SWOT Analysis Johnson & Johnson

Strengths
A Substantial Marketing Arsenal Johnson & Johnson can call upon a network of subsidiaries armed with significant sales and marketing prowess, as well as expertise in a number of therapy areas. The company possesses a global sales force which serves to attract joint venture possibilities. Strategic Acquisitions Johnson & Johnson has maintained a stable financial position by utilizing cash reserves to finance timely corporate ac uisitions. !ts" Triple #$ %redit &ating represents a company able to take advantage of opportunities that arise without being limited by burdensome levels of debt. Product Diversification The Johnson & Johnson pharmaceutical portfolio, and ts large 'edical (evices & (iagnostics )',( &(* and %onsumer +ealth division"s serves to reduce dependence upon any one area. The company plans to continue this broadening through ,--./01. This diversification allows a wider range of choice when pursuing opportunities with the greatest growth prospects.

Positive evenue !ro"th Pro#ections The potential of an impressive number of new product launches and the promise of achieving forecast sales is said to bode well for Johnson & Johnson, helping it weather the recent decline in prescription pharmaceuticals and projecting a turn/around through ,-0-. $n increase at 0..2 %$3& across ,--.#01 is believed to be achievable.

Weaknesses
De$endence on the Success of %aunch Products 'any new launch products are vulnerable to the uncertainty of regulatory review and ultimate market benefits may vary substantially from forecast, therefore, a reliance upon launch products potentially represents a threat to Johnson & Johnson"s outlook. eliance on S&all Molecule Drugs %ompared to biologics, small molecules are notably more impacted by generic competition. $s such, although the Johnson & Johnson is engaged in producing new small molecule products, when coming off/patent, declines are still forecast. This is particularly the case in the 45, where generic erosion rates are most aggressive. Johnson & Johnson"s small molecule drug sales declined in ,--. and are forecast to fall further into ,-0,. Teses issues reflect concerns expressed across the pharmaceutical industry6the necessity of finding replacements for billion dollar products as they mature represents an daunting task.

O$$ortunities
Wide ange of Potential 'ross(selling O$$ortunities Johnson & Johnson is in a position to strategically develop a myriad of cross selling opportunities. 4sing the disease life cycle as a base the company could exploit its product line in %7, oncology, diabetes and !&! therapy to formulate linkages between patents and care/giving resulting in greater efficiency. 'aximizing its balance between 8harmaceuticals, (iagnostics, and 'edical (evices could result in increased revenues. Potential to )*$loit +iologics Market The addition of further biologics to its portfolio can serve as a buffer as mall molecule patents expiries. J&J is experienced in the development and commercialization of biologics6 including the therapeutic proteins 8rocrit and 9atrecor, and monoclonal antibodies &emicade, &eo8ro, 5imponi and 5telara. This represents an opportunity to gain key !8, product rights or

strengthen discovery capabilities. !n July of ,--: Johnson & Johnson was selected by ;lan to form a joint venture for the development and commercialization of these products. !n addition, J&J ac uired an 0..12 e uity stake in the company.

Threats
De$endence on the Success of %aunch Products 'any new launch products are vulnerable to the uncertainty of regulatory review and ultimate market benefits may vary substantially from forecast, therefore, a reliance upon launch products potentially represents a threat to Johnson & Johnson"s outlook. ,egative -&$act of ecent Product ecalls Johnson and Johnson has the misfortune of having to recall of more than 1- medicines recently. <($ inspectors re uired the company to recall the children=s medications after discovering the company had not looked into dozens of consumer complaints about >black or dark specks> in Tylenol and other products. The company stands to take a hit to its sterling reputation as congressional lawmakers are blasting the company=s competence and integrity. %aring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. ?e embrace research and science / bringing innovative ideas, products and services to advance the health and well/being of people. ;mployees of the Johnson & Johnson <amily of %ompanies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

Johnson and Johnson Marketing Mi*

The roots for the Johnson & Johnson %ompany run deep. The company began in0..@. !t incorporated one year later. Ay 0.:@ it had released its first major product of note # a sterilizing techni ue for catgut sutures. The firm branched out in 0:0:, with the establishment of an affiliate in %anada, and in Aritain in 0:,1. 9ext came a public launch and a listing on the 9ew Bork 5tock ;xchange in 0:11. ?ould you like to take a lesson on the marketing mixC Dver the years Johnson & Johnson has grown substantially in part due to strategic ac uisitions ranging from large ones such as 9eutrogena in 0::1 and (e8uy in 0::., to many smaller ones. <rom 0:.: to 0:::, the company made 1E such ac uisitions of companies and product lines. Today the firm can boast of revenues exceeding F@0,.:G million during the financial year )<B* ended (ecember ,--:.

