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Group project final draft

  • From Business, Marketing
  • Due on 08 May, 2020 08:22:00
  • Asked On 07 May, 2020 08:29:22
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Hi everyone!

This week will be short and a lot of work so everyone please do your part ASAP! I am just going to randomly assign sections to each person so the table of contents can be completed. I will be doing the table of contents and appendix. The following is from the draft 4 instructions 

  1. A report with the final Marketing Plan that includes the three previous drafts, attached as an MS Word file.  In addition, this final MP must include the following sections:

 

    • Marketing Programs & Financial Projections.

You should review pp. 54–55 of the text for examples of the key issues that should be discussed within these sections of the MP. You will need a comprehensive marketing program, which includes a discussion of: the Product Strategy, the Pricing Strategy, the Promotion Strategy and the Distribution (channels) Strategy.

 

The last section on Financial Projections should show a 5-year projection of expected revenues. In addition, you should present some type of idea when BE (break-even) will take place. Companies that introduce new products generally do not make a profit in “year 1” because of the high development and marketing costs required to test and launch the product. Obtaining costs will be difficult, but you should try to estimate costs.

 

    • Executive Summary (ES)

Finally, once the MP is written, you will need to write the Executive Summary. The ES is written last but is placed right after the Table of Contents. You will want the reader to see the ES first. if they like it, they may read on. If it does not excite the reader, the MP will likely be discounted. The ES should contain only the most important findings, conclusions, and recommendations contained within your plan.

Please read through the draft to ensure that what you are writing matches up with what has been written already. Especially if you are doing one of the strategies, some of those topics have already been discussed, I know pricing has been for sure. 

 

ALSO, please don't forget to include your references!

 

CMP DRAFT 3 

Collaborative Marketing Plan: Draft 3

April 27, 2020

 

5 Year Marketing Plan

Johnson & Johnson

 

 

2. Company Description

            Johnson & Johnson was established in 1886 by the three Johnson brothers, James Wood Johnson, Edward Mead Johnson, and Robert Wood Johnson, to produce surgical dressings. This company began with only 14 employees. Johnson & Johnson has progressed greatly since it was first founded over 130 years ago, however, the company still focuses on improving healthcare and the products available.

            Now in the face of a global pandemic, Johnson & Johnson recognizes the issues all consumers and healthcare workers are facing. With a shortage of many supplies essential to healthcare and wellness in general, a solution to this problem is needed. It is our desire at Johnson & Johnson to help come up with a solution that will not only be an answer to the problems we are currently facing with COVID-19 but will continue to have a part in everyday life as we all strive to remain healthy.

            Johnson & Johnson believes that with the proper technology and guidelines in a place, we will be well on our way to ensuring that this type of shortage never occurs again. This marketing plan outlines how Johnson & Johnson intends to market its new product, QuickClean.

3. Strategic Plan and Focus

This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competency/sustainable competitive advantage of Johnson & Johnson.

 

Mission

Our Mission is

·         To promote diversity and inclusion to everyone, from our employees to our consumers, and our community

·         To improve the lives and the quality of life for all people

·         To develop medical devices that improve the health of all in need

·         To exceed expectations with a boundless desire to give and care (Mission Statement Academy, 2019).

Johnson & Johnson has a credo that describes their mission statement, values, and vision. “Our Credo challenges us to put the needs and well-being of the people we serve first” (Our Credo, n.d.). Their main focus is first and foremost the customers that buy their products. “We believe our first responsibility is to the patients, doctors, and nurses, to mothers and fathers and all others who use our products and services” (Our Credo, n.d.). Another big focus at Johnson & Johnson is the work environment for the employees. The desire is an “inclusive work environment where each person must be considered as an individual. We must respect their diversity and dignity and recognize their merit” (Our Credo, n.d.). Johnson & Johnson also has a responsibility for the health of the people they serve. “We must help people be healthier by supporting better access and care in more places around the world” (Our Credo, n.d.).  While maintaining the mission statement of Johnson & Johnson, we desire to develop a new product that will improve the lives of all people, from our consumers to doctors and even our employees. This new product will embody our slogan, “A Family Company at Work for a Better World” (Mission Statement Academy, 2019). The QuickClean will bring employees back to work sooner, safer, and cleaner with easy to use technology that will sanitize hands with UV light and alcohol only.

Goals

            With the release of their new product, QuickClean, Johnson & Johnson intends to achieve the following goals:

·         Nonfinancial goals

1.      To increase worker cleanliness, productivity, and general welfare with a product that allows for quick and simple sanitization.

2.      To achieve nationwide recognition throughout all hospitals in the next 5 years.

3.      To add a new, smaller version of QuickClean to our product line that will make it easy for anyone to stay sanitized, anywhere.

4.      To be the solution to the shortage of other “hand sanitizers” in this current pandemic of COVID-19.

5.      To develop a loyalty program that will offer rewards and discounts to schools, colleges, hospitals, etc. as a motivating factor to bring our product into their building.

6.      To become synonymous with hand sanitization, just as Kleenex is with facial tissue.

7.      To promote sustainability by not using any plastic in QuickClean, only glass.

8.      To decrease hospital visits for cold and flu symptoms from 35% among adolescences to 18% in 5 years.

·         Financial Goals

1.      To acquire 45% of the market within our first five years of launching the product.

2.      To sell 8,000 units in the first year.

3.      To manufacture each unit for $25-$50 and produce a gross profit of 100%, which would require selling each unit at a cost of approximately $50-$100.

Core Competency and Sustainable Competitive Advantage

Ensuring we deliver high-quality products to our customers around the world and comply with the laws and regulations which govern our business activities have been long-standing principles at Johnson & Johnson (Our policies & statements, 2020). Adherence to these principles is the responsibility of every employee and is critical to help protect and enhance the reputation of Johnson & Johnson (Our policies & statements, 2020). QuickClean’s easy accessibility, quick-acting, and protective product will prove to be a permanent sustainable competitive advantage in our unpredictable environment.  

4.      Situation Analysis

This situation analysis begins with an overview of the current environment in which Johnson & Johnson finds itself by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis. After the SWOT analysis, a deeper look at our industry, competitors, company, and consumers will be provided.

SWOT Analysis

Figure 1 shows the internal and external factors affecting the market opportunities for Johnson & Johnson.

 

 

 

 

 

Figure 1. SWOT Analysis for Johnson & Johnson

Internal Factors

 

Strengths:

Weaknesses:

 

 

Management

 

Johnson & Johnson has a strong strategic plan and organizational structure that is focused on health for all people and sustainability.

Johnson & Johnson’s extensive size offers many options but with that comes a large number of employees that all cannot be watched at once.

 

 

Offerings

Johnson & Johnson Medical Devices Companies already develop devices to improve healthcare and standard of care (they can easily market to hospitals and healthcare companies).

Johnson & Johnson is known to the average consumers for common healthcare products, not new technologies.

 

 

 

Marketing

 

Johnson & Johnson has built its brand as a reliable, family company so customers already trust their products.

Johnson & Johnson relies a lot on brand loyalty for marketing, so marketing to a quarantined society will be hard on their word-of-mouth aspect of marketing.

 

Personnel

A large, experienced workforce that is dedicated to their jobs.

 

Big gap if key managers or board members leave.

 

 

Finance

 

Johnson & Johnson has been in the business of making cleaning supplies for years, so they already have access to the cleaning products.

QuickClean is mostly designed to help businesses and may not have enough value to the household consumer.

 

 

Manufacturing

 

The company’s products are distributed to many stores that are considered essential and will remain open during the pandemic (Target, Walmart, grocery stores, etc.)

The company is not known for its distribution methods and speed like companies such as Amazon.

 

 

R&D

 

Continuing efforts to provide quality and affordable to products keep people healthy.

Because the company is so large, it can be difficult to focus entirely on one major development/research topic.

 

 

External Factors

Opportunities:

Threats:

 

 

 

Consumer/social

Due to the recent outbreak of COVID-19, the demand for both sanitizers and cleaning supplies have grown dramatically.

