Marketing Strategies of Johnson & Johnson: A Comprehensive Analysis

This report provides a comprehensive analysis of Johnson & Johnson's marketing strategies, examining both local and international market approaches, with a specific focus on the baby product range. The report delves into the nature and roles of marketing at both levels, exploring local marketing in the UK and international marketing in Poland. It investigates marketing concepts, including centralized and decentralized approaches, and applies STP analysis (segmentation, targeting, and positioning) to Johnson & Johnson's product offerings. Customer retention, acquisition, and marketing innovation strategies are explored using Porter's Five Forces, and the report discusses the impact of future trends on marketing objectives. Finally, a PESTLE analysis evaluates the social, political, legal, and environmental factors influencing Johnson & Johnson's marketing efforts, culminating in recommendations for enhancing market performance.

MARKETING STRATEGY
1

Executive Summary
In the given report, the marketing strategy of the company has been discussed. The selected
company is regarded as Johnson & Johnson for its marketing strategies within local and
international market. The applicability of different nature and roles of marketing mechanism
within the business of Johnson & Johnson helps to facilitate the market grabbing pattern within
Poland and UK both. The analysis of different forces and factors given for segments of markets
fir Johnson & Johnson related to the overall marketing objectives and process within the
business. Therefore, the recommendations are consider for enhancing the market for Johnson &
Johnson is discussed within this report.
2

Table of Contents
Introduction......................................................................................................................................4
1. Nature and role of marketing in Local and international level....................................................4
2. Local and International Marketing Concepts and approaches.....................................................5
3. Implication of segmentation, positioning and targeting of Johnson & Johnson..........................6
4. Customer retentions, acquisition related with innovation of marketing strategies within
Johnson & Johnson..........................................................................................................................7
5. Impact of future trend in marketing objectives and strategies within Johnson & Johnson.........9
6. Evaluation of levels as social, political, legal and environmental for Johnson & Johnson.........9
Conclusion and Recommendation.................................................................................................11
References......................................................................................................................................12
3

Introduction
In present scenario of corporate industries, the requirements of proper marketing strategies are
increasing day after day. In this report, the discussion is based on the marketing strategies of
Johnson & Johnson. The product marketing strategy such as baby range in international market
such as Poland has been selected for the company. In the report, there are different discussions
about implication of levels for marketing approaches within the international market for Johnson
& Johnson has been carried out. Thereafter, the customer acquisition and retention strategies are
discussed within the report. Hence, the recommendation for the required strategies for Johnson &
Johnson in Poland with conclusion has been created within the report.
1. Nature and role of marketing in Local and international level (LO: 1.1 and 1.2)
In modern world, there are different levels of marketing structure within organisation. As
commented by Olson et al. (2005, p.52), the marketing nature of the multinational companies are
required to create the certain levels to grab the market. It is necessary to attract the customers in
local as well as international markets by a company. Marketing is considered as the management
structure to associate the market grabbing and expansions between various international markets
within the world. The nature of marketing depends upon the international marketing within the
business. The nature and role of marketing levels are considered as identifying, anticipating, and
satisfying and profitability structure in the market. As stated by Vorhies and Morgan (2003,
p.111), the marketing levels are needed to be specific for each local and international market
within the business organisation. Therefore, each of the company need to be facilitates the levels
of marketing as per the nature and roles within the market.
In the context of Johnson & Johnson, it has the international establishment within various
countries in the world. Johnson & Johnson is mainly working for the health care products within
the market (www.jnjvisioncare.co.uk, 2017). The sales of a particular business organisation
depens upon the nature and role of marketing locally as well as internationally. The association
of Johnson & Johnson in world is between 58 countries with selling of 175 types of products. In
the aspect of international and local market, the company indicating the local market in UK and
expand the marketing approaches in international market as Poland. Following is the products
baby care sales worldwide are as follow:
4

