Neha sharma _ppt final PIBM
- 1. SEMESTER-1 FINAL PROJECT REPORT SUBMITTED BY: NEHA SHARMA MBA-1
- 2. SECTOR INFORMATION 23% 19% 16% 15% 9% 6% 7% 5% Revenue Hair & care Foods Health care Oral care OTC & Ethicals Home care Digestives Skin care Fast Movable Consumer Goods sector (FMCG) is the 4th largest sector in India & the market size of FMCG in India is estimated to grow to US $ 74 Billion in 2018. Hair Care market is the leading FMCG market segment accounting for 23% followed by food accounting for 19% & Health care for 16% & Oral care for 15% and so on. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion by 2020.
- 3. FMCG market in India is expected to reach US$ 103.7 billion by 2020 from US$ reach US$ 103.7 billion by 2020. The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and reach US$ 220 billion by 2025. Rural segment is a large contributor and thus, accounts for 45% of revenue share whereas Urban segment accounted for a revenue share of 55% in the overall revenue generated by FMCG sector of India.
- 4. Barriers to Entry and exit: The Indian FMCG Industry is characterized with modest entry and exit barriers. Integrated business model and increasing capital requirement in the industry restrict new entrants. Huge investments in setting up distribution networks and promoting brands and competition from established companies. Porter’s 5 Force Model Buyer bargaining power: High brand loyalty for some products, thereby discouraging customers’ product shift. But low switching cost and aggressive marketing strategies under intense competition within the FMCG companies, induce Customers to switch between products, thereby driving value for money deals for consumers Supplier bargaining power: Prices are generally governed by international commodity markets, making most FMCG companies price takers. Due to the long term relationships with suppliers etc., FMCG companies negotiate better rates during times of high input cost inflation Threat of substitutes: Being an essential commodity the demand for consumer products is elastic. Multiple brands positioned with narrow product differentiation. Companies entering a category /trying to gain market share compete on pricing which increases products substitution. Hence, threat of substitute is high in the industry Industry Competition: Competitiveness among the Indian FMCG players is high. With more MNCs entering the country, the industry is highly fragmented. Advertising spends continue to grow and marketing budgets as well as strategies are becoming more aggressive. Private labels offered by retailers at a discount to mainframe brands act as competition to undifferentiated and weak brands.
- 5. COMPANY OVERVIEW • Johnson & Johnson is an American multinational corporation founded in 1886. • Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. • CEO & CHAIRMAN – Alex Gorsky • FOUNDER – Robert Wood Johnson SWOT ANALYSIS • Broad brand portfolio • Supply chain • Trusted brand & Strong brands STRENGTHS • Improper Positioning • Strong competition • High attrition rate in work force WEAKNESSES • Acquisitions • Increasing rural Penetration • Diversification OPPORTUNITIES • Fight against harmful ingredients • Intense RivalryTHREATS
- 6. Product portfolio of Consumer Health Product Skin Health Product • Self Care Product • Essential Health Product Medical Devices • Orthopedics • Surgery • Interventional Solutions • Vision Pharmaceuticals • Immunology, Cardiovascular & Metabolic Disease, Pulmonary Hypertension • •Infectious Diseases & Vaccines, Neuroscience, Oncology BRANDS Bedtime Baby Oil Baby Shampoo Baby Lotion Baby Powder Destin Bebe Clean & Clear Shower to Shower Neutrogena Band-Aid Savlon Caladryl Purell Listerine Stayfree Carefree Visine Acuvue Lenses
- 7. Company News • September 25, 2019: 4 Secrets for Fostering an Innovative Workplace Johnson & Johnson's Chief Human Resources Officer reveals • We foster an innovative mindset at every level. • We believe inclusion drives innovation. • We include those who will benefit from our innovations in the problem-solving • process. • We encourage employees to gain a breadth of experience at Johnson & Johnson—and beyond. • July 22, 2019 The Quest for a Global Preventive HIV Vaccine Reaches an Exciting Milestone with the Mosaico Study. • July 01, 2019 Johnson & Johnson Signs the Military Spouse Employment Partnership to Help Service Member Spouses Build Careers.
- 8. COMPETITOR ANALYSIS (Market Share) MAJOR COMPETITORS : • J&J -8.85% (Health Care) • Procter and Gamble – 4.56 % • Pfizer – 1.98% (Consumer health care) • Reckitt Benckiser -12 to 13% in cream segment for PAIN RELIEF (like – moov) 8.85% 4.56% 1.98% Market Share J&J P&G Pfizer
- 9. Product Information • Johnson’s® Cotton touch™ Face & Body Lotion is Ultra light and gentle for newborn’s sensitive* skin. • Your baby's skin is up to 30% thinner than yours so it needs ultra gentle and delicate care. • Gentle for newborn sensitive* skin (*vs. adult skin) • Unique water-based lotion blended with natural cotton • Light weight; Leaves no unwanted residue • Clinically proven safe for newborns • Nourishes baby skin from first use • Available in Different Sizes at Different Prices: 50 ml – Rs. 136 200 ml – Rs. 453 400 ml – Rs. 415 800 ml – Rs. 576
- 10. SWOT ANALYSIS OF LOTION (COTTON TOUCH) STRENGTHS • J&J is available in attractive packaging • Excellent advertising and brand visibility in baby care market makes it a top- of-the-mind brand. • Excellent distribution network • Presence in all the shops all over the country WEAKNESSES • Sensitive skins have fear of skin reactions • Rural presence is not that wide OPPORTUNITIES • Developing different varieties of lotions • Developing similar kind of products for mothers. • Approaching rural market THREATS • Other brands in this segment like-Genttel, Himalaya herbal, Mother care, Chicco • Substitutes such as milk cream and oils
- 11. Place Johnson & Johnson product can be found in wholesale companies like Over the Counter Wholesale.com, WUZ Group, and ShopatHome.com. Its products can also be bought in retail outlet. Product Basically, Johnson & Johnson has three main products categories including Pharmaceutical, Medical Device & Diagnostic, and Consumer Healthcare. Some of the products are Feminine hygiene, Denture care, First aid, Family planning, Nutritionals, Diabetes care, Allergy cold and flu treatment, and Women’s Health. Marketing Mix Price Johnson & Johnson attempt to keep their net price increases for healthcare products within the consumer price index in United Stated. Consequently, the company has cooperated with the government to develop differential pricing approach so that people are helped to access their medical products Promotion Johnson & Johnson has engaged in advertising campaigns which encourage healthy lifestyles. For example: The Campaign for Nursing’s Future, having a Baby Changes things, and Because We Care We Act (China).
- 12. PRODUCT LIFE CYCLE OF JOHNSON BABY LOTION
- 13. STP OF JOHNSON’S BABY LOTION CUSTOMER SEGMENT •Almost all segment parents who are above the poverty line with respect to income •Family groups in tier 1,2,3 cities; rural areas (town & panchayat) TARGET GROUP •Mothers of age group (24-32) POSITIONING •Point of parity: Smoothens the skin •Point of difference: available in various categories like before sleep & after bath lotion for baby. •Positioned at different stages as it has given variety of baby lotion for for different time using the following taglines: For the most delicate days of life – Choose gentle Made with real cotton Giving the best, first time, every time!
- 14. ORGANISATIONAL STRUCTURE CEO & CHAIRMAN DIRECTOR Chief Financial Officer Chief HR Officer Chief Information Officer LEGAL (General counsel) Chairman (Medical Devices) Global corporate affairs & Chief Communication officer Chief Scientific Officer Vice Chairman of the Executive committee (Deputy CEO) VP of Innovation VP Global Public Relations VP Global Service Excellence & Experience World Wide President, Surgical • Chief Design officer • Chief Technological Officer & VP, Technology Services • Chief Global Supply Chain Officer • Worldwide Chairman, Pharmaceuticals • VP , Global Marketing & Experience • VP, Global Technology Infrastructure & Commercial Development • VP, Product Innovation & Delivery • President, Skin Health
- 15. FINANCIAL ANALYSIS • WORKING CAPITAL OF THE YEAR For the year 2018 Working capital = Total current assets – Total current Liabilities = 46,033.00-31,230.00 =14,803 US million $ • GROSS PROFIT MARGIN Johnson & Johnson's Gross Margin for the year that ended in Dec. 2018 is calculated as Gross profit = 54,490 US Million $; Sales = 81,581 2018 Calculation • Gross profit margin = 100 × Gross profit ÷ Sales to customers = 100 × 54,490 ÷ 81,581 = 66.79% • Johnson & Johnson, net profit margin calculation Net earnings = 15,297 US million $; Sales to customers = 81,581 US million $ 2018 Calculation Net profit margin = 100 × Net earnings ÷ Sales to customers = 100 × 15,297 ÷ 81,581 = 18.75% Operating profit margin = 24.27% Return on Investment • Return on equity (ROE) = 25.60%; Return on assets (ROA) = 10.00% Johnson & Johnson ROE for the three months ending September 30, 2019 was 39.81%. • FIXED ASSETS ADDED DURING THE YEAR Total assets (2018) = 152,954.00 US million $ Current assets (2018) = 46,033.00 US million $ Fixed assets (2018) = Total assets – Current assets = 152,954.00-46,033=106,921 US million $ Total assets (2017) = 157,303.00 US million $ Current assets (2017) = 43,088.00 US million $ Fixed assets (2017) = Total assets – Current assets = 157,303.00-43,088.00 = 114,215 US million $ 2018-2017=106,921-114,215 = -72194 (decline) Johnson & Johnson total assets for 2018 were $152.954B, a 2.76% decline from 2017. Johnson & Johnson total assets for 2017 were $157.303B, a 11.4% increase from 2016. Johnson & Johnson total assets for 2016 were $141.208B, a 5.84% increase from 2015
- 16. JOB DESCRIPTION & JOB SPECIFICATION MARKETING
- 17. FINANCE
- 18. HUMAN RESOURCE