The Marketing mix of Johnson and Johnson analyses the 4Ps of Johnson and Johnson, which includes the Product, Price, Place, and Promotion of Johnson and Johnson. In the year 1886, a public company was established by the name of Johnson & Johnson. This multinational American company deals in consumer goods as well as pharmaceutical goods. Johnson & Johnson brand is today associated with qualitative products. In this health-conscious world, the company has earned the trust of its consumers by supplying natural products that do not have any chemicals. This globally acknowledged brand has targeted every segment of society, with age being no bar. It has products for babies, children, teenagers, and even adults.
The company faces competition from the following-
- Abbott Labs
- Lilly Elli & Co
- Novartis A G
- Hindustan Unilever
- Nivea
- Wipro
- Himalaya
- Procter & Gamble
- Pigeon
- Colgate
About Johnson and Johnson
- Type: Multinational conglomerate
- Industry: Healthcare, medical devices, pharmaceuticals, and consumer packaged goods
- Founded: 1886
- Founders: James Wood Johnson, Robert Wood Johnson I, Edward Mead Johnson
- Headquarters: New Brunswick, New Jersey, United States
- Area served: Worldwide
- Current CEO: Joaquin Duato
- Number of employees: 250,000+
- Major products: Band-Aids, Tylenol, Listerine, Neutrogena, Aveeno, Johnson’s Baby, DePuy Synthes, Janssen Pharmaceuticals
Table of Contents
Johnson and Johnson Product Strategy
Johnson & Johnson is a well-established brand whose product portfolio is divided into three market segments: consumer products, Pharmaceuticals, and equipment related to the medical industry. Its consumer division is one of India’s most critical manufacturers and helped the company’s steady growth. Most of its items are available in different colors and fragrances. Its product line includes
- Baby care products like massage oil, toothbrushes, shampoo, wipes, nappy pads, powder, body lotion, soap, cream, and hair oil.
- Skin care products like Clean & Clear face wash, Clean & Clear deep action cleanser, Clean & Clear moisturizer, Shower to shower, Body lotion, and Neutrogena skin care products.
- Wound care is like a band-aid.
- Oral care products like Mouthwash under the name This is available in three varieties: mouthwashes, fresh burst, and cool mint.
- Nutritional products
- Women’s health care like Stay Free’s sanitary napkins
- Pharmaceutical products– The range of these items is varied and extensive. They are generally used for therapeutic uses like dermatology, contraception, cardiovascular, Anti-effectiveness, and anti-fungal.
- Medical equipment that medicinal professionals use. This includes products related to spinal care, circulatory diseases, and products for orthopedics. The other products include disposable contact lenses and diabetes testers.
The product mix of Johnson and Johnson in 2023 is as follows(Source)
- Pharmaceuticals: This segment includes various prescription drugs for various medical conditions such as immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolic diseases. Notable products include Remicade, Stelara, and Zytiga.
- Medical Devices: Johnson & Johnson produces many medical devices used in surgery, orthopedics, cardiovascular health, and diagnostics. This includes surgical equipment, orthopedic implants, and devices for cardiovascular procedures.
- Consumer Health Products: This is perhaps the most publicly familiar segment. It includes over-the-counter, skin and hair care, wound care, and baby care items. Popular brands under this category are Band-Aid, Tylenol, Neutrogena, Aveeno, and Johnson’s Baby products.
Johnson and Johnson Place Strategy
Johnson & Johnson is a renowned brand name with two hundred and thirty subsidiary companies operating in over fifty-seven countries. They have the advantage of local windows of the operating companies to meet the various emerging markets and develop customer needs through scientific developments. The company has set up an executive committee responsible for all its operations and resource allocation. The company’s primary responsibility is supervising and coordinating consumer activities, medical devices, and the diagnostic business. In most cases, local citizens manage the subsidiaries.
To meet the aspirations of the consumers and fulfill their needs, the company has been using a well-organized distribution channel. Johnson & Johnson has been using decentralized management. In this business strategy, the company’s employees are encouraged to give their hundred percent, understanding that they will eventually benefit from this scheme.
They have also utilized modern technology to their advantage and have been selling their products online on various shopping portals and sites. They have successfully capitalized on the emerging internet market to its full potential. Today, the company’s sales figures through the Internet are astounding. All Johnson & Johnson items are easily accessible at retail outlets, wholesalers, and modern markets like Metro Cash & Carry, Wal-Mart, Dmart, Reliance Fresh, and Big Bazar.
- Global Presence: Johnson & Johnson operates in over 60 countries, leveraging a vast network of regional offices, manufacturing sites, and R&D centers to reach a global market. This extensive footprint allows them to distribute products efficiently across different regions.
- Distribution Channels: The company uses a multi-channel distribution strategy that includes hospitals, pharmacies, retailers, and online platforms. This diverse approach ensures that their products are accessible to a wide range of consumers and healthcare professionals.
- Direct-to-Consumer Sales: In recent years, Johnson & Johnson has increased its focus on direct-to-consumer sales, primarily through online platforms. This strategy helps build a direct relationship with consumers and offers more control over brand messaging.
