Chapter 7: Business Marketing.

Business marketing can be very profitable for certain companies. Tylenol does not directly sells its products to its consumers. Tylenol sells its products through other vendors like Duane Reade, Wallmart, Target, corner stores, 7 eleven , and many other stores across the country. Tylenol products have a very strong brand recognition behind them. Tylenol relies on these other businesses to sell its products without having to manage reaching out to each customer. It allows Tylenol products to be sold all around the world and in multiple locations . This allows Tylenol to not limit itself to online ordering or relying on people to come into Tylenol stores if they did exist. Tylenol vendors however do not do anything to change the product or reuse it for different purposes. Tylenol is sold as it was meant to be sold and vendors only markup the price in order to make a profit.

Chapter 8 - Segmenting and Targeting Markets

Tylenol company is able to provide over the counter medicine for many different target markets: ages, sexes, and etc. The products are sold all around the world with America being its largest market. Tylenol products are purchased by all different classes in addition, many people today make their purchases decisions based on the company’s ethics and, or social responsibility. Tylenol gains the trust of its consumers by enforcing strict recalls whenever there is a problem with one of its products. The company has over 31 products and sells most of them during the cold and flu season. I consider Tylenol a product that is accessible by every target market since most of there product line sells for under $10. You can find single doses sold all over the world for under $2. The only market that Tylenol does not market is the holistic medicine market which is made of individuals who rely on natural medicine to cure there pains etc.... Such products as Arnica extract which is a natural alternative to a over the counter pain reliever.

Chapter 11 - Developing and Managing Products

Tylenol was originally created by McNeil Laboratories as an elixir for children in 1955. Mcneil Laboratories was later acquired by Johnson & Johnson and its still under the same name as one of Johnson & Johnson's subsidiaries. Tylenol has evolved from 1 product to over 30 sold in over 160 countries.

Tylenol has introduced such best sellers as Tylenol PM, Tylenol cold and flu and the list goes on and on.

 

 

Chapter 16 - Integrated Marketing Communications

Promotional strategy are all of the promotion elements in one: advertising, public relations, personal selling and sales promotion.Tylenol does not use interpersonal marketing as its products are not sold by the company directly but rather by its network of many retailers across the globe. These retailers include pharmacies, super markets, department stores, corner stores, and chain stores etc...Tylenol uses mass communication to reach out to their target market. Tylenol uses mass communication to reach out to there target audiences. You can view Tylenol adds in doctors offices, bus stops , magazines, bill boards, t.v commercials, news papers, radio adds etc...

 Public relation- the company has its own website were consumers can view press releases, recall news, all Tylenol products by category, the Tylenol scholarship, and money saving coupons.The company has been going through a massive recall of its products for the past year and are now just starting to get there cold and flu products back on store shelves.

Sales promotion- go on the Tylenol website or Google Tylenol coupons and you will surely find many coupons for the products especially during a time of recalls. On Tylenol.com there is a $1 coupon you can download and print at home, also drugstore.com is currently offering 20% all Tylenol products and the lis goes on and on.

Chapter 10 - Product Concept

       Tylenol is very much a consumer product. It is affordable enough so that every one can consume its products. You can purchase single dosage Tylenol products at pretty much any corner store in the country and maybe the world. Tylenol products offer information on the box itself about the benefits of using the product and what it cures. Tylenol has over 30 over the counter products , from children's - arthritis medicine. You can always tell Tylenol by its red coloring on the box. This is Tylenol's flagship product. It does range from rapid release, gel tabs, extra strength and just regular Tylenol. On the boxes you can read things like "#1 doctor recommend", Pain reliever & Fever reducer, contains Acetaminophen. Tylenol is such a recognized brand that almost everyone knows them.

Chapter 18 - Sales Promotion and Personal Selling

             It can be very easy to find promotional pricing for Tylenol products. Do a google search for Tylenol coupons and you are sure to find many. Although sometimes coupons can only be used at certain retailers like Walgreens, and Walmart. If you go on the Tylenol website you can see that they are currently offering $1.00 off any Tylenol products, also if you shop for Tylenol products online at (drugstore.com) the price is up to 20% off retail plus free 2 day shipping. Tylenol does offer promotions especially around the time of recalls and in new emerging markets. For example during the last Tylenol recall customers were encouraged to go online to download a coupon for free Tylenol that could be used at most retailers. If Tylenol is launching in an emerging market such as in Asia were they have been offering coupons for free Tylenol for people to try out. 