Figure 1: Johnson & Johnson Baby Care Sales
(Source: www.statista.com, 2015)
Implications of different levels of marketing within Johnson & Johnson are specifically
determined the customer identification and anticipation to ensure the objectives within the
business. The requirements of market determinations are carry the overall business expansion
within internal markets of Poland. The roles of marketing levels are mainly proceeding with the
customer satisfaction and anticipation of different sales enhancement within the international
market. Therefore, it can be said that the marketing in international and local markets implication
within different levels for a particular company.
2. Local and International Marketing Concepts and approaches (LO: 2.1 and 2.2)
There are different concepts of the marketing mechanisms within international and local markets.
As supported by Mentzer et al. (2001, p.20), the concept of international marketing is to
5

distribution of products and services other than the origin statement or country within the world.
The international marketing is depends upon the activities segmentation in international basis by
a particular business organisation. Concept of local marketing is static with the context of origin
of the business market within the hosting country. In context of Johnson & Johnson, the
international marketing is formed within the country Poland. Whereas, the local market for the
company is in the UK. The marketing concepts within local area are considered as the micro
aspect of marketing. However, the macro aspect of marketing is considering the international
marketing concepts within particular business organisation. Therefore, the concepts of
international and local marketing aspects are determined by the company business structures
within the present world specifications.
There can be two approaches of international marketing such as centralised approach and
decentralised approach. As commented by Christopher (2000, p.40), the centralised approaches
are determined as the marketing decision-making aspects within the origin headquarters of a
particular company. Whereas, in decentralised marketing approach, the marketing decision-
making aspects are push into the field of markets in different countries. The approaches of local
marketing structure for business are required to maintain the overall marketing structure within
centralised way in the market. The marketing approaches of Johnson & Johnson are actively
associated with the consideration of particular aspects in Poland market for the company
(www.jnjvisioncare.co.uk, 2017). Basically, Johnson & Johnson carried on the decentralized
approach of marketing in international markets for selling of products in different countries.
Therefore, the marketing approaches of Johnson & Johnson is specific for local and international
market as per centralized and decentralized concept respectively.
3. Implication of segmentation, positioning and targeting of Johnson & Johnson (LO: 3.1,
3.2 and 3.3)
The competitors of the company are mainly restricting the market expansions of the particular
company. As asserted by Johanson and Vahlne (2009, p.1423), the market competition for a
particular company determines the specific change in marketing strategies within the business
mechanisms. In the context of Johnson & Johnson, the key competitors within the market is
considering as Abbott Labs, Novartis AG and Lilly Eli & Co. These all companies are
facilitating the healthcare products within local and international markets of UK and Poland. In
6

order to concentrate with the segmentation, positioning and targeting aspect of Johnson &
Johnson, the STP analysis can be constructed as follows:
Figure 1: STP Analysis for Johnson & Johnson
(Source: As per the Case Study)
According to Kyriakopoulos and Moorman (2004, p.237), the market segmentation is a specific
process of breaking down the market into small homogenous groups within a specific needs of
the company. In Johnson & Johnson, the market segmentation for the baby products range is
needed to be specific and homogeneous determinations. The segmentation of the company is
thoroughly considering the market of Poland. The aspect of targeting appearance, Johnson &
Johnson target the household sectors to baby care products developed by the company. The
people in present scenario are likely to adopt the hygienic and healthy products for their baby.
Therefore, the baby products such as baby body oil of Johnson & Johnson are targeted to the
market of household bodings. The targeting groups are requiring being specifically active within
the business expansion techniques of marketing. As mentioned by Gretzel et al. (2000, p.151),
the positioning of the market develops within the product selling appearances within the
business. Therefore, in order to have the market positioning of Johnson & Johnson for baby
product such as baby body oil should be considering the mind of people within the market.
7
SSegmentationInternationalmarketofPolandTTargetingHouseholdPeoplePPositioningStabilityanddailyneedofthepeople

4. Customer retentions, acquisition related with innovation of marketing strategies within
Johnson & Johnson (4.1 and 4.2)
The customer retention is important for every business organisation in the market. As
commented by Vargo and Lusch (2004, p.13), the customer retention techniques are need to be
very specific in the prospect of product segments within the business organisation. The sartorial
developments of the company are depends upon the customer acquisition, retention and
innovation techniques within the marketing department. In the context of Johnson & Johnson,
the implications of marketing strategies are considering the customer retention in Poland. The
marketing strategies in comparison within new innovative forms are determined within the
company. In order to crate the marketing innovations within the business structure of Johnson &
Johnson, the Porter’s Five Forces can be analysed as follows:
8
SupplierPowerStandarisationofsupplierpricesBuyerPowerProperproductaffiliationandpricingCompetitiveRivalryDemandsoftheconsumerimpactsSubstitutionThreatsVarioushealthproductmanufacturingindustryNewEntryThreatsNewentrybyinfluencingwithconsumerdemandforbabyproductrange

