Marketing Strategy_MBA17G17

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  AssignmentOnMarketing StrategySubmitted by Chetan Kumar BhartiaMBA MarketingMBA17G17  Q- J&J's Maharashtra plant was closed by the state drug regulator on the grounds of nding carcinogen elements as sterilizing agents in the manufacturing process.The company went on to appeal in court for geng the license back and then started a PR campaign to assure customers about product quality. Despite this the company experienced a revenue fall of 3% in previous FY.Idenfy the strategy level adopted by J&J to address this issue.Review all components of the strategy idened. ANS: - Johnson & Johnson  is an American mulnaonal medical devices, pharmaceucal andconsumer packaged goods manufacturing company founded in 1886.Johnson & Johnson spread its root into India 70 years ago. Since then, the company hasbrought many innovave ideas, products and services to improve the health and well-beingof people in India. The company today employs more than 3,500 people and is organizedinto three business segments: Consumer Healthcare, Medical Devices and Pharmaceucals. Introduction of the case The Maharashtra government on 15 Dec 2014 upheld the Food & Drug Administration(FDA) Commissioner's decision to cancel Johnson & Johnson India's license to manufacturehealthcare products from its facility in Mulund in suburban Mumbai.The FDA had cancelled the license of J&J facility in March after it found that 15 batches of  baby talcum powder manufactured at the Mulund plant were sterilized using ethylene oxide, achemical that is widely believed to cause cancer, nausea, vomiting and is considered anirritant. However, the Maharashtra FDA had stuck to its ground, saying that they werelooking to cancel this license not only because the company had failed to register the processwith a local FDA but had also not conducted mandatory tests to check for residues in these 15 batches. The company did not have data to check whether traces of Ethylene Oxide did not remain inthe powder as it is highly carcinogenic. The company released about 1,60,000 small packs inthe market and in effect exposed equal number of babies to carcinogenic substance. Strategy level of J&J: Strategy Level adopted by J&J Funconal level strategyFunconal level strategies are the acons and goals assigned to departments and individualsthat support your business level strategy. These are the smallest components of the planningpyramid but are the foundaon on which the success of your strategy lies.  Funconal level strategies will be specic and will apply to a variety of funconal areas (departments). For example, building on the diversicaon example, the funconal level strategies that support that business level strategy might be:  R&D: Redesign product  Markeng: Implement new adversing plan  Producon: Make changes to exisng infrastructure R&D: Redesign product   J&J removed parabens, which are used as preservaves, from its baby line in 2015, and phthalates, oen used to control a product's structure, in 2009, said Trisha Bonner, associate director of research & development at J&J Consumer.  But when J&J started the research for the line relaunch three years ago, it talked withthousands of moms, and discovered the brand needed to go further, she said, “What we learned is that they were looking for fewer, simpler ingredients, more naturally derived ingredients in their products, Bonner said from J&J's labs in Skillman, New Jersey. From that, we knew that we had to completely make a change to our brand.  So J&J is cung the number of ingredients in the new Johnson's Baby line by half, eliminang dyes and sulfates and replacing ingredients like mineral oil with coconut oil, she said. J&J also changed the packaging to add pumps to many of its products tomake them easier to use while holding a baby.  Baby wash products are also designed to leave less residue. The packaging will be changed to make it easier to recycle, and contain instrucons for how to do so, Bonner said. J&J will also share informaon online about the ingredients in fragrances. It will sll use both synthec and natural fragrances.  J&J said it's making the changes, not because of safety issues, but because that's what customers wanted, Bonner said.  The line relaunch comes aer J&J has been hit with a slew of lawsuits claiming its talcbaby powder products cause cancer. As part of the reboot, the company is introducing new baby powder products, containing coon, in addion to connuing to sell its products that contain talc and cornstarch.  We are absolutely certain that science shows that our talcum product is safe, and we will defend our brand and defend our product, Mesquita (Execuve Vice President, Johnson & Johnson and Worldwide Chairman, Johnson & Johnson Consumer Companies) said, But we're always innovang, we're always trying to evolve and upgrade, so we're looking at a new version of baby powder that has got a combinaon of coon and powder, which consumers are very excited about, and that will be added to our lineup.  Markeng: Implement new adversing plan J&J took to its website, Facebook and Twier to issue lengthy and brief rebuals and to reassure investors and consumers. It tweeted on December 19, 2018, “The FDA has tested Johnson’s talc since the ‘70s. Every single me it did not contain asbestos. “To get its message across a larger audience, it released full-page newspaper ads in the US reinforcing its posion.Company used Content Markeng StrategyTo create an independent and trustworthy content source of parenng and baby carefocused on:  keeping the plaorm unbranded (no direct connect with J&J and its oerings)  focussing the content around real issues faced by the community throughmulmedia content of text, video and chat  provide chat facility with other mothers/ parents and experts for problem solving inreal-me  alerts on key milestones to track your baby’s development and benchmark withchildren of your baby’s age group to take care of typical parental concerns with respectto development and growth Views of independent communicaon expert, Anup Sharma on J&J controversy “He says that the company should proacvely start communicang with its stakeholders (mothers, pediatricians and the cerfying organizaons) that it is following the rule book. One can't communicate only when crisis hits them. J&J India should start talking about its products, the baby products company should denitely take a p or two from the way Nestle India handled the Maggi Noodles controversy. When the news rst broke out about Maggi containing harmful MSG and lead, Nestlé’s immediate reacon was also not to respond, which drew considerable ak. However, the company quickly made amends by not  just communicang aggressively with its stakeholders and talking about the crisis through a series of emoonal adversements; it also got its best crisis manager, Suresh Narayanan to take charge of the Indian business. Narayanan was heading Middle East and Africa during the Arab Spring and is known for his crisis management skills. Not only did Maggi Noodles get a clean chit, it also regained its srcinal market share of close to 60 per cent within a yearof the crisis.The need of the hour for J&J is to engage with its stakeholders and renew trust rather than wait for yet another crisis to happen.”

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