Advertising and Promotion Strategies for Johnson & Johnson: A Report

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This report provides a comprehensive analysis of Johnson & Johnson's advertising and promotion strategies, encompassing various aspects of marketing communications. It examines the importance of advertising, branding, and creativity in building a strong brand image and influencing consumer behavior. The report delves into the roles of different organizations within the advertising and promotion sector, including advertising agencies and media channels. It also explores the regulatory framework governing advertising and promotion in the United Kingdom, highlighting compliance requirements. Furthermore, the report discusses current trends in advertising and promotion, such as television and internet advertising, and their impact on customer engagement. Overall, the analysis focuses on the integrated promotional strategies employed by Johnson & Johnson, providing insights into the company's approach to reaching its target market and achieving its marketing objectives. The report covers topics like market communication, advertising regulations, consumer behavior, and promotional techniques. The report also emphasizes the use of ICT and e-advertising in public places.
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Running Head: MANAGEMENT 1
Advertising and Promotion in Business:
Johnson & Johnson
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MANAGEMENT 2
Table of Contents
Task 1: Understand the scope of marketing communications.....................................................................3
1.1............................................................................................................................................................3
1.2............................................................................................................................................................4
1.3............................................................................................................................................................5
1.4............................................................................................................................................................6
Task 2 Understand the Role and Importance of Advertising.......................................................................7
2.1............................................................................................................................................................7
2.2............................................................................................................................................................8
2.3............................................................................................................................................................8
2.4............................................................................................................................................................9
Task 3 Understand Below-the-line techniques and how they are used.....................................................10
3.1..........................................................................................................................................................10
3.2..........................................................................................................................................................11
Task 4 Be Able to Plan Integrated Promotional Strategies........................................................................12
4.1..........................................................................................................................................................12
4.2..........................................................................................................................................................14
4.3..........................................................................................................................................................15
4.4..........................................................................................................................................................16
References.................................................................................................................................................17
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MANAGEMENT 3
Task 1: Understand the scope of marketing communications
1.1
Market Communication is an important part of the organizational process. Under the process of
advertising and promotion, communication is the process of sending a message and related
media that is used by an organization to communicate with its target market. This process plays a
vital role for influencing the buying behavior of customers and then it will impact the overall
success of marketing process. It is very easy to state that marketing communication has a critical
role in the growth and success of company (Armstrong, 2014). A communication process
includes different components, like; sender, receiver, message, media, encoding, decoding,
response, feedback and noise. Johnson & Johnson is adopting an effective market
communication process for reaching to its customers. The communication process at Johnson &
Johnson includes various activities, which begins with transforming the data into material
information by marketing management. In the given case study, all the components of Johnson &
Johnson’s communication process were managed very well.
In this process, Johnson & Johnson is the first party, which is sending the message to its
prospects, so it is the sender in its process. The organization encoded its message “Girls Talking”
to become its tagline, when they advertised the Clean & Clear with the vision that it will help the
teenagers in getting rid of existing spots (Andrews and Shimp, 2017). The advertising by this
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MANAGEMENT 4
tagline was accepted by the girls in United States, but it was viewed adversely by the teenagers
in Britain. The message was not that much simple. The message that they sent to the people is
that it is an organization with the ideas, which emphasize on the major concern among teenage
girls. It has introduced a skin care product for treating spots. There are different communications
channels, which are used by Johnson & Johnson to convey the message are television, press,
websites of Johnson & Johnson, advertising campaigns, internet, magazines etc. These are the
major media elements (Ashley and Tuten, 2015). Audiences of the company are the decoders of
the message, sent by company. Potential customers are the receiver of that message. The
response of public to the brand message of the Clean & Clear was not favorable to this brand.
The feedback from public cleared that the tagline of company does not had an effective impact
on the mind of customers and they take it negatively. The communication process at Johnson &
Johnson is very dynamic. It used various strategies to approach its customers about its new
products and services (Baines, 2012).
1.2
Promotions and advertising sector has a comparatively complex structure that includes various
organizations. These organizations can be divided in different parties, i.e. advertising agencies,
media, Creative hotspot and marketing agencies (Baker, 2010). Each of them has different roles.
Advertising agencies:
Johnson & Johnson is offering its products and services in United Kingdom by taking assistance
of different advertising agencies. In the United Kingdom, there are so many agencies, which can
assist Johnson & Johnson organization in their advertising and promotion process (Barden,
2015). It had partnered with one of the most popular advertising agency in United States, i.e.
