Entrepreneurship Marketing, Essay Example

Introduction

This paper posits to explore branding and target marketing in relation to Johnson & Johnson Baby care products. Johnson & Johnson is rated as the second largest producer of health care products in the world. The company claims a major share of the global pharmaceutical and consumer markets, and is as well rated as the largest manufacturer and developer of diagnostic devices and medical treatment in the world. Successful commercialization of products as well as market penetration is based on appropriate product development strategies that incorporate a clearly distinct philosophy of product marketing, markets and, management. There is also the need for a systemic approach in the definition and solving of marketing problems. Companies require having solid awareness as well as understanding of the main techniques and tools requisite for successful marketing management (Keller, 2008).

The intensity of competition forces companies to implement strategies that generate a competitive advantage for the company. Creating a brand name such as Johnson & Johnson Baby with well established linkages is one technique of accomplishing this aim. Companies invest greatly in developing a brand. This is usually a very expensive process but the returns in investment when success is realized are worthwhile (Keller, 2008).

Targeting

Targeting entails the utilization of diverse models such as; concentrated marketing and undifferentiated marketing (learn Marketing, 2008). A target market can be defined as a cluster of clients who form the focal point of a business’s marketing strategy. Consequently, in the establishment of a target market is the initial step in a company’s marketing strategy. Usually, the target market is formed by use of the marketing mix. The marketing mix has several versions but the most reputable are what is regarded as the four P’s of marketing. These four Ps  include Promotion, Price, Place and Product. The product is a tangible element of the service or product, while place, or distribution, refers to getting the service or the product to the client. The promotion element of the marketing mix relates to communicating to the target audience, while the pricing element of the marketing mix is the price allocated on the product. This will be influenced by the mix of product selected. Numerous marketing strategies are fundamentally based on these principles.

The marketing mix principle presents a marketer with the constraints which would guide him in an informed decision making process. Keeping all decisions relating to marketing in the perspective of the constraints presented, will mean that the service or product will at all times be in communication with the target market. Communicating and understanding the target market facilitates the marketer in creation of perceived value and produce more positive outcomes.

The marketing mix may be regarded as a recipe in the running the business. As is the case with all recipes quantities of the key ingredients must be varied in order to produce diverse results. The same applies with the marketing mix. The service or product offered to the target market can be changed by variations in the mix elements. For instance, when a pharmaceutical company launches a new product or service its focal point will be on the promotion element of the marketing mix. The company will not focus much on the price element of the mix. The company will do this since if it has a reputable brand name and consequently trusted by clients. Consumers in the contemporary world are more enlightened. With this in mind, companies need to carefully understand their target market. Companies that aim at a diminutive target are better placed to generate more returns on investment (learn Marketing, 2008).

Branding

Branding refers to the use of a symbol, design, or term by a company as a way of identifying its service or products and distinguishing it from those of rival companies. A brand is more broadly and effectively defined as a distinguishing picture and relationship positioned in the consumers’ mind of an object (service or product) or a subject (institution or person).Brands are closely associated with trust and reliability. What a brand means to a customer is that all it is associated with will bears an invariable level of quality, price and service. In the event that consistency is lacking, the brand becomes vulnerable and its integrity plummets. Branding in regard to health care is reliant on trust than is the case in other industries. The client surrenders entirely to the seller. When trust in health care is lost the company is bound to lose its market share. A brand wanes or waxes with the weakness or strength of the company’s core of value.             Johnson & Johnson Baby is a brand that generates imaginations and can influence behavioral patterns among clientele and consumers. In its application to health care, the definition of a brand would mean that a product or service, such as Johnson & Johnson Baby, can be perceived as a brand. It also means that consumers of baby products perceive these and subjects and objects in dissimilar ways. The brand helps simplify the customer’s ability to differentiate Johnson & Johnson Baby from a wide variety of offerings. The Johnson & Johnson Baby brand facilitates a positive differentiation of the competitions’ offerings. A strong brand such as Johnson & Johnson Baby also facilitates the transference of the particular brand to new products Judith, R., (2002). This facilitates Johnson & Johnson offering of new products and services, as well as prospects for increased revenues. An organization that has a strong brand such as Johnson & Johnson Baby is better protected from predicaments and from the impact of rival companies (Russell & Taylor, 2006). Johnson & Johnson Baby brand facilitates the company in building customer loyalty, since the customers trust the brand as well as its quality.

Indeed, Johnson & Johnson Baby brand presents evidence of competency to the customers. Johnson & Johnson Baby is branded to build a niche that appeal to a women-orientated target market. This depicts a competition-driven goal. Johnson & Johnson Baby proposes quality and presents image as well as prestige to its customers. It is imperative to bear in mind that the core focus in branding is to generate a picture in the customers’ minds and their perceptions that will characterize the value of the brand Judith, R., (2002). Consequently, this means that the brand presents an impression; it represents certain values, for reputation and image as well as a position in the customers’ mindset. With this in mind, the significance of branding in Johnson & Johnson Baby, as a company brand, is clearly illustrated.

Success of Johnson & Johnson Baby

The Baby care consumer segment at Johnson & Johnson is reported to have hit $2.2 billion in the year 2010; while the company has reported increased sales in the first quarter of 2011. However, company profits have been reduced by approximately 23%. The major reasons for the decline in earnings is, expenses involved in product recalls as well as the litigation involved. The adjusted revenues of the company have exceeded expectations. Net income for the first quarter of 2011, is reported to be approximately $3.48 billion Judith, R., (2002).

Recommendations and Conclusion

Johnson & Johnson require investing more in forecasting. The core objective would be to have a projection of what the future holds in relation to its Johnson & Johnson Baby products. This would be done by synchronizing occurrences that are likely to occur within the supply chain (Russell & Taylor, 2006). Johnson & Johnson need a continuous replenishment strategy would facilitate information sharing within its supply chain. The continuous replenishment strategy would efficient present an inventory management system that would be unrivalled by the competitors. This strategy will enable Johnson & Johnson to maintain a lean and accurate inventory and speedy on-time deliveries to its customers. The benefits that accrue are increased customer satisfaction levels as well as optimum resources utilization. This would cushion the company in case of difficult economic times.

Johnson & Johnson Baby products have demonstrated effectiveness as they are usually recommended as well as broadly used by nurses and doctors in hospitals. Their medicinal technology has contributed resolving an assortment of problems. More research would be recommended in the field of baby care products in order that the company maintains its competitive advantage over its rivals. Johnson & Johnson ought to adopt a brand extension strategy, and at the same time, the product must be in similar categories. This would enhance the Johnson & Johnson Baby brand.  In adopting a brand extension strategy the objective would be to benefit from the brand familiarity accomplished in the existing markets. When an organization launches a new product, and markets it under the umbrella of a reputable brand name, the rates of failure and marketing expenses are minimized.

References

Judith, R., (2002). “Tylenol made a hero of Johnson & Johnson” The New York Times.

Keller, K.L. (2008), Strategic Brand Management: Building, Measuring & Managing Brand Equity, 3^rd Ed.  Prentice- Hall, Upper Saddle River, NJ

Learn Marketing, (2008). “For Marketing Learners Globally”. Retrieved July 5, 2011, from http://www.learnmarketing.net/targeting.htm

Russell, R., & Taylor, B., (2006). Operations Management: Quality and Competitiveness In a Global Environment.  John Wiley & Sons, New Jersey