Global Marketing and Sales Management for Johnson & Johnson: A Comparative Study of China and UK

This report provides an overview of global marketing and sales management strategies of Johnson & Johnson in China and UK. It includes PESTLE analysis of both countries, customer and competitor analysis, market entry strategies, STP analysis, and marketing mix decisions. The report focuses on pharmaceutical products of Johnson & Johnson and provides insights into their market positioning and communication methods.

Global Marketing and
Sales Management

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Outlook image and profile of chosen organisation as well as category of selected products......1
Brief overview of marketing environment of China and UK......................................................2
Market entry strategy ..................................................................................................................6
STP analysis ................................................................................................................................6
Marketing mix decision...............................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES................................................................................................................................9
APPENDICES ..............................................................................................................................10

INTRODUCTION
Global marketing can be understood as an overall framework through which international
enterprises implements to design, promote as well as maintain products in regards with
worldwide arena (Gillespie and Swan, 2021). It is considered as essential as it aid organisational
managers in increasing their brand value and viability. This practice led to increase reputation of
company and aid in gaining competitive advantage in an effective manner. Main purpose of
global marketing is to enhance free trade at global level as well as attempt to increase globalised
practices in regards with trading. Sales management can be termed as practice of recruiting, co-
ordinating as well as motivating staff members which aid in implementing a cohesive strategy. In
order to better understand about the differential aspects of global marketing, Johnson & Johnson
is taken into consideration. It is an America based multinational corporation which deals in
packaged goods, medical devices and pharmaceuticals products. For comparing its operations in
global market, two countries, China and United Kingdom are taken into consideration.
This project report highlights an understanding of marketing environment based on
macro and micro factors of two selected countries. It also demonstrates an understanding about
marketing mix as well as STP decision of chosen organisation in selected countries.
MAIN BODY
Outlook image and profile of chosen organisation as well as category of selected products
Allocated company for this project is Johnson & Johnson which was established around
130 years ago and operating in principally in 60 countries. It is a multinational organisation
which is established in America and build on the principle of recognizing caring as well as
promoting healthy products around the world. They have a mission to indulge themselves in
getting 100% recyclable, compostable plastic packages which help them in gaining competitive
edge. In order to cater the demands of health-concious as well as empowered people, they are
implementing personalised digital solutions which lead to better outcomes. Their competitive
advantage comprises of their advanced technology, committed workforce and massive scale of
its business operations.
Managers of Johnson & Johnson majorly deals in skin health, beauty, self care and
pharmaceuticals products. Its major brands are Mortin, Aveeno, Dabao and man more.
Pharmaceuticals products have been chosen for this project report. Pharmaceuticals products are

developed by Johnson & Johnson through their subsidiary named as Janseen Pharmaceuticals
Companies. They believe in making the changes through developing innovative products in an
effective manner. They are working on making advanced biological as well as other treatments
for developing a transformative future. They are indulging in making their performance better
through enhancing their features of product delivery, research and development all over the
world in a strategic manner. They also support clinical developments as well as donation
programmes on a global basis for making their brand more viable.
Brief overview of marketing environment of China and UK
Macro environment is assessed through PESTLE analysis which talk about varied
external forces that can impact operations of an organisation in a strategic manner (De Mooij,
2019). PESTLE analysis of UK in relevance with pharmaceutical products of Johnson & Johnson
are as follows:
Country- United Kingdom
Factors Particulars Risk or challenges
Political Political landscape is stable in
UK (Clark, 2018).
Due to political stability risk of
change in policies is low to
Johnson & Johnson.
Economic Inflation rates are increased in
UK through an upward
trajectory by 9.1%. Taxation
rates has impacted the
economic sector of UK with
increase of 2.5% as compared
to previous year. In 2022, GDP
rates of UK are expected to
grow by 3.8% (Clark, 2022)
This has impacted on the
purchasing power of people
and led to reduce the profits of
Johnson & Johnson in
pharmaceutical category.
Social Average household size in
regards with UK is 2.4 and
increased household is A
reason for enhancing
This can be an opportunity for
Johnson & Johnson as they can
cater the largest section of
society. However, it also create

population (Lin, 2021). challenge for Johnson &
Johnson as they need to
increase their production, in
case of any disastrous situation
like corona pandemic.
Technological UK is considered as a leading
country which supports
technological advancements
and also provide significant
support to establishments
(Kumar and Bhatia, 2021).
Managers of Johnson &
Johnson invest their huge
resources in their research and
development processes for
developing innovative
products which poses as a
strength for them.
Legal In UK, there are no significant
trade barriers as well as
restrictions on transferring the
capital (Hanretty, 2020).
Less trade barriers poses as an
opportunity for Johnson &
Johnson for manufacturing
their pharmaceutical products.
Environmental In UK, strict environmental
laws are enforced by
government in regards with
maintaining air quality, waste
reduction and many more
(Tang and Et. Al., 2021).
Managers of Johnson &
Johnson are performing their
tasks easily by making
compliance with framed
environmental laws of UK.
Country- China
Factors Particulars Opportunities or challenges
Political Political landscape of China is
considered as authoritarian as
civil rights are essentially
curtailed as well as oppositions
This situation create
challenges for Johnson &
Johnson as disturbances in
political environment led them

are also gets suppressed
(Cheung, 2017).
to change their policies on a
continuous basis.
Economic In China, companies can hire
the labour in a comparatively
low prices. GDP rates in China
has increased by 2.5% in 2022.
Inflation rate of China is 1.5%
in 2022 (Inflation rates, 2022).
This creates an opportunity for
Johnson & Johnson and opens
up the ways for enhancing
their pharmaceutical product
line in China.
Social China has massive population
among which a large
percentage is literate (Yuan
and Et. Al., 2018).
This poses as an opportunity
for Johnson & Johnson as they
can get expert and literate
labourers for enhancing their
production level.
Technological China always supports
technological innovations
(Huang, Du and Tao, 2017).
In China, managers of Johnson
& Johnson have implemented
digital platform for ensuring
that orthopaedic surgeons
receives right devices for their
patients.
Legal China has implemented varied
trade barriers policy in order to
stop the transmission of corona
virus in last two years (He,
2022).
This is a challenge for Johnson
& Johnson as they have to
make compliance with custom
laws for exporting their
pharmaceutical products in
China.
Environmental Chinese government made
strict laws in regards with
protecting their natural
resources and eliminating
pollution (Zhao and Et. Al.,
Managers of Johnson &
Johnson comply with
environmental laws for
manufacturing their

2018). pharmaceutical products.
Micro environment assess the factors such as customers and competitors which led
organisational managers in addressing needs and desires (Gillespie and Swan, 2021). Customer
analysis in relevance with China and UK is as follows:
United Kingdom
Values of UK people are based on protecting the role and responsibilities of its citizens as
well as enhance democracy. There are no or little trade barriers which help people to enjoy the
imported commodities even in regards with necessities and essentials. British consumers tend to
respond well in regards with advertisements which help marketers of Johnson & Johnson in
influencing their decision in a strategic manner. They are also considered as careful spenders
while having a pragmatic approach. Their attitude is to spend a huge sum of money on leisure
activities rather than essentials.
China
Values which are upheld by Chinese people are harmony, respect, wisdom which led
them to enhance their perspectives for the society. They also are very dedicated to their work and
wants to gain perfection. Chinese people tend to develop shopping habits at their youth. They
tend to do shopping in accordance with their living conditions and level of earnings. On the
basis of these consumer habits, managers of Johnson & Johnson are promoting their
pharmaceutical products in a strategic manner.
Competitor analysis
Competitor analysis of Johnson & Johnson and Pfizer are mentioned below:
Basis Johnson & Johnson Pfizer
Strengths Its strength is to maintain a
global public image from a
very long time.
Market leadership is
considered as strength for
Pfizer.
Financial strengths It generates huge profits from
its operations which are
considered as financial
It has developed corona
vaccine by using its huge
sources strategically.