UM’s J3. This advertising agency made it able to create new and innovative scripts, which
included all the insights from actual conversations between teenage girls in United Kingdom. In
addition, the advertising agency of this firm found some opportunities and advertised the
products to Boyzone Concert.
Creative Hotspot:
It is a team that includes various experienced designers, visual experts and animators, who assist
the organization in communicating their communication message and information to the public
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by using cyber hub. It is an effective tool in the area of online advertising. Johnson & Johnson is
using this method in its online advertising. In the online advertisement, it is using animations,
design, augmented reality and visual arts, which can attract teenage girls in UK. For this, it is
hiring experts in this field (Berger, 2011).
Media channels:
Media channels are the channels, which offer direct communication with the potential customers.
It includes the different TV channels and digital marketing agencies. The company has
consolidated with a popular TV channel to give the advertisement on favorite TV program of
teenage girls, like; The Big Breakfast. By using the media, the company is putting emphasis on
customer behavior. It is the major marketing and promotion tool, which is used by Johnson and
Johnson promoting its products to the customers (Boone, 2015).
Thus, the organizations in promotion and marketing industry play important role in the
communication process of company.
1.3
As per the given case study, Johnson & Johnson had introduced Clean & Clear in United
Kingdom, so it needs to comply with the related laws and regulations for the advertising and
promotion of its products. Promotion is the process of increasing the awareness of buyers in the
products and services, which are provided by an organization in the market. It assists to create
sales, developing brand loyalty and some other advantages. Promotion regulation is the way, in
which a company advertises its products in the perspective market with the compliance of
imposed rules and regulations. There are so many regulations, which are imposed on advertising
and promotion in United Kingdom and Johnson & Johnson needs to follow all the laws and
regulations. The promotion process is controlled and regulated different legislations and code of
practice (Cooke and Marion, 2015). To safeguard cheating people by fake promotion and
publicity, there are several bodies, which regulate the promotional activities. Major regulatory
bodies in UK promotion are;
Bar Standards Board:
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MANAGEMENT 6
It is a regulatory body, which was established in the year 2004. It operates its separate
regulations on advertising activities. It makes sure that company is providing better quality and
reliable products and provided information is consistent with the product’s quality.
Advertising Standards Authority:
Advertising Standards Authority is a regulator for advertising across all the media and
advertising agencies in United Kingdom. This works on the complaints and supervises the media
to take action against harmful, offensive and misleading ads, directing marketing and sales
promotion. Johnson & Johnson needs to focus on offering real information about the products.
The benefits and information about products should not be fake (Dhar and Varshney, 2011).
Commission of Advertising Practice:
It is a self-regulatory body in United Kingdom. It makes different codes for broadcast
advertising, which are administered by Advertising Standards Authority.
1.4
The current trends in advertising and promotion are related to the implementation of technology
for communicating the message to the target audiences. There are different current trends, which
are promoting the process of promotion, which were used by Johnson & Johnson. These
marketing and advertising trends are given below;
Television Advertising
In this era of technology, the organizations are using TV advertising for promoting their products
to customers. The trend of watching TV is increasing with the time, which is helping Johnson &
Johnson in fetching the customers and impacting their behavior. As new perception developed in
today’s market that if its products and services are not displayed on television, then it has
disappeared out of the market (Dissanayake and Wijenayake, 2016). Johnson & Johnson had
chosen the television shows, which are most popular among teenage girls.
Internet
Johnson & Johnson has also exposed its interest in approaching the customer behavior with this
media. The company is choosing this method, because most of the people are actively engaged in
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MANAGEMENT 7
using internet. To impact the behavior of people, the company used web-advertising using
Google ads and other web-sites.
Other current trends
Apart from above trends, the company had used social media sites, like; Facebook, Twitter,
Instagram, niche marketing, Press marketing, use of banners and posters etc. These trends in
promotion are very important in order to influence the customer behavior.
ICT (Information and Communication Technology) has proven an important tool in the growth
of any business. It is assisting Johnson & Johnson in going closer to its potential customers
through digital marketing and internet. E-advertising display at public places is one of the major
attractions for the people. It enables the sales personnel to directly interact with the customers for
advertising and marketing of the products (Dibb, Simões & Wensley, 2014).
