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PRICE
Johnson and johnson uses both Skimming and Penetration strategy.

For the high technological products, high status products, non- competitive products, it uses
Skimming strategy.
For the products which are required by everyone, has large market size and intensive competition, it
uses Penetration strategy.
As the products are divided in 3 dimensions, different price strategy can be used for every dimension.
J&J annalyse the market and then chooses its price.
The quality of every Johnson & Johnson product is very good and even then, the company has
decided on an affordable pricing policy. Many times, its products also use psychological pricing by
keeping the value of the product at multiples of 99 or 49.
The company for all its health care products has tried to retain their increased net prices inside the CPI
or the Consumer Price Index. It is an index in use in USA and it considers the average purchase price
of a product which the consumer can afford. As Johnson and Johnson is a consumer product, it takes
care of its customers through its pricing policy.
Johnson & Johnson is aware of its responsibility to the society and for this; they have worked closely
with the government to keep prices reasonable for medical items.
In order to determine the value of their product the company has a team of efficient members that
analyses the various factors like the production cost, the targeted segment of the society, demand,
supply and the ability to pay for the product. After proper evaluation, the prices for any product are
determined.
In some cases, the prices are at a little higher rate, for instance on products like consumer goods and
baby care products, where the consumer is willing to give out the extra money for the health of their
family members. In cases of medical equipment, the prices are at affordably priced so that people can
easily buy those products.
Although Johnson & Johnson products are known for its superior quality with proper packaging etc,
the company has decided on affordable prices.
In its medical products category, working along with government they have priced them thee products
at a reasonable rate. This also depicts the companies’ socially responsible intentions.
Johnson & Johnson has efficient team appointed for the pricing of the products. This teams take into
account different factors like target segment, their production cost, demand, supply, and also the
ability to pay of the customers. After all the proper evaluations and calculations, the prices are fixed
for the products.
There are certain Johnson & Johnson products like the baby care products and consumer goods where
the prices charged are little high. This is because people buying such products are ready to pay even a
certain high price given good quality and good health for their family.
High prices for prescription medicines have come under extreme criticism from health insurers and
politicians, and J&J was the first major healthcare company to report results since Trump’s scathing
remarks on the subject.
J&J said it has generally limited annual product price increases to the single digits in percentage
terms, something other companies have begun to pledge to do.
“It’s important to price responsibly. We believe that has been our practice,” CEO Alex Gorsky said on
a conference call.
The company is planning to release what it is calling a pharmaceutical transparency report. It will
include expanded disclosures on U.S. pricing, research and development expenses, and compassionate
care programs, Gorsky said.
Lack of transparency in how companies price medicines has been a major sore point among industry
critics.
J&J adopted the business strategy of global standardization. Choice of global standardization strategy
is because J&J’s focus is placed on lowering costs and that there is limited need for customization of
products for it generally the same other than slight changes in the products’ packaging.
PROMOTION
Johnson & Johnson has been sure to keep up with the times in terms of their global marketing
strategy, and they have built up a solid distribution network. They have penetrated beyond
just major cities in the countries where they have a presence, making sure to spread out to
less populated areas as well.
Johnson & Johnson has realized the advantage of consumer awareness and hence has decided
on promotional activities that are instructive with a strong message as well as are eye-
catching. Good and sensible marketing is very important in order to increase the product
visibility and so the ads are placed on the hoardings, magazines as well as newspapers so that
they can be easily viewed. It is dedicated to the concept of natural and qualitative products
and hence has made its packaging process environmental friendly.
Johnson & Johnson has been associated with promotions that inspire healthy living. Some of
the famous campaigns are “having a baby changes things” and “the campaign for nursing’s
future”. Famous actor prachi desai has been associated with the company and its various
campaigns. The new baby to be involved in the Johnson’s ads is “khiyaan singhvi”. The
company has been showing delightful ads featuring babies and children in prime time slots of
the various television channels. Popular cartoons like the little mermaid,
Pocahontas and Winnie the pooh and pals have also been included in the ads for baby care
products making them highly popular amongst the viewers.
One of the most loving part of Johnson and Johnson is the cute and absolutely delightful baby
ads it shows on television. People love such ads. And as the baby is most important to
mothers, the mother and baby connection is shown strongly in the ads by Johnson and
Johnson. This is one of the reasons the company thrives because it has a strong emotional
connect with its target audience.
Johnson & Johnson offers various schemes to its customers at regular intervals like soap free
with every three purchases, hundred-millilitre bottle free with five hundred millilitre product.
It also offers special discounted coupons on products like stay free secure, baby powder and
baby soap. Many hospitals have been giving out special baby product kits to the new mothers
who leave the hospitals with their babies. This is a very smart scheme as the products gain the
trust of mothers at an early stage and hence the mothers generally continue with the products
of this company.
Johnson and Johnson offers special discount coupons on products such as baby care, and
contact lens. O Johnson and Johnson has run a “beauty for all ages” rebate promotion on
coupons.com and some of the campaign products are available at Walgreens and may also
include buy one get one half off discount as well. O Johnson & Johnson is involved with
many causes and advertising campaigns that encourage healthy lifestyles. Key initiatives
include: the campaign for nursing's future, having a baby changes things, and because we
care we act (china). Johnson & Johnson strategies product strategy o to improve the quality of
your everyday life products from our consumer companies stand at the ready. We present
products and information targeting baby care, oral care, nutritionals, pain relief, topical care,
skin and hair care and much more. Within the consumer business franchise they create a
meaningful innovation in healthcare which relies on a research strategy equally entrenched in
technology and consumer insights, in maintaining with our vision: bringing science to the art
of healthy living marketing strategy o sell skin care products for mothers the worlds over
which are of trusted brands. Johnson and Johnson able to address all of the different segments
within the market, because each segment is different in terms of its users and equipment, