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Madhuparna DattaPGDM 1DM16A24Pune Institute of Business Management

2Sector analysis

The FMCG sector has grown at an annual average of about 11% over the last decade.

The overall FMCG market is expected to increase at (CAGR) of 14.7% to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7% to reach US$ 100 billion during 2012-2025.

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3About FMCG Sector

FMCG is the fourth largest sector in the Indian economy

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector

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4Main Segments of FMCG Sector

FMCG

FOOD AND BEVERAGES HEALTH CARE HOUSEHOLD AND

PERSONAL CARE19% 33% 48%

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5Trends in the FMCG Revenue over the Years (USD billion)

2007 2008 2009 2010 2011 2012 2013 2015 2020E0

20

40

60

80

100

120

17.8 21.3 24.230.2 34.8 36.8

44.9 47.3

103.7

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6GDP Contribution

17.20%

29.10%

52.70%

12.00%GDP

Agriculture Industry Service FMCGwww.ibef.org

7The Key Growth Drivers For Growth

Growing awareness Easier access Changing lifestyles The Government of India's policies and regulatory frameworks.

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8Historical Growth Degrowth Pattern(USD Billion)

2010 2011 2012 2013 2015 20160

10

20

30

40

50

60

30.2 34.836.8

44.9 47.349

Sales www.ibef.org

9Potter’s Five forces Model

Rivalry among

competitors(High)

Bargaining Powerof Suppliers

(Low)

Threatof Substitute

(High)

Bargaining Power

of customer(High))

ThreatNew Entrance

(Moderate)

10Company Information Johnson & Johnson (J & J) is a Fortune 500 pharmaceutical and consumer

packaged goods manufacturer multinational company. Founded in 1886 by three brothers, Robert Wood Johnson, James Wood

Johnson and Edward Mead Johnson. Johnson & Johnson have more than 265 operating companies in more than

60 countries employing approximately 126,500 people.

Johnson & Johnson embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people.

www.jnj.com

11Vision and Mission To bring healthy vision to everyone, everywhere, every day. To lead the world in quality, customer experience, innovation and

growth.

12Products

Consumer Products Medical devices Pharmaceutical Products

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13Income by segment

14Competitors

Major Competitors are Pfizer Merck Novartis

15Market Share

8.20%

8.90%

22.80%

Sales

Merck & Co Johnson & Johnson Pfizer

16Marketing StrategyStrengths Brand name and positive word of mouth.

Johnson & Johnson extensive reach across the world

Such high is the product quality, that even adults use

the product extensively.

Effective advertisement and distribution channel.

Weaknesses

Limited presence in the rural market.

People prefer indigenous alternatives for babies

with sensitive skin.

Opportunities

Well reputed and established global brand, every

chance to grow further in the emerging

economies as well

Tie-ups with hotel chains, children playhouses,

crèches

Threats

Other popular brands in the segment

Threat of cheap local brands and imitations

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17Marketing MixProduct Gives smooth skin to the baby

Protects the baby from rashes Looks - cylindrical packaging with pores on the top, cuboid with curved edges. Twist and unlock Available in different Variants.

Price Johnson's baby powder are priced at an amount ranging from Rs 25 to Rs 250 based on the sizing of the product in this case from 50gms to 700gms.

Place Baby powder as product related to child care and wellness is broadly distributed not only in medical stores but also in many of the fancy and grocery stores near children care hospitals

Promotion Promoted through Print , Electronic and Digital media.

18Sector-Targeting-PositioningCustomer segment

Almost all segment parents who are above the poverty line with respect to the income

Pension earning grand parents Family groups in Tier 1,2,3 cities, rural areas (Town and panchayat)

Target group

Mothers of age group (24-32)

Positioning

Johnson's baby powder at different stages of its life cycle as used different positioning statements like 'Mother's Choice', 'Like Father, Like Child', 'Smooth skin, guaranteed'

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19Recruitment and Selection Process

Explore

Apply

Interview

Offer

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20Training and DevelopmentLeadership development On the job training Independent study courses Web-based courses Interviewing simulations assessments Intensive workshops Action-planning coursesPerformance Management Each employee and manager is expected to engage in “5 Conversations

Framework” It is consists of the Performance and Development Planning, Mid-Year, Career

Planning, Year-End Performance and Compensation conversations.

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21Performance Appraisal Method

Johnson&Johnson demonstrate “Our Credo” commitment to employees. At the end of the year the reward, which is variable compensation, varies according to

salary, bonus, stock award, and stock options. Employees are rewarded by achieving results in ways that exemplify and do not

compromise the corporate values.

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22Employee engagement program

Offer value added services that helps employees success. Give ongoing performance feedback Provide clear job goals Create opportunities for community involvement

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23Conclusion It is evident from the various practices and policies of J&J

that, it is a company with a vision. The vision is reflected not only in the credo of the

company, but gets translated at every stage in the form of best practices at the company.

Herein lies the human approach, where the focus is not diluted to reap benefits with a business policy geared towards only ROI (Return on Investment), but towards ROR (Return on Relationship).

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