UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
“CONSUMING BUYING BEHAVIOUR OF
JOHNSON & JOHNSON”

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES

SUBMITTED BY:
FARHAN KAZI

BATCHLOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF:

PROF: SHAILU SINGH

1
 UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
“CONSUMER BUYING BEHAVIOUR
OF JOHNSON & JOHNSON”

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES (BMS)

SUBMITTED BY:
FARHAN KAZI

BACHELOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF

PROF: SHAILU SINGH

SANPADA COLLEGE OF COMMERCE & TECHNOLOGY

PLOT NO: 3, 4 & 5, SECTOR-2, SANPADA (EAST)
NAVI MUMBAI-400705.

2
 DECLARATION

I, MR. FARHAN KAZI, STUDENT OF SANPADA COLLEGE OF

COMMERCE & TECHNOLOGY – STUDIES BACHELOR OF

MANAGEMENT STUDIES FIFTH SEMESTER; HEREBY

DECLARE THAT I HAVE COMPLETED THIS PROJECT

REPORT ON “CONSUMER BUYING BEHAVIOUR OF

JOHNSON & JOHNSON” DURING THE ACADEMIC YEAR 2015-

2016. THE INFORMATION SUBMITTED IS TRUE AND

ORIGINAL TO THE BEST OF MY KNOWLEDGE.

NAME: “FARHAN KAZI”

DATE: 1ST OCTOBER, 2015

3
 ACKNOWLEDGEMENT
At the outset, I am thankful to my institute Oriental
Education Society, and the authorities, for providing me an
opportunity to undertake my Bachelor’s Degree in management
studies (BMS), and also for sponsoring me to undertake project. I
am thankful to the management for giving me an opportunity to
undertake my project (CONSUMER BUYING BEHAVIOUR OF
JOHNSON &JOHNSON) under the guidance of Prof. Shailu
Singh as my mentor.

I would like to thank our Faculty guide, Prof. Mustak

Deraiya (Professor, Oriental Education Society), for providing
valuable suggestions and guidance during the project. His
perspective has encouraged me to incorporate a different
dimension to the project

I am grateful to my colleagues for being a wonderful

support a through at the same time I am thankful to all my
friends of Oriental Education Society, for being with me at
different junctures of need.

I also acknowledge great sense of gratitude to all those who

have enriched and improved my thinking, through their
conversations, thoughts, experience and guided me to complete
this report.

4
“NAME: FARHAN KAZI”

5








$




 70 !
"#
"


 








/ "
3
1#

Third
)*+, page
" 
%
%&
3 #"%
%&( 

 5 


6
# " #
TABLE OF CONTENTS
!
CH
4-)*+.#
Particulars Page no.
No.
1 1. Executive summary 7-21
2. Introduction
3. Objectives of consumer buying behavior
4. Marketing in consumer behavior

2 1. Company profile 23-33

2. History
3. Highlights of the company
4. Johnson and Johnson in India
5. Aims and objectives

3 1. Literature review 35-69

2. SWOT analysis
3. Johnson & Johnson competitors
4. Company credo
5. Strategic Framework
6. Strategic boundary conditions of Johnson and Johnson
7. Concept of Green marketing
8. Marketing Techniques
9. The Controversy
10. CSR policies

4 Research methodology 72-83

5 Findings, analysis and interpretation of data 85-87

6 1. Limitations 89-90
2. Recommendation and suggestion
7 1. Conclusion 92-97
2. Bibliography and websites
3. Appendix (Questionnaire)

6
CHAPTER 1

7
1. EXECUTIVE SUMMARY

The concept of “buying behavior” is of prime importance in marketing and has

evolved over the years. It is important to understand consumer buying behavior as
it plays a vital role in creating an impact on purchase of products.

The human wants are unlimited and always expect more and more. In this
research study our findings gave us thorough insights of consumer buying
behavior of Johnson & Johnson baby products.

We have been able to also infer that people sub consciously register the brand,
tend to recall. We also come to understand that most retailers have showed a
tendency to market the J&J baby products as per consumer’s requirement.

On the whole, the market is a very important place to study the behavior of
consumers and also provide useful insights what a consumer requires in a product.
It is only through research that a company will be able to study the buying
behavior of consumers.

Johnson & Johnson is a profound leader in the consumer product business. It has
matured and spread to 57 countries with more than 230 operating units
worldwide. Ensuring that the stakeholders are aware of the issue at hand and the
position in which the company takes on the proposal. The second step is to engage
in a social debate in which the company has full on control, (mediator) of the
debate. These recommendations will aid Johnson & Johnson in remaining to be a
profound leader.

8
 2.INTRODUCTION

What is Consumer Buying Behavior?

Buying Behavior is the decision processes and acts of people involved in buying
and using products.

9
 Definition of consumers:
An individual who buys products or services for personal use and not
for manufacture or resale. A consumer is someone who can make the decision
whether or not to purchase an item at the store, and someone who can
be influenced by marketing and advertisements. Anytime someone goes to a store
and purchases a toy, shirt, beverage, or anything else, they are making that
decision as a consumer.

Who is a Consumer?
•A person who has indicated his or her willingness to obtain goods and/or services
from a supplier with the intention of paying for them.
•Someone who has purchased goods and/or services for personal consumption.

Need to understand:
 Why consumers make the purchases that they make?

10
 What factors influence consumer purchases?
 The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate

consumer. A firm needs to analyze buying behavior for:

 Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s
success.
 The marketing concept stresses that a firm should create a Marketing
Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze
the what, where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies.

11
 In the consumer market a very large percentage of purchase decisions are made by
a single person. There are situations in which multiple people may be involved in
a consumer purchase decision, such as a child influencing a parent to choose a
certain brand of cereal or a husband and wife deciding together to buy a house,
but most of the time purchases are individual decisions. The business market is
significantly different. While single person purchasing is not unusual, especially
within a small company, a significant percentage of business buying, especially
within larger organizations, requires the input of many. In the marketing literature
those associated with the purchase decision are known to be part of a Buying
Center, which consists of individuals within an organization that perform one or
more of the following roles:
 Buyer – responsible for dealing with suppliers and placing orders (e.g.,
purchasing agent)
 Decider – has the power to make the final purchase decision (e.g., CEO)
 Influencer – has the ability to affect what is ordered such as setting order
specifications (e.g., engineers, researchers, product managers)
 User – those who will actually use the product when it is received (e.g., office
staff)
 Initiator – any Buying Center member who is the first to determine that a need
exists
 Gatekeeper – anyone who controls access to other Buying Center members (e.g.,
administrative assistant)

12
2. OBJECTIVES OF CONSUMER BUYING
BEHAVIOR
 Understand the stages in the buying decision process
 Understand the major factors influencing consumer behavior
 Know and understand the types of buying decision behavior.

13
Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead
to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity.

The 6 stages are:

14
 1. Problem Recognition (awareness of need) - difference between the desired state
and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know
you were deficient? I.E., see a commercial for a new pair of shoes, stimulates
your recognition that you need a new pair of shoes.
2. Information search-
o Internal search, memory.
o External search if you need more information. Friends and relatives (word
of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives,

the evoked set.

Hungry, want to go out and eat, evoked set is

o Chinese food
o Indian food
o burger king
o Klondike kates etc

3. Evaluation of Alternatives- need to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search. May
decide that you want to eat something spicy, Indian gets highest rank etc.
If not satisfied with your choice then returns to the search phase. Marketers try to
influence by "framing" alternatives.
4. Purchase decision- Choose buying alternative, includes product, package, store,
method of purchase etc.
5. Purchase- May differ from decision, time lapse between 4 & 5, product
availability.

15
6. Post-Purchase Evaluation-outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties,
after sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese meal
instead.

16
A consumer buying behavior is influenced by 4 major factors:
1. Cultural
2. Social
3. Personal
4. Psychological

Consumers buying behavior and the resulting purchase decision are strongly
influenced by cultural, social, personal and psychological characteristics. An
understanding of the influence of these factors is essential for marketers in order
to develop suitable marketing mixes to appeal to the target customer.

CUTURAL factors include a consumer’s culture, subculture and social class.

These factors are often inherent in our values and decision processes.

SOCIAL factors include groups (reference groups, aspirational groups and

member groups), family, roles and status.

PERSONAL factors include such variables as age and lifecycle stage, occupation,
economic circumstances, lifestyle (activities, interests, opinions and
demographics), personality and self concept. These may explain why our
preferences change as our ‘situation’ changes.

PSYCHOLOGICAL factors affecting our purchase decision include motivation

(Maslow’s hierarchy of needs), perception, learning, beliefs and attitudes.
Other people often influence a consumer’s purchase decision. The marketer needs
to know which people are involved in the buying decision and what role each
person plays, so that marketing strategies can also be aimed at these people.

17
18
1. Complex Buying Behavior:
Consumers go through complex buying behavior when they are highly involved
in a purchase and aware of significant differences among brands. Consumers are
highly involved when the product is expensive, bought infrequently, risky and
highly self-expressive. Typically the consumer does not know much about the
product category and has much to learn. For example, a person buying a personal
computer may not know what attribute to look for. Many of the product features
like “16K.memory” “disc storage”, “screen resolution” carry no meaning to him
or her.
This buyer will pass through a learning process characterized by first developing
beliefs about the product, then attitudes, and then making a thoughtful purchase
choice. The marketer of a high-involvement product must understand the
information-gathering and evaluation behavior of high-involvement consumers.
The marketer needs to develop strategies that assist the buyer in learning about
the attributes of the product class, their relative importance, and the high standing
of the company’s brand on the more important attributes. The marketer needs to
differentiate the brand’s features, use mainly print media and long copy to
describe the brand’s benefits, and motivate store sales personnel and the buyer’s
acquaintances to influence the final brand choice.

2. Dissonance-Reducing Buying Behavior:

Sometimes the consumer is highly, involved in a purchase but sees little
difference in the brands. The high involvement is again based on the fact that the
purchase is expensive, infrequent, and risky. In this case, the buyer will shop
around to learn what is, available but will buy fairly quickly because brand
differences are not pronounced. The buyer may respond primarily to a good price
or to purchase convenience.