Figure 2: Porter’s Five Forces for Johnson & Johnson
(Source: As per the Case Study)
The customer’s retention, acquisition and innovations can be done with the rivalry appearances
within the market of Johnson & Johnson. In the above forces, the standardization of needs for the
suppliers within the market is needed to incorporate within Johnson & Johnson in Poland. The
buyers’ power is considering the focuses upon the bargaining within the market. The competitive
rivalry of Johnson & Johnson are depends upon the pricing structure of the baby products mainly
of baby body oil in international market of Poland. The threats that are being with the customer
acquisition in the market segment of the process. The pricing structure should be very innovative
so that the consumer retention can be possible within the business structure of Johnson &
Johnson. As supported by Delone and Mclean (2004, p.37), the innovative techniques of
marketing can facilitate this forces of the marketing aspects with effective approaches.
Therefore, it can be said that the market forces implicating upon the customer retention,
acquisition and segmentation within the market for a particular company.
5. Impact of future trend in marketing objectives and strategies within Johnson & Johnson
(LO: 5.1, 5.2 and 5.3)
The future trends of the company can analyse the structure of business marketing appearances
within the next periods. As mentioned by Peppers and Rogers (2012, p.p.38), the future trend has
huge impact causing of the marketing strategies within the business formation. The appreciation
of the trend analysis are depends upon the structural evaluation of the products within the market
of the company. In the context of Johnson & Johnson, the future trends for product marketing
structure are upon the fragment of the body oil of baby in the market (www.jnj.com, 2016).
Johnson & Johnson faces new mega trends within the future determination of 2020 sustainable
growth within the market locally and internationally. The trends are accumulated with the
acceptance of population increase in the country and the requirement of baby products will also
increased in future years.
In the aspect of marketing strategies within Johnson & Johnson, the sustainable growth is
required to be increased by profitability of 10% in the next future years in the company
(www.jnj.com, 2016). The plans for margin requirements are also depending upon the 10%
9

growth over the future years within the international markets. The anticipated approximations for
selling of baby products within the international coverage are considering the objectives of huge
acceptances within the market. As commented by Stremersch and Tellis (2002, p.61), the
prospect specifications for different project structures are related to the market segmentation of
the company. Therefore, it can be said that the strategic objectives are always related with the
marketing techniques of the business expansion aspects of a company.
6. Evaluation of levels as social, political, legal and environmental for Johnson & Johnson
(LO: 6.1, 6.2 and 6.3)
The evaluations of different factors are considerably important for every company in the market.
As commented by Negash et al. (2003, p.760), business environment determination for a
particular company can consider the PESTLE analysis for better analysis of the impacts of
various factors. In context of Johnson & Johnson, the PESTLE analysis is considering as
follows:
10

Figure 3: PESTLE Analysis for Johnson & Johnson
(Source: As per the Case Study)
From the above PESTLE analysis of Johnson & Johnson, it can be seen that the political factors
can affect the different procedure of business as the changes in healthcare system of baby body
11
PoliticalEconomicSocialTechnologicalLegalEnvironmental

oils in the international market. As mentioned by Ryals and Knox (2001, p.539), the economic
factors can influence the business marketing structure in international basis for the company. In
context of Johnson & Johnson, the changes in pricing structure due to inflation in Poland can
influence the customer penetration within the market of Poland. The social factor for Johnson &
Johnson, are regarded with the international market of Poland by introduction of new schemes
for pricing of baby body oil within the company. The segmentation of different association of
facts can be indicating the overall technological factors for Johnson & Johnson; this indicates
that impact on the marketing strategies due to breaking of market saturation periods for baby
body oil in Poland. The legal factors of Poland can effectively influence the marketing strategies
of Johnson & Johnson for taxation structure within the country. The environmental forces are
mainly formed the eco-friendly products for the people within the market. This also influences
the baby body oil within the international and local market of UK fir Johnson & Johnson.
Conclusion and Recommendation
From the above discussion, it can be concluded that the marketing strategies are need to be very
specific in context of international and local market. The nature and roles of the marketing
approaches are set within the context of different product segregation within the market. The
recommendations for Johnson & Johnson in order to enhance the marketing strategies
internationally can be consider as the appropriate market demand analysis within the specific
products. It can also be recommended that the company can follow the different analysis for
innovation of pricing models for the products within different markets locally and
internationally.
12