MARKETING-The most crucial steps for success in a company are market segmentation

| January 31, 2017

Question
A

Segmentation and Target Market

EuChandra D. Keeter

MKT/571

August 27, 2015

Marlene Shaner

Segmentation and Target Market

The most crucial steps for success in a company are market segmentation. The appropriate market segmentation also plays a major role in their profitability and future sustainability. Based on the companies’ ability and outreach to the market, they may follow different market segmentation. For the global companies, geographic, demographic, and behavior are the most common market segmentations. For the discussion, Johnson and Johnson have been selected for study on their market segmentation methods. I will also discuss their strategy for their brand and their image. I will also discuss how Johnson and Johnson target customers as well as other businesses to invest in their product.

Johnson and Johnson

Johnson and Johnson started its journey in 1886. This journey began with three brothers Robert, James, and Edward Johnson. Besides making and delivering their products worldwide, it was not until 1959 when Johnson and Johnson developed a significant presence in the industry of pharmaceutical. Johnson and Johnson runs its business worldwide in 60 countries, according to the Johnson and Johnson website, it has more than 126,500 employees worldwide, over 100 products, also a well-liked fan base on face book with 9.9M likes. Their biggest competitor is Colgate-Palmolive Company (Blake, 2013).

Mission, Vision and Values of Johnson and Johnson

Mission

· Consumer

· Medical devices and diagnostics

· Pharmaceutical

Vision

Johnson and Johnson vision is to achieve stable health and growth.

· People-Have a good work environment filled with respect and dignity where they treat all employees as individuals.

· Portfolio-Responsibility to doctors, nurses, mothers, and fathers who use the products and services.

· Profit-Suppliers and distributors must have an opportunity to make a fair profit.

· Partners-Should make a profit housing their product.

Source: (Johnson and Johnson, 1997-2015)

Slogans of Johnson and Johnson

Johnson and Johnson Family of Companies- 120 years

Caring for the world, one person at a time.

Market Segmentation of Johnson and Johnson

Johnson and Johnson marketing strategy have got attention from all over the world. There have been several studies completed on Johnson and Johnson products. Johnson and Johnson use its external and internal marketing strategies to defeat their competitors. It highly emphasizes on innovation for the success of the company and brand name. Johnson and Johnson target market based on demographic, geographic, psychographic and behavioral characteristics. These are a few brief analyzes of all the segments-

Demographic- Johnson and Johnson segment their market on the basis of age as well as gender. Therefore, Johnson and Johnson can say that the people from the age group of 20-40 are the main target segment of the company as they are the people who purchase the baby care products the most. The biggest portions of the product sold are also sold to women with the men buying the fewest amounts of the products according to a recent survey. As far as occupation go on buying the products from Johnson and Johnson, many of the buyers were employed or self-employed, and the least amount showed was for housewives (Johnson and Johnson, 1997-2015).

Psychographic-Johnson and Johnson target markets based on general peoples brand consciousness. For highly educated customers, they made advertisements gain their attention with high thoughts. For example, Doctors and nurses who deal with patients on a regular basis. For less educated people, they also have distinct policies. For example, Stay at home mom, or even a teenager that has just given birth to their first child. It focuses on the demand of the people from all over the world based on their back ground and culture (Johnson and Johnson, 1997-2015).

Behavioral-many customer purchase Johnson’s baby lotion mainly because of the awareness created by Johnson and Johnson using TV ads as a medium of communication. Most people prefer the product due to the amount of availability, quality, and brand value created by Johnson and Johnson. Many new parents will not take a risk applying a new product to their new born child, especially not knowing whether the child may have sensitive skin or the possibility of being allergic to the product. Since Johnson and Johnson have already established their trust in their product, most doctors will highly recommend their product by word of mouth. Johnson and Johnson’s product the customers to be comfortable with buying the products and using them, also (Johnson and Johnson, 1997-2015).

Johnson and Johnson position statement with careful consideration of brand and strategy..jpg”>

Strategy or Objectives

Enduring strength is Johnson and Johnson’s consistent approach to managing their business. Johnson and Johnson take much pride in helping millions of people stay well. Johnson and Johnson have been able to keep up with the changes of human health and well-being, as society grows Johnson and Johnson continues to grow with the population. Johnson and Johnson’s products, ideas, and services have been able to touch lives of at least one billion people every day (Johnson and Johnson, 1997-2015).

Segmentation Method

There are three distinct business segments that share a common focus for human health in Johnson and Johnson. Johnson and Johnson are the eighth largest pharmaceutical business in the entire world. Johnson and Johnson are also the sixth largest biotech business in the country.

Segment Alternatives

During this step, Johnson and Johnson evaluate different products of the alternatives. The market will look into what product is worth pursuing, what goals are reachable, and what will be most profitable. Each segment will have to give a brief idea on which alternatives to focus on mainly.

Target Market

A SWOT analysis has been done by Johnson and Johnson of the market before introducing their products to specific markets. Once they have pointed out the flaws, they will target each market one at a time. Johnson and Johnson mostly look into mass marketing for their products. Therefore, they will use a different strategy for mas marketing.

Competitor Analysis

Johnson and Johnson’s have quite a few competitors. However, Johnson and Johnson’s main competitor is Pfizer. Since Johnson and Johnson research and manufacture products for the health care field and pharmaceuticals Pfizer has tried to step up their game to compete with Johnson and Johnson.

Conclusion

Johnson and Johnson company has been dominating the world markets for more than 120 years with a strong brand image and their unique marketing strategy. Distinct and innovative marketing strategies have always been welcome in Johnson and Johnson. Even though the company has faced challenges during their life span; they have handled all of the challenges wisely. With wise tactics Johnson and Johnson have managed to defeat their competitors. Johnson and Johnson have managed to continuously expand their market to new places. In their advertisements, Johnson and Johnson focus on their mission, vision, and values. Many organization all over the world study thoroughly Johnson and Johnson Company, and how they have been able to maintain marketing success.

References:

Johnson and Johnson. (1997-2015). Retrieved August 25, 2015, from http://www.jnj.com/sites/default/files/pdf/jnj_ourcredo_english_us_8.5x11_cmyk.pdf

Johnson and Johnson. (1997-2015). Retrieved August 25, 2015, from Johnson and Johnson: https://www.jnj.com/caring/citizenship-sustainability/strategic-framework/Market-Presence

Johnson and Johnson. (1997-2015). Retrieved August 26, 2015, from Our Management Approach: http://www.jnj.com/about-jnj/management-approach

Blake, H. (2013, June 26). Pharmaphorum. Retrieved August 25, 2015, from A history of Johnson and Johnson: http://www.pharmaphorum.com/articles/a-history-of-johnson-johnson

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