Johnson & Johnson

Final report
─

Judith Ricart Madero i Judit Vila Tañà

Strategic Management and Planning
UVIC-UCC
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1. Introduction
Johnson & Johnson (J&J) is a multinational corporation that operates over 250 individual
companies. Their products consist of medical devices, pharmaceutical, and consumer
packaged goods. (JnJ, 2018)
Since the company was founded in 1886, profits have seen steady growth. J&J’s operations
in 60 different countries created a revenue stream of $81.6 Billion. Besides this, the value
of company shares has nearly tripled between 2005 and 2018. (JnJ, 2019)

The vision is to help people see better, connect better, and live better. And the mission of
the company bringing science and sense of sight to life through world-class innovation and
consumer experience.

Pharmaceuticals
J&J’s departments in the pharmaceutical segment cover a wide range of services in the
health care sector. They created different immunology products such as the anti-tumor
necrosis factor, treatments of autoimmune diseases and many other disorders. A major
example of its key infectious diseases products is a hepatitis c protease inhibitor. Besides
this, the company also fights ADHD. “Our pharmaceutical organization has created
breakthrough medicines to address some of society’s greatest unmet medical needs,
resulting in meaningful outcomes and benefits to patients,” said Mr. Gorsky. (JnJ, 2018)
Medical Devices
The medical devices department is divided in the Orthopedics, Surgery, and Interventional
Solutions sections. Each section is designed to target different demands in health care. The
medical devices department focuses to reimagine the way healthcare is delivered and
helps people live longer healthier lives. This is achieved by making connections across
science and technology to design and deliver physician and patient-centric products and
solutions. Examples of these devices are joint reconstructions, trauma, spine operations,
sports medicine, power tools, and biomaterials. (Johnson & Johnson, 2019)
Consumer Packaged Goods
Baby care, skincare, oral care, wound care, over the counter and woman health products
are part of the J&J Consumer Companies. These products are then divided into
departments for Skin Health Products, Self-Care Products, and Essential Health Products.
The company offers the world’s largest range of consumer goods. “By anticipating needs
and creating solutions and experiences, we help people live healthy, vibrant lives.”
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2. Company analysis

2.1. SWOT analysis

The SWOT analysis of Johnson & Johnson is employed to assess the company’s competitive
stance by recognizing its internal strategic factors like strengths and weaknesses, external
strategic factors like opportunities and threats. (S&P, 2018)

Strengths
Firstly, the good returns on capital expenditures that makes J&J’s to one of the most
admired companies in the world: J&J is relatively successful at execution of new projects
and generate good returns on capital expenditure by building new revenue streams. (Fern
Fort University, 2018)
Secondly, R&D focus and integrated supply chain: Research activities represent a significant
part of the Company’s businesses. The company remains committed to investing in
research and development with the aim of delivering high quality and innovative products.
In terms of worldwide costs of research and development activities, 9.1 billion dollars were
spent in 2016. (S&P, 2018)
Thirdly, revenue spread across many product categories: Johnson & Johnson revenue
sources are broadly spread across pharmaceuticals, consumer products and medical
devices. All three business sectors are well positioned to address the changing needs of the
customers and patients. The sales in the consumer segment were $13.3 billion, in the
pharmaceutical segment were $33.5 billion whereas in the Medical Devices segment were
$25.1 billion in 2016. (S&P, 2018)
Fourthly, customer trust: Baby care is a product line where the primary factor that triggers
purchase behavior will be the level of trust that the mother holds for the brand. Johnson &
Johnson has been highly successful in winning the trust of their target segment through a
series of successful advertising campaigns and all products that keep up with the promise
of the brand. (Bhasin, 2019)

Weaknesses
Weaknesses depend on the Success of Launch Products: ​Many new launch products are
vulnerable to the uncertainty of regulatory review and ultimate market benefits may vary
substantially from forecast, therefore, a reliance upon launch products potentially
represents a threat to Johnson & Johnson’s outlook. (Friesner, 2018)
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Secondly, there has been a reduction in the market demand for key products of Johnson
and Johnson. Some of these products are being replaced by generics. This problem might
be more manageable if the price for J&J’s could be reduced or the advertorial plan was
improved to increase the need or the want of the product. (Valle, 2012)
Internal weakness across the industry and not isolated to Johnson and Johnson would be
the level of theft and counterfeiting of drugs managed through internal personnel.
(Essay,UK, 2017)

Opportunities
A wide range of potential cross-selling opportunities: Johnson & Johnson is in a position to
strategically develop a myriad of cross selling opportunities. Maximizing its balance
between pharmaceuticals, diagnostics, and medical devices could result in increased
revenues.