Product

Johnson

and

Johnson

products

are

basically

in

three

main

categoriesH

8harmaceuticals, 'edical (evices & (iagnostics, and %onsumer +ealth care.

The following are examples of the Johnson & Johnson product inventoryH <eminine

hygiene, (enture care, %ontraceptives, !mmunology, <irst aid, <amily planning, Dncology, 9utritionals, (iabetes care, 9eurology, 7ision care, $llergy cold and flu treatment, ?omen"s +ealth, 'edical devices and diagnostics.

Price

!n the 4nited 5tates, Johnson and Johnson strives to keep their net price increases for Johnson and Johnson works with governments to develop differential pricing

health care products within the %onsumer 8rice !ndex )%8!*.

approaches to help more people access their medical products. Johnson & Johnson companies have agreements with the 4nited Iingdom for 7;J%$(; K )bortezomib*, a treatment for multiple myeloma, and with <rance for &!58;&($JK %D95T$K )risperidone long/acting injection* a medication for the symptoms of schizophrenia. %ompanies and government agencies are also entering other types of risk/sharing agreements in order to help people gain access to new therapies sooner.

The following are examples of Johnson and Johnson consumer product pricesH

Aengay 8ain &elief F0,.::, )at $mazon*, Jisterine Dral %are FG.1: )9ext Tag*, 5plenda 5weetener FG )(russtore.com*.Tylenol &apid &elease F0,.:E )$llegro 'edical.com*.

Place

These are some companies that sell Johnson and Johnson products wholesaleH Dver Johnson and Johnson products can be found at the following retail outletsH Target,

the %ounter ?holesale.com, ?4L 3roup, 5hopat+ome.com

?algreens, ?al'art, 7ons and ;versave, to name but a few.

Pro&otion

Johnson and Johnson offers special discount coupons on products such as baby care, Johnson and Johnson has run a MAeauty for $ll $gesN rebate promotion on

and contact lens.

%oupons.com and some of the campaign products are available at ?algreens and may also include buy one get one half off discount as well.

Johnson & Johnson is involved with many causes and advertising campaigns that

encourage healthy lifestyles. Iey initiatives includeH The %ampaign for 9ursing=s <uture, +aving a Aaby %hanges Things, and Aecause ?e %are ?e $ct )%hina*.

Process

Johnson and Johnson employs what they call a Mdecentralized management

approachN. ;mployees are encouraged to be MentrepreneurialN with the understanding that they will benefit from focusing on customer needs and providing solutions.

Johnson and Johnson seeks to turn insights into innovative new products and

sometimes whole new businesses. Their goal is to capitalize on scientific breakthroughs, marketing insights and manufacturing expertise easily across the full range their businesses. ?ith more than ,E- operating companies have a local window into emerging customer needs, scientific developments, and technologies throughout the world.

The ;xecutive %ommittee of Johnson & Johnson is the principal management group

responsible for the operations and allocation of the resources of the %ompany. This %ommittee oversees and coordinates the activities of the %onsumer, 8harmaceuticals and

'edical (evices and (iagnostics business segments. ;ach subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.

