Executive summary

This report has been prepared for the specific purpose. This report is focused on the marketing analysis of the company Johnson and Johnson, which is a reputed brand globally. This report contains the introduction of the company and the marketing analysis of the company in terms of sustainable consumption, by making the environmental analysis of the company i.e. PESTEL Analysis and SWOT Analysis. The report also provides the recommendations to the organization in terms of new product development in the market of Australia with the product name Johnson Tooth Gel, which is considered as the new product in the product line of Johnson and Johnson. The market research has been done for the product is based on the SWOT analysis of the company and on the basis of segmentation in terms of identification of target market. The report also explains the strategies in terms of marketing mix variables that will be followed by the conclusion of the report. 

Background of company

Johnson and Johnson is an American multinational company that deals with the pharmaceutical, medical devices and consumer goods. The company is founded in the year 1886 and is listed in the Fortune 500 companies. The headquarters of the company is situated in Brunswick, New Jersey, and the consumer division is located in Skillman, New Jersey. The company has its 250 subsidiary companies with an operation in more than 60 countries around the globe with the distribution of products in more than 180 countries. ( (2018). The company ranked among the third largest pharmaceutical company in the US Department of Justice. The founders of the company are Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson. Presently the CEO of the company is Alex Gorsky who is also a chairman of the company. The subsidiaries of the company include McNeil Consumer Healthcare, Vistakon, Neutrogena and DePuy. 
Johnson and Johnson have a good brand reputation in the market with its medication and first aid supplies all over the world. Its brand line consists of consumer goods like Band-Aid, Tylenol, Baby products, Skin and beauty products, Acuvue contact lenses and clean and clear Facial wash. The board of directors of the company includes Mary sue Coleman, James Cullen, Dominic Caruso etc., who is holding the affairs of the company. The segmentation of the product line of the company is divided into three segments namely Parma, Medical and Consumer goods with its contribution of 44.9%, 38% and 16.3%in terms of total revenues. The company is enjoying its success in terms of strong branding of products and the consumer loyalty. Presently the company is providing employment to more than 110,700 employers all over the world.

Marketing environmental analysis 

For any organization, the marketing analysis is of utmost importance as it provides an insight into the internal and external environment of the company. For getting the detailed information about the market aspect of the organization the analysis of internal and external environment needs to be analyzed which is termed as PESTEL Analysis and SWOT Analysis (Hollensen, 2015). For knowing the marketing conditions of the company we have done the PESTEL Analysis of the company.
Political Factors
Political factors have a great influence on the health care and the pharmacy industry, due to its economic importance in the country. Due to the main contributor to the economy, the company struggled a lot due to the political pressure (Ryan, 2016). The political reforms of the company are heavily influencing the developing industry of the country. Johnson and Johnson is a company that is having its global presence, and hence the company needs to be updated with the political conditions of the country in which they are operating.
Economic Factors
The economic factors of the country also impact a lot on the functioning of the company. For Johnson and Johnson as a pharmacy industry has a successful impact on the operating countries of the world. This has helped the company in creating a vast database, in terms of providing better products to the consumers (Serrano, 2016). The Company is supported by many countries like Ireland and India in terms of bank loans and cash flows in terms of funding. The European Union has created the single currency market for the company and the fund on healthcare always increases in spite of the economic crisis.  
Social Factors
As Johnson and Johnson deal in the healthcare business, it has to suffer a lot of challenges created by society. In terms of social factors, the company needs to look after the varied needs of genders of different age groups that belong from different societal backgrounds. Obesity is seen as the most threatening and rapidly growing problem in the world which leads to many health problems. So for that Johnson and Johnson has to take necessary steps in terms of providing sufficient health care for this particular problem.
Technological Factors
Johnson and Johnson have to emphasize on the research and development for the creation of modern products and technologies for the satisfaction of consumers. The company has to be concerned in terms of technological advancements in the medicinal and healthcare sector. With the assessment of diseases that cater in different countries, the company has to focus on research and development by increasing the overall budget on the research, so that they can understand the needs of the market and make the products as per the requirements of the market. Thus the company must be confident in operations so that they keep themselves updated with every latest change that is related to technological advancement.
Environmental Factors
The analysis of economic factors is also very important for an organization like Johnson and Johnson. In terms of analysis of problems and challenges that the company is facing in the different environment of different countries in which they are operating (Ashley, 2015). For example, the company has faced problems in European Union operations due to the economic crisis in the the company is well aware of the economic crisis of the country, so the company has planned accordingly the impact and effects of the crisis. But as the company is dealing in the pharmacy industry, and the need for medical products are termed as necessities so the company do not suffer a lot in the economic downturn. But the company needs to be aware of the environmental factors to maintain success in the economy. 
Legal Factors
Johnson and Johnson have to accept the local laws of the countries, in which they are operating their business. The company has to follow the copyright, patent and intellectual property acts of different countries. The company also has to take due care of the health and safety laws of different countries in terms of health protection. A large number of employees are working in the company and provides all the necessary benefits in terms of employment laws. The company also has to take due care in terms of consumer protection and e-commerce and have to take necessary action in terms of discrimination laws , for the protection of employees on the basis of race, color, gender and religion.