            Tylenol is currently offering $5 off its newest product (precise pain relief pads) to introduce it to the market. Anyone willing to try anything that's free? This is a strategy used so that people will try the free product over Tylenol's competition and hopefully Tylenol will gain a new loyal customer. Tylenol does not have its own stores were they can have there own employees use sales tactics to push Tylenol products so it relies on advertising and coupons etc to do the selling for them.

Chapter. 17 - Advertising and Public Relations

Johnson and Johnson has had to cut its Tylenol advertising budget for 2011. After months of recalls I recently visited duane reade were I noticed that there are barely any Tylenol products. Tylenol and Children's Tylenol products historically have had an advertising budget of around $150-200 million, last year the budget was cut almost 80% to $34 million. Johnson & Johnson is focusing its advertising on Precise pain relief gels and patches. They are using usual advertising strategies such a s offering coupons to try the product for free or at a discounted price. Tylenol has a great PR team. Tylenol was hailed in the 80's as a responsible company after many people died from Tylenol bottles contaminated with cyanide. Tylenol immediately recalls all of its products despite loosing billions of dollars in doing so. Tylenol put its customers safety first before profit and they continue to follow the same practice today. Tylenol is such a well known brand that many people would think they don't even need to advertise.

Chapter 15 - Retailing

           On a recent trip to Duane Reade I had the chance to see Tylenol in the store. Duane Reade itself is clean as always well lit. They have a whole side of an aisle dedicated to over the counter medicines like Tylenol and Bayer. Tylenol's red color sticks out more than others. I also notice that Tylenol products take up at least 20-30% of all the products available. Tylenol is front and center so easy to reach and see. I do notice that some of the products are missing due to recent recalls, such as Tylenol cold & flu. Tylenol is getting out its cold/flu medicine in time for the season. It is reported that J&J spend $250,000,000 domestically on Tylenol's advertisement budget.

Chapter 6 - Consumer Decision Making

          Consumers looking for over the counter pain relievers are often faced with many choices. Tylenol, Advil, and Aspirin are the most commonly used pain medications. Consumers often make a choice on which one to choose based on there type of pain, side-effects, doctor recommended, and brand loyalty/trust. Tylenol has often marketed itself to be better than aspirin because it does not upset the stomach. However someone afraid of kidney damage will want to stay away from Tylenol. Tylenol is also the #1 doctor recommended brand especially for children. This can have a great affect on what brand people choose to use since many people trust there doctors. In addition to this Tylenol costs between $1-2 for two tablets which is at most peoples price point. Tylenol is sold at most large stores such as Walmart, Kmart, Duane Reade, Walgreens, CVS, Target, and most gas stations and convenience stores like 7-eleven.

Main benefits of Tylenol:• Relief of muscle aches and joint pain
• Relief for headaches
• Reduction of fever
Main negative side effects of Tylenol:
• Kidney, liver and organ damage
• Negative interactions when taken with alcohol

Main benefits of aspirin:
• Relief of minor aches and pains
• Reduction of fever
• Anti-inflammatory
• Anti-clotting
Main negative side effects of aspirin:
• Gastrointestinal ulcers
• Bleeding in the stomach

Main benefits of Advil:
• Relief of body pain especially arthritis pain
• Reduction of fever
• Anti-clotting
• Relief of pain associated with menstrual cramps
Main negative side effects of Advil:
• Nausea and dizziness
• Gastrointestinal bleeding

Chapter 5 - Developing a Global Vision

Johnson & Johnson sells its products in over 157 countries. Tylenol is one of its biggest brands and China is one of the worlds largest markets with a population of over 1 billion (over 19% of the worlds population). Its only natural that Tylenol is very aggressively marketing itself in China.

To do this they will advertise heavily on CCTV which reaches 98% of the Chinese population. Tylenol will also be offering vouchers as well as coupons to try Tylenol products for free or at a discounted price. Even though the U.S. is J&J's biggest market with over 51% of its products being sold here it is very important for it to penetrate the Chinese market as many other companies want to do.

From J&J

"EMERGING MARKET NEEDS

The Asia Pacific region is home to more than 4 billion people, almost 60 percent of the world’s population. While the more affluent societies, such as Japan, Australia, coastal China and metropolitan India, have access to innovative products and services, a large segment of the population has been unable to access or afford much beyond a very basic level of health care until now.
Recent health care reforms in China and India, spurred by continuing economic growth in these countries, are creating possibilities for governments to deliver a higher standard of care to many more people. Such reforms, along with the rise of a middle class and expectations of a better quality of life, are providing Johnson & Johnson with an enormous opportunity to address a previously underserved market."

