Analyzing Brand Extension: A Marketing Report on Johnson & Johnson

This report provides an analysis of Johnson & Johnson's brand extension strategy, focusing on the principles of marketing involved in launching a new product under an established brand name. It assesses the existing brand and its values using Kapferer’s Brand Identity Prism, identifying the company's strong image related to baby care products. The report defines the target market and uses STP (Segmentation, Targeting, and Positioning) to understand customer segmentation. It includes a PESTLE analysis to evaluate the new market's political, economic, social, technological, legal, and environmental factors, as well as Ansoff’s Grid to explore growth opportunities. The new product, a stroller, is described in detail, highlighting its features and competitive advantages. Finally, the report identifies key competitors such as Pfizer, Novartis, and Bayer, concluding with the importance of research and adherence to marketing principles in successful brand extension. Desklib provides similar solved assignments for students.

Principles of marketing

Executive Summary
Marketing is one of the vital function of management. In this report there is discussion
related to brand extension done by Johnson & Johnson. It is important to understand the brand
and brand value for this reason Kapferer’s Brand Identity Prism is evaluated. A company must
target right customers as that helps them in achieving success so STP is part of this report.
PESTLE analysis and Ansoff’s Grid are also part of this report. There is discussion related to
new product and its competitor so that the organisation is able to take suitable actions.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Methodology....................................................................................................................................4
Findings............................................................................................................................................4
Existing brand and Brand Values................................................................................................4
Description of the Target Market................................................................................................5
Analysis of the New Market, Including Trends .........................................................................5
An Explanation of the New Product...........................................................................................6
Competition.................................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERNCES:..................................................................................................................................8
Books and Journals:....................................................................................................................8

INTRODUCTION
Marketing is the act of persuading customers to buy and service offered by the company.
It is vital for an organisation to follow the principles of marketing as the help in establishing
powerful image in the market (Le, 2018). In this report brand extension of Johnson & Johnson is
considered. The company is famous for baby care products. It is an American Multinational
organisation that was established in 1886. In this report there is discussion related to brand
extension, target market, analysis of new market with the help of PESTLE Analysis and Ansoff’s
Grid as well as competition present in the market.
MAIN BODY
Methodology
There is use of secondary data to conduct this report. There are various articles and books
that will help to understand the concept brand extension. Along with that online website and
information will help to know about the market share and situation of the company. The various
models will be used to carry on this project.
Findings
Existing brand and Brand Values
Brand extension is when an organisation uses its established name to start new product or
a new category of product (French, 2017). This is done by company to use their brand loyalty for
the existing customers. In regard to Johnson & Johnson they have strong image in market. Their
baby products have good sales and this help them to extend the product. They are using Stroller
as a new extension.
Kapferer’s Brand Identity Prism
Physique: This shows the physical characteristics of the brand are known as physique. In
relation to J&J, the physique of brand is related to children. The organisation is famous for
providing baby care products. They will add innovative features in the stroller to attract parents
and that are preferred by babies.
Personality: It shows the way of communication. In regard to J&J they use digital marketing
told to contact with the customers. The tools such as website, apps, direct mail, internal comms,
emails and social media platforms are used.

Culture: It is seen that J&J has creative as well as innovative culture. The culture of an
organisation has direct impact on success of the organisation.
Relationship: This shows relationship between brand and the customers. It is seen that there is
good and effective relation formulated by J&J with customers.
Reflection: There are large number of customers that are loyal for J&J. This shows the reflection
from customer persona.
Self-image: It is a image that the company forms and thinks about themselves. J&J wants to
provide quality products to customers and innovate them on regular basis.
Description of the Target Market
A company is able to work effectively by targeting right customers. STP approach will
support. The baby stroller has huge market coverage and its global value is USD 1661.6. There
are various basis of segmentation (Syaglova, 2017). They target the baby customers by serving
good and effective products. They are innovating the products in such a manner that attracts the
parents as well. In regard to J&J they have already positioned themselves as a effective brand. It
will help to enhance the sales of stroller offered by them.
Analysis of the New Market, Including Trends
Pestle analysis

 Political: J&J take care about the political condition of the nation in which they want to
extend the business. This helps them to take actions that will help in their success and
growth.
 Economical: There are regular changes in foreign currency exchange rate and that has
impact on business operations of J&J.
 Social: The needs and wants of customers keep on changing. It is costly to monitor these
trends. As well as providing quality products is important in case of J&J.
 Technological: They use updated technology. It is also important for them as they
believe in continuous research.
 Legal: They have to face issue related to existing patents by the competitors. There are so
many laws that must be followed by J&J.
 Environmental: They focus on green Earth and make efforts to minimise the wastage of
resources.
Ansoff’s Grid
It helps to know about the growth opportunities that are present in market. The various
strategies in relation to J&J are as follows:
 Market penetration: In this strategy the company launches existing product in existing
market through increase in production capacity. As well as by enhancing the channels of
distribution.
 Market development: In this strategy the existing product is being launched in new
market. In this case there is need of good amount of research.
 Product development: In this case new product is launched in existing market. The
quality of product is taken care (Moravcikova and et. al., 2017).
 Diversification: It is a process of launching new product in new market. It is a costly as
well as risky affair for the company. J&J uses diversification to extend the brand. This
helps to get new customer base and add new features to stroller will help in attracting the
customers.
An Explanation of the New Product
A company should take care about the new product being launched by them. J&J are
launching a stroller that is light in weight and easily carried by the parents (al-Qurashi, 2020).
The company is planning to use attractive colours for the stroller as it will help them to attract

the customers. They will give extra features for children and will use latest technology in the
stroller. The packaging will be strong so that it is kept safe with parents. As J&J has established
strong image and deals in good baby products they will use brand value while launching the
stroller. They will position it as useful product that will take care of children.
Competition
It is important to know about the competitors of a product. As the world is turning
competitive it is essential to analyse the competitors and the strategies being used by them. The
major competitors of J&J are discussed below:
Pfizer.
Novartis.
Glaxo Smith Kline.
Bayer.
Merck.
CONCLUSION
It is concluded that there is requirement of research to extend the brand. A company must
take care about the principles of marketing while launching new product. There is discussion
related to product and its prism analysis in the report. STP approach is also part of the report. To
analyse the market and trends PESTLE analysis and Ansoff’s Grid are considered. In the end
there is competitive analysis done in this report.

REFERNCES:
Books and Journals:
al-Qurashi, D.R., 2020. RELIGIOUS AND MARKETING FACTORS AFFECTING ON THE
VOLUME OF SALES OF ISLAMIC PRODUCTS IN JORDAN. Journal of Critical
Reviews, 7(19), pp.3069-3083.
French, J., 2017. Key principle, concepts, and techniques of social marketing. Social marketing
and public health: Theory and practice, pp.21-26.
Le, Q., 2018. Effective marketing strategies in K-pop industry: Case study: TWICE-JYP
Entertainment.
Moravcikova and et. al., 2017. Green Marketing as the Source of the Competitive Advantage of
the Business. Sustainability, 9(12), p.2218.
Syaglova, Y.V., 2017. Influence of the Marketing Paradigm’s Cycles Patterns on the Global
Entrepreneurship. Ekonomicko-manazerske spektrum, 11(1), pp.48-61.