With “non-essential” businesses being closed, efficient marketing will be difficult, and marketing and advertising strategies will see different results.

 

 

Competitive

 

Johnson & Johnson has a well-known, recognizable name.

Other companies are making sanitizers and cleaning products, they could have the same idea.

 

 

 

Technological

 

The amount of sanitizing and machine cleaning in the workplace has increased exponentially during the past month due to changing protocols.

 

New technology may not be of enough value to consumers to purchase if they sanitize machines themselves.

 

 

 

Economic

 

Hospitals have become more hazardous due to the outbreak so they would be very receptive to anything that can keep employees safe, hospitals clean, and prevent further spread of the virus.

 

Because social distancing is affecting the entire nation, the fast distribution of the QuickClean will be difficult.

 

 

 

Legal/regulatory

There are new protocols for businesses that are open to increasing their sanitation procedures.

Government-mandated closures have caused many businesses to shut down.

 

The majority of Johnson & Johnson’s current strengths, weaknesses, opportunities, and threats are altered due to the outbreak of COVID-19.  One of the company’s main strengths is its brand loyalty because the release of a new product will be embraced by many people who already trust Johnson & Johnson products.  The financial strength is that the QuickClean would promote the usage of Johnson & Johnson sanitizers, thus sales of the QuickClean would lead to increased sales of sanitizers.  Other strengths include the new technologies that have already been developed by Johnson & Johnson Medical Devices Companies and the company’s widespread distribution to stores that are essential and will remain open.  The two most important external opportunities for the company include the demand for all cleaning supplies and technology due to the pandemic and the new protocols for businesses that are open to increasing their sanitation procedures.

For the unfavorable factors, the weaknesses are that they are more recognized to the average consumer for cleaning agents rather than devices, they rely on brand-loyalty and word of mouth advertising, the average consumer may not find value in the QuickClean, and they are not the most developed and efficient with distribution methods.  The main threats to the company come from the changing social climate due to the outbreak of COVID-19.  With many businesses closed and the government-mandated quarantine, developing and marketing a new product would be difficult.  There may also be an increase in competition due to the rapid growth of demand for all cleaning products.

Industry Analysis

Consumer Health Products:

Johnson and Johnson offers a large variety of consumer health products. The world’s largest variety of them. “Our baby care, skin care, oral care, wound care, over-the-counter and women’s health products feature brands trusted by consumers and healthcare professionals worldwide” (Products, n.d.). We do this by meeting the needs of people and anticipating their future needs.

Medical Devices:

“At Johnson & Johnson Medical Devices Companies, we are using our breadth, scale and experience to reimagine the way healthcare is delivered and help people live longer, healthier lives” (Products, 2020). Johnson and Johnson play a part in a lot of medical fields like “surgery, orthopedics, vision and interventional solutions with the big ideas of others to design and deliver physician and patient-centric products and solutions” (Products, 2020). The main goals of Johnson and Johnson medically are to “continually focus on elevating the standard of care—working to expand patient access, improve outcomes, reduce health system costs and drive value” (Products, 2020).

Pharmaceutical Products:

Johnson and Johnson offer to aid in some of the “most devastating and complex diseases faced in our time” (Products, 2020). This sect of Johnson and Johnson is called the Janssen Pharmaceutical Companies. Their mission is “investing in a transformative future, changing the way diseases are prevented, intercepted, treated and cured” (Products, 2020).

Competitor Analysis

            The global hand sanitizer market currently represents over 1.2 billion dollars in annual sales and is expected to grow to 2.14 billion dollars by 2027 at a compound annual growth rate (CAGR) of 7.5 % (Fior Markets, 2020). The expected growth is said to be a result of the lasting effects of the coronavirus pandemic on the market’s growth potential (Huddleston, 2020). The products fall primarily into four groups: gel, foam, spray, and wipes (Fior Markets, 2020).

