Sunday, September 25, 2011

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





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