19
After the purchase, the consumer might experience dissonance that stems from
noticing certain disquieting features of the product or hearing favorable things
about other brands. The consumer will be alert to information that might justify
his or her decision. The consumer will first act, then acquire new beliefs and end
up with a set of attitudes. Here marketing communications should aim to supply
beliefs and evaluations that help the consumer feel good about his or her brand
choice.
3. Habitual Buying Behavior:
Many products are bought under conditions of low consumer involvement and the
absence of significant brand differences. Consider the purchase of salt.
Consumers have little involvement in this product category. They go to the store
and reach for the brand. If they keep reaching for the same brand, it is out of
habit, not strong brand loyalty.
There is good evidence that consumers have low involvement with most low-cost,
frequently purchased products. Consumer behavior in these cases does not pass
through the normal belief/attitude/behavior sequence. Consumers do not search
extensively for information about the brands, evaluate their characteristics, and
make a weighty decision on which brand to buy.
Instead, they are passive recipients of information as they watch television or see
print ads. Ad repetition creates brand familiarity rather than brand conviction.
Consumers do not form a strong attitude towards a brand but select it because it is
familiar. After purchase, they may not even evaluate the choice because they are
not highly involved with the product. So the buying process is brand beliefs
formed by passive learning, followed by purchase behavior, which may be
followed by evaluation.

4. Variety-Seeking Buying Behavior:

Some buying situations are characterized by low consumer involvement but
significant brand differences. Here consumers are often observed to do a lot of

20
brand’ switching. An example occurs in purchasing cookies. The consumer has
some beliefs, chooses a brand of cookies without much evaluation, and evaluates
it during consumption. But next time, the consumer may reach for another brand
out of boredom or a wish for a different taste. Brand switching occurs for the sake
of variety rather than dissatisfaction.

4. MARKETING IN CONSUMER BEHAVIOR

The core function of the marketing department is to understand and satisfy
consumer need, wants and desire. Consumer behavior captures all the aspect of
purchase, utility and disposal of products and services. In groups and organization
are considered within the framework of consumer. Social, cultural, individual and
emotional forces play a big part in defining consumer buying behavior. Cultural,
sub-culture and social class play an important is finalizing consumer behavior. For
example, consumer growing up in US is exposed to individualism, freedom,
achievement, choice, etc. On sub-culture level influence of religion, race,
geographic location and ethnicity define consumer behavior. Social class consists
of consumer with the same level of income, education, taste, feeling of superiority
and inferiority. Over time consumer can move from one social level to another.
Culture alone cannot define consumer behavior; social forces also play an
important role. Social forces consist of family, friends, peer groups, status and
role in society. Groups which have direct or indirect influence on consumer are
referred to as reference groups. Primary groups consist of friends, family and
peers with whom consumer has direct contact for considerable time. Secondary

21
groups are association where interaction is at formal level and time devoted is
less.
Consumer buying behavior is influenced by individual’s own personality traits.
These personality traits do not remain the same but change with the life cycle. The
choice of occupation and corresponding income level also play part in
determining consumer behavior. A doctor and software engineer both would have
different buying pattern in apparel, food automobile etc. Consumers from similar
background, occupation and income levels may show a different lifestyle pattern.
An individual buying behavior is influenced by motivation, perception, learning,
beliefs and attitude. These factors affect consumer at a psychological level and
determine her overall buying behavior. Companies need to think beyond buying
behavior and analyze the actual buying process.
Companies should ensure consumer have readily available information to take
the decision e.g. internet, friends. Consumers evaluate alternatives based on their
brand perception and belief. Companies need to work hard to develop products,
which match this perception and belief every time. Final purchase decision is
taken looking other’s perception of the brand. Post purchase if expectations meet
actual performance consumer is satisfied and more likely to repurchase or
recommend the brand to others.

22
23
CHAPTER 2

24
1. COMPANY PROFILE

Johnson & Johnson operates as an investment holding company with interests in

health care products. It engages in research and development, manufacture and
sale of personal care hygienic products, pharmaceuticals and surgical equipment.
The company, through its subsidiaries operates in three business segments:
Consumer, Pharmaceutical and Medical Devices. The Consumer segment includes
a range of products used in the baby care, skin care, oral care, wound care and
women's health care fields, as well as nutritional and over-the-counter
pharmaceutical products, and wellness and prevention platforms. The baby care
franchise includes the JOHNSON'S Baby line of products. The Pharmaceutical
segment includes products in the anti-infective, antipsychotic, contraceptive,

25
 gastrointestinal, hematology, immunology, infectious diseases, neurology,
oncology, pain management, thrombosis and vaccines. The Medical Devices
segment includes a range of products distributed to wholesalers, hospitals and
retailers, used principally in the professional fields by physicians, nurses,
hospitals, and clinics. These include products to treat cardiovascular disease;
orthopedic and neurological products; blood glucose monitoring and insulin
delivery products; general surgery, bio surgical, and energy products; professional
diagnostic products; infection prevention products; and disposable contact lenses.
Johnson & Johnson was founded by Robert Wood Johnson I, James Wood
Johnson and Edward Mead Johnson Sr. in 1886 and is headquartered in New
Brunswick, NJ.
Johnson & Johnson Family of Companies comprises:
 The world’s sixth-largest consumer health company
 The world’s largest and most diverse medical devices company

26
2. HISTORY

In 1886, three brothers – Robert Wood Johnson, James Wood Johnson and
Edward Mead Johnson – began the company, Johnson & Johnson, in New
Brunswick, New Jersey in the United States.
One of America's most admired companies, Johnson & Johnson (J & J) is one of
the largest healthcare firms in the world and one of the most diversified. Its
operations are organized into three business segments: pharmaceutical, which
generates 39 percent of revenues and 61 percent of operating income;
professional, which accounts for 36 percent of revenues and 27 percent of
operating income; and consumer, which contributes 25 percent of revenues and 12
percent of operating income. J & J's pharmaceutical products--which are sold
under such brands as Janssen Pharmaceutica, Ortho-McNeil Pharmaceutical, and

27
Centocor--include drugs for family planning, mental illness, gastroenterology,
oncology, pain management, and other areas. The professional segment includes
surgical and patient care equipment and devices, diagnostic products, joint
replacements, and disposable contact lenses. The company's well-known line of
consumer products includes the Johnson's baby care line, the Neutrogena skin and
hair care line, Tylenol and Motrin pain relievers, o.b. and Stayfree feminine
hygiene products, the Reach oral care line, Band-Aid brand adhesive bandages,
Imodium A-D diarrhea treatment, Mylanta gastrointestinal products, and Pepcid
AC acid controller. J & J generates about half of its revenues outside the United
States, through its network of 190 operating companies in 51 countries and its
marketing organization that sells in more than 175 countries.

Early History: From Surgical Dressings to Baby Cream

J & J traces its beginnings to the late 1800s, when Joseph Lister's discovery that
airborne germs were a source of infection in operating rooms sparked the
imagination of Robert Wood Johnson, a New England druggist. Johnson joined
forces with his brothers, James Wood Johnson and Edward Mead Johnson, and
the three began producing dressings in 1886 in New Brunswick, New Jersey, with
14 employees in a former wallpaper factory.
Because Lister's recommended method for sterilization--spraying the operating
room with carbolic acid--was found to be impractical and cumbersome, Johnson
& Johnson (which was incorporated in 1887) found a ready market for its product.
The percentage of deaths due to infections following surgery was quite high and
hospitals were eager to find a solution.

J & J's first product was an improved medicinal plaster that used medical
compounds mixed in an adhesive. Soon afterward, the company designed a soft,
absorbent cotton-and-gauze dressing, and Robert Wood Johnson's dream was
realized. Mass production began and the dressings were shipped in large

28
quantities throughout the United States. By 1890 J & J was using dry heat to
sterilize the bandages.
The establishment of a bacteriological laboratory in 1891 gave research a boost,
and by the following year the company had met accepted requirements for a
sterile product. By introducing dry heat, steam, and pressure throughout the
manufacturing process, J & J was able to guarantee the sterility of its bandages.
The adhesive bandage was further improved in 1899 when, with the cooperation
of surgeons, J & J introduced a zinc oxide-based adhesive plaster that was
stronger and overcame much of the problem of the skin irritation that plagued
many patients. J & J's fourth original design was an improved method for
sterilizing catgut sutures.

From the beginning, J & J was an advocate of antiseptic surgical procedures. In

1888 the company published Modern Methods of Antiseptic Wound Treatment, a
text used by physicians for many years. That same year, Fred B. Kilmer began his
45-year stint as scientific director at J & J. A well-known science and medicine
writer, and father of poet Joyce Kilmer, Fred Kilmer wrote influential articles for J
& J's publications, including Red Cross Notes and the Red Cross
Messenger. Physicians, pharmacists, and the general public were encouraged to
use antiseptic methods, and J & J products were promoted.

R.W. Johnson died in 1910 and was succeeded as chairman by his brother James.
It was then that the company began to grow quickly. To guarantee a source for the
company's increasing need for textile materials, J & J purchased Chicopee
Manufacturing Corporation in 1916. The first international affiliate was founded
in Canada in 1919. A few years later, in 1923, Robert W. Johnson's sons, Robert
Johnson and J. Seward Johnson, took an around-the-world tour that convinced
them that J & J should expand overseas, and Johnson & Johnson Limited was
established in Great Britain a year later. Diversification continued with the

29
introduction in 1921 of Band-Aid brand adhesive bandages and Johnson's Baby
Cream (Johnson's Baby Powder had debuted in 1893) and the debut of the
company's first feminine hygiene product, Modess sanitary napkins, in 1927.

