Johnson & Johnson Marketing Plan
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Johnson & Johnson Marketing Plan
Abstract
Johnson & Johnson is an American multinational corporation that manufactures and sells pharmaceutical products, consumer packaged goods, and medical devices. The company has maintained a competitive edge with very few recognizable competitors, which implies that it does several things better than its competitors through manufacturing, distribution, marketing, among others. The corporation is a household name with various globally recognized brands, including, but not limited to, Neutrogena, Visine, Tylenol, Band-Aid, and many more. This paper will examine Johnson & Johnson’s marketing plan by focusing on customer segmentation, positioning, and targeting strategies used by the organization to maintain customers. Also included will be a description of suggested key performance indicators (KPIs). The Johnson & Johnson brand’s strength is based on its longevity and has come to dominate several consumer markets.
Company’s Profile
Johnson & Johnson Consumer Inc. was founded in 1886 by Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. The company is headquartered in New Brunswick, New Jersey. Johnson & Johnson deal in pharmaceuticals, medical devices, and consumer packaged goods. The 2018 Fortune 500 ranked company No.37 in the most extensive United States Corporation list by total revenue. Studies have indicated that the healthcare industry has been one of the most dynamic sectors in the 21st century. Johnson and Johnson have significantly impacted this dynamism, making it one of the industry’s leading companies (Johnson & Johnson, n.d.). The corporation manufactures and sells various products, including Tylenol medications, Johnson’s bay products, Band-Aid bandages, insulin delivery tools, different beauty products, and nutrition products. The organization operates in various industries such as the pharmaceutical industry, healthcare industry, and the consumer products industry.
Market Segmentation
Johnson & Johnson’s market segmentation is based on four components: psychographic, behavioral, geographic, and demographic (Yesbeck, 2020). However, the corporation prefers utilizing demographic and behavioral factors as the leading marketing segmentation methods. These two methods are mainly used to reach out to customers and advertise the company’s products. For instance, its baby care line, which comprises its famous no-tears shampoo, is targeted towards new parents and positions itself as a gentle and mild product for babies. In order to target new customers who are mainly parents (which is a demographic group and characteristic), Johnson & Johnson makes emotional appeals that tug on their heartstrings as they adore their children, do anything for their children, and buy the best product on the market would keep them safe and healthy.
The company’s Clean and Clear brand has often been targeted in another demographic segment, which comprises young adolescent and teenage girls. This brand promotes explicitly healthy skin and, most of all, self-confidence and realizing that outer beauty is only a small part of what makes a person beautiful. Its pharmaceutical segment targets consumers based on their lifestyle and behaviors, which are often a part of their jobs, especially for its medical device lines. This segment is its most substantial segment and generates more than $40 billion of revenue annually (Associated Press). Other products recommended by medical professionals, including Aveeno and Neutrogena, cross-sell into the pharmaceutical industry to convince customers to purchase products that have been endorsed and backed by such professionals.
Target Market
Johnson & Johnson targets three primary market segments, including pharmaceuticals, medical devices, and consumer products, which are its most profitable business lines (Rothman, 2020). Since the company believes that “good health is the foundation of vibrant lives,” it markets its products to be valuable to healthcare and general well-being instead of touting materialistic and intangible benefits. The organization offers the world’s largest range of consumer healthcare products, including baby care, skincare, and oral health care, among others. Its target markets vary across product lines and brands, including parents, teenagers and adolescents, medical professionals, and skincare enthusiasts. For example, the main Johnson & Johnson brand targets parents of infants and small children, while Neutrogena and Aveeno speak to adolescents, teenagers, and young adults investing in skincare (White, 2019). While different, Johnson & Johnson’s profitability maintains that its products are internally and tangibly beneficial to life.
Positioning
Johnson & Johnson Consumer Inc. positions itself in the market as a brand trusted by medical professionals and families, particularly to parents concerned with their child’s health and well-being. Using its long-standing brand awareness and history, which dates back to the late 1800s, the brand appeals to consumers with its prolonged existence. The company’s brand name products that are household names such as Aveeno, Listerine, and Band-Aid, Neutrogena, Clean, and Clear also add to customer trust and consumer awareness in the marketplace. The brand is more than just products; but about increasing and maintaining health and well-being for its customers, regardless of age, gender, sex, profession sex. Johnson & Johnson Consumer Inc. is a health-centered brand that uses emotional appeals to persuade customers to buy.
The organization’s Clean and Clear brand advertises their product using teenage girls in its advertising to communicate to viewers of the same gender and represent their target audience. This aspect helps the organization to build a better connection with the target audience. Brand loyalty is derived from brand trust and satisfaction, and when consumers see themselves represented in products, they are more likely to be persistent patrons. Johnson & Johnson is committed to caring for its customers, which is “changing the trajectory of health for humanity,” signifies that the brand cares more about customers than profit-making (A Commitment to Caring, n.d.). The competitive advantage used by Johnson & Johnson to position itself in the market as a better brand is its high levels of recognition and brand awareness. The company’s brand has built its reputation on being the safe option that protects individuals. Johnson and Johnson also ensure that children’s health and overall well-being from infancy to adolescence to adulthood.
