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Marketing Essentials - Assignment Example

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Table of Contents Table of Contents 2 Chapter 1 The Company Johnson & Johnson is a U.S. based multi-national company. It serves mainly in both consumer health and pharmaceutical industries. Johnson & Johnson is comprised of many companies. It has been identified as the world’s sixth-largest consumer health company; the world’s largest and diverse diagnostics and diverse medical devices company; it has been known as the world’s fifth-largest biologics company and the world’ eighth-largest pharmaceuticals company (Our Company, 2012)…
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Marketing Essentials
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"Marketing Essentials"

Download file to see previous pages Subsequent to that, the Company developed and published ‘Modern Methods of Antiseptic Wound Treatment’ in the year of 1888. In the same year, the Company successfully innovated and launched the first commercial first aid kits. The Maternity kits were launched for the purpose of making childbirth safer in the year of 1894. Johnson & Johnson has strong credos that are inbuilt into the company’s business ideology. The first responsibility is to the nurses, patients, nurses, to fathers and mothers who use the company services and products. In addition to that, the Company maintains following standards: High Quality, Prompt service delivery, Equal opportunity for the suppliers, Individual attention to employees, Adequate and fair compensation and working conditions, Equal employment opportunities. Johnson & Johnson has no established mission or vision statement. However, the credos and values are considered to be serving the role of mission and vision statement for the company. Chapter 2 Analysis of company situation Source: (Johnson & Johnson annual report 2011). Johnson & Johnson performed well in the year of 2011. It produced adjusted earnings for the 28th consecutive year (Annual Report, 2011). In the year, the company’s aggregate sales were $ 65.0 billion adding an increase of 5.6 percent into the sales. Operationally, sales grew by 2.8 percent, representing the growing demand and strength of new products particularly in the pharmaceuticals business segment, science-based continuous innovations in the consumer business, steady and constant growth in the MD&D franchise and strong growth was recorded in the emerging markets (Annual Report, 2011). Up to 70 percent of sales were generated by products having No.1 or No.2 global market share positions. And approximately 25 percent of sales were generated through the products introduced in the past five years (Annual Report, 2011). Also, the company invested $ 7.5 billion in advanced robust pipelines and Research & Development across three of the main business segments. Due to this substantial investments in the R&D projects, the company generated considerable free cash flow of nearly & 11.4 billion. The consequent effect appeared in the shape of AAA credit ratings and consecutively increasing the dividend to shareholders for the last 49 years. Source: (Johnson & Johnson Annual Report, 2011). Chapter 3 Market situation The United States of America remains the biggest market for the personal care and health care products. The market situation in the United States indicates that there are more than 800 companies serving in the personal care and health industry and their collective annual revenues has been estimated around $ 38 billion (Hoovers, 2012). The major companies include Johnson & Johnson, Estee Lauder and Procter & Gamble. The research indicates that this industry is heavily concentrated and 85 percent of industry revenue is contributed by the 50 largest firms in the personal care products (Hoovers, 2012). Top 5 Companies Source: Hoovers D&B Company The above graph highlights 5 leading companies in the personal and health care p ...Download file to see next pagesRead More
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