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2010		2009		Total		Operations		Currency		2010		2009		Total		Operations		Currency
Sales to customers by
geographic area
U.S.	$      7,229		7,867		(8.1)	%	(8.1)		-		$     29,450		30,889		(4.7)	%	(4.7)		-
Europe	3,947		4,412		(10.5)		(4.5)		(6.0)		15,510		15,934		(2.7)		0.5		(3.2)
Western Hemisphere excluding U.S.	1,471		1,541		(4.5)		(7.6)		3.1		5,550		5,156		7.6		(0.5)		8.1
Asia-Pacific, Africa	2,997		2,731		9.7		4.2		5.5		11,077		9,918		11.7		5.5		6.2
International	8,415		8,684		(3.1)		(2.3)		(0.8)		32,137		31,008		3.6		1.9		1.7
Worldwide	$    15,644		16,551		(5.5)	%	(5.1)		(0.4)		$     61,587		61,897		(0.5)	%	(1.3)		0.8

Chapter 4: The Marketing Environment

The target market for Tyenol is quite a large one from 18-85 for both males and females. 60% of Tylenol pm users are female and the brand started marketing to gay men in 2003. Tylenol pm ads began to run in magazines such as The Advocate and Out magazine.

"We're making a shift to niche advertising from mass efforts," says Bill Donovan, marketing manager for Tylenol PM. "We didn't want to look too stereotypical or contrite," explains Jim Joseph, president of CP Partners, Princeton, NJ, which created the gay campaign.

"We wanted to let folks know that we understand their lives and that a busy, active lifestyle can produce things that won't let them sleep. The details of the (man's) day are meant to be loose, it could be muscle pain from a workout, tension headache from work, or a night out with friends. The message is you can wake up fresh and do it all over again."

"He found that research showed the gay market has "some great characteristics for a sleep aid,"

Gay households tend to travel allot more and also have fewer children. The Tylenol gay ad campaigns will be    focused on men in there 30's.

Chapter 3 Ethics and Social Responsibility

It is estimated that acetaminophen poisoning calls exceed 100,000 per year. Studies indicate that acetaminophen overdose results in over 56,000 injuries, 2,500 hospitalizations, and an estimated 450 deaths per year. Over the past 2 years Tylenol has recalled over 100 million of there products of store shelves. Over 8 billion Tylenol pills are taken each year. Johnson & Johnson has a very very popular product and they always recall all there products at the first sign of any contamination, tampering or any other problems. In my opinion Johnson and Johnson does a good job of keeping its customers safe for such a large company. Most Tylenol related deaths are due to accidental overdosing.

Chapter 2 Strategic Planning

Johnson & Johnsons strategic plan is for the direction of the Company to remain a broadly-based human health care company for the consumer, pharmaceutical and medical device and diagnostics markets. The product I chose from J&J is Tylenol. To see Tylenols strategic plan we have to go back to when it was first introduced into the market (1953-1955). At that time Bayer aspirin was the leader in the over the counter prescription pain reliever market. Tylenol had to make a choice to go head to head with Bayer or try and find a way to serve a need that bayer customers had. Well Bayer is aspirin and aspirin was known to irritate the stomach, so tylenol decided to create advertisements that focused on that fear as you can see in one of the advertisements I have posted. Tylenol is acetominophen which was not harsh on the stomach and was safe for people with stomach ulcers. Today Tylenol controls over 30% of the over the counter pain reliever market and there are over 30+ different tylenols -for coughs, childrens, allergy, pm , daytime , liquid, extra strength etc...

Brief History of Johnson & Johnson (Tylenol)

Johnson and Johnson is one of the most diverse and oldest companies in the world. The company is 125 years old and was started by 3 brothers, Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson in New Brunswick, New Jersey, U.S. in 1886. The Johnson and Johnson corporation has over 250 operating companies in 175+ countries. Johnson and Johnson is a publicly traded company on the Dow Jones and had global sales of $61.6 billion and a profit of $17.6 Billion in 2010 alone. These sales were made up of 3 separate divisions within the company a Medical Devices & Diagnostics segment, Pharmaceutical segment , and a Consumer segment. Johnson & Johnson owns such recognizable and diverse brands such as Aveeno, Ambi, Listerine, Motrin, Neutrogena, Splenda, Tylenol, Johnson's baby products, Visine, Prezista for HIV, Invega an anti-psychotic medication, and Phsycostimulants to name a few. In 2010 Johnson & Johnson's geographical sales were 48% in the U.S. , 25% in Europe, 18% in Asia/Africa, and 9% in the west hemisphere. Johnson & Jonson is a part of the S&P 500 which makes it one of the largest companies in the world.