3. HIGHLIGHTS OF THE COMPANY

Johnson & Johnson Highlights Strategies for Growth through Differentiated

Medicines, Transformational Pipeline and Global Product Launches
Pharmaceuticals Growth Strategies:
Johnson & Johnson’s pharmaceuticals business generated $22.4 billion in sales
last year, 36 percent of the company’s total revenue, and it ranks as the world’s
eighth largest pharmaceutical company and fifth largest biotech company. The
pharmaceuticals business saw over 6% operational growth in the first quarter of
2011 as new products contributed to growth and core brands delivered solid
performance.
Johnson & Johnson’s pharmaceuticals business has taken a disciplined
management approach to increasing its efficiency in order to invest in its pipeline
and new product launches. For example, the pharmaceuticals business has seen a
significant increase in productivity over the last two years based on the ratio of
sales per employee, and it continues investing in R&D at higher rates than its
competitive set.
With the pharmaceutical market at an estimated $850 billion* globally and
expected to grow to more than $1 trillion by 2015, Ms. McCoy and other leaders
will outline four strategies for growth for the company’s pharmaceuticals
business:

30
1. Deliver differentiated medicines– In recent years, the pharmaceuticals business
has transformed its portfolio by expanding its leadership in immunology,
deepened its expertise in oncology and entered vaccines. The company’s
pharmaceuticals businesses are in the process of launching six significant new
products between 2009 and 2011, some in multiple geographies. Two of the new
products are pending regulatory review in the European Union (EU), and two
additional key compounds are in registration in key markets. Many of these
products could represent significant advances over the current standards of care.
2. Build transformational pipeline – The pharmaceuticals business’ prioritized
investments in internal R&D, strategic licensing arrangements, partnerships and
select acquisitions continue to build a robust pipeline for the long-term. The
company’s pharmaceuticals businesses expect to file 11 new products and over 30
important line extensions between 2011 and 2015.
3. Strengthen geographic presence – The pharmaceuticals business will grow its
geographic footprint and increase investments in emerging markets, evaluating
market appropriate commercial approaches and portfolios. It also remains
focused on key developed markets. Japan, the second largest pharmaceuticals
market, is a key growth market and the company’s pharmaceuticals businesses
have seven launches planned there for 2011.
4. Invest in talented people and organizational capabilities-The Company’s
pharmaceuticals business is strengthening leadership capabilities locally,
regionally and globally. A key component involves rotating key talent into
important roles to quickly accelerate skills development to address a growing and
complex business environment. The pharmaceuticals business is also building
R&D capabilities in new technology areas and emerging markets.

31
4. JOHNSON & JOHNSON IN INDIA

Johnson & Johnson spread its root into India 67 years ago. Since then, the
Company has brought many innovative ideas, products and services to improve
the health and well-being of people in India. The Company today employs more
than 3,000 people and is organized into three business segments: Consumer
Healthcare, Medical Devices and Pharmaceuticals.

Consumer Healthcare Generations of mothers in India have placed their trust in

JOHNSON'S® Brand to provide them with safe, clinically proven mild and gentle
products for their babies. We also lead in the areas of feminine hygiene, facial
skincare, wound care, cough & cold, oral care among others through iconic

32
brands such as Stayfree®, Clean & Clear TM , BAND-AID®, Benadryl® and
Listerine®.

Medical Devices At Johnson & Johnson Medical India, we are committed to work
towards reaching our goal of providing accessible and affordable healthcare for
one person at a time. The Medical Devices business segment produces a broad
range of innovative products and solutions, in the fields of Orthopedics,
Cardiovascular Disease, Coronary Artery Disease, Peripheral Vascular and
Obstructive Disease, Neurovascular Disease, Arrhythmias, Diabetes Care,
Bariatric and Metabolic Surgery, Cancer Surgery, Vision Care, General Surgery,
Urologic Surgery, Hernia Surgery and Infection Prevention.

Pharmaceuticals
Janssen, the pharmaceutical division of Johnson & Johnson, is dedicated to
addressing and solving some of the most important unmet medical needs of our
time in India in oncology, immunology, neurosciences & analgesia, dermatology,
infectious diseases and metabolic diseases in India.
At Johnson & Johnson India, we continue to be driven by a vision of caring for
the people by anticipating their needs, creating solutions and experiences that help
them and those that they care for living healthy, vibrant lives.

As a responsible citizen, we deeply care about our communities and the society at
large and have been supporting many programs and initiatives in the areas of
health and education, particularly for infants and girls. We actively support the
Indian Academy of Pediatrics (IAP) to reduce infant mortality in India through a
Neonatal Resuscitation program. In addition, we also partner with UNICEF to
increase knowledge, build confidence and improve health and hygiene practices
amongst adolescent girls across several states in India.

33
5. AIMS AND OBJECTIVES
Johnson & Johnson Aims to Help Up to 120 Million Women and Children Each
Year through Five-Year Commitment to U.N. Millennium Development Goals

Johnson & Johnson’s Every Mother, Every Child aims to increase life expectancy
and quality-of-life for women and children in the developing world. Our goal is to
reach over 50 countries through our philanthropic programs focused on maternal
and child health. The effort includes the following programs:
Mobile Health for Mothers - With more than 1.1 billion women in low- and
moderate-income countries owning a mobile phone, it is now possible to provide
timely health information in even the most remote locations. More than 15 million

34
expectant and new mothers, in six developing countries, will receive mobile free
phone messages on prenatal health, reminders of clinic appointments and calls
from health mentors over the five-year program. Countries in the effort include
Bangladesh, China, India, Mexico, Nigeria, and South Africa.
Intestinal Worms in Children – The Company plans a four-fold increase in its
current support, with a goal of donating 200 million doses of mebendazole, a
treatment for intestinal worms in children, each year. It is expected that it will take
about two years to materially scale up production and to build partnerships with
organizations on the ground to implement the program fully. The program aims to
distribute mebendazole in 30 to 40 countries by 2015, and includes education to
help prevent treated children from being re-infected.
R&D Innovations – The Johnson & Johnson commitment includes research and
development to bring forward new treatments for HIV and TB, both of which
disproportionately affect women and children in the developing world. The
Company is currently working to develop what could become the first TB drug
with a new mechanism of action in 40 years, antiretroviral to treat HIV and
potentially prevent HIV transmission from pregnant women to their infants, as
well as new technologies that may, in the future, prevent the transmission of HIV
between adults.
Safe Birth Programs – Johnson & Johnson will extend current commitments to
peer education programs that have been successful in preventing mother-to-child
transmission of HIV; reducing a life-threatening condition in infants caused by
lack of oxygen at birth (birth asphyxia); and upgrading existing health care
facilities to accommodate more women at risk of fistulas. Fistulas are a
debilitating tissue rupture in mothers caused by obstructed labor, resulting in
incontinence and infections.

Healthy Future 2015 Strategic Priorities consists of seven strategic

priorities, supported by 15 goals and corresponding targets to measure and drive

35
performance.
The seven strategic priorities of Healthy Future 2015 are defined as:
Advancing community wellness by launching health initiatives to help people
gain access to timely, easy-to-understand, health-related information;
Enhancing outcome measurement in philanthropy by working with philanthropic
partners to measure health outcomes and raise the standard of health outcome
measurement;
Fostering the most engaged, health-conscious and safe employees in the world by
improving upon the company’s global culture of health and safety, and making
Johnson & Johnson a place where its employees are proud and inspired to work;
Building on the company’s legacy in safeguarding the planet by reducing the
environmental impacts of the operations of Johnson & Johnson and increasing the
sustainable design of the company’s products;
Partnering with suppliers who embrace sustainability by joining with suppliers
who demonstrate a similar commitment to that of Johnson & Johnson;
Advancing global health through research and development for neglected diseases
and affordable access to the company’s medicines by working to identify new
ways to address these issues, and by partnering with like-minded organizations to
help expand the impact of Johnson & Johnson; and
Committing to enhanced transparency and accessing the power of external
collaboration by providing transparency about the company’s business practices
and products, and collaborating with partners.

36
CHAPTER 3

37
 1. LITERATURE REVIEW
Consumer:
Johnson & Johnson Consumer touches a billion lives around the world and works
with the vision of 'Bringing science to the art of healthy living'. In India, the
company touches the lives of consumers through the following businesses:

Baby Care:
Johnson's® Baby is the undisputed leader in baby care with its Clinically Proven
Mild products trusted by mothers and recommended by doctors for more than 100
years. This heritage of trust is built upon a deep understanding of what it takes to
keep the baby’s delicate skin healthy, making
Johnson’s® Baby one of the most beloved brands amongst mothers in India.
 Johnson's Baby Top-To-Toe
 Johnson's Baby Skincare Wipes
 Johnson's Baby Cream
 Johnson's Baby Milk Lotion
 Johnson's Baby Oil
 Johnson's Baby Hair Oil

38
 Johnson's Baby Shampoo
 Johnson's Baby Powder Blossoms
 Johnson's Baby Soap Blossoms
 Johnson's Baby Gift Boxes

Women’s Health:
Range of personal health and feminine hygiene products - including sanitary
napkins, tampons and panty liners, to meet the evolving needs of the Indian
woman
Stayfree, the premier equity, is today the largest sanitary napkins business for
Johnson & Johnson globally.
 Stayfree
 Carefree
 O.B. Tampons

39
 Beauty:
Both Clean & Clear™ and Neutrogena® specialize in bringing science to the art
of beauty via innovative technologies across a spectrum of consumer and
professional needs. The science-based platforms include clear skin, sun care, anti-
aging and facial moisture.
 Neutrogena
 Clean & Clear™

40
 Oral & Wound Care:
Our Oral & Wound care segment sports power brands like BAND-AID® and
LISTERINE®. BAND-AID® is one of the leading products in this space and has
become a generic name in the wound care space. LISTERINE® is a market leader
in the mouthwash category.
 Band-Aid
 Listerine

Over-The-Counter Products:
Marketing a broad range of well-known and trusted over-the-counter products,
including solutions for cough and cold, anti-dandruff & tobacco cessation
 Respiratory Health
 Tobacco Cessation