Potential to Exploit Biologics Market: The addition of further biologics (e.g. therapeutic
proteins, antibodies) to its portfolio can serve as a buffer as small molecule patents expire
which will drive the future growth of the company.

Changing lifestyle​: With the increasing in literacy rate worldwide there is increase in
concern over health & medical issues due to which there is increase in demand of medical
products so J & J will also get benefited from this. (Bhasin, 2019)

Threats
Some of the threats that Johnson and Johnson face are the profitability of high demand
products, the company works on highly profitable yet seasonal products, so if there are any
discrepancies during the peak of the season it will affect the profitability of the company.
some of the new environment regulations that are under the Paris agreement are threats
to certain products that are already in stock. in addition, some of the other threats that this
company faces are the isolationism that the American society has, there is a domino effect
on governments that create an awkward situation due to them behaving in the same way ,
due to this anything that has to do with international sales are in danger of not being very
successful. The creative development of the company has been put in halt for the majority
of their products, because of this most of the products are products that are a direct
response to the developments done by other companies; there are also high- and low
swings that the company suffers due to their supplies being irregular. (Fern Fort University,
2019)

Although the strength of having new distributors, it can also present a threat due to the
competition of paying higher to local distributors. in addition, going to the consumer point
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of view, their vision and necessities are ever changing so because of this some products
that were once popular might not be anymore. Also, the consumer buying behavior can
change as well going from an online channel will impose a threat of physical infrastructure
supply chain model. The overall sales of Johnson and Johnson have been affected over the
last two years due to the fact that stable profitability expanded the number of competitors
within the industry leading to overall sales to decrease due to intense competition. (Fern
Fort University, 2019)

2.2. PESTEL analysis

The PESTEL analysis highlights the current trends in the FMCG industry & pharmaceutical
industry and largely on the Johnson & Johnson company.
Since 1886, Johnson & Johnson has gone through numerous changes; both internally and
externally. One of the biggest factors in their ability to remain number one in the consumer
healthcare market has been their name, however in recent years, external forces
pressuring the company have forced major changes to ensure future profitability.

Political factors
The Pharmaceutical industry has seen several increases in political attention of recent
years. This is due to the role health care plays and its economic importance. Political
interest affects the overall health care sector making the pharmaceutical companies lobby
with the government in many of their activities. Pharmaceutical companies must be able to
respond actively to shift in government policies and should adhere to trends of ethics,
compliance, and accountability in order to be successful in the market.

In the United States ​Johnson and Johnson has Political Action Committee that is consistent
with United States Federal and States laws that allows any US citizen to voice and change
public policy with respect to health issues. Johnson and Johnson also regularly make
generous donations to support candidates in election campaigns who are championing the
cause of affordable quality health standards.

Besides, for Johnson & Johnson and most of the healthcare market, political decisions have
far-reaching consequences for their current and future business practices. With the
passage of the Affordable Care Act in 2010, Johnson & Johnson and other pharmaceutical
companies were forced to look at products and work towards making them more
affordable for lower-income patients. Since 2010, Johnson & Johnson has devoted more
than $50 billion dollars to research and development in order to keep products effective
and affordable. While there are reports that Johnson & Johnson has profited greatly from
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the Affordable Care Act, Johnson & Johnson has paid higher taxes and federal fees since it
was passed.