strength for Johnson &
Johnson.
Management strengths It has developed innovation as
well as R&D departments for
performing better.
Its know-how techniques have
gained huge response in recent
years.
Market entry strategy
Varied market entry strategies are as follows:
Strategic alliances can be understood as an arrangement among two companies whereby
they determine to undertake a mutually beneficial project as well as retain their independence
(De Mooij, 2019).
Greenfield investment can be understood as type of foreign direct investment whereby
parent organisation develop their subsidiaries in differential countries for making the brand more
viable (Gbadamosi, 2019).
Licensing can be termed as business arrangement whereby one organisation provide
permission to other for manufacturing their products in exchange of a specified payment (Ratten,
2017).
Managers of Johnson & Johnson have made entry an entry in Chinese markets through
technology-transfer agreement in order to build a chemical factory. Later they have established
joint venture with Janssen Pharmaceuticals Limited. Managers have chosen joint venture in order
to enter into Chinese market for gaining knowledge about the domestic market and setting up of
an effective distribution channels.
In order to enter into market of UK, managers of Johnson & Johnson have made
collaborative practices as well as strategic alliances with establishments operating in United
Kingdom. They have seven business locations in United Kingdom comprising of innovation,
distribution centres and R&D facilities. Managers of Johnson & Johnson have entered into UK
market through strategic alliances as it can help them to have a control and independence over
their operations in an effective manner.
STP analysis
STP analysis is a framework which is used by organisational managers for determining
their targeted audience and positioning their products in marketplace effectively (Kasemsap,

2018). All the forces of STP analysis of Johnson & Johnson in accordance with China and UK
are as follows:
Segmenting- This stage is concerned with getting an idea of targeted audience in a
strategic manner (Agarwal and Wu, 2018). It is imperative for managers of Johnson & Johnson
to bifurcate the segments into specific attributes in order to gain clarity regarding the people. For
example, managers of Johnson & Johnson use segmenting in UK on the basis of demographic
aspect whereby they choose to cater the areas of London and Edinburgh. In relevance with
China, they have targeted their customers on the basis of income level as they have to cater a
huge population who hails from different income groups.
They also target their customers on the basis of buying patterns and economic status. In
accordance with UK, they have chosen to target geographical areas of London and browsing
habits of people for their pharmaceutical products. Education level is also targeted in this respect.
Targeting- In relevance with China, managers of Johnson & Johnson target customers on
the basis of population as their massive stock of medicines and pharmaceutical products are
considered as essential for catering needs of masses. In regards with UK, managers of Johnson &
Johnson targets customers on the basis of reachability as well as profitability. As they can reach
to massive customers due to lack of strict trade barriers.
Positioning- At this stage, communication methods are chosen in order to reach to
targeted customers in a strategic manner (Mense and et. al., 2018). In accordance with UK, they
essentially use Google analytical tools for reaching and creating networks for promoting their
pharmaceutical products. While in China, they use personal networks as well as direct selling
methods in order to reach their targeted customers. Unique value proposition of Johnson &
Johnson is their innovative healthcare products, brand recognition and use of advertising medium
has helped them to make their distinctive position in China and UK. They positioned themselves
in market of China and UK through their strong brand presence and use of digital channels.
Marketing mix decision
Product: Product is an important component of marketing mix as it includes features,
characteristics of the commodities. It helps in attracting the customers by including additional
features in an efficient manner. By offering an appropriate product, it is possible to attract huge
number of customers in order to attain higher sales and profit margin in future period of time
(Zolotukhina and et. al., .2017). In this context, Johnson and Johnson offers variety of products

