Distribution and Global Marketing Analysis: Johnson & Johnson

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This report provides an in-depth analysis of Johnson & Johnson's distribution channels and global marketing strategies. It begins by defining distribution channels and their importance in connecting products and services with consumers, highlighting the role of intermediaries like retailers and wholesalers. The report then focuses on Johnson & Johnson, a multinational corporation, examining its efficient and well-organized distribution network, including its decentralized management style and technological integration. It details how the company utilizes various channels, including retail stores, wholesalers, and online platforms, to reach a vast consumer base globally. The report further explores the company's global marketing activities, segmented by business units like medical devices and consumer products, and discusses how advertising, supply chain efficiency, and internet usage contribute to its global presence and success. The conclusion emphasizes the significance of distribution and marketing strategies in achieving revenue and profitability, and in meeting consumer demands effectively.
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Running head: DISTRIBUTION AND GLOBAL MARKETING
DISTRIBUTION AND GLOBAL MARKETING
Name of the Student
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1DISTRIBUTION AND GLOBAL MARKETING
Introduction
A distribution channel can be defined as the chain of different types of businesses that
mainly consist of intermediaries that help the organizations to provide the products and
services to the customers within a short period of time. The distribution channels mainly
include, retailers, wholesalers and the internet based operations of the organizations as well
(Bernon, Cullen & Gorst, 2016). The channel of distribution is mainly based on the path that
is able to offer opportunities to the organizations for the purpose of improvement of the reach
of the products. The global firms need to implement different distribution channels in order to
uphold their operations in the market effectively (Gallino, Moreno & Stamatopoulos, 2016).
The use of distribution channels is related to the methods that are implemented by the
organizations in order to reach the consumers within short period time.
About the company
Johnson & Johnson is a multinational American organization that operates in the
development of medical devices, consumer packaged products, pharmaceutical products that
was established in the year 1886. The headquarter of Johnson & Johnson is located in New
Brunswick, New Jersey. The organization contains more than 200 subordinate firms that
operate in around 60 countries in the world that sell the products in greater than 150 countries
(Jnj.com 2019). Johnson & Johnson brand includes many different brands like, Johnson’s
baby products, first aid based supplies, Neutrogena beauty and skin products. The distribution
channels that have been used by the consumer health based products of Johnson & Johnson
will be examined in the essay in detail (Jnj.com 2019).
Distribution channels used by the company
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2DISTRIBUTION AND GLOBAL MARKETING
As discussed by Ailawadi and Farris (2017), the distribution channels of a global
organization like Johnson and Johnson are able to play a key part in the methods by which
the firm can increase reach of the products. The distribution channel that has been developed
by the company is highly efficient and well-organized in nature. The decentralized style of
management is able to play a key part in the methods by which firm can aim at maintaining
its position in the market. The employees of the company are provided with high levels of
encouragement based on the appropriate growth of operations (Bernon, Cullen & Gorst,
2016).
The employees thereby aim at offering the greatest stages of performances in the
organization in order to maintain the stages of profitability in the market. The use of
technology in an extensive manner is also considered to be a significant part of the current
processes that are depicted by the organization. The company is thereby able to reach a
higher number of consumers with the support that is provided by the distribution based
network. The usage of technologies has been able to play a key part in the growth of high
stages of revenues of the organization in the industry (Gallino, Moreno & Stamatopoulos,
2016).
The extensive distribution network of the organization is considered to be important
for the development of revenues in different parts of the world. Johnson & Johnson has been
selling the products with the help of different portals that include, the internet shopping sites
as well. The organization has been quite successful in capitalizing emerging internet based
market to the highest potential. The sales that have been gained by Johnson & Johnson on the
internet platforms are high and have been able to offer enormous chances of development to
the firm (Hübner, Kuhn & Wollenburg, 2016).
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3DISTRIBUTION AND GLOBAL MARKETING
The most significant part of the operations that have been developed by the firm is
related to the methods by which distribution channel and supply chain is developed. The
different consumer health based items that are offered by Johnson & Johnson are available in
the retail stores in different parts of the country. The levels of accessibility of the products
that are provided by the company are high and this has led to the huge increase in sales and
revenues of the company. The retailers and wholesellers in various countries of the world are
able to offer the products of Johnson & Johnson in diverse areas of the world (Hübner,
Holzapfel & Kuhn, 2016).
The huge customer base that has been developed by the organization has been
facilitated by the effective distribution channel of Johnson & Johnson. The organization has
been successful in the development of a competitive advantage in the market with the support
of appropriate implementation of the distribution based strategy. The product portfolio of
Johnson & Johnson in the consumer health section is vast and is able to cater to the different
types of needs of the consumers. The organization aims at implementing sustainability in
different parts of the operations (Ishfaq et al., 2016).
Innovation is also can play a key part in the methods by which an organization like,
Johnson & Johnson are able to maintain their positions in the market with the support of a
vast consumer base. Johnson & Johnson is considered to be a major consumer oriented
organization that wants to understand the desires and demands of the customers in an
effective manner. The distribution strategy and the marketing strategy of the organization is a
significant aspect that is able to influence the processes of Johnson & Johnson in the
consumer product based industry (Jurše & Jager, 2017).