Physical )vidence

The Johnson & Johnson +ead uarters is located at Dne Johnson & Johnson 8laza, The Johnson& Johnson %onsumer (ivision is located at 0:: 3randview &oad, The Drtho/Aiotech (ivision is located at G-- &oute ,-, &aritan, 9ew Jersey. The Jifescan (ivision is located at 0--- 3ibralta (rive, 'ilpitas, %alifornia. The 7istaIon (ivision is located at GE-- %enturion 8kwy, Jacksonville, <lorida. The ;ndo 5urgery (ivision is located at 1E1E %reek &oad %incinnati, Dhio. The !ndependence Technology (ivision is located at 1- technology (rive, ?arren %ompany 5ubsidiaries, %odman and 5hurlett as well as (e 8uy $cromed are located The Johnson and Johnson logo is based on the signature of James ?ood Johnson, one Johnson & Johnson maintains a presence online via a number of websites

9ew Arunswick, 9ew Jersey.

5killman 9ew Jersey.

9ew Jersey.

at O,E 8aramount (rive &aynham 'assachusetts.

of the two brothers originally who founded the company.

httpHPPwww.jnj.comPconnectPothersPsitemapP which provide information on company values, and management approach.

$nother Johnson and Johnson website httpHPPwww.jnj.com , provides detailed

information on various consumer products such as Jisterine or Tylenol.

Peo$le

?illiam % ?eldon is %hairman & %hief ;xecutive Dfficer of Johnson & Johnson. (ominic J. %aruso is the %hief <inancial Dfficer and 7ice 8resident of <inance. Johnson and Johnson has a 3lobal (iversity and !nclusion program with a goal of

achieving a skilled, high performance workforce that is reflective of the diverse global marketplace )workforce*.

Johnson & Johnson was ranked Q, among (iversity !nc. 'agazines Top E-

%ompanies for (iversity.

The company has ranked high ?orking 'other 'agazines" Top Dne +undred

%ompanies for ?orking 'others or ,1 years. Johnson & Johnson was founded more than 0,- years ago on a revolutionary ideaH (octors and nurses should use sterile sutures, dressings and bandages to treat peoples" wounds. 5ince then, we"ve brought the world new ideas and products that have transformed human health and well/being. ;very invention, every product, every breakthrough has been powered by generations of employees who are inspired to make a difference.

Johnson and Johnson . +rand e$ositioning

Ji uid petroleum is low/value, mass/produced and has a wide variety of usesR there is huge potential for mass marketing. 5o why, one must ask, was and how a niche found # then the strategy revisedC The market name for this substance has been long known as 'ineral Dil, used primarily for health and medical uses. Aut 45 pharmaceutical and fast/moving/consumer/goods manufacturer Johnson and Johnson bridged the gap between the initial &&( and the market/ ready innovation by defining a baby/care nicheH Johnson"s Aaby Dil was born. This extended their Sbaby" product range, which later also included S9o more tears shampoo". These products demonstrate the benefits and drawbacks of a S<ocus" strategy # as the conse uential brand repositioning shows, operating in a niche has its limitations.

The branding of their baby oil and shampoo has highly effective in defining their nicheH happy babies in above/the/line advertising, pink packaging and a trusted producer sends out all the right connotationsR mothers know that these products will never harm their babies. $s a result of this, Johnson and Johnson can differentiate themselves from the competition # which is the essence of what a brand should aim to do # that seduces a female/orientated target market to ignore generic competitors. This may have been key to success as 'icheal 8orter"s <ive <orces demonstrates, Johnson and Johnson has less power than their customers

# the supermarkets # who are also trying to sell their own/brand alternatives. +ence, branding to create a niche is a competition/driven objective. /o"ever0 "hile it "as a co&$etitive strategy0 no"(a(days the $roducts are &arketed to a "ider0 &ass &arket . the 1baby2 niche0 "hich li&ited sales0 has been ditched to $ursue a ne" sales gro"th ai&3 This is essentially re$ositioning a brand3 The baby oil and sha&$oo0 it is argued0 if soft and gentle enough even for babies0 then surely ne" consu&ers can be attracted to use the $roduct0 "hich &irrors a for& of &arket develo$&ent3 Predictably0 &ore custo&ers equates to &ore sales and therefore greater revenue4 also0 by increasing de&and Johnson and Johnson can benefit fro& internal econo&ies of scale to reduce average unit costs0 "hich boosts $rofit &argins3 +ut this is easier said than done5 very good &arketing "as needed to successful re$osition their $roducts3 The critical decision0 - believe0 "as in retaining the core values of their $roduct by &aintaining the association "ith babies . des$ite no longer being their target consu&er . to use their re$utation to transfer trust to ne" custo&ers3 /ence0 overco&ing any custo&er inertia3 -ronically0 therefore0 the secret behind successful brand re$ositioning is not to change the branding to &atch the ne" consu&er0 but change the consu&er2s $erceived 1needs2 to &atch the brand3

