2. Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $70.1 billion during calendar year 2015. The company has made the 3rd largest pharmaceutical settlement with the U.S. Department of Justice.
3. Johnson & Johnson’s brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson’s baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
Johnson and Johnson, commonly called J&J for short, is one of the world’s well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J;J has over 230 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals.
Its primary focus is products related to human health and well-being.
The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom
Marketing Objective of the report
Johnson and Johnson is the market leader with the sale of Baby Powder. Johnson & Johnson has faced many litigation problems in recent years, but the one that seems to be hurting its reputation most is over Johnson’s Baby Powder – specifically three recent legal judgments finding talc in the products caused ovarian cancer.
The marketing objective of this report is to find Johnson and Johnson with strategies to
Revitalise the brand as a brand committed to thorough scientific research and development of their products and health and well being of their customers
Sustain the Brands by providing positive media coverage and preventing further legal action
Improve on relabelling and rebrand the product as a Non Hazardous product to the consumers health
4. Situation Analysis
Johnson’s baby powder was first developed in 1893 • As of 2015, nearly 19% of American households use Johnson’s baby powder and 6.73% use Shower to Shower • Contains talc to help absorb moisture and reduce friction TALC • Mineral that contains asbestos in its natural form • FDA does not allow talc-based products to contain asbestos • All talc used by J;J is asbestos free through their own testing and FDA testing. Johnson and Johnson has recently been in the spotlight when women claimed that using their baby Powder product has been the cause of Ovarian Cancer and Jurors have ruled against Johnson and Johnson
Johnsons Baby powder is one of the most commonly-used household products in America but could it be a major cause of ovarian cancer? In July 2016, 2 juries ordered Johnson ; Johnson to pay $72 million, $62 million and $55 million in damages to plaintiffs, who blames their terminal illness on Johnson’s Baby Powder
Johnson & Johnson has lost most of a half-dozen trials involving claims that its baby and Shower to Shower powder cause ovarian cancer. Lawsuits involving thousands more plaintiffs are pending.
But findings have been mixed and researchers don’t have a clear mechanism that might lead talc to cause cancer. One theory, says Levin, is that talc causes inflammation. “The idea is that the talc can travel through the genital track to the ovaries and that the inflammation that then is caused by talc particles being deposited there leads to cancer,” he says.
Johnson ; Johnson says there is no reason to warn consumers because studies have shown talcum powder use to be safe. On its website, the company writes, “Few ingredients have demonstrated the same performance, mildness and safety profile as cosmetic talc, which has been used for over 100 years by millions of people around the world.” It goes on to note that talc is used “in a range of other consumer products such as toothpaste, chewing gum, and aspirin.”
The concerns expressed were directed towards the Johnson ; Johnson Talc Powder, and for that reason, this will be the area of focus for this report. The report examines the current situation, as well as strategies to improve, maintain and grow the brand’s market share.
2.1 Johnson and Johnson Baby Powder Background
Johnson’s Baby Powder. is a product specially meant for babies from a company which established its roots in India as early as 1947. The company was registered as Johnson and Johnson Limited in the year of 1957. Baby Powder was launched under Johnson and Johnson Limited in the year of 1959 along with 11 other health care products. This product is categorized under the major ‘Baby Care’by the company and regarded as the market leader in this category.
“We will delight our consumers, treating each person who contacts us as if they are our only consumer, providing them with a response which is evidence of our interest and that leaves them with the clear understanding that they are important to us. ”
“Our credo applies to all business units and represents standards that all employees of Johnson & Johnson have internalized and continue to observe throughout the world. This culture of caring is the focus of our corporate philosophy, translated into the Caring Statement: “Caring for the world, one person at a time.”
• Growth & Innovation
o We aim to own and shape a diverse supplier base that delivers high quality, compliant and reliable products and services.
o Our suppliers are encouraged to source innovative solutions, and deliver new business models that contribute to our mutual objectives for growth and streamlined processes. We embrace new technology whenever it may help us meet the needs of our patients and consumer
• Investing in Our Future
o We track new market developments and seek suppliers who understand emerging trends and plan their business accordingly. We forge long-term relationships with organizations that collaborate with us to successfully bring their innovations to the marketplace.
o We follow a procurement approach that is rooted in Our Credo. We strive to obtain the highest-quality products and services at a fair cost, representing the best overall value for our companies.
• Global Diversity, Citizenship and Sustainability
o Embracing our role as an industry leader, Johnson & Johnson shapes and upholds the highest standards for responsible sourcing and corporate citizenship.
o We further differentiate Johnson & Johnson by working with suppliers to accelerate environmental and social improvements across the value chain. We anticipate and manage risk, and ensure compliance with all procurement policies and processes.
• Develop Our Diverse, Global Supply Base
o We build and develop a global group of suppliers that reflects the diversity of our patients and customers, and our commitment to inclusion. The Supplier Diversity Program is designed to ensure that businesses of diverse backgrounds and ownership have the opportunity to become valued suppliers.
o Since starting our Supplier Diversity Program in 1998, our total spending with small businesses and diverse-owned suppliers has been over one billion dollars annually.