            The major disadvantage of the segment’s dominant product, hand sanitizer gel, is that it is currently unavailable (along with any other type of hand sanitizer), due to high demand globally. The dominant players in the hand sanitizer market are Proctor & Gamble, Unilever, and GOJO industries among others (Fior Markets, 2020). None of these companies have been able to produce the product everyone is in desperate need of. Consumers want a product they can trust to keep them healthy and they need it now.

Company Analysis

Johnson & Johnson’s strategic approach to a profitable business is modeled by our mission statement “Our Credo challenges us to put the needs and well-being of the people we serve first” (Our Credo, 2020). Instilling teams with an adaptive approach to our global welfare is a proven success.  Johnson & Johnson are passionate about inclusivity and treating everyone with absolute respect and care. In the last 4 years, Johnson & Johnson gained 10% employee growth due to successful innovations attracting the eyes of investors (Dun & Bradstreet, 2019). Total revenue increased by 33% while sustaining optimal operating costs. (Dun & Bradstreet, 2019). Year 5 is projected to spike total revenue 20% thanks to newly designed product QuickClean. Johnson & Johnson’s shareholder report indicated a 2% growth both in small sales and large purchases; however, COVID-19 slightly impacted some loyal investors. Currently, this quarter Johnson & Johnson’s EPS $2.02 (i.e., Johnson & Johnson’s didn’t retire, repurchase, or issue too many shares) with 19.8 billion in sales, the consensus among 19 polled investment analysts is to buy stock in Johnson & Johnson (CNN Business, 2020). This rating has held steady since March when it was unchanged from a buy rating (CNN Business). Major competitors such as Pfizer and Novartis are struggling to adapt to change in technology; however, Johnson & Johnson’s biggest competitor Merck are adapting by reporting a P/E ratio of 21.7 compared to Johnson & Johnson’s 25.1 (i.e., investors have greater growth expectations from a price per earnings from Johnson & Johnson).  Johnson & Johnson’s focus going into year 5 is expediential expansion. The goal is to reach a global audience by promoting fast-acting product QuickClean (i.e., target to meet all global consumer demand) mitigating the spread of COVID-19.  

 

 

Customer Analysis

Our customer analysis is aligned with our “parent” company Johnson & Johnson. We are targeting people of all ages, all businesses, and all healthcare facilities. This means from toddlers and infants to adults over 70, we want to be able to serve their needs. No age or gender discrimination. Sickness sees no age, so we must stress that there is no age target on our products, rather a preference for those who CHOOSE to live a healthy lifestyle. We would fit the lifestyle of parents with young children kids and even grandparents. Our product would also be ideal for office spaces and professional places of work. The type of people who want to buy our products usually already own different disinfectant supplies, so this product will offer greater convenience and will promote sustainability. We will make sure all of our ingredients are natural and healthy, which will attract a large portion of the market. Additionally, a portion of the proceeds from every unit sold to a healthcare facility will go directly back to them to help support them financially. We want to do our part to help in any way we can during this difficult time. This will give them the help they need to get proper PPE equipment and things for their patients to ensure sanitation and safety. 

5.      Market-Product Focus

This section describes the five-year marketing and product objectives for Johnson & Johnson and the target markets, points of difference, and positioning for its product line of QuickClean.

Marketing and Product Objectives

Johnson & Johnson is known for taking care of their employees and implementing wellness programs that “tend to have a dual benefit: improving employee health and morale, on the one hand, and reducing corporate expense per employee on healthcare, on the other” (Isaac, 2012). With their newest product, QuickClean, Johnson & Johnson has partnered with The Red Cross to show their advocacy for healthcare. Some of the proceeds from the sales will be donated to The Red Cross, which “has been the recipient of three Nobel Peace Prizes, in 1917, 1944, and 1973” (Global Healthcare Site, 2011). By partnering with a prestigious charity, our audience will know that we are not only talking the talk but also walking the walk. This will give us a platform to show the world that we care more about healthcare and less about money. This will create an optimistic buzz that will send a message about the new product QuickClean. It does not only keep your hands clean, but it will give one an ethical boost with every purchase made. Our products will be affordable and sold in-store locations of lower economic status and income. The right to health and wellness should not only be given to those of higher socioeconomic status. We will offer a subscription service as well, which will provide customers (hospitals, healthcare offices, and individuals) with the chance to have our QuickClean products delivered straight to their door as often as needed. This will allow all of our customers to focus on their health and their patient’s health, without having to worry about ordering and reordering this essential product.

Growth and Innovation:

  • At Johnson & Johnson we “aim to own and shape a diverse supplier base that delivers high quality, compliant and reliable products and services” (Our strategies to deliver value, 2020).

·         Suppliers are encouraged to be innovative with the solutions they come up with for problems and create “growth and streamlined processes” that are more efficient (Our strategies to deliver value, 2020).

 

Investing in Our Future:

  • Johnson & Johnson is always pursuing who “understand emerging trends and plan their business accordingly” (Our strategies to deliver value, 2020).

·        Johnson & Johnson aims to develop relationships that are long term and lean into a collaboration to come up with new innovations for the market place.

  • At Johnson & Johnson we “strive to obtain the highest-quality products and services at a fair cost, representing the best overall value for our companies” (Our strategies to deliver value, 2020).

Global Diversity, Citizenship, and Sustainability:

  • Given the large role Johnson & Johnson have in the market place, they seek to “shape and uphold the highest standards for responsible sourcing and corporate citizenship” (Our strategies to deliver value, 2020).

·        Johnson & Johnson is always trying to improve the environmental processes and the social aspects of their business.

Develop Our Diverse, Global Supply Base:

  • Johnson & Johnson “build and develop a global group of suppliers that reflects the diversity of our patients and customers, and our commitment to inclusion” (Our strategies to deliver value, 2020).

·        Johnson & Johnson have developed a Supplier Diversity Program to ensure that suppliers with a background of diversity have a fair shot of being included at Johnson & Johnson.

Target Markets

Johnson & Johnson offers a variety of items divided into four marketing segments; consumer products, pharmaceuticals, and equipment. The consumer segment is the catalyst for continued growth within the company. For example, manufacturing in India has been the most prominent piece of this segment (Bhasin, 2019). India supplies products currently in high demand due to the novel coronavirus (Bhasin, 2019). These products include baby care products like massage oil, toothbrush, shampoo, wipes, and hair oil, and also skincare products like Clean & Clear products, Neutrogena products, and QuickClean (Bhasin, 2019). With the current state of our global economy, Johnson & Johnson is committed to meet consumer demand for QuickClean. We plan to do this by using a well-organized distribution channel (Bhasin, 2019). Johnson & Johnson plans to invest additional capital into e-commerce presence by using platforms such as social media, and shopping sites on the internet to market. Johnson & Johnson’s target segments are determined once the analytics support profitability, by analyzing various factors such as production cost, the targeted segment of the society demand, supply, and the ability to pay for the product (Bhasin, 2019). Johnson & Johnson is ahead of the monopolistic competition simply by gaining consumer trust in the brand specification.

Points of Difference

            The points of difference or characteristics that set Johnson & Johnson apart from their competitors, fall into four important areas:

  • Variety of healthcare programs.  Many competing companies have a single focus, either healthcare products or healthcare services, however, Johnson & Johnson offers both.  This offer is the same for employees as it is to customers.  Unlike many competitors, the company “provides a variety of programs to meet employees’ different needs and interests and makes these programs convenient” (Johns Hopkins, 2015).
  • Highly decentralized with a centralized corporate strategy.  They can operate numerous different types of products and services while holding to one common goal as found in their Credo.  They are unique to other companies because they have “created a network of Innovation Centers across the globe, bringing together a network of academics, scientists, entrepreneurs, business development specialists, community leaders, patient advocates, and community groups to source the best possible solutions for unmet medical need” (OECD Observer, 2017).
  • Well-known globally.  They can maintain a strong brand name in many different countries.  This is beneficial to the company because not many competing companies can “successfully translate its health promotion strategies to its business units across the globe” (Johns Hopkins, 2015).
  • Highly innovative.  They remain a leading healthcare brand all across the globe by continuously seeking opportunities to enhance technology and create new, helpful products.  They are always sure to “track new market developments and seek suppliers who understand emerging trends and plan their business accordingly” (Our strategies to deliver value, 2020).