+randed 'ontent Marketing6Johnson & Johnson Style

What is +randed 'ontent7

Branded content is content sponsored and/or produced by one entity or brand, as opposed to generic content riddled with a plethora of sponsors and advertisers. $ sponsor collaborate with content producers to bring forth a creative idea and MsellN it to the consumers in a form that they want it. !n the early 0:--s, radio programs were sponsored by soap companies to connect with their audience )hence Msoap operasN*. This was their way of reaching out to their consumers. ?ith branded content, what J&J )and companies like them* achieved was to create a website with uality content which are relevant to their target audience. The upside is that it"s relevant to their products too. !t has been proven that when a piece of content is well/written, educates, entertains and informs, visitors will keep on coming back for more. The sponsoring company does not need to buy mediaR instead, they create it themselves.

What is the +randed 'ontent2s A$$roach7

A successful branded content interconnects people stories to product stories in a very organic way. Traditional marketing is always based on features, benefits and uni ue selling proposition. Bou find the distinct parts of your product and connect that to the consumers. Aranded content marketing is doing the reverse of traditional marketing. Bou first identify the passion point of your target market and connect to their stories first. The integration of currently

existing content format and new content creation format are prioritized in the eyes of your target audience. The reason is thatH Traditional advertising is all about product stories while content is all about people stories There are many known companies that practice content marketing. +ere are some of themH 0.

Johnson and Johnson Aaby%enter.com Aaby.com 8regnancy.com A&erican )*$ress Dpen <orum A&erica Online 8AO%9 Jive Aetter $merica :nited States Postal Service (eliver 'agazine !eneral )lectric ;comagination

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Other )*a&$les of +randed 'ontent Marketing7

7ideos are one of the most appealing to the audience. They"re visual and have an inherent viral capability in nature. 0. &ed Aull has one of the most successful branded video that has gone viral. !t got ,0, EE:, @.1 viewsT ,. 5ony ;ricsson launched a :/part series and award/winning campaign called M?ho is Johnny U.N !n each episode, Johnny U would use his 5ony ;ricsson Uperia mobile phone to connect together the puzzle of his life after he was kidnapped.

What did Johnson & Johnson do that other retailers can learn fro&7

;3

They targeted a "ide range of audience "ho can ensure loyalty3 uestions and providing solutions to their

Aranded content aims for impressions. &etailers like Johnson & Johnson can educate their target audience by giving answers to their problems. <3 =3 They $rovided tools for their audience3 They gave a"ay freebies "hich "as very good for lead generation3 Tools that are useful for the users are easily recommended to peers. 3ive something first before getting. This reciprocal process is building relationships to your audience. >3 ?3 They hel$ed clear their audience2s confusions and questions3 They beca&e relevant3 $nswering their most pressing uestions builds trust and loyalty. Take note of the seasons or other issues that are relevant to their needs. Ae generous to give relevant answers to timely issues. @3 A3 B3 They got other e*$erts on the field to $artner "ith the&3 They sent targeted e&ails3 They ensured that even the ads "ere relevant3 This will add trust to your content as you build thought leadership. They were able to do this through the forms that they used for the subscription area.

(on"t just blast them with your product promotionsR be relevant even in your ads. !f you don"t, you will interrupt their navigation experience.

