'Like Father, Like Child', 'Smooth skin, guaranteed'
18
www.jnj.com

Recruitment and Selection Process
Explore
Apply
Interview
Offer
19
www.jnj.com

Training and Development
Leadership development
 On the job training
 Independent study courses
 Web-based courses
 Interviewing simulations assessments
 Intensive workshops
 Action-planning courses
Performance Management
 Each employee and manager is expected to engage in “5 Conversations
Framework”
 It is consists of the Performance and Development Planning, Mid-Year, Career
Planning, Year-End Performance and Compensation conversations.
20
www.jnj.com

Performance Appraisal Method
 Johnson&Johnson demonstrate “Our Credo” commitment to employees.
 At the end of the year the reward, which is variable compensation, varies according to
salary, bonus, stock award, and stock options.
 Employees are rewarded by achieving results in ways that exemplify and do not
compromise the corporate values.
21
www.jnj.com

Employee engagement program
 Offer value added services that helps employees success.
 Give ongoing performance feedback
 Provide clear job goals
 Create opportunities for community involvement
22
www.jnj.com

Conclusion 23
 It is evident from the various practices and policies of J&J
that, it is a company with a vision.
 The vision is reflected not only in the credo of the
company, but gets translated at every stage in the form of
best practices at the company.
 Herein lies the human approach, where the focus is not
diluted to reap benefits with a business policy geared
towards only ROI (Return on Investment), but towards ROR
(Return on Relationship).

Johnson Johnson PPT

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