Task 2 Understand the Role and Importance of Advertising
2.1
Advertising plays a significant role in the promotion and marketing of any product or service. It
is very important for the growth of product in a selected market. An organization needs to pay
for the advertisement but these costs and expenses are very justified by the sales return. Johnson
and Johnson Organization have used effective advertising process under its integrated promotion
strategy (Finne, & Strandvik, 2012). It assisted the organization in enhancing the brand image
and its return for long term. By using advertisement and promotion, the company is fulfilling
various objectives, like;
Influencing the customer behaviour
Creating awareness among people
Communicate message behind the product, i.e. Clean & Clear
Make favourable and positive impressions
Satisfying the needs and requirements
Strengthen customers attitudes
Establish an effective brand image in the market
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Thus, advertising and promotion played in important role in the integrated promotion strategy of
Johnson & Johnson Corporation.
2.2
Branding is a particular attribute of the product, which attach the company with its potential
customers. It assists the organization in developing trust among the customers, employees and
customers about the products and services. It can be processed by using any symbol, image, logo
and slogan. The major objective of this process is to serve the people by making differentiation
in the products. By considering the brand, customers develop trust in their preferred brand as
they have idea about that what they are purchasing and what to suppose (Finne, Finne, Grönroos
& Grönroos, 2017). So for Johnson & Johnson, developing strong branding is very much
effective for making influence on customers.
At Johnson & Johnson, the company is using effective tagline to attract the customers and
enhances trust and confidence for the company. This assisted the company in influencing not
only consumers but also its employees, stakeholders and other parties, which are related to
organization. It is very true that organization uses branding as a major strategy for strengthening
its products because it enhances the value and goodwill of the company. The branding of
Johnson & Johnson is very strong, so the demand is still stable with the increase in its prices. The
people can look at the company’s branding by looking at its name, logo and stripling. The people
identify Johnson & Johnson by its logo (Funk, 2013). It assists its products to stay apart from
intense competition in the industry and develops exclusive brand image, which helps it in
creating more loyal customers and enhance the value of company.
2.3
Creativity is an important factor in the process of advertising and promotion process, because it
plays a significant role in developing a brand image of company’s products and services in the
minds of customers. If the company includes creative messages in its advertising, then it will
assist the organization in getting more attention and direct to the positive perception about the
products (Gerson and Gerson, 2014). Creative aspects of advertisement emphasize on developing
a sharp and intelligent advertisement that will inspire the customers to purchase the products.
Under this, the company needs to focus on four major aspects, such as; manufacturing the
products related to the needs of customers, co-operate with the brand message, committing value
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MANAGEMENT 9
to the potential customers and emphasizing on the products as the center of advertisement. A
successful promotional campaign includes some effective strategies to create brand awareness
among people. Johnson & Johnson is also developing a creative message, i.e. “Real Girls” to
promote its products in the country (Jensen, 2013). Prior to this campaign, the Clean & Clear
brand was unable to meet its goals and objectives. By developing this creative theme, the
company was able to change its image in UK. Johnson & Johnson can use this effective
advertising campaign for branding and rebranding of the products. This was the best creative
aspect to attract the teenage girls towards Clean & Clear product of Johnson & Johnson
Company. In addition to creative message, the company can use creative language, graphic
designs, visual aids etc. It will attract the customers towards its products and services (Gupta,
and Shukla, 2017).
2.4
In today’s business world, the organizations work hard to make sure that they offer excellent
goods and services to the potential market. These companies hire advertising agencies to assist
them in communicating the advertisement messages to people. For these companies, it is
significant to develop better relations with them, so it can be mutually profitable. In order to
communicate with the customers, they need to advertise and promote the products and services.
When an organization avails the services of advertising agencies, it needs to develop better
relations with these agencies (Hackley, 2015). There are different ways, which can be used for
working with advertising agency. Three of the right ways are stated below;
Know the needs of customers:
When a company takes the assistance of advertising agencies, first it assumes the needs and
wants of their customers. Sometimes, organizations think that they understand their customers as
their product sales are going very well. It is a common mistake. In this process, the advertising
agencies may advise to conduct marketing research to know about needs of customers and how
they can reach to them. However, it will incur higher costs, but it will be beneficial to the
promotional campaign (Hybels, 2014). For example, Johnson & Johnson needs to conduct the
market research to understand the needs of customers then it should introduce its products in
market.
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MANAGEMENT 10
Inclusion of technology:
Working with advertising agencies, the company should emphasize on making the advertisement
more attractive and creative. There would be the need of science and technology behind
advertisement and promotion. The color collaboration and words with attractive pictures
contributes the organization in enhancing the effectiveness and attractiveness of ads (Luxton,
Reid and Mavondo, 2015). Although Johnson & Johnson understands about the creativity of the
advertisement, but its advertising agencies have expertise in this area and they know how a
company can advertise its products. With the assistance of advertising agencies, the company
can make the ads more attractive.