Economic factors
The economic climate is also important for Johnson & Johnson to analyse in order to
predict when its business may face challenges, as well as when it can seize an opportunity
for growth. Operating in the European Union and larger European community means that
Johnson & Johnson has felt the effects of the current economic crisis. Aware of the crisis,
the company has been able to plan for its impact, and fortunately, the effects on Johnson &
Johnson have not been severe, as medical products remain necessities even in periods of
economic downturn.
Also, discussions surrounding the use of the euro and the benefits and disadvantages of a
common currency are debates that Johnson & Johnson should be aware of. A switch to the
euro in Ireland in 2000 had a wide range of effects, some positive and some negative. For
example, adopting the euro made transactions with other countries more convenient
(speed-up of transactions). J&J also faces numerous practical difficulties with tasks such as
accounting that occurs with a change in currency. Keeping such economic scenarios in
mind is crucial to Johnson & Johnson's success.

Social factors
There has been a rapid increase in the spread of diseases in the developing countries
recently and the Johnson & Johnson is constantly involved in research to address the health
for humanity Goal by 2020, wherein they are trying to drive social engagement to expand
healthcare facilities in the developing countries of India, parts of developing Chinese
mainland and Brazil. Pilot programs are already underway in these countries. Johnson and
Johnson employees, almost as 20000, regularly volunteer in key social programs of the
company. Over the past decade. Johnson and Johnson have reached out to 1.3 million HIV
positive women to educate them of the risks and needs for future action.

Technological factors
As many pharmaceutical drug markets become saturated and the drug strategy becomes
obsolete due to the major changes occurring in the industry, innovation and breakthrough
medical technologies are essential for finding blue oceans in which to compete. Predictive
medicine, which entails predicting diseases based on genetics and preventing them, and
personalized medicine, which involves managing a patient’s health based on his or her
individual characteristics as opposed to following the more traditional “standards of care”
model, are growing fields into which Johnson & Johnson can expand. The company’s strong
emphasis on research and development and its leadership in the medical devices and
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diagnostics segment put it in an excellent position to become a frontrunner in making new

discoveries in these promising new technological fields.

Environmental factors
Johnson and Johnson have contributed to the environment and also helps in improving
living in the society through providing of valuable drugs to cure several diseases and having
good cooperate social responsibility. Also, the company must make sure that they operate
in a way that they consider environmental issues by manufacturing products that are
eco-friendly.
In 2013, Johnson & Johnson Consumer became one of the first companies to commit to
reformulating their products to remove plastic microbeads from their global portfolio of
cosmetic and personal care products. This is completed in 2017.
The company is also working in 26 cities to support the implementation of climate actions,
such as establishing low emission zones. J&J also has created a website named
‘[Link]’ which displays videos and tips about recycling. Besides this, all of the
packaging of the company is recyclable.

Legal factors
Companies operating in the pharmaceutical industries have a lot restriction and must
ensure they comply with the regulatory and legislative standards. The breakthrough in
internet is also changing the legislative boundaries as more people demand for rights of
better and affordable healthcare.
The Company us being challenged by Pfizer Inc. for a certain drug called Remicade. Pfizer
received federal patent permission to ship a drug similar to Remicade last year. Remicade
is a very important drug in the Johnson & Johnson stable and contributed to nearly 9.7% of
the company’s revenues in the fiscal year 2016. REMICADE (inflicimab), is facing biosimilar
competition, which will ultimately lead to a slump in U.S. sales of REMICADE. The presence
of substitutes in the market will bring down revenues considerably.

2.3. Four corner analysis

The four corner’s analysis was also developed by Michael Porter as a useful tool for
analysing competitors. It generates ideas about the future by evaluating the strength that
competitors have in pursuing their intentions and objectives. It also informs of the
adaptability of competitors in the face of future environmental and industry changes.

Drivers
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As you already know J&J has a strong position with its popular consumer products like
Band-Aid, baby products, beauty products and many more. The presence in each sector is
quite and trusted by many medical practitioners worldwide but there are many
competitors that are offering similar products and services. TOne of the largest
pharmaceutical and a research-based company is Pfizer. The main strength of this brand is
their excellent R&D wing that continuously produces and innovate products. Additionally,
with its R&D strengths, Pfizer has six products among the top pharmaceutical brands in
India.
Furthermore, competitors are looking for mistakes in one of the largest companies as J&J is.
For instance, J&J was selling baby care products and beauty products that contained parts
of quaternium-15. Quaternium-15 is a potentially hazardous chemical. Under pressure
from consumer Groups, in 2012 J&J has decided to eliminate a slew of ingredients from
these products to not lose any customer groups.
Nevertheless, some people remain concerned about the risk and the case and might
change their opinion and buy products from competitors.
[Link]

Current strategy
J&J has a very good competitive advantage, as you know, one of his strongest sides is the
brand itself. J&J was founded about 120 years ago, and it has 250 companies all over the
world. The dominance and the legacy of the brand gives it a competitive edge.
Another strong side are its products. For J&J, gentleness, safety and comfort have always
been a priority in their activity. The company uses harmless chemical, and their products
have to pass rigorous clinical tests to guarantee the best quality to the market, and the
consumers know that.
They also use a lot of innovation, J&J every year invests billions of dollars in R&D. Every year
they come up with innovative products which help the company stay ahead of the
competition.
They have a huge distribution network that arrives all over the world. The company also
uses emotional and mental communication developing trust and creating different kind of
feeling to convince its consumers to buy and use their products.
As it comes to promotional strategy, the company has created an independent content
platform, that provides information of their products, and all-day millions of young parents
and expectant mothers are reading this information about parenthood and babies.

[Link]
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Management assumptions
First, we have to talk about company’s perceptions of its strengths and weaknesses. So, as
we said before in the SWOT analysis, they have a lot of strengths and a few weaknesses.
Some strengths are the good returns on capital expenditures, ​R&D focus and integrated
supply chain, revenue spread across many product categories and customer trust.
Secondly, another capability is their cultural traits. In the Johnson & Johnson’s credo we
found sentences like:
“We must respect their diversity and dignity and recognize their merit”
“We are responsible to the communities in which we live and work and to the world
community as well. We must help people be healthier by supporting better access and care
in more places around the world, (...) protecting the environment and natural resources”.
(Johnson & Johnson, 2019)
So, we can say that their cultural traits are very committed to the world around them, not
only with their employees, also with all people, environment and natural resources.
Thirdly, their organizational value. It is built around their philosophy of great value,
responsibility, promoting the well-being of people, keeping promises, being inspiring and
respectful.
Fourthly, the perceived industry forces. Johnson & Johnson is the largest biomedical
company in terms of revenue in the world. Nevertheless, we have to mention that in 2019
they have been the top 3 pharmaceutical company. So, they can’t forget the strength of the
competitors that is winning place.
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Lastly, the belief about competitor’s goals. The pharmaceutical sector is continuously
innovative and adapt changes so it’s a common goal for all competitors and industry
demand. The competitor’s goals is a very big threat because they have the same objectives
as our company.

Capabilities
Johnson and Johnson’s key capabilities are its technology and intellectual properties, its
research and development facilities, its supply chain and manufacturing facilities, its
logistics and distribution channels, its partnerships, and its personnel. So, they bring
world-class expertise, education, and innovation to our customers' key areas of focus.
Also, Johnson & Johnson, have a cloud-based platform designed to help hospitals engage,
educate, communicate and guide patients through their episode of care, provided by
MedTrak Inc.
On the other hand, they use a supply chain optimization, allow improve efficiency, decrease
complexity, and reduce waste associated with procuring, delivering, and distributing
Johnson & Johnson devices through best-in-class order performance, inventory
management, and logistics strategies.
Besides, they also take sustainability into account, that allow reduce expenses and
decrease environmental impact while maintaining the ability to provide excellent patient
outcomes by embedding sustainable practices related to Johnson & Johnson devices into
health system operations.
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2.4. Five forces of Porter

Johnson & Johnson is one of the leading firms in the Drug Manufacturers - Major. Over the
years Johnson & Johnson has redefined the ways of doing business in Healthcare.
Porter Five Forces is a holistic strategy framework that took strategic decision away from
just analysing the present competition. Porter Five Forces focuses on - how Johnson &
Johnson can build a sustainable competitive advantage in Drug Manufacturers - Major
industry. Managers at Johnson & Johnson can not only use Porter Five Forces to develop a
strategic position within Drug Manufacturers - Major industry but also can explore
profitable opportunities in whole Healthcare sector.
Based on current competitors and prospective one’s, Johnson & Johnson faces the
following characteristics:

Threat of new entrance

The market is full of competitors. It is very difficult to enter in market for a new company.
On the other hand, entry of new company makes the path very tough for existing
companies. So, the existing companies treat the new entrance as threats for their
company. Porter (2010) mentioned that when a new company tries to enter in the market,
sometimes it reduces the price of their product to attract the customer or may give some
other benefits. Especially, a new company identifies and concentrates on the weaknesses
of existing companies. It helps the company to meet customer requirement and get
developed slowly. The new company tends to maintain the availability to beat the existing
one.

Bargaining power of buyer

The increase in price of drugs have made patients to lose their bargaining power and
consumer have no choices but the drugs prescribed to them by the doctors. The buyers of
pharmaceutical products are all in different places and they have no power to influence the
pricing of the products. When drugs are patented companies may set prices to include high
profits but as soon as the generic versions are available buyers then have more bargaining
power. Most buyers tend to switch to generic products that are more affordable and
provide related functions. The high risk can be minimised by building a large base of
customers. This will be helpful in two ways. It will reduce the bargaining power of the
buyers plus it will provide an opportunity to the firm to streamline its sales and production
process. Secondly, by rapidly innovating new products. Customers often seek discounts
and offerings on established products so if Johnson & Johnson keep on coming up with
new products then it can limit the bargaining power of buyers.
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Threat of substitution
Baby care, skincare, oral care, wound care, over the counter and woman health products
are part of the J&J Consumer Companies. These products are then divided into
departments for Skin Health Products, Self-Care Products, and Essential Health Products.
The company offers the world’s largest range of consumer goods. “By anticipating needs
and creating solutions and experiences, we help people live healthy, vibrant lives.” By
understand the core need as mentioned before Johnson & Johnson can tackle the threat of
substitution. To strengthen the image, Johnson & Johnson need to turn to a more
service-oriented company than just product oriented. In the 21’s century of digitalization it
is necessary to not only be product oriented, but at the same time, know the customer
needs and behaviour.

Bargaining power of supplier

Buyers of Johnson & Johnson products include individual buyers, doctors, wholesalers,
retailers, pharmacists and insurance companies. When it comes to wholesalers and
retailers, there are very few suppliers available to them that have actually established a
well-known brand name throughout the world so they will try to maintain good relations
with these pharmaceuticals, so their business keeps going. When it comes to doctors,
physicians, pharmacists and insurance companies, they also need to be associated with a
credible name such as Johnson & Johnson so the bargaining power because the switching
cost for them is really low but then again, because of such a good name that Johnson and
Johnson has gained itself, the bargaining power of customers remains low. So, overall the
bargaining power of buyers is low in case of Johnson and Johnson.

Competitive Rivalry
If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Johnson & Johnson operates in
a very competitive Drug Manufacturers - Major industry. This competition does take toll on
the overall long-term profitability of the organization
All in all, the rivalry is quite low, cause Johnson & Johnson differentiated the product range
in a wide manner so that new companies get in trouble when they try to adapt to the
market. Even if a product area decreases in its sales, others will partial out the
circumstances.

Conclusion
The “Johnson & Johnson” company is so omnipresent in the market that without it even the
world of the baby products and health care products and health care product sounds
incomplete. In meeting their needs everything they do are in high quality. When we talk
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about baby products Johnson and Johnson comes first in our mind. Everything related to
the brand, its advertisements, products after sale services are all example of perfect
excellence. The company has a great image and only need to take actions when it comes to
threats of substitutes and bargaining power of buyer as mentioned above.

3. Methodology: strategy
The methodology to be followed in these strategies will be that of Blue Ocean Strategy. It
will be implemented by all three strategies.
The Blue Ocean Strategy is based on innovation. It was formulated by W. Chan Kim and
Renée Mauborgne in their book of the same name. Its aim is to achieve new markets and
business opportunities without taking into account the destructive competition of already
exploited scenarios. It uses innovation to create new paths to success and positioning. This
is where the name blue ocean comes from, symbolizing a calm, peaceful and clear sea,
easily navigable; being the antagonist of the red ocean, which operates with destructive
competition -symbolizing blood- being there all the companies of today that dispute the
markets with the only objective of surpassing their competition.

([Link]
bfc46a9cd8506753b9cf/[Link])
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The characteristics of this strategy are the creation of uncontested market space, the
conception of irrelevant competition, the creation and capture of new demand, breaking
the value of cost compensation and the pursuit of low cost and differentiation. They offer
more value at a lower cost for the end customers.
Thus, we operating with this blue ocean will propose strategies based on fully innovative
new products, in some cases incremental and in others disruptive.
Following this Blue Ocean Strategy, we have developed the Blue Ocean Strategy Canvas.
This strategy canvas is a visual that can be used to analyse your company. One axis of the
canvas represents specific capabilities, the other axis is a mix of different metrics that show
variation.

By this Blue Ocean Strategy Canvas we can see the focus and the divergence of Johnson &
Johnson, which are their scope, well-known brand and experience. We can ask us the ERRC
Grid too, consisting in what should be Eliminated, Raised, Reduced and Created. We
absolutely know that they have to improve their customer trust, affected in part for being
between courts for their complaints about their powder which is said to contain
carcinogenic substances. They don’t take advantage to their niche products, as we said
before in the company analysis. So, for the strategy will be taken into account the creation
of a niche.
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4. Strategy explanation
Johnson & Johnson is in the top 3 pharmaceutical companies in the world. It always
alternates its position between second and fourth place, so one way to take the lead in
pharmaceutical companies would be to break into new markets. Johnson & Johnson
markets many types of medications to combat various disorders: digestive disorders, flu
and colds, allergies, damaged skin, hair loss, smoking and eye irritation. Where it is
primarily engaged in three sectors that are:
- Medicine through doctors and components for surgical operations.
- Pharmacy through the creation of medicines
- Personal care with shampoos and contact lenses as examples.

Looking at the distribution of their sectors one can observe the weight of the
pharmaceutical section, followed very closely by the medical devices. And finally the
personal care products sector. As we can see, it is the sector that the company has the least
income, which is why our strategy is to increase this sector.

On the other hand, one of the company's strategic principles is decentralization; however,
it maintains a high concentration of 48% of its income through the American market, which
makes us reflect on the low development of other markets. Therefore, with the three
strategies we will develop below, we want to increase sales in other countries, specifically in
Spain.
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In order to improve their performance in the market, three strategies will be proposed:

FIRST STRATEGY: LISTERINE ZERO+ENZYMES SUGAR SOLVENTS

The first strategy proposed would be the creation of a new Listerine, the world's leading
sales mouthwash. This new product consists of a new mouthwash for children under the
age of 6. The product would be called Listerine Zero + Sugar Solvent Enzymes, and would
be composed of natural components, which if a child swallows them nothing would
happen. That means that repeated use would not be dangerous or harmful - even if it is a
medicine - because of its natural components. This strategy would therefore focus on a
daily consumer product, one of the sectors least focused by Johnson & Johnson.
To introduce this new product to the market, two different channels would be used: in
pharmacies and supermarkets. It could be sold worldwide, with the typical strawberry
flavour for children. Its use could be recommended in advertisements or simply
recommended by the dentist or pharmacist.

In addition to being a business opportunity for the company, it is another opportunity to

reduce childhood caries, since currently, in Spain, 31 percent of Spanish children under the
age of 6 (2 million children) have caries, which means that 7 million baby teeth are affected.
The main objectives of our strategy are to reposition the brand, create market niches and
increase market share. To do this we will create a new product that reduces childhood
caries in Spain. This product creates a need since in Spain 3 out of every 10 children under
6 years old have cavities.
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Johnson & Johnson wants to explain the importance of maintaining good oral health in the
early stages of life. To do this, it wants to launch a campaign under the slogan 'Think in
your mouth, take care of your health', with the aim of promoting good habits and
appropriate preventive measures. This campaign will be based mainly on this new product.
This will give you a lot of publicity.
The company wants to bet on this initiative as most of the children affected are untreated
(80-90%). And also take advantage to launch their new product, thus increasing their sales.
And to be able to reach the proposed perspectives.
This innovation is the implementation of improvements and advances to adapt to children
under 6 years, being an incremental innovation.

SECOND STRATEGY: AFTON

The second strategy proposed for Johnson & Johnson is the creation of a new product to
combat mouth sores, since despite all the specialties treated, it does not have products
against oral diseases. This would open up new markets.
Many people suffer from mouth sores, being one of the most frequent lesions of the oral
cavity with between 5 and 80% of the affected population. They are wounds that appear in
the mucous membrane of the oral cavity, the inside of the cheeks, the tongue, the soft
palate or the base of the gums. They are open sores with a rounded or oval shape,
yellowish or whitish in color, usually with a reddish halo around them. They range in size
from 3 to 8 millimeters and may appear alone or in groups. It occurs most frequently
among children and adolescents, especially between the ages of 10 and 19. It is a repairing
gel that comes in two different formats: one in lipstick and another in a small jar like those
of Vaseline. The consumer would be able to choose the one that best suits him, since the
lipstick would be more comfortable to wear but more expensive compared to the jar.

THIRD STRATEGY: VISPRING SPRAY

The third and final strategy proposed would be the modification of the eye medicine
Vispring. It would be adapted for a more comfortable use, being a spray. It is a format that
already exists in other products on the market but that Johnson & Johnson has not
developed.
Mainly this product is focused for those people who do not like anything to use the eye
drops, because there are people even if they have an infection or a problem in their eyes
they are not medicated just because they have to put some drops in their eyes. That is why
we created this alternative, so that these people can be medicated in a simpler and more
comfortable way for them.
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In addition, it's also more comfortable to wear on your eyes if you're not at home.
Consumers will be able to use it wherever they want, since with a simple spray they would
already have it on.

5. Conclusion
We have conducted a serie of surveys1 to different people around us, at the different age
and sex. As far as the first strategy is concerned, we did a survey of a few mothers, where
we asked if they would give their youngest child the new Listerine Zero + Sugar Solvent
Enzymes. The results were 80% would give the product and the other 20% would not give
this product to their children.
Referring to the second strategy, which is the creation of a new product to combat mouth
sores. We conducted a survey of people between 16 and 35 years of varied sex. The results
were that 40% would use this product in the event of a canker sore, and 60% would not use
it.
Thirdly, regarding the third strategy of sprays for the eyes. We conducted a survey with the
same segment of people as the second strategy. The results were that a lot of people
would use this product in the event of a canker sore, but we have seen that they would use
it maybe a few times a year. So, it’s a good product but not as worthy for developing it.
Through the surveys we have been able to observe that the first strategy, which is to create
a new Listerine Zero + Sugar Solvent Enzymes for children under the age of 6, would be the
most profitable. On the one hand, because there is currently no fluoride for children under
the age of 6, because the products sold on the market today carry a series of components
that if a child swallows them could harm their health. That is why we want to implement
this product that, as we have said, will have natural components that will not be harmful to
the health of the child. In addition, Listerine will have a strawberry flavour, which children
love.
On the other hand, we also choose this Listerine strategy because of quantity of demand
based on usefulness, frequency, people’s habits and needs, because although Vispring is
very useful there are not as many people who use drops as children who would use
mouthwash.

In conclusion, as Chairman and CEO Alex Gorsky of Johnson & Johnson says, "Looking to
the future, the strength of our broad business focus and disciplined portfolio management
positions us to continue to leverage investments in innovation that enable us to capitalize
on strategic opportunities and achieve strong long-term performance. This strategic

1
The surveys are attached disaggregated at the appendix.
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initiative looks to a better future, where Johnson & Johnson will increase its market
penetration and position its brand. Maybe they will create a niche market too, for being the
ones of selling this type of product. That will increase its sales, as well as its reputation,
where it had fallen after the news where the company had received numerous lawsuits for
the alleged carcinogenic effect of its talcum powder.

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