41
  Low calorie sweetener
 Anti-Dandruff

Johnson & Johnson

Parent Company Johnson & Johnson

Category Health care product and Pharma

Sector FMCG

Tagline/ Slogan The Family Company

USP Innovative healthcare products and trusted brand

STP

Segment Health care segment

Target Group Mostly urban families and hospitals and clinics

Positioning Promise to healthcare

Product Portfolio

42
 1. Bedtime
2. Baby Oil
3. Baby Shampoo
4. Baby Lotion
5. Baby Powder
6. Destin
7. Bebe
8. Clean & Clear
9. Shower to Shower
10. Neutrogena
11. Band-Aid
12. Savlon
13. Caladryl
14. Purell
15. Listerine
16. Stayfree
17. Carefree
18. Visine
Brands 19. Acuvue Lenses

SWOT Analysis

43
 1. Johnson & Johnson is one of the World’s Most
Admired Companies
2. The United Nations awarded Johnson & Johnson the
2011 Humanitarian of the Year Award for our leading
role in its Healthy Mother, Healthy Child initiative.
3. One of the “Top 100 Companies for Working
Mothers” every year since the list was initiated 26 years
ago.
4. Brand presence in form of advertising media and
print media for a number of products.
5.Excellent distribution network as the brand is
supplied to remote villages and faraway places
6.J&J is a brand trusted by mothers the world over
7. Has an excellent product portfolio and high quality
offerings
8. It includes some 250 subsidiary companies with
operations in over 57 countries and products sold in
Strength over 175 countries

1. Maintaining a global brand can be problematic as

retailers can cause sale of expired products
2. Being a global brand means operations are disturbed
Weakness by market fluctuations

44
 1. Acquisitions of other smaller companies and
increasing broad brand presence.
2. Bringing out a range of more portable products for
Opportunity economy class and increasing rural penetration

1. Excessive promotion of any product making it almost

generic.
2. Spurious brands with the name similar to existing
brand name
3. Availability of cheap substitutes and low priced
Threats competitors.

Competition

1. Reckitt Benckiser
2.Paras
Competitors 3.Himayala

2. SWOT ANALYSIS

45
 This SWOT analysis focuses on Johnson and Johnson, a global consumer
healthcare company with a portfolio of subsidiaries that made medical devices,
medical diagnostic equipment, biologics and pharmaceuticals as well as consumer
healthcare products. Despite its leadership position in its industry and associated
markets, Johnson and Johnson still must continually reassess its position and
strategy by examining its strengths and weaknesses as a company as well as how
effectively it can leverage the opportunities that have been identified as well as
address and minimize any perceived threats to the organization. In this way,
Johnson and Johnson can change its strategy and maintain its global leadership
position in consumer healthcare products.

Strengths
 Worldwide sales continue to grow with ongoing plans for further geographic and
market solution expansion to sustain sales growth.
 Johnson and Johnson uses a flexible business model that allows to adapt quickly
to market changes and trends, focusing on entrepreneurship, problem solving
techniques, and innovation.
 This business model has led to numerous innovative medical devices,
pharmaceuticals, and other consumer healthcare product releases, further
differentiating the company from its competitors.
 Many of its portfolio brands are admired by a wide range of customers who
regularly return to these products for reliability, quality, and value.
 The company has enhanced its brand equity through accolades like most reputable
company and one of the best companies to work for around the world.

Weaknesses
 Pharmaceutical companies have been criticized for their high prices, which many
consumers have trouble paying so this has led to concerns over corporate greed.

46
 There have been recent protests against some of Johnson and Johnson's products,
including its pelvic mesh implants, which have led to a damaged reputation.
 The company is dependent on certain products and small niche drugs for the
pharmaceutical industry.
 Recent reports that employees of the company have stolen company secrets and
information, which has undermined its efforts to create an ethical and responsible
workplace.

Opportunity
 With a diverse portfolio of solutions, there are many untapped opportunities for
cross-selling products. This includes cross-selling between medical devices,
pharmaceuticals, and diagnostics related to care-giving and specific therapies for
oncology, diabetes, and other health issues.
 There are opportunities for further acquisitions to strengthen its position, further
diversify its product portfolio, expand its territories, add to its resource and
research capabilities and grow revenue streams.
 There are new medical therapies and findings that align with some of the
company's core capabilities, providing new opportunities for additional market
share and leadership.
 The diagnostic market appears to be growing, which positions Johnson and
Johnson as a first mover in many applications.
 Some countries are now banning generic medicine, which gives Johnson and
Johnson an advantage.

Threats
 The company's success with any product release, including medical devices,
pharmaceuticals, and healthcare products are often tied to regulatory approval

47
 more so than market acceptance. This can also vary from country to country,
which further complicates the potential for success with new products.
 There have been many product recalls, which can threaten the company's
credibility.
 Generic pharmaceutical products at a much reduced price are a significant threat
to Johnson and Johnson.
 U.S. competition has the perception of being more reliable than Johnson and
Johnson with many products, especially in light of product recalls and protests
about the adverse side effects of some of its products.

48
3. JOHNSON & JOHNSON COMPETITORS

It's difficult to get well without Johnson & Johnson (J&J). The diversified health
care giant operates in three segments through more than 265 operating companies
located in some 60 countries. Its Medical Devices division offers surgical
equipment, monitoring devices, orthopedic products, and contact lenses, among
other things. J&J's Pharmaceuticals division makes drugs for an array of ailments,
such as neurological conditions, blood disorders, autoimmune diseases, and pain.
Top sellers are psoriasis drug Remicade and cancer medication Velcade. Its
Consumer business makes over-the-counter drugs and products for baby, skin, and
oral care, as well as first-aid and nutritional uses.
Top Competitors for JOHNSON & JOHNSON
Colgate- Palmolive Company
Pfizer Inc.
Novartis AG
Aranesp
Procter & Gamble
Baxter
Band-AID
Medinol Ltd

49
50
4. COMPANY CREDO

In order to get employees motivated and to create positive image for the company
many companies try creating common values and ideas for all employees in form
of guidelines, this is then widely promoted internally and externally. In most cases
such common values are interconnected with the type of the business.

However, not many companies succeed in creating a common set of such

guidelines for employees and getting them adhering to it. Johnson & Johnson is
one of the companies which have succeeded in that aspect. For Johnson &
Johnson such a guideline is the official Company Credo. It includes the main
principles of the company and it has featured in numerous business case studies
because of its efficiency and its ability to create competitive edge for Johnson &
Johnson in the marketplace.

51
5. STRATEGIC FRAMEWORK
Johnson & Johnson is committed to marketing their products responsibly. Its
product marketing and communications efforts include educational brochures,
videos, direct-to-consumer (DTC) advertising and online vehicles. These forms of
direct-to-consumer education give people information they can use when
communicating with their doctors about the benefits and risks of treatments.
Products in the Consumer segment are marketed to the general public and sold
both to retail outlets and distributors throughout the world. Pharmaceutical
segment products are distributed directly to retailers, wholesalers and health care
professionals for prescription use. The broad range of products from their Medical
Devices segment is distributed to wholesalers, hospitals and retailers used
principally in the professional fields by physicians, nurses, therapists, hospitals,
laboratories and clinics. Communications are geared to each of these audiences
and use a variety of face-to-face, printed, online, and where appropriate, broadcast
and social media.

52
In their marketing and communications efforts with health care professionals, they
follow the voluntary Advanced Medical Technology Association (AdvaMed)
Code of Ethics on Interactions with Health Care Professionals, the Pharmaceutical
Research and Manufacturers of America (PhRMA) Code on Interactions with
Healthcare Professionals, the International Federation of Pharmaceutical
Manufacturers of America (IFPMA) Code of Practice and other similar trade
association codes around the world. Johnson & Johnson and its operating
companies follow internally established guidelines that apply to all forms of
direct-to-consumer communication, including regulation of such communication
by their Pharmaceutical and Medical Devices businesses. In addition, they follow
the PhRMA Guiding Principles on Direct-to-Consumer Advertisements about
Prescription Medicines. On the Consumer side, they follow the various volunteer
codes and guidelines of the Consumer Healthcare Products Association (CHPA).
Health Care Compliance officers conduct annual risk assessments of all
businesses globally to assess whether systems, policies, procedures, training,
resources and monitoring are in place regarding compliance with standards for
appropriate promotion of regulated products.
Johnson & Johnson markets a broad range of health care products from our
Consumer, Medical Devices and Pharmaceutical business segments throughout
the world. They do not sell or market products that are banned within markets that
have such restrictions.

53
54
 6. STRATEGIC BOUNDARY CONDITIONS OF
JOHNSON & JOHNSON

Strategic boundary condition is proposed by Bernard Marr (2006) and includes

following components: purpose, visionary goals and values.

Purpose of the company- A clear business purpose for Johnson & Johnson
helps to keep the business focused on its mission and target markets. It also helps
Johnson & Johnson management to identify new markets for expansion.

“The main purpose of a company is to take money from investors (their creditors
and shareholders) and generate profits on their investments” (Stocks 100-online,
2010). However, modern global companies like Johnson & Johnson have to
include such purposes as not damaging and caring about nature and adhering to
other aspects of Corporate Social Responsibility in order to be successful.

According to an article from Bluepeapod.com (online, 2009) a company with a

well-defined purpose and passionate employees who share it, have an ability of
unleashing a massive boost of employee enthusiasm, however, that can be
achieved only when purpose and passion align.
Importance of company purpose into following three points:
 The constancy of purpose provides a common, unifying directional mechanism –
a moral compass for its employees
 Organizations should continuously change their existing practices, systems and
styles to maintain vigor and a competitive edge in a rapidly changing business
environment
 The core values of the corporate culture provide the foundation of the strength
and permanency of purpose.

55
Visionary goals- It is important for Johnson & Johnson to develop visionary
goals and communicate them efficiently with workforce.
Goals are an essential part of successfully conducting business and getting
rewards. Well defined goals provide the opportunity to design and implement
important objectives which are necessary to achieve overall result.

Values- At present Johnson & Johnson has efficient set of company values like
always putting the interests of the customer above the profit making purpose of
the company, maintaining high quality of the products, promoting good working
relationship between employees and others. All these values are benefiting the
company in a way that employees are loyal to the company, customer’s trust the
products of the company because of the “right” image of Johnson & Johnson, also
good relationships are maintained with investors and suppliers. Moreover, the
efficient set of values of Johnson & Johnson resulting in local governments and
communities to be positive towards the company.

56
7. CONCEPT OF GREEN MARKETING

While different agencies and organizations offer various definitions of green

marketing (sometimes called environmental marketing, or eco-marketing), they
generally agree that it is the marketing of products and companies that promote
the environment in some substantial way. Some definitions look for
environmentally “safe” or “sustainable” production, while others seek to reduce a
company’s “carbon footprint.”

Johnson and Johnson is the second-largest corporate user of solar power in the
United States, and have been working consistently over the past 20 years to
reduce production wastes. In January 2011 it launched a business plan to become
the most environmentally responsible company in the world.

How is a green marketing campaign developed?

Green marketing requires a holistic approach. A company cannot succeed simply
by highlighting a green aspect of a particular product, but must demonstrate a
commitment on multiple levels, such as in production processes or environmental
engagement. Customers are particularly skeptical of many green claims; they
know that businesses seek profit and aren’t above “green washing” their everyday
business to make it appear environmentally friendly when it’s of no real concern
to them. For example, a hotel asking customers to “save the environment” by
reusing towels to conserve water will not likely be perceived as green; instead,
they’ll be seen as trying to use green rhetoric to save on washing expenses.
Therefore one of the first challenges of effective green marketing is establishing
credibility through a comprehensive plan. First, green marketing has to be

57
 business-wide. It does no good to advertise the green properties of a product if the
company’s production and distribution entirely ignore environmental concerns.
Second, it has to be honest; unsubstantiated claims should be avoided. Third, it
should be transparent. Consumers need information about a business to evaluate
its claims and reputation; therefore, the business should promote awareness of its
products’ histories, including origin and manufacturing. Fourth, a product can be
certified green by a third party (Popular Green Certifications). Some companies
do self-certification; however, for that to be credible, a third party needs to be able
to review and approve their certification processes.
There are many options for green certification—some 400, at least—with some
devoted to single qualities (made from recycled components, or being energy
efficient) and others evaluating multiple attributes.

Popular Green Certifications

 Green Seal
 Ecologo
 MBDC cradle to cradle
 SMART certification by MTS
 USDA Organic—organic foods
 Forest Stewardship Council—wood and paper products
 Energy Star—energy efficiency
 Green-e—renewable energy

58
8. MARKETING TECHNIQUES

 PEST ANALYSIS

PEST Analysis is a macro environmental framework used to understand the

impact of the external factors on the organization and is used as strategic
analytical technique. PEST stands for “POLITICAL, ECONOMIC, SOCIAL, and
TECHNOLOGICAL” factors. Francis Aguilar is referred to as the originator of
this tool.

59
Political Environment
The politics on local, regional, national, or international scales can exert strong
forces on businesses. Since Johnson & Johnson operates worldwide, it must keep
track of the political developments that may affect its business. For example,
changes in the healthcare system may affect to whom Johnson & Johnson needs to
market, and with whom it needs to negotiate if the company wants its products
covered by the Irish healthcare system. With the change of the Irish government
the company needs to anticipate which policies may shift. This is the best time for
the Johnson & Johnson Irish branch located in Tallaght to lobby for any policy
changes regarding the company’s interests and the business environment.

Economic Environment
The economic climate is also important for Johnson & Johnson to analyze in
order to predict when its business may face challenges, as well as when it can
seize an opportunity for growth. Operating in the European Union and larger
European community means that
Johnson & Johnson has felt the effects of the current economic crisis. Aware of
the crisis, the company has been able to plan for its impact, and fortunately, the
effects on Johnson & Johnson have not been severe, as medical products remain
necessities even in periods of economic downturn.
Also, discussions surrounding the use of the euro and the benefits and
disadvantages of a common currency are debates that Johnson & Johnson should
be aware. A switch to the euro in Ireland in 2000 had a wide range of effects,
some positive and some negative. For example, adopting the euro made
transactions with other countries more convenient (speed-up of transactions). J&J
also faces the numerous practical difficulties with tasks such as accounting that
occurs with a change in currency. Keeping such economic scenarios in mind is
crucial to Johnson & Johnson's success.

60
Social Environment
There are two major social changes on the horizon that will both affect Johnson &
Johnson as well as provide tremendous opportunities. The first is the aging
population. The baby generation, has a huge social and economic impact on the
world since its birth. This trend will continue as the generation is beginning to
enter old age. The influx of senior citizens will create huge demands throughout
all realms of medical care. J &J can expect to see increased sales across all three
of its segments – pharmaceuticals, medical devices and diagnostics, and consumer
goods – in the coming decades, and must plan production accordingly to be able
to meet the needs of this huge generation as they enter their most medically-
dependent years.
Another major social change affecting Johnson & Johnson is the
phenomenon of surging rates of various health problems, especially in developed
societies but spreading worldwide, from obesity and diabetes to cancer and mental
disorders. Though highly problematic for society, companies in medicine-related
industries such as Johnson & Johnson are finding themselves with an increasing
number of people to treat and cure. As a company that invests heavily in research
and development, Johnson & Johnson has the opportunity to lead the way in
finding ways to address these serious public health issues.
In response to a falling birth rate, companies like J&J, involved with the
provision of baby-care products, have effectively targeted these products at an
adult female audience. For example, their baby lotion is now marketed as being
kind and gentle to women’s skin, as well as that of babies. This represents a
response to changes in the general environment that directly affect their industry.

Technological Environment

61
 As many pharmaceutical drug markets become saturated and the drug strategy
becomes obsolete due to the major changes occurring in the industry, innovation
and breakthrough medical technologies are essential for finding blue oceans in
which to compete. Predictive medicine, which entails predicting diseases based on
genetics and preventing them, and personalized medicine, which involves
managing a patient’s health based on his or her individual characteristics as
opposed to following the more traditional “standards of care” model, are growing
fields into which Johnson & Johnson can expand. The company’s strong emphasis
on research and development and its leadership in the medical devices and
diagnostics segment put it in an excellent position to become a frontrunner in
making new discoveries in these promising new technological fields.

 BCG MATRIX

The Boston Consultative Group BCG Matrix is a Portfolio strategic analysis tool.
It evaluates the portfolio of strategic business unit or markets according to their
performance and groups them as Stars, Cash Cows, Question Marks or Dogs. The
matrix is a market share - market growth matrix.
Companies must develop new businesses but also must carefully prune, harvest or
divest tired old businesses in order to release resources and reduce cost. In the
case of Johnson & Johnson, we are going to analyze the portfolio of the business
based on BCG matrix, examine the relationship between market share and market
growth of the different business units.

BCG MATRIX FOR PRODUCTS

Market Share
Growth
High
Low

62
High Stars
Best foods
Frozen
Market Growth
Question Marks
Deodorants
Anti- Prespirant
Cash cows
Knorr
Flora
Dogs
Slim Fast

63
STARS (High market share, high market growth)

As we have seen in the question mark businesses, there are brands within the
business units that are performing well and if the question marks are successful
they become stars.
In home and personal care, products for cleansing, deodorant and antiperspirant
under the brands of Axe Lux Pond's, Rexona, CIF, Domesto, Omo, Skip and
Snuggle have a good share of the growing market. However, Johnson & Johnson
may have to spend substantial funds for its stars to keep up with high market
growth and fight off the competitors' attacks as a leader in these core brands.

CASH COWS (Low market share, high market growth)

Johnson & Johnson does not have to invest heavily on marketing or to finance
capacity expansion, as the growth is low and market conditions more stable. As
these business units are market leaders, they enjoy economies of scale and higher
profit margin. Johnson & Johnson should use these cash cow businesses to
support the lagging ones that drive down the profit of the company.

QUESTION MARKS (High market share, low market growth)

According to our matrix question marks are operating in a growing market
without high market share. Johnson & Johnson is categorized as question marks.

64
 Therefore it can be noticed that not the whole divisions are under performing, as a
result Johnson & Johnson needs to invest more in these business units to keep up
with the fast growing market because they are already successful but need better
performance.

DOGS (Low market share, low market growth)

With a weak market share in low growth market, they may be considered as dogs.
Hence the consumers started questioning the effectiveness of products and turning
to alternatives.

 STP ANALYSIS

In order to be an effective and efficient business, you should seek out your target
customer market. There are three main issues to consider when determining your
target market:

Market segmentation
Market segmentation involves grouping your various customers into segments
that have common needs or will respond similarly to a marketing action. Each
segment will respond to a different marketing mix strategy, with each offering
alternate growth and profit opportunities.
Some different ways you can segment your market include the following;
 Demographics which focuses on the characteristics of the customer. For example
age, gender, income bracket, education, job and cultural background.
 Psychographics which refers to the customer group's lifestyle. For example, their
social class, lifestyle, personality, opinions, and attitudes.

65
 Behavior which is based on customer behavior. For example, online shoppers,
shopping centre customers, brand preference and prior purchases.
 Geographical location such as continent, country, state, province, city or rural that
the customer group resides.

Targeting
After segmenting the market based on the different groups and classes, you will
need to choose your targets. No one strategy will suit all consumer groups, so
being able to develop specific strategies for your target markets is very important.
Johnson & Johnson target households for home care products, health care
products, and personal care products for the people who are hygiene conscious.
Prices are generally set for middle class people, who can easily afford it.

Positioning
A market position is developed for the product so that the target will clearly know
where the product stands in relation to the competition, as well as other products
marketed by the organization. Johnson & Johnson have positioned themselves as
home and personal care producers. Product positioning is how a product is
positioned in the mind of the consumer. Positioning begins with finding a
difference in the product that is worth establishing to the extent that it is
important, distinctive, superior, communicable, pre-emptive, affordable, and
profitable. Johnson & Johnson have position their products-High Quality and
good price. Johnson & Johnson products are positioned as good value products
but are slowing threat faced by Johnson & Johnson. Differential advantage refers
to any feature of a product or organization perceived by customers to be desirable
and different from the competition. An organization uses its resources and
capitalizes on them to obtain a differential advantage by offering unique products.