related to skin health and beauty. Basically, they produce standardized products. The main aim
of the company is to produce such products which are suitable for the skin and health. Therefore,
they carried out extensive research before introducing any product in market. Apart from this,
they are likely to perform regular testing of products so that it can be improved to get better
results in future period of time.
In context of UK, the company maintains a better position. They are considered as one of the
significant brand to offer health & skin care products. In addition to this, they strive to make
their products standardized and appropriate as per demand of customers. It is analyzed that the
people of UK are highly aware about their skin and health hence the respective company needs
to make necessary improvements in their products as per requirements.
On other side, Johnson & Johnson brand is present within China for more than three
decades. Now, they have been gained trust of the people of China. Also, they are likely to
provide best quality of pharmaceutical products to the people of country. As the China is really
advance in terms of research and technology. The people of country are smart hence they
demand for standard products with best quality. By keeping this factor in consideration, the
respective company needs to produce standard and advance products. By producing such
products, they can easily fulfil the demand of the customers of both the countries. Here,
improvement in the existing product range will allow the organization to gain trust of people in
significant manner. Further, it will also make them enable to maintain positive reputation among
the existing set of customers. By improvising the products, it is easy for the entity to attract more
and more new buyers to enhance the overall sales & profit margin.
The respective company follows multi domestic strategy where they make necessary
modifications in strategy as per the environment of country they are operating.
In UK, the basic formula of products, brand name, logo is same. However, the company
modified its packaging, colour and other such features as per the environment of the country.
In comparison of UK, the China has made changes in the basic features of the
pharmaceutical products. However, the formula of medicine, brand name, logo has been
followed as earlier.
The main reason to follow standardized strategy is to maintain the same identity of the
brand in different nations across the globe. It helps in creating trust among people due to the
identical features of product worldwide.

The main reason of following adopting strategy is to connect with domestic people of the
respective country. It allows the company to make changes in product as per the culture of
different countries. Further, it makes the organization enable to adjust in different environment,
culture in significant manner.
Price: It is the other important element of marketing mix of an organization. It refers to
the value paid by the customers in return of the benefits, they are receiving from the product. To
attract as well as retain the buyers, it is highly important to set an adequate price of the product.
By setting appropriate price, it is possible to attract ample of buyers (Lahtinen, Dietrich and
Rundle-Thiele, 2020). In addition, suitable price also makes the company enable to earn
Ssubstantial amount of profit. An entity needs to consider ample of factors while setting the
price. SThey need to consider profit, sales, ability of customers to pay and other such factors.
These all elements allow the business entity to set an adequate price for product or service. In
context of Johnson and Johnson pharmaceutical, they charge adequate price from the customers.
They offer health care products, drugs which fall under essential needs category.
IN UK, value based pricing is followed by majority of the companies so that they easily
charge the adequate amount of price from the buyers. Here, target customers of the respective
company are those who look for good pharmaceutical products in return of the price they are
paying. Additionally, In UK, majority of people are wealthy. They have necessary money to
fulfil their requirements. Therefore, value based pricing is followed by the respective company in
order to gain the attention of customers (Ferrell, Hartline and Hochstein, 2021).
In China, penetration pricing strategy is used where companies set lower price of the
products to gain the attention of more and more customers. In this context, the target customers
in the respective country are likely to get attracted towards lower price products. Therefore, the
respective company adopts price penetration so that they can easily gain the attention of
customers. Also, the pricing allows them to earn suitable amount of profit in order to ensure long
term sustainability in significant manner (Charter and Polonsky, 2017). They also consider the
environment of both of the countries while setting the price significantly.
Place: Place can be referred to as the geographical location or specific area where the
organisation desires to sell its production services to the target customers in the market (Lahtinen
and et. al., 2020). Johnson and Johnson can use standardised practices for distributing their

products and services in the markets across the UK and China. For the UK the company can use
its own distribution channels that are easily available for the organisation to sell its products and
services in the market. The people across the UK prefer to go and purchase things from the mega
stores that provide everything at one place so that the requirements of the customers are fulfilled
easily. The one shop stores are very common within the economy of the UK and it will provide a
feasible growth of the organisation by computing as a similar brand that has the capability to
become a supermarket retail store.
For China, Johnson and Johnson can use wholesale and retail distribution systems which
are very common throughout the markets in China. The consumers in China are mainly familiar
with the small grocery stores for fulfilling their day to day needs. Due to this, the organisation
could easily place its products in the market with the help of wholesalers and retailers so that
maximum customers in the Chinese Market can obtain the goods and services of the company.
The preferences of buyers across the UK market and Chinese Market are entirely different from
each other. This is because the preference of customers in both the economy to purchase goods
and services are highly different. In the UK the behaviour of customers is to purchase goods and
services from the super retail market shops. So the organisation can use various strategies of its
own distribution channel and wholesaler and retailer shops for selling their products. Johnson
and Johnson can use various other methods to place their products in the market through
sourcing, piggy backing, direct sales, subsidiary selling units, own distribution centres etc. The
organisation can adapt these strategies of placing their products into the markets across the UK
and China.
Promotion: Promotion refers to the activity of an organisation to market, create
awareness, popularise and advertise their products and services to their prospective customers.
Promotion is very important for an organisation to create demand for its products and services in
a given market (Stead and Hastings, 2018). There are various methods of promotion that can be
used by organisations for effectively promoting, popularising, advertising and marketing the
products and services of the organisation. Some of the promotion methods that can be used by
the organisation within the UK and China are advertising, public relations, direct marketing,
sales promotion etc. Johnson and Johnson can use these above the line and below the line
promotion methods for creating awareness among the customers.