The proper selection of the channel members is based on the levels of relevance in
spite of the economic criteria or aspect. This is considered to be a major reason behind the
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4DISTRIBUTION AND GLOBAL MARKETING
development of small shops or stores of the organization in different areas or countries. The
brand has distributed the products with the support that is provided by the wholesalers or the
distributors, the supermarket chains, websites, retailers and supermarket chains (Kozlenkova
et al., 2015). The high levels of availability of the products of Johnson & Johnson in different
markets is able to provide support to the growth of the organization. The distribution channel
has proved to be effective for Johnson & Johnson to increase the levels of presence in the
market.
Improvement of the global marketing activities of the company
The global marketing activities that are performed by Johnson & Johnson are based
on three major business segments that include, medical devices, diagnostics and consumer
division. The business segments allow the organization in order to stay focussed on the
market and the employees are able to the provide direct influence on business segments of
which they are a part. The global strategic leadership in different business segments are
helpful in the development of strategic decisions based on investments that can be made by
the management of the organization (Lapoule & Colla, 2016).
Johnson & Johnson has developed its operations in Europe with the help of proper
construction of facilities that are helpful in the manufacture of products. The company has
been able to develop high stages of development in the industry with the help of an effective
distribution network of Johnson & Johnson. The distribution network is considered to be a
significant factor that is able to influence the relationship that has been developed by the
organization with the customers in different countries. The global operations of Johnson &
Johnson are supported by the distribution based network and marketing strategies that are
implemented by the organization in different parts of the operations (Modak, Panda & Sana,
2016).
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5DISTRIBUTION AND GLOBAL MARKETING
The consumer health department of Johnson & Johnson is supported in a huge manner
by the advertising actions that are accomplished by the organization in different parts of the
world. The global expansion that is implemented by the organization is a vital aspect that is
able to affect the operations in a huge manner. Global marketing based position that is formed
by Johnson & Johnson in the industry has been formed with the support that is offered by the
highly efficient supply chain of the organization (Tallón-Ballesteros & Li, 2018).
The company can further improve its global position in the market with the support of
proper distribution of the products to the consumers in different parts of the world. The
extensive development of activities by the usage of internet is considered to be an important
factor that will play a crucial part in the growth of profits of the firm. The global operations
of Johnson & Johnson in different parts of the world are able to play a key part in the
methods by which operations can be developed in an effective manner (Modak, Panda &
Sana, 2016).
Conclusion
The essay can be settled by asserting that the distribution based activities of Johnson
& Johnson is able to play a key part in the methods by which the stages of revenues and
profitability that have been gained in the market. The most significant part of the operations
of Johnson & Johnson in the industry is based on the ways by which the requirements and
demands of the consumers can be fulfilled by the products that are offered to them. The
company will be further able to develop the stages of global operations with the help of
proper improvement of the distribution based approach and the marketing approach that can
be developed by the organization effectively.
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6DISTRIBUTION AND GLOBAL MARKETING
References
Ailawadi, K. L., & Farris, P. W. (2017). Managing multi-and omni-channel distribution:
metrics and research directions. Journal of retailing, 93(1), 120-135.
Bernon, M., Cullen, J., & Gorst, J. (2016). Online retail returns management: Integration
within an omni-channel distribution context. International Journal of Physical
Distribution & Logistics Management, 46(6/7), 584-605.
Gallino, S., Moreno, A., & Stamatopoulos, I. (2016). Channel integration, sales dispersion,
and inventory management. Management Science, 63(9), 2813-2831.
Hübner, A., Holzapfel, A., & Kuhn, H. (2016). Distribution systems in omni-channel
retailing. Business Research, 9(2), 255-296.
Hübner, A., Kuhn, H., & Wollenburg, J. (2016). Last mile fulfilment and distribution in
omni-channel grocery retailing: a strategic planning framework. International
Journal of Retail & Distribution Management, 44(3), 228-247.
Ishfaq, R., Defee, C. C., Gibson, B. J., & Raja, U. (2016). Realignment of the physical
distribution process in omni-channel fulfillment. International Journal of Physical
Distribution & Logistics Management, 46(6/7), 543-561.
Jnj.com (2019). Homepage. [online] Content Lab - U.S. Available at: https://www.jnj.com/
[Accessed 11 May 2019].
Jurše, M., & Jager, J. (2017). Marketing channel strategy management in international
markets. International Journal of Innovation and Learning, 21(2), 127-148.
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7DISTRIBUTION AND GLOBAL MARKETING
Kozlenkova, I. V., Hult, G. T. M., Lund, D. J., Mena, J. A., & Kekec, P. (2015). The role of
marketing channels in supply chain management. Journal of Retailing, 91(4), 586-
609.
Lapoule, P., & Colla, E. (2016). The multi-channel impact on the sales forces
management. International Journal of Retail & Distribution Management, 44(3), 248-
265.
Modak, N. M., Panda, S., & Sana, S. S. (2016). Pricing policy and coordination for a
distribution channel with manufacturer suggested retail price. International Journal of
Systems Science: Operations & Logistics, 3(2), 92-101.
Tallón-Ballesteros, A. J., & Li, K. (2018). The Role of Targeted Advertising with Vertical
Differentiation on Direct Sales Channel Versus Distribution Channel. Fuzzy Systems
and Data Mining IV: Proceedings of FSDM 2018, 309, 410.
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