What are the advantages of +randed 'ontent7

;3 Cou can develo$ a dee$er understanding of your target audience3 Bou will get a good grasp on their behavior as they navigate on your website. Bou"ll be able to gather a lot of data for keywords that they type in looking for answers for their uestion and what attracts them to your site. Bou will know the types of articles that they read and what kind of content drives conversions. These kinds of data are really a gold mine for your business even if you are already an expert in your niche. ?rite evergreen content that can grow your business. <3 Cou2ll be able to i&$le&ent fle*ibility in your &arketing ca&$aign3 Traditional kind of marketing is very stiff and follows certain kind of rules. Aranded content marketing gives you the flexibility on experimenting with your funnels and channels. !t lets you test which one is best for your audience as well as your business. Bou can run out/of/the/ box ideas and become remarkable in your audience. =3 Cou "ill be able to build trust3 9obody wants to be sold to but when you build trust with your audience, they can become advocates for your brand. 5ince branded content is highly contextual in nature, it"s easier to build relationship with your audience.

>3

Cou "ill have an easier ti&e in distributing your articles3

Arand advocates love their products, and when that happens you"ll find that your content will be easily shared in social media. Bour content will have a higher. Bou don"t even have to nudge themR they"ll do the work for you. They become your advocates because you"ve connected their stories to your products or services through your content. ?3 +rand loyalty and custo&er retention is increased3 ?hen you are in the process of attracting possible brand advocates, you want your audience to stay. 5ince they know that you"re not only after their pockets but you continuously engage with them and connect with them using all the digital media available, they stay with your brand. They would even defend your brand. @3 Search visibility is increased and &aintained3 ?ith the advent of search spam pursuit, search engine giants like 3oogle is on your side. They want uality and engaging content to provide the searchers. !f yours connects to your audience"s stories, you will be rewarded with more audience who needs your content by search engines. A3 'ross(&edia o$$ortunities &ay arise3 9ot only will you get visibility through your website"s blog but other platform opportunities will arise. Bou may want to take advantage of videos, podcasts, mobile, book, magazine, or video games to increase your brand visibility.

Duick Action !uide Eor +randed 'ontent Marketing %reating branded content strategy is not static. !t is very dynamic that every aspect is movingH from brainstorming, editorial calendar creation, targeting your desired audience, content creation, content governance, content distribution and sharing encouragement and measuring results. $ clear plan must be laid in the table for effectiveness in your launching, analytics,

and monetizing your branded content marketing program. This will help you engage your customers to become evangelists and repeat customers. ;3 Who are your target audience7 ?hat group people are most likely to relate your content as well as your productC (efining your audience can help you align your content strategy on what to write. Bou may also check how your competitors are doing. Bou may listen to the latest news in your industry, social media trends and what people are writing about in the blogosphere in your niche. (on"t forget to define the substance of your content. ?hat kind of content you need and why you want to write them. (etermining the messaging of your content is also very important. ?hat is the key message of your contentC ?hat do you want your audience to remember at the end of the dayC $lways invest for uality content. <3 Think like a $ublisher3 Bou are not an advertiser. $n advertiser disrupts but a publisher educates and connects in a two way communication. (on"t put too much emphasis on your brand. The goal is to engage your visitors and in due time, your brand will get the proper recognition. $lways put value in your content. To be accurate, content is not king but value is. !t"s not enough to have content that is readable and no grammar mistakes. ?hat matters is the substance of the content. ?hat"s in it for your visitorsC ?hat value will they getC =3 Distribute your content3 ;xplore all possibilities where you can distribute your content. %heck where your audience is hanging around most of the times. Aring your content to them and you will see how fast they will consume your content. $ lot of these channels are free like <acebook, Twitter, &eddit, Boutube and forums. >3 )ngage the influencers3 Ay engaging the influencers in your industry, your branded content will easily be shared. (on"t think that these influencers are your competitors. Treat them as your allies. Jook for other experts in your niche and partner with them just like what J&J did above. ?3 Don2t forget to &easure3 ?ithout measuring your efforts will not lead to a successful campaign. Ieep the scoreboard up. 'easure the value of every content that you publish. %heck the traffic that your content is driving to your site. %heck the visitors flow and where they exit. %heck what content brings conversions. ! couldn"t emphasize more on measuring your content results. This may sound simple but it isn"t. Bou have to measure practically everything in your campaign. ?ith a lot of data, your

analytics maybe very daunting to many but there is a solution. ;stablish I8!s, key performance indicators to accurately measure your efforts based on your goals.