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.