- Partnerships and Collaborations: Strategic partnerships with healthcare providers, local distributors, and other companies enhance Johnson & Johnson’s reach. These collaborations are crucial for entering new markets and expanding their presence in existing ones.
- Localized Strategies: Recognizing the diversity of markets, Johnson & Johnson often adopts localized strategies. This includes tailoring products, marketing, and distribution efforts to meet consumers’ needs and preferences in different regions.
Johnson and Johnson Pricing Strategy
The quality of every Johnson & Johnson product is excellent, and even then, the company has decided on an affordable pricing policy. Its products often use psychological pricing by keeping their value at multiples of 99 or 49.
For all this, healthcare companies have tried to retain their increased prices inside the CPI or the Consumer Price Index range. It is an index in the USA and considers the average purchase price of a product the consumer can afford. As Johnson and Johnson is a consumer product, it takes care of its customers through its pricing policy.
Johnson & Johnson is aware of its responsibility to society, and for this, they have worked closely with the government to keep prices reasonable for medical items.
To determine the value of their product, the company has a team of efficient members that analyze various factors like production cost, the targeted segment of society, demand, supply, and the consumer business ability to pay for the product. After proper evaluation, the prices for any product are determined.
In some cases, in the global medical market, the prices are at a slightly higher rate, for instance, on products like consumer goods and baby care products, where the consumer is willing to give out the extra money for the health of their family members. In the case of medical equipment, the prices are affordable so that people can easily buy those products.
Johnson & Johnson’s pricing strategy is a sophisticated blend of market-oriented and value-based approaches skillfully adapted to the diverse range of products and markets in which they operate. Here’s an analysis of their pricing strategy:
- Value-Based Pricing for Pharmaceuticals: J&J employs value-based pricing in the pharmaceutical division, setting prices based on the therapeutic benefits and the value the drugs bring to patients and healthcare systems. This approach often involves extensive market research and economic modeling to understand the perceived value of their innovations.
- Competitive Pricing in Consumer Products: Johnson & Johnson often adopts competitive pricing strategies for consumer health products. They set prices in line with or slightly above competitors, leveraging brand strength to justify the premium. This approach is practical in markets where brand loyalty and product quality are significant purchase drivers.
- Tiered Pricing for Global Markets: Understanding the economic diversity of global markets, J&J implements tiered pricing, especially in developing countries. This means adjusting prices to make products more affordable in lower-income markets, thus expanding their reach while maintaining profitability.
- Dynamic Pricing in Medical Devices: In the medical devices segment, dynamic pricing is critical. Prices vary based on technological advancements, competitive dynamics, and contractual agreements with hospitals and healthcare providers. This flexibility ensures competitiveness and aligns with the high investment in R&D.
- Premium Pricing for Innovations: Johnson & Johnson often employs premium pricing for highly innovative products or those with patent protection. This reflects the significant investment in R&D and the value of innovation, particularly in specialized therapeutic areas.
Johnson and Johnson Promotion Strategy
Johnson & Johnson has realized the advantage of consumer awareness and decided on instructive promotional activities with a robust and eye-catching message. Sound and sensible marketing is critical to increase product visibility. So, the ads are placed on hoardings, magazines, and newspapers so that they can be easily viewed. It is dedicated to natural and qualitative products and has made its production costs packaging process environmentally friendly.
Johnson & Johnson has been associated with promotions that inspire healthy living. Some famous campaigns are “Having a Baby Changes Things” and “The Campaign for Nursing’s Future.” Famous actor Prachi Desai has also been associated with the company and its various marketing campaigns. The new baby to be involved in Johnson’s ads is “Khiyaan Singhvi.” The company has shown delightful ads featuring babies and children in prime-time slots on various television channels. Famous cartoons like The Little Mermaid, Pocahontas, and Winnie the Pooh and Pals have also been included in the ads for baby care products, making them highly popular amongst the viewers.
One of the most loving parts Johnson marketing of Johnson’s Johnson is the cute and delightful baby ads it shows on television. People love such ads. As the baby is most important to mothers, the mother and baby connection is shown strongly in the ads by Johnson and Johnson. This is one of the reasons the company thrives: It has a solid emotional connection with its target audience.
Johnson & Johnson’s promotion global marketing strategy is characterized by a blend of traditional and digital marketing tactics focused on brand trust and consumer education. They heavily invest in advertising across various media, including TV, print, and online platforms, to reach a broad audience. Additionally, the company engages in public relations, community outreach, and educational campaigns to strengthen its brand reputation and provide valuable health information to consumers.
Johnson & Johnson offers various schemes to its customers at regular intervals, like free soap with every three purchases and a hundred-milliliter bottle free with five hundred milliliter product. It also offers discounted coupons for Stay Free Secure, Baby powder, and Baby soap. Many hospitals have given special baby product kits to new mothers who leave the hospitals with their babies. This is a brilliant scheme as the products gain the trust of mothers at an early stage, and hence, the mothers generally continue with the products of this company.
Some Recent Video ads and Print ads of Johnson and Johnson are:
https://www.jnj.com/tag/johnson-johnson-advertising
Liked this post? Check out the complete series on Marketing Mix