 Personal selling or direct selling can be explained as a strategy of promoting the goods
and services of the organisation by selling and promoting the products directly to the
customers by the sales representatives appointed by the organisation (Baines, Fill and
Rosengren, 2017). In case of UK, Johnson and Johnson uses the personal selling policy
and has sales representative. This is beneficial because it enables the company to get
ahead of competitors. On the other hand Johnson and Johnson has partners in China
namely the Legend biotech which is Chinese firm. The company collaborates with them
to promote the product through direct and personal sale. This is suitable for China as
Legend Biotech as more information about Chinese market. Sales promotion can be explained as the form of promotion activity by which an
organisation tries to attract more and more customers by alluring them (Steenkamp,
2017). For this purpose Johnson and Johnson can use various sales promotion methods
such as events, coupons, customer loyalty cards, gifts and vouchers, offers etc. In UK
Johnson and Johnson conducts sales promotion through endorsements through celebrities
such as Dwayne Johnson who are famous in UK. In context of China sales promotion is
conducted through professional marketing campaigns completed on various traditional
and digital channels. This is opposite of UK as China has strict policy in regards to
celebrity brand endorsement. Direct marketing can be explained as the activity of an organisation to directly interact
with the customers from various sources such as messaging, Door to door marketing,
leaflet, social media promotion, online and digital marketing etc. (Kumar Shankar and
Aljohani, 2020). Johnson and Johnson can use these direct marketing options to promote
their goods and services in the markets across China. In case of UK direct marketing of
Johnson and Johnson includes marketing products to medical professionals and other
consumers through sales representatives. On the other in China direct marketing of
Jonson and Johnson involves using personal stories and evidence of satisfied consumers
to attract new consumers. This is suitable choice since Chinese culture is less
individualistic than UK and consumer advocacy can help the brand in the country. Public relations can be effective option for the organisation to promote its brands'
products and services in the markets across the UK. The huge events and commercial
places like trade fares, sponsorship, press release, newsletter, social media, etc. can

provide great opportunities for Johnson and Johnson to improve its promotion activities
across the UK and China. Public relations of Johnson and Jonson involve press release
and product launch events. On the other hand in China the approach of Johnson and
Johnson towards public relations involves considering factors affecting Chinese market
such as collectivist society, belief in traditional medicine practices and strict dictatorship
government.
 Advertising is a broader method of promoting goods and services of the organisation
across the markets across the UK and China. Advertising uses many methods that can be
helpful for Johnson and Johnson to interact with customers across the UK and China
market. In the UK market Johnson and Johnson uses print, TV and social media
advertisement to promote products. China is experiencing online boom which has
resulted in Johnson and Johnson relying on digital marketing to promote its products.
Johnson and Johnson can develop an interesting advertising campaign to improve its
promotional strategy. For this purpose the company can use the mix of various
promotional methods to achieve success in its promotion campaign across the UK and
China markets.
CONCLUSION
From the above presented information, it has been concluded that global marketing is a
broader term which encompasses of varied aspects such as regulations, laws and technological
forces which needs to be addressed by organisational managers. STP analysis is taken into
consideration for analysing the target customers and strategies for positioning the products
through proper communication channels. Organisations need to address varied aspects and
analyse varied things such as values, beliefs and attitude of people while operating into
differential countries.

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APPENDICES
Figure 1: Inflation rate in UK in 2022

Figure 2: Consumer price index of China