S.W.O.T Analysis

The worldwide sales of the company have risen to 15% which indicate the positioning of the company globally around the world. The business model of the company has adopted the entrepreneurial values in order to maintain an edge in the market. The company is working towards the scientific notions in terms of utilization of business (Anton, 2015). The company is enjoying the strong brand portfolio by the assortment of the huge number of products. It is considered as the most trusted brand by mothers and medical practitioners all around the globe. Presently the company is focusing on customized products as per the needs of customers. The company has gone through mergers and acquisitions with various healthcare companies like Neutrogena, Pfizer and much more for operational advancement. 
The company is facing problems in terms of one of its subsidiaries for which the medicines will be recalled due to the bad quality of products, which will lead to negative word of mouth publicity. The Company is also facing problems in terms of pricing policies due to the presence of competitors in the market. ( (2018).  The sales of the company are also declining due to the generic competitors. Due to strong competition, the company is facing problems related to market share growth and as a global brand, the company also suffered from market fluctuations in its operations due to the economic crisis in different countries like India and Ireland. The company is also suffered from internal weakness in terms of theft and counterfeiting of drugs through the internal staff of the company.
The recent acquisition of Pfizer Healthcare will be seen as an opportunity for Johnson and Johnson for promoting growth and development of an organization. The company is also emphasizing on new developments in the pharmacy sector with five regulator reviews that help in diversification of existing brand portfolio. The company is also making innovation in medical and diagnostic devices that will create new market in terms of business growth. The new rule of WTO in terms of providing cheap generic drugs, which is seen as the threat for the company will be converted into opportunity by the introduction of cheap generic drugs under the brand name of Johnson and Johnson, which will add reliability in the medicine due to the umbrella name of Johnson.
Johnson and Johnson are facing high competition, due to the presence of strong global competitors in the market that will provide substitute products at lower prices and leads to the reduction in the market share of the company. Johnson and Johnson are presently working in the mature market and hence seen a very low rate of market growth .The Company is also suffering a threat from the generic drug market of local players. The expansion in Biotechnology will also move the established pharmaceutical market in future. Strong regulations of different countries for the global pharmaceuticals industry is also creating problems for the company due to strict rules.


Johnson and Johnson is the leading branded company who is providing products to its customers by maintaining the proper channel of distribution so that the products are delivered on time. The company has to increase the number of products in the healthcare, medicines and pharmaceuticals as the company is enjoying a reputed brand image in the market and in the eyes of customers.

Target Market 

The target market of the company has been identified on the basis of Market Segmentation.
Demographic Segmentation
The product that we choose for the sustainable consumption of the population of Australia is the toothpaste that will target the adults, children and households of the country. The current population of Australia is 22,232,413 with the age structure of:
0-14 years:                                       17.8% (male 2,122,139/female 2,012,670)
15-24 years:                                     12.79% (male 1,524,368/female 1,446,663)
25-54 years:                                     41.45% (male 4,903,130/female 4,725,976)
55-64 years:                                     11.83% (male 1,363,331/female 1,384,036)
65 years and over:                            16.14% (male 1,736,951/female 2,013,149)
Source: (2018). 
Our main targets are children and females that contribute to more than 50% of the population.
Market growth Segmentation
The overall market growth of tooth gel is growing by 10% in the general and particularly 6% in Australia ( (2018). . 
Socioeconomic Segmentation
Middle income and upper middle income will be the main target for the product. The primary target will be urban cities like Melbourne, Sydney etc. and the small cities market penetration will be done by wholesalers. (Cross, 2015)
Psychographic Segmentation
On the basis of psychographic Segmentation, the main targets will be mothers and housewives who will care about the health of the complete family and assist in educating their children about health and hygiene.
New product description 
Based on the result of SWOT analysis the new product that we have identified for the target market is Johnson Tooth Gel. The main strategy of the company is to provide a healthy life to the customers at a low price and high quality (Solomon, 2014). The name of the product is Johnson Tooth gel, with the product type fluoride and anti-calculus tooth gel, that has antioxidants, that helps in removing toxins, by maintaining oral hygiene. Fluoride and Pomegranate fruit rind is present in the product that has antioxidant properties which help in fighting dental plague and also provide whitening to the teeth. The product is providing complete protection from germs and bacteria by preventing toothache problems.
Relevant Market Strategies in terms of marketing mix  
The relevant marketing strategies that should be adopted by Johnson and Johnson for capturing the potential target market in terms of marketing mix variables are –
Johnson and Johnson is a well-reputed brand who is having a diversified product line. The Johnson Tooth Gel as a product has possessed the set of characteristics that make it different from other products in terms of the look by using mild colors like the white, pink or light green in packaging with different sizes of 25g,50g-100g that protect the teeth from plague and germs.
Every product has the specific pricing strategy to make it different from the competitors. Johnson tooth gel is available in different variants and is priced at the amount of 2-8 A$ based on the sizing of product. ( (2018).  The pricing of the product is dependent on the size and the target customer. If the customer is new they probably want to buy smaller packs, and once it is created into loyal one, probably the larger packs will be bought.
Johnson Tooth Gel is a daily-utility product that will be used by the targeted population of Australia. The product is available at all major retail outlets and medical stores for easy availability of the product to consumers. ( (2018). Once the product is known by the market then the company will collaborate with major retail chains for the availability of product and e-commerce will also be seen as the major distribution channel for this product to make it easily available to each and every household of the country.
As the company is well known all over the world, due to its high brand value. The promotional activities for Johnson Tooth gel are not very difficult for the company. The company used the concept of digital and television marketing for advertisement and promotion of the product. (Grünig, 2015) The company will make advertisements on YouTube, Facebook and other social networking sites and the concept of open tab advertisement will also be done in the promotional tactic of Johnson Tooth Gel.


In the present scenario, the marketers are making efforts in terms of sustainable consumption of products in terms of target market. In the present world, customer is the king, due to varied choices in the product availability. This report is prepared with the objective of market analysis of the Johnson and Johnson in terms of internal and external analysis of the company for the development of new product in the Australian market. This report helps the researcher in formation and adaption of necessary marketing strategies for strengthening the market for the new product. This report is also helpful for other researchers in future who are interested in the same topic of research.


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