Analyze the effectiveness of Advertising campaigns:
After giving an advertisement, the company can evaluate the effectiveness and success of its
promotional campaign. Sales are the best dimension to measure the effectiveness of ads. Apart
from this, the advertising agency of the company can conduct interview and survey of its
customer base to analyze what is going right or what is not. Johnson & Johnson can evaluate and
monitor the effectiveness of its advertising campaign along with its advertising agencies.
Task 3 Understand Below-the-line techniques and how they are used
3.1
Below-the –line promotion is a short term marketing practices, but these practices are primarily
targeted the customers. When an organization wants to attain its communication objectives
successfully, but has low budget, then it should use below-the-line promotion techniques. It
includes the different forms of non-media advertising and non-media communication. This type
of promotion is becoming very important within the promotion mix of several companies, not
only for the FMCG goods, but also for manufacturing products. These techniques assist in
approaching the potential customers directly and more quickly (O'guinn, Allen, Semenik, &
Scheinbaum, 2014).
In the given case, Johnson & Johnson can use below-the-line promotion techniques, so that it can
connect with the customers directly. Apart from advertising agencies and media channels, the
company can use some other methods for promoting its products to the customers. There are
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some forms of communication, which can be used by Johnson & Johnson, such as; direct mails
to customers, e-mail marketing, sales promotion and price promotion techniques. By creating an
attractive mail, Johnson & Johnson can inform its regular customers about its new products and
services. This mail should be very professional and explanatory, so that customer cannot avoid
their message (Okazaki, and Taylor, 2013). Under below-the-line promotion, price promotion is
one of the major techniques, which can be used by this organization. The company can offer
discounts on existing products and more products on existing price and it can cut the prices of
products. It will assist the company in enhancing its sales for a short duration. So, company
needs to implement this technique very carefully.
3.2
There are some other techniques of below-the-line promotion, which can be used by Johnson &
Johnson in the future. These techniques can be useful for the growth of organization and its
products and services. Johnson & Johnson can implement various techniques under this
promotion, like; coupons, sponsorship, free gifts with their purchases, Point of Sale displays etc.
Coupons:
Coupons are the useful way of providing discount on the products. It increases the redemption
rate. It is necessary when any person desires to introduce new products and services in
marketplace but ensure that he has enough coupons. Coupons have their benefits as well as their
disadvantages. The companies have the advantage of passing along savings directly to the
consumers (Pearson, 2016). Customers identify the discounted coupons as temporary offer than
reduction in the prices, so it does not have negative impact on sales. Apart from this, extreme
distribution of coupons increases the chances of mis-redemption and fraud. The clutter of
coupons can lessen the effectiveness of the company.
Sponsorship:
Johnson & Johnson can use sponsorship as its promotional strategy, in which the organization
can make investment in organizing various events and educational plans. It can be very effective
and ethical for the organization. Sponsorship can assist Johnson & Johnson in approaching a
maximum customer base and informing about their products. Apart from this, there are some
disadvantages of this technique as it is very expensive. The company needs to invest a huge
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MANAGEMENT 12
amount on sponsoring an event. There will be need of better presentation of organization and its
business, it means the logo, colors and fonts should be designed effectively, and otherwise it will
have adverse impact on the image of company.
Point-of-sale displays:
Point-of-sale display is the form of sales promotion, which is found near and next to the check-
out counter at store. They are used to drive the attention of customers towards its products.
Johnson & Johnson can use this form of promotion at its stores. The check-out counters of
Johnson & Johnson stores can be cluttered with small size cosmetics and other products displays.
There are so many advantages of this promotion technique, such as; it will attract the people into
the stores of Johnson & Johnson by advertising it through offers and unique selling. It will assist
the organization in effectively communicate the message to the people (Teck Weng, and Cyril de
Run, 2013).
Apart from this, there are some disadvantages of this technique, like; it is very expensive as the
company needs to use some innovative techniques to display the products. Sometimes, it needs
to hire IT experts and who have the knowledge about the visual graphics.
Thus, most of big companies are using these promotion techniques as they are cheaper than
media based techniques.
Task 4 Be Able to Plan Integrated Promotional Strategies
4.1
Creating a budget for integrated promotional strategy is very important for each and every
company. Budget is a financial plan for a specific period that includes all the expenses, which
can be incurred in order to promote the products. This budget assists to carry out all the
advertising activities effectively. So, Johnson & Johnson has to become very careful and must
follow a specific process to develop a budget for its promotion strategy. The organization should
go through the below-given process;
Determining the goals and objectives
Before developing a strategy, the company needs to determine its goals and objective for the
promotional activities.
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