Product and Value Creation
Johnson & Johnson has various products and is categorized under brands for baby care, skincare, oral care, first aid supplies, and medications. A few of the company’s world-famous brands include Clean and Clear, Neutrogena, Band-Aid, Tylenol, Listerine, Aveeno, Bengay, Benadryl, Visine, and Acuvue. These products offer a different value proposition to consumers depending on their personal needs. Some of the products are used for general oral and skincare health and well-being. Some products are for first aid purposes, while some are used for pain relief. The products and services create value in their usefulness for each customer, providing them with clearer and healthier skin, taking away physical pain, and protecting wounds from infections without creating addiction or dependency.
Price and Value Creation
The organization’s pricing strategy is psychological pricing. This strategy depends on the consumer’s emotions in setting prices. Using odd pricing—which is pricing products ending in .99 or slightly lower than any rounded number—the organization persuades customers cunningly that the price is lower when it is essentially rounded up to the nearest figure. Even if the prices are higher, customers typically lower the price in their minds. Organizations benefit from this strategy, especially in comparing options with other products and is a common pricing strategy in consumer markets. Odd pricing strategy provides value by allowing consumers to assume that prices are lower as they have rounded them down in their head (Bhasin, 2018). Together with the company’s product lines and strong brand equity, this pricing strategy ensures that the parent company has effectively made itself top in the mind of its consumers.
Place and Value Delivery
Johnson & Johnson is a celebrated brand name with operations in more than 50 countries and more than 200 subsidiaries. The corporation is set up to be continually present in stores and the minds of customers. One of the organization’s considerable strengths is that its brands are renowned and regularly dominates their respective consumer market. Because of this high brand awareness, brands such as Tylenol, Band-Aid, and Neutrogena occupy the most viewed and trafficked stocking areas and shelves in flight-appropriate sizes in airports, mass merchandising stores, a smaller version, and retailers including Walgreens and CVS, among others. The corporation has a well-structured distribution channel and utilizes decentralized management, which brings the workforce into the fold as integral members of the organization, convincing them that they will significantly benefit from their investment. Also, the value-added is accessibility to its products and many brands because of its distribution strategy.
Promotion and Value Communication
The company utilizes media and print as its leading advertising methods to promote its products, which are in the form of commercials. Among its most renowned campaigns include the ones featuring babies and its no-tears shampoo, “The Campaign for Nursing’s Future,” and “Having a Baby Changes Things.” Johnson & Johnson also uses remarkable childhood figures and cartoons such as The Little Mermaid to place in ads for baby care products. This strategy further cements emotional connections with parents. The organization also partners with hospitals, which provide new baby kits to new parents with its products, which gains their trust from the very beginning. Neutrogena is one particular brand known for its ads, which features prominent spokespersons such as Kerry Washington, professional soccer player Mallory Pugh, and actresses Hayden Panettiere. Various Johnson & Johnson’s brands are also active on social media platforms such as Twitter, Facebook, Snapchat, and Instagram. For instance, Neutrogena boasts a reputation of being the number one dermatologist-recommended skincare brand by healthcare professionals. Aesthetically appealing pictures convey glamour to its products with color schemes, promotions from online influencers to convince consumers to buy, and demonstrations of individuals using them.
Key Performance Indicators
Since several of its brands are household names, the organization can utilize these performance indicators to discover which of its promotional channels gains it the most quality number of customers, regardless of number, for the best price, and to see how long consumers stick with a brand.
Conclusion
Johnson & Johnson is an American multinational corporation that manufactures and sells consumer packaged goods, pharmaceutical products, and medical devices. The paper discussed Johnson & Johnson’s marketing plan based on customer segmentation, positioning, and targeting strategies to achieve competitive advantage. Johnson & Johnson’s marketing success can be improved by a KPIs that would ensure customer satisfaction and retention across brands and customer lifetime value that can be measured by the long-term associations and relationship that customers have with brands.
References
Rothman, L. A. (2020, October 16). Johnson & Johnson’s 3 Most Profitable Lines of Business (JNJ). Retrieved November 21, 2019, from https://www.investopedia.com/articles/markets/020316/johnson-johnsons-3-most-profitable-lines-business-jnj.asp.
Johnson & Johnson. (n.d.). Homepage. Content Lab U.S. https://www.jnj.com/about-jnj
Yesbeck, J. (2020, October 16). 4 Types of Market Segmentation With Examples. Retrieved December 4, 2019, from https://blog.alexa.com/types-of-market-segmentation/.
A Commitment to Caring. (n.d.). Retrieved from https://www.jnj.com/caring.
Bhasin, H. (2018). Psychological pricing and its application in marketing. Retrieved March 24, 2019.
White, J. (2019). Johnson & Johnson hatches a plan for marketing intangibles. International Tax Review.