66
 MARKETING MIX

67
 Product
 Johnson and Johnson products are basically in three main categories:
Pharmaceuticals, Medical Devices & Diagnostics, and Consumer Health care.
 The following are examples of the Johnson & Johnson product inventory:
Feminine hygiene, Denture care, Contraceptives, Immunology, First aid, Family
planning, Oncology, Nutritional, Diabetes care, Neurology, Vision care, Allergy
cold and flu treatment, Women’s Health, Medical devices and diagnostics.
Price
 In the United States, Johnson and Johnson strives to keep their net price increases
for health care products within the Consumer Price Index (CPI).
 Johnson and Johnson work with the governments to develop differential pricing
approaches to help more people access their medical products. Johnson &
Johnson companies have agreements with the United Kingdom for VELCADE ®
(bortezomib), a treatment for multiple myeloma, and with France for
RISPERDAL® CONSTA® (risperidone long-acting injection) a medication for
the symptoms of schizophrenia. Companies and government agencies are also
entering other types of risk-sharing agreements in order to help people gain access
to new therapies sooner.
 The following are examples of Johnson and Johnson consumer product prices:
Bengay Pain Relief $12.99, (at Amazon), Listerine Oral Care $7.49 (Next Tag),
Splenda Sweetener $7 (Drusstore.com).Tylenol Rapid Release $12.95 (Allegro
Medical.com).
Place
 These are some companies that sell Johnson and Johnson products wholesale:
Over the Counter Wholesale.com, WUZ Group, ShopatHome.com
 Johnson and Johnson products can be found at the following retail outlets: Target,
Walgreens, WalMart, Vons and Eversave, to name but a few.
Promotion
 Johnson and Johnson offer special discount coupons on products such as baby
care, and contact lens.

68
 Johnson and Johnson has run a “Beauty for All Ages” rebate promotion on
Coupons.com and some of the campaign products are available at Walgreens and
may also include buy one get one half off discount as well.
 Johnson & Johnson is involved with many causes and advertising campaigns that
encourage healthy lifestyles. Key initiatives include: The Campaign for Nursing’s
Future, Having a Baby Changes Things, and Because We Care We Act (China).
Process
 Johnson and Johnson employ what they call a “decentralized management
approach”. Employees are encouraged to be “entrepreneurial” with the
understanding that they will benefit from focusing on customer needs and
providing solutions.
 Johnson and Johnson seek to turn insights into innovative new products and
sometimes whole new businesses. Their goal is to capitalize on scientific
breakthroughs, marketing insights and manufacturing expertise easily across the
full range their businesses. With more than 250 operating companies have a local
window into emerging customer needs, scientific developments, and technologies
throughout the world
 The Executive Committee of Johnson & Johnson is the principal management
group responsible for the operations and allocation of the resources of the
Company. This Committee oversees and coordinates the activities of the
Consumer, Pharmaceuticals and Medical Devices and Diagnostics business
segments. Each subsidiary within the business segments is, with some exceptions,
managed by citizens of the country where it is located.
Physical Evidence
 The Johnson & Johnson Headquarters is located at One Johnson & Johnson Plaza,
New Brunswick, New Jersey.
 The Johnson& Johnson Consumer Division is located at 199 Grandview Road,
Skillman New Jersey.
 The Ortho-Biotech Division is located at 700 Route 202 Raritan, New Jersey.

69
 The Lifescan Division is located at 1000 Gibralta Drive, Milpitas, California.
 The VistaKon Division is located at 7500 Centurion Pkwy, Jacksonville, Florida.
 The Endo Surgery Division is located at 4545 Creek Road Cincinnati, Ohio.
 The Independence Technology Division is located at 40 Technology Drive,
Warren New Jersey.
 Company Subsidiaries, Codman and Shurlett as well as De Puy Acromed are
located at 325 Paramount Drive Raynham Massachusetts.
 The Johnson and Johnson logo is based on the signature of James Wood Johnson,
one of the two brothers originally who founded the company.
People
 William C Weldon is Chairman and Chief Executive Officer of Johnson &
Johnson.
 Dominic J. Caruso is the Chief Financial Officer and Vice President of Finance.
 Johnson and Johnson have a Global Diversity and Inclusion program with a goal
of achieving a skilled, high performance workforce that is reflective of the diverse
global marketplace (workforce).
 Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50
Companies for Diversity.
 The company has ranked high Working Mother Magazines’ Top One Hundred
Companies for Working Mothers
or 24 years.
 Johnson & Johnson was founded more than 120 years ago on a revolutionary
idea: Doctors and nurses should use sterile sutures, dressings and bandages to
treat peoples’ wounds. Since then, we’ve brought the world new ideas and
products that have transformed human health and well-being. Every invention,
every product, every breakthrough has been powered by generations of employees
who are inspired to make a difference.

70
 9. THE CONTROVERSY

Johnson & Johnson has always promoted an image of its products being safe and
gentle enough to use on babies. For decades, parents have reached for the
company’s baby care products, trusting that the ingredients within them were safe
and non-toxic.
RECALLS
1982 Chicago Tylenol murders
On September 29, 1982, a "Tylenol scare" began when the first of seven
individuals died in metropolitan Chicago, after ingesting Extra Strength Tylenol
that had been deliberately laced with cyanide. Within a week, the company pulled
31 million bottles of capsules back from retailers, making it one of the first major
recalls in American history. The incident led to reforms in the packaging of over-
the-counter substances and to federal anti-tampering laws. The case remains
unsolved and no suspects have been charged. Johnson & Johnson's quick
response, including a nationwide recall, was widely praised by public
relations experts and the media and was the gold standard for corporate crisis
management.

2010 children's product recall

On April 30, 2010, McNeil Consumer Healthcare, a subsidiary of Johnson and
Johnson, voluntarily recalled 43 over-the-counter children's medicines, including
Tylenol, Tylenol Plus, Motrin, Zyrtec and Benadryl. The recall was conducted
after a routine inspection at a manufacturing facility in Fort Washington,
Pennsylvania, United States revealed that some "products may not fully meet the

71
required manufacturing specifications". Affected products may contain a "higher
concentration of active ingredients" or exhibit other manufacturing defects.
Products shipped to Canada, Dominican Republic, Guam, Guatemala,
Jamaica, Puerto Rico, Panama, Trinidad and Tobago, the United Arab Emirates,
Kuwait and Fiji were included in the recall. In a statement, Johnson & Johnson
said "a comprehensive quality assessment across its manufacturing operations"
was underway. A dedicated website was established by the
company listing affected products and other consumer information.
2010 Hip replacement recall
On August 29, 2010, DePuy, a subsidiary of American giant Johnson & Johnson,
recalled its ASR (articular surface replacement) hip prostheses from the market.
DePuy said the recall was due to unpublished National Joint Registry data
showing a 12% revision rate for resurfacing at five years and an ASR XL revision
rate of 13%. All hip prostheses fail in some patients, but it is expected that the rate
will be about 1% a year. Pathologically, the failing prosthesis had several effects.
Metal debris from wear of the implant led to a reaction that destroyed the soft
tissues surrounding the joint, leaving some patients with long term disability. Ions
of cobalt and chromium—the metals from which the implant was made—were
also released into the blood and cerebral spinal fluid in some patients.
In March 2013, a jury in Los Angeles ordered Johnson & Johnson to pay more
than $8.3 million in damages to a Montana man in the first of more than 10,000
lawsuits pending against the company in connection with the now-recalled DePuy
hip.
Some lawyers and industry analysts have estimated that the suits ultimately will
cost Johnson & Johnson billions of dollars to resolve.

2010 Tylenol recall

In 2010 and 2011, Johnson & Johnson voluntarily recalled some over-the-
counter products including Tylenol due to an odor caused by tribromoanisole. In

72
this case, 2, 4, 6-tribromophenol was used to treat wooden pallets on which
product packaging materials were transported and stored.
Over two years ago, the Campaign for Safe Cosmetics issued a report called No
More Toxic Tub. The report revealed that a number of baby products, including
Johnson & Johnson shampoo, contained carcinogens. The advocacy group asked
Johnson & Johnson to reformulate its products and remove the harmful
ingredients. The company listened–or so the Campaign thought. In fact, when the
Campaign re-analyzed the labels of Johnson
& Johnson baby shampoo sold in 13 different countries; in found that the
carcinogens were still being used in about half of the formulations, including the
shampoo sold in America. Quaternium-15 was found in products sold in the
United States, Canada, China, Indonesia, and Australia. Meanwhile, products sold
in the United
Kingdom, Sweden, Denmark, Finland, Norway, the Netherlands, and Japan,
contained non-formaldehyde preservatives. It remains to be seen when the
reformulated products will actually be available.

73
10. CSR POLICIES
Philosophy
Johnson & Johnson Private Limited, India (J&J India) is a subsidiary of Johnson
& Johnson, one of the world’s most comprehensive and broadly based
manufacturer of health care products, as well as a provider of related services for
the consumer, pharmaceutical and medical devices markets. While the term
“corporate social responsibility” is widely used today, the concept behind it is not
new to the Johnson & Johnson Group of Companies.
Accordingly, J&J India’s Corporate Social Responsibility (“CSR”) policy is
rooted in the J&J Group's core values of quality, reliability and trust guided by
international standards and best practices, and driven by the aspiration for
excellence in the overall performance of the business.

Constitution of Corporate Social Responsibility Committee

The board of directors of J&J India (the “Board”) have formed a Corporate Social

74
 Responsibility Committee (the “CSR Committee”) in line with section 135 of the
Companies Act, 2013 (the “Act”.)

The CSR Committee will carry out the following functions:

 to formulate and recommend to the Board, a CSR policy indicating activities to be
undertaken as specified in Schedule VII of the Act;
 to recommend the amount of expenditure to be incurred on the activities referred
to in sub-paragraph (i) above; and
 To monitor the CSR policy from time to time.

CSR projects, programs and activities In accordance with the primary CSR
philosophy and the specified activities under the Act read with Companies
(Corporate Social Responsibility Policy) Rules, 2014 (the “CSR Rules”), and any
amendment(s) thereof, the CSR activities of J&J India will have the following
thrust areas:

 Saving and improving lives of underprivileged women and children

o Safe Motherhood
o Neonatal Resuscitation
 Building Healthcare Capacity
o Training of underprivileged girls as healthcare assistants and midwives.
 Preventing Diseases, Reducing Stigma and Disability
o Awareness and Prevention of HIV/AIDS
 Community Responsibility
o Disaster Relief

Under the umbrella of “India Contributions”, and with a view to reach out to even
the remotest parts of the country, 13 Location Committees across the country are
constituted to identify and screen projects, motivate and sensitize fellow

75
Johnsonians to the challenges faced by the underprivileged and underserved
members of the “community in which we live and work”.

The company works together with key community based partners that have the
greatest insights into the needs of local populations and the strategies that stand
the greatest chances of success. The Company expects no favorable treatment as a
result of the social investment that it makes; hence the corporate program designs
are based upon its heritage, its values, its equity and its motivation to be an
outstanding corporate citizen.

Charity begins at home. When natural disasters strike, very often Company
employees/employees of contractors are severely affected. They endeavor to
provide them immediate relief to meet emergency medical and rehabilitation
needs. In the case of seriously critical, life threatening medical ailments, where
insurance cover is not adequate, they endeavor to help employees/employees of
contractors to bridge the gap, within our limited provisions.

All monetary employee contributions to specified NGO partners are matched

equally by the company.
CSR budget the total budget for the CSR projects will be decided by the CSR
Committee in accordance with applicable provisions of the Act and the CSR
Rules.

Implementation, monitoring and review mechanism The CSR activities will be

driven by a dedicated project team under the guidance and support of the CSR
Committee and the Board. The CSR Committee will play a significant role in
ensuring that the CSR policy is embedded across J&J India’s operations and the
CSR initiatives are in line with this policy.

76
The CSR Committee will be responsible for monitoring approved projects and
fund disbursals for such projects. The CSR Committee will put in place a
transparent monitoring and reporting mechanism for ensuring effective
implementation of the projects, programs and activities proposed to be undertaken
by J&J India. Such monitoring mechanisms will include visits, meetings and
progress/status reporting by the project teams.

Any or all provisions of this CSR policy may be amended by the Board based on
the recommendations of the CSR Committee or in accordance with any statutory
guidelines that may be issued from time to time.

77
78
 CHAPTER 4

1. RESEARCH METHODOLOGY

Definition of Research
Research is a careful and detailed study into a specific problem, concern, or issue
using the scientific method. It's the adult form of the science fair projects back in
elementary school, where you try and learn something by performing an
experiment. This is best accomplished by turning the issue into a question, with
the intent of the research to answer the question. Applying the outcome of
research for the refinement of knowledge in other subjects, or in enhancing the
quality of human life also becomes a kind of research and development.

Importance of Research
Research is important both in scientific and nonscientific fields. In our life new
problems, events, phenomena and processes occur every day. Practically,
implementable solutions and suggestions are required for tackling new problems
that arise. Scientists have to undertake research on them and find their causes,
solutions, explanations and applications. Precisely, research assists us to
understand nature and natural phenomena.
Some important avenues of research are:
(1) A research problem refers to a difficulty which a researcher or a scientific
community
or an industry or a government organization or a society experiences. It may be a
theoretical or a practical situation. It calls for a thorough understanding and
possible
solution.

79
(2) Research on existing theories and concepts help us identify the range and
applications
of them.
(3) It is the fountain of knowledge and provides guidelines for solving problems.
(4) Research provides basis for many government policies. For example, research
on the
needs and desires of the people and on the availability of revenues to meet the
needs
helps a government to prepare a budget.
(5) It is important in industry and business for higher gain and productivity and to
improve the quality of products.
(6) Mathematical and logical research on business and industry optimizes the
problems
in them.
(7) It leads to the identification and characterization of new materials, new living
things,
new stars, etc.
(8) Only through research inventions can be made; for example, new and novel
phenomena
and processes such as superconductivity and cloning have been discovered only
through
research.
(9) Social research helps find answers to social problems. They explain social
phenomena and seek solution to social problems.
(10) Research leads to a new style of life and makes it delightful and glorious.

Objectives of Research
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out the

80
truth which is hidden and which has not been discovered as yet. Though each
research study has its own specific purpose, we may think of research objectives
as falling into a number of following broad groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it
(studies with this object in view are termed as exploratory or formulative research
studies);
2. To portray accurately the characteristics of a particular individual, situation or a
group
(Studies with this object in view are known as descriptive research studies);
3. To determine the frequency with which something occurs or with which it is
associated with something else (studies with this object in view are known as
diagnostic research studies);
4. To test a hypothesis of a causal relationship between variables (such studies are
known as Hypothesis-testing research studies)
5. to discover new facts
6. to verify and test important facts
7. to develop new scientific tools, concepts and theories to solve and understand
scientific and nonscientific problems

Definition of Research Methodology

Research methodology is a systematic way to solve a problem. It is a science of
studying how research is to be carried out. Essentially, the procedures by which
researchers go about their work of describing, explaining and predicting
phenomena are called research methodology. It is also defined as the study of
methods by which knowledge is gained. Its aim is to give the work plan of
research.

Importance of Research Methodology in Research Study

81
It is necessary for a researcher to design a methodology for the problem chosen.
One should note that even if the methods considered in two problems are same the
methodology may be different. It is important for the researcher to know not only
the research methods necessary for the research under taken but also the
methodology. For example, a researcher not only needs to know how to calculate
mean, variance and distribution function for a set of data, how to find a solution
of a physical system described by mathematical model, how to determine the
roots of algebraic equations and how to apply a particular method but also need to
know
(i) Which is a suitable method for the chosen problem?
(ii) What is the order of accuracy of the result of a method?
(iii) What is the efficiency of the method? And so on.
The preparation of the report included extensive study of the organization and
market research, which was the primary source of the report. I have collected
information from consumers by preparing questionnaire.

Types of Research Methodology

Qualitative
This type of research methods involves describing in details specific situation
using research tools like interviews, surveys, and Observations. Qualitative
Research is primarily exploratory research. It is used to gain an understanding of
underlying reasons, opinions, and motivations. It provides insights into the
problem or helps to develop ideas or hypotheses for potential quantitative
research. Qualitative Research is also used to uncover trends in thought and
opinions, and dive deeper into the problem. Qualitative data collection methods
vary using unstructured or semi-structured techniques. Some common methods
include focus groups (group discussions), individual interviews, and

82
participation/observations. The sample size is typically small, and respondents are
selected to fulfill a given quota.

Quantitative

This type of research methods requires quantifiable data involving numerical and
statistical explanations. Quantitative Research is used to quantify the problem by
way of generating numerical data or data that can be transformed into useable
statistics. It is used to quantify attitudes, opinions, behaviors, and other defined
variables – and generalize results from a larger sample population. Quantitative
Research uses measurable data to formulate facts and uncover patterns in
research. Quantitative data collection methods are much more structured than
Qualitative data collection methods. Quantitative data collection methods include
various forms of surveys – online surveys, paper surveys, mobile surveys and
kiosk surveys, face-to-face interviews, telephone interviews, longitudinal studies,
website interceptors, online polls, and systematic observations.

Correlation/Regression Analysis

This research method involves determining the strength of the relationship

between two or more variables (e.g. are violent video games correlated with
aggression in children).

Meta-Analysis

This research method is useful for finding out the average impact of several
different studies on a hypothesis.

83
Various stages of Research Methodology

Whenever a scientific problem is to be solved there are several important steps to

follow.
The problem must be stated clearly, including any simplifying assumptions. Then
develop a mathematical statement of the problem. This process may involve use
of one or more mathematical procedures. Frequently, more advanced text books
or review articles will be needed to learn about the techniques and procedures.
Next, the results have to be interpreted to arrive at a decision. This will require
experience and an understanding of the situation in which the problem is
embedded. A general set of sequential components of research is the following:
1. The Problem
2. Objective of the study
3. Nature of the study
4. Data sources
5. Techniques of data collection
6. Some cultural context
7. Geographical limit
8. Basis of selection
In the following sections the above mentioned various stages of research are
discussed in detail.

1. The Problem – The first step involves the proper selection and then carefully
defining the problem. By this researcher will be enabled to know about what he
has to search, but it should be kept in mind that the problems selected should not
be unmanageable in nature and also should not be based on the desires.
2. Objective of the study – The objective should be very clear in the mind of the
researcher as this will lead to the clarity of the design and proper response from
the respondents.

84
3. Nature of the study – The research design should be very much in relation with
the nature of the study, which is to be carried out.
4. Data sources – The various sources of the data or the information should be
very clearly stated by the researcher.
5. Techniques of data collection – For the collection of the required information, it
sometimes becomes very necessary to use some especial techniques.
6. Social cultural context – Research design based on the social cultural concept is
prepared in order to avoid the various study variations.
7. Geographical limit – This step becomes a necessity at this point of time as with
the help of this step, research linked to the hypothesis applies only to certain
number of social groups.
8. Basis of selection – Selecting a proper sample acts as a very important and
critical step and this is done with the help of some mechanics like drawing a
random stratified, deliberate, double cluster or quota sample etc.

85
Research Design

86
A research design is the "blue print" of the study. The design of a study defines
the study type (descriptive, correlation, semi-experimental, experimental, review,
meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research
question, hypotheses, independent and dependent variables, experimental design,
and, if applicable, data collection methods and a statistical analysis plan. Research
design is the framework that has been created to seek answers to research
questions.

1. Research design for exploratory studies-

• In this type of design, a vague problem is selected and understood and is then
followed by an exploratory research to find a new hypothesis and then carrying
out conclusion research decisions to finally get new ideas.
• Aims at finding a new hypothesis.
• Individual surveys, referring to secondary sources of data etc. play an important
role in such research designs.
• Reviewing related literature, following or surveying people having practical
experience in the problem related field act as very important and most commonly
used methods by an exploratory researcher.

2. Research design for conclusive studies also referred to as the

research design for the descriptive studies and is further divided
as follows –
a. Case Study method –
• Finds extensive use in commerce and industry.
• Very respectable method of teaching and research in management.
• Helps greatly in knowing the causes and the results of the incident of the
phenomenon.

87
b. Statistical method –
• Also trying to find its place in commerce and industry.
• Act as method of correlation and regressions, analysis, chi square etc.
• Has been made very rigorous and sophisticated by coming up of the computers.

3. Research design for experimental studies –

• Explains the structure of an experiment.
• Involve plans for the testing of the causal hypothesis.
• Decides the number of observations to be taken and also the order in which
experiments are to be carried out.
• Which randomization method to be used.
• Which mathematical model to be used for explaining the experiment.

This research design can be further categorized into the following –

1. Informal experimental design –

• after only design.
• After only with control design.
• Before and after without control design.
• Before and after with control design.

2. Formal experimental design –

• completely randomized design.
• Randomized block design.

88
• Latin square design.
• Factorial design.

Criteria of Good Research

Whatever may be the types of research works and studies, one thing that is
important is that they all meet on the common ground of scientific method
employed by them. One expects scientific research to satisfy the following
criteria:

1. The purpose of the research should be clearly defined and common concepts be
used.
2. The research procedure used should be described in sufficient detail to permit
another researcher to repeat the research for further advancement, keeping the
continuity of what has already been attained.
3. The procedural design of the research should be carefully planned to yield
results that are as objective as possible.
4. The researcher should report with complete frankness, flaws in procedural
design and estimate their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance
and the methods of analysis used should be appropriate. The validity and
reliability of the data should be checked carefully.
6. Conclusions should be confined to those justified by the data of the research
and limited to those for which the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced, has
a good reputation in research and is a person of integrity.

In other words, we can state the qualities of a good research as under:

89
1. Good research is systematic: It means that research is structured with specified
steps to be taken in a specified sequence in accordance with the well-defined set
of rules. Systematic characteristic of the research does not rule out creative
thinking but it certainly does reject the use of guessing and intuition in arriving at
conclusions.
2. Good research is logical: This implies that research is guided by the rules of
logical reasoning and the logical process of induction and deduction are of great
value in carrying out research. Induction is the process of reasoning from a part to
the whole whereas deduction is the process of reasoning from some premise to a
conclusion which follows from that very premise. In fact, logical reasoning makes
research more meaningful in the context of decision making.

90
91
 Research design: Descriptive research design:
Descriptive research design is a scientific method which involves observing and
describing the behavior of a subject without influencing
it in any way. The importance of descriptive research is:
o To describe characteristics of a population or a phenomenon.
o To determine the answers to who, what, when, where and how questions.
o To analyze the segment and target markets.

92
Research design Descriptive research

Research method survey method

Research instrument Structured questionnaire

Sample size 51

Sample area Navi Mumbai

Data collection design:

A marketing researcher has to make a plan for collecting data which may be
primary data, secondary data or both.

Primary data:
The primary data was obtained by administering survey method, guided by
questionnaire to the consumers. The following type of questions, were asked in
the questionnaire
1. Multiple choice questions.

Secondary data:
The secondary data are collected through various sources like
 Secondary data are collected through internet related to company, competitors etc.
 Review of articles being published on the topic in various magazines and
newspapers

Questionnaire:

93
The best way to collect data is to personally administer the questionnaires. The
advantage of this method is, the data can be collected from the respondent within
short period of time. Any doubts that the respondent might have on any questions
could be clarified on the spot.

CHAPTER 5

FINDINGS, ANALYSIS AND INTERPRETATION OF

DATA

94
Consumer segment
Johnson & Johnson’s Consumer segment is focused on baby care, oral care, skin
care, and other consumer products. It contributes ~19–20% of the company’s
revenue.

For 2016, this segment generated revenue of about $14.5 billion. It was an
operational increase of 1%. It was offset by the negative currency impact of 2.4%.
The total decrease was 1.4%—compared to the year before. The company went
for the divestiture of women’s sanitary protection products in the US, Canada, and
the Caribbean. The divestiture was completed by the end of 2015.

As a percentage of sales, the pre-tax profit was 13.4% in 2016. This was
achieved mainly due to the cost containment initiatives.

95
 But it can be seen that consumers are willing of buying Johnson & Johnson
products as well as they have grown vigilant about the various products it encases.
Products
The Consumer segment includes products for OTC (over-the-counter) sales, skin
care, baby care, oral care, wound care, and women’s health. The key products
from this segment are:
o OTC franchise – analgesics and upper respiratory products
o skin care franchise – Aveeno, Neutrogena, and Dabao product lines

o baby care franchise – Johnson’s baby products

o oral care franchise – Listerine products
o wound care franchise – Band-Aid, Bengay, and Neosporin products
These products are marketed to general public and sold through retail outlets and
distributors across the globe.

Brands
Consumer Products is a segment where the products are sold mainly due to the
brand reputation and the trust for its quality. A company like Johnson & Johnson
has over 100 brands. A major part of the brands is focused on consumer products.
A few of the major brands for this segment include:
o Johnson’s baby for baby care products
o Aveeno, Neutrogena, Johnson’s, Clean & Clear, and Dabao for skin care products
o Band-Aid, Bengay, Savlon, and Neosporin for wound care products
o Listerine and Rembrandt for oral care products
o Splenda and Benecol for nutritionals
o Visine and Acuvue for vision care products.

96
Consumer’s (as per the questionnaire) usage of Johnson & Johnson
baby products?

We come to know from the above graph removed from the survey that Johnson
and Johnson is the most popular brand which is mostly used for the babies. We
can see that 96.3% people use or have used Johnson & Johnson products.
Hence, we can directly assume that it is a widely sold brand which has huge
popularity amongst the consumers specially the newly mothers and children.

CHAPTER 6

97
 1. LIMITATION OF THE PROJECT

 Health officials in India have revoked Johnson & Johnson's license to make
cosmetics at a plant outside Mumbai after they discovered the company had used
an unauthorized process for sterilizing its baby powder.

 Johnson & Johnson also faced charges of illegal marketing. In 2013, J&J paid
$2.2 billion to the federal government and several states for illegal promotion of
drugs, including antipsychotics Risperdal and Invega.

98
 2. RECOMMENDATION AND SUGGESTION

 Now several decades later, J&J’s Consumer Product Division has put the
company and its reputation in jeopardy by its slow and ineffective response to
series of ongoing problem that centre on inadequate quality control inside
some of the manufacturing plants and slow, reluctant, and ineffective
corrective action FDA concerns. The end result is the broken once pristine
reputation of J&J. Johnson and Johnson has been the exemplar of superb
ethical behavior in light. It can work forward in improving the responses from
slow and ineffective pace to quick redressal for bringing back its sterling
reputation.

 Giving some form of charitable funds, time and or service for the betterment of
the overall society. This is not only a norm in the corporate world, but also a
requirement.

 In documents such as Johnson & Johnson Annual Report, it does disclose the
following: children’s health, community responsibility, access to care, advancing
healthcare knowledge, and overall global healthcare knowledge.

 In India, J&J should open consumer care centers in which they should appoint
health care consultants to explain about J&J products or to solve any query or
give any information.

 J&J I India should focus on expansion of its medical and diagnostics field.

CHAPTER 7

99
1. CONCLUSION

Johnson and Johnson is recognized to be the sixth largest consumer health

company as well as the company that provides the world's largest and most
diverse medical and diagnostic devises. Johnson & Johnson's brands include
numerous household names of medications and first aid supplies. Each year the
number of employees increases with the same bringing the corporation one level
higher. The introduction of the Heath Future 2017 project was another proof for
customers that the company cares for the quality of the products and services it
delivers every day.
J&J revises its vision on regular bases and expands its production to more and
more countries. Such strategy gives the company an opportunity to identify the
problems and eventually find a solution to them, with the same building a more
trustworthy corporation and bringing more customers to the till all around the
globe.

Despite lawsuits and recalls, J&J remains a strong force in the pharmaceutical
industry. It maintains its position as the largest seller of health care products by
creating new products, acquiring other companies and selling divisions that have
not performed well.

J&J is seeking to rebuild its image as a trusted family brand. Last month it
launched an ad campaign, "For All You Love," with a black-and-white video full
of babies and parents, with lines including, "Love is family, love is life, and for
that life, you sacrifice it all."

100
2. BIBLIOGRAPHY

https://www.jnjindia.com/about_jnj/india
www.marketingteacher.com/.../ johnson-and-johnson-case-study.html
http://www.drugwatch.com/manufacturer/johnson-and-johnson/
J&J company history
http://www.knowthis.com/business-buying-behavior/buying-differences-buying-
center-decisions
http://www.learnmarketing.net/consumer.html
http://www.udel.edu/alex/chapt6.html
http://www.marketingteacher.com/consumer-buyer-behaviour/

101
3. APPENDIX (Questionnaire)
Johnson & Johnson

I, Farhan Kazi, a student of Sanpada College of Commerce & Technology

conducting a survey on buying behavior of the consumers for Johnson & Johnson
products. I request you to kindly spare a few minutes and help me in the survey.

Name

Occupation

Business

Salaried Person

Agriculture

102
 Student

Home Maker
Age

18-28

28-38

38-48

48-58

Above 58
Income

Below 19,000

20,000 - 30,000

30,000 - 40,000

40,000 - 50,000

Above 50,000
Q1) Have you ever used Johnson & Johnson baby products?

Yes

No
Q2) How would you rate (from 1-5, 5 being top of the line in Quality) the
quality and range of products Johnson & Johnson Offers?

103
Q3) In terms of cost/price, how would you rate the Johnson & Johnson
Products?

Excellent

Good

Fair

Not Good

Satisfactory
Q4) what are your comments or expectations on Johnson & Johnson?

Q5) Have you ever used any other company products other than Johnson &
Johnson? If yes, name a few.

Q6) Are you satisfied with this product?

Yes

No
Q7) Which Product do you think is complementary for Johnson & Johnson?

Q8) Do you want any improvement in this product?

Yes

No

Maybe
Q9) If in Use, usually you buy Johnson & Johnson products for:

Yourself

Baby

Family
Q10) what kind of purchase is it usually?

104
Planned purchase

Unplanned/ impulse purchase

THANK YOU

105