Positioning

            Currently, hand sanitizing products are either difficult to find, expensive, or nonexistent. Johnson & Johnson has worked tirelessly to create a product, QuickClean, that is affordable, obtainable, and convenient for anyone to use. Johnson & Johnson has united these characteristics to obtain a positioning in consumers’ minds as not only a high-quality product but also an affordable product that will assist them in the flight to stay healthy.

 

 

 

References

CNN Business. (2020). Johnson & Johnson. Retrieved from https://money.cnn.com/quote/forecast/forecast.html?symb=JNJ

Bhasin, Hitesh. (2019). Marketing mix of Johnson & Johnson – The 4 P’s of J&J. Marketing91. Retrieved from https://www.marketing91.com/marketing-mix-johnson-johnson-4-ps-jj/

BusinessTeacher.org. (2019). SWOT analysis of Johnson & Johnson | Business Teacher. Retrieved from https://businessteacher.org.uk/swot/johnson-and-johnson.php

Dun & Bradstreet. (2019). Company Profile. Retrieved from https://www.dnb.com/business-directory/company-profiles.johnson__johnson.24c8f9d8cbaa04843be91ead945c68b3.html

FiorMarkets.com. (2020). Hand sanitizer market by product (spray, gel, wipes, foam), end-use (household purposes, schools, restaurants, hospital), distribution channel, and regions, global industry analysis, market size, share, growth, trends, and forecast 2020 to 2027. Retrieved from https://www.fiormarkets.com/report/hand-sanitizer-market-by-product-spray-gel-wipes-417852.html#description

Global Healthcare Site. (2011). Healthcare Charities. Retrieved from https://www.healthcareglobal.com/top-10/healthcare-charities

Gurowitz, M. (2018). The year was 1886: The story of how Johnson & Johnson was born. JNJ.    Retrieved from https://www.jnj.com/our-company/130-years-ago-james-wood-johnson-arrives-in-new-brunswick

Huddleston, T. Jr. (2020). The history of hand sanitizer-how the coronavirus staple went from mechanic shops to consumer shelves. CNBC. Retrieved from https://www.cnbc.com/2020/03/27/coronavirus-the-history-of-hand-sanitizer-and-why-its-important.html

Isaac, Fikry. (2012). A Role for Private Industry: Comments on the Johnson & Johnson’s

Johns Hopkins Bloomberg School of Public Health. (2015). Johnson & Johnson. Retrieved

from https://www.jhsph.edu/research/centers-and-institutes/institute-for-health-and-productivity-studies/_docs/promoting-healthy-workplaces/JNJ.pdf

JNJ. (2020) Products. Retrieved from https://www.jnj.com/healthcare-products

JNJ. (2020). Our Credo. Retrieved from https://www.jnj.com/credo/

JNJ. (2020). Our policies & statements. Retrieved from https://www.jnj.com/about-jnj/policies-and-statements

JNJ. (2020). Our strategies to deliver value. Retrieved from https://www.jnj.com/partners/supplier-principles

Mission-Statement.com. (2019). Johnson & Johnson Mission and Vision Statement Analysis. (2019). Retrieved from https://mission-statement.com/johnson-johnson/

OECD Observer. (2017). Johnson & Johnson: Leading innovations for better health care. Retrieved from https://oecdobserver.org/news/fullstory.php/aid/5791/Johnson___Johnson:_Leading_innovations_for_better_health_care.html

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[Solved] Group project final draft

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This week will be short and a lot of work so everyone please do your part ASAP! I am just going to randomly assign sections to each person so the table of contents can be completed. I will be doing the table of contents and appendix. The following is from the draft 4 instructions A report with the final Marketing Plan that includes the three previous drafts, attached as an MS Word file. In addition, this final MP must includ...
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