Evaluation of Marketing Strategy

This report evaluates the performance of Johnson & Johnson considering its marketing mix strategies. It also reviews the control process, metrics that could be used to measure performance and suggests corrective actions for the marketing mix elements.

Running head: EVALAUTION OF MARKETING STRATEGY
EVALAUTION OF MARKETING STRATEGY
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Introduction
Each company that survives, creates and sustains its business and besets the consumer
confidence are looking at its business at wide aspect other than just making amass profit.
Johnson & Johnson is one such company, it takes care of its customers worldwide and build,
nurture a strong long-term relationship with them including all the stakeholders. The
company has become a trustworthy company which socially responsible with an ability to
capture the confidence of the investors (Khan, 2014). The objective of this report is to assess
the performance of the company considered each element of the marketing mix and evaluate
its performance. It evaluates the areas including its target achievement of sales goals,
performance diagnostic tool that can be used by the company. It also analyzes and describes
the ways in which the company is equipped to meet the future challenges of the business
organization.
Discussion
Evaluation of marketing mix
The marketing mix strategy of the company analyses the company which including the
product, price, place and promotion strategy.
Product strategies
The company has a wide and elaborate product portfolio which focuses on the three major
categories that is the pharmaceuticals, the consumer products and the medical devices. It
provides baby categories products such as the body lotions, creams, soaps, nappy pads,
shampoos and other products (Mintz & Currim, 2013). The company offers various
categories of items and types of product. It offers various skin care product under the
category of consumer products such as facewash, creams, moisturizes and other items. It also

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offers wounds care segments and also pharmaceutical products which are considered to be
the major segment of the company. The medical equipment of the company mainly includes
the spinal care, anti-fungal and other contraceptive items.
To evaluate their product strategy, according to the recent study, the above-mentioned
categories and the products offers contributed to approximately 35% from the pharmaceutical
sector, 19% from the medical devices and the 44% from the consumer products (Pfannerstill,
Guse, & Fohrer, 2014). Johnson & Johnson, mainly craters to the consumer line product. As
per the report the company gained major profit and revenue from its pharmaceutical product
items.
Pricing strategy
The company major success is followed by its pricing strategy, which is set at an
affordable rate which enables wider reach to all income group people. The affordable and
reasonable pricing strategy of the company has helped it to maintain its positive and
profitability as all the consumer are able to consume the products offered by the company
(Schultz & Peltier, 2013). The company has tactfully decided on affordable pricing and its
superior quality products with proper packaging. This has generated more sales and revenue
for the company.
Place strategy
Johnson & Johnson has an extensively strong distribution channel network; it has a well-
organized and efficient team which enables the company to manage its business activities and
operations of its products and services. The place strategy of the company has been
appropriate as it has helped the company to get an edge over its competitors. It has a wide
and well distributed network which is a part of their marketing strategy. However, as there is

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an increasing trend of online shopping and advancements in technology, the company has not
been able to utilize the online selling platforms in an efficient way.
Promotion strategy
Johnson & Johnson has a string promotion strategy as a part of their marketing mix.
The company has efficiently implemented their promotional strategy, through continuous
advertising via different media. It follows the promotional strategy of 360 branding which
enables to company to create awareness of the new and existing product and induce the
customers to make a purchase (Schultz & Peltier, 2013). The advertisements are efficient
enough to appeal the customers to make a purchase. Johnson & Johnson never compromises
the importance of spreading awareness and has utilized its capabilities and abilities to reach
out the people.
2. The control process
a) Organizations target to meet sales goal
Johnson & Johnson targets are set on the monetary value, the sales generate and the
number of accounts. It ensures that the sales target is visible and is for the entire team. The
company has an effective sales force which positively impacts the entire organization, the
effective sales representatives of the organizations which help the organization to meet the
sales goal of the company (Jeni, et al., 2013). They have training sales personnel, which helps
the company to achieve its sales goals and meet its se targets.
b) Metrics used to measure performance
The sales target of the company is measured by KPI which current sales revenue and
compares it with the pre-set target or past performance. The company monitors the sales

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performance against its targets which is the core tenet of Johnson & Johnson’s sales
management strategy and it creates a data driven culture which enables the company to
measure its performance with the target and the sales goals of the organization (Huang &
Sarigöllü, 2014).
c) Suggested Performance diagnostic tools and corrective actions
Johnson & Johnson can use sales leader board to measure the sales performance
against the pre-set targets and goals of the organization and display it on the television, so
that it is visible for the sales representative and its team. The company can also consider
setting up a sales force dashboard. This will help the company to monitor the sales and
monitor its performance effectively. Additionally, the company can also use KPIs and sales
metrics and customer acquisition (Huang & Sarigöllü, 2014). The corrective actions that can
be implemented by the company to improve the marketing mix strategies are emphasising on
the sales performance especially online platforms and enhancing the platform so that the
customers find it easier to place their orders.
The organization needs to be more customer-centric and review its performance
regularly. It has been analyzed that the company is performing well and meets its targets
however, since there are emergence of new competitors and change in the customer tastes
and preferences, the company can take corrective action to enhance its online facilities to
meet the demands of the customers who prefer online services. Further, it can improve its
product offering and innovative products to cope up with the increased competition in the
market (Mintz & Currim, 2013).

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3. Description to meet the future challenges of the marketing
The company has a strong point which is based on the fact that the executives of the
company use adaptation of entrepreneurial values in its operations. Therefore it can be said
that the company’s executives stand on and helps the company to maintain its market positive
and maintain a competitive edge of the company as mentioned above. This area provides the
company a core value for the company to operate in coordination around the world.
Moreover, the size of the company is another competitive advantage of the company, thus it
can meet the future challenges of the marketing (Fan, Lau & Zhao, 2015). It has a strong
positive for the global group; it has the capability to gain the economies of scale in the
international market.
Further, Johnson & Johnson also utilizes various problem-solving techniques and
policies in order to overcome the challenges of standard practice and capitalize its growth and
expansion which indicates that the company is in strong position for the global group. The
future challenges that can be faced by the company are reduced market demand due to the
emergence of new competitors in the market and the closed culture of the medical industry
are some of the factor the company should take into considerations in order to maintain its
position in the market (Huang & Sarigöllü, 2014). The company needs to analyze the current
situation to face the future challenges. However, the characteristics of the company influence
it to implement decisions effectively.
There is an increasing pressure in the pharmaceutical market to reduce the prices of
the medicines, to over the industry related challenges and risks, the company have recently
highlighted new developments in the products of pharma (Fan, Lau & Zhao, 2015). The
pharmacy products have five undergoing regulatory review which gives the company
opportunity to expand its existing product line and portfolio and at the same time to can

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overcome the challenges and marketing risks (Jeni, et al., 2013). It is recommended that the
company continue to develop new functions of pharma products and enter into new markets
which will enable the company to grow its business.
Conclusion
Therefore, from the above analysis it can be concluded that the company is well
equipped to meet the challenges and risks related to marketing and other industry related
risks. However, it needs to further increase its product line and product portfolio to overcome
the challenges of increased competition and price reduction pressures in the medical industry.
The report has evaluated the performance of Johnson & Johnson considering its marketing
mix strategies of the company. Further it reviews the control process, the metrics that could
be used by Johnson & Johnson to measure performance and suggests other corrective actions
for the marketing mix elements. Lastly, it has provided detailed description of the ways in
which the company is equipped to meet the future challenges of the marketing.

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