Date post: | 15-Apr-2017 |
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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.
www.ibef.org
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
www.ibef.org
4Main Segments of FMCG Sector
FMCG
FOOD AND BEVERAGES HEALTH CARE HOUSEHOLD AND
PERSONAL CARE19% 33% 48%
www.ibef.org
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
www.ibef.org
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.
www.ibef.org
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
www.jnj.com
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
www.jnj.com
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'
www.jnj.com
19Recruitment and Selection Process
Explore
Apply
Interview
Offer
www.jnj.com
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.
www.jnj.com
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.
www.jnj.com
22Employee engagement program
Offer value added services that helps employees success. Give ongoing performance feedback Provide clear job goals Create opportunities for community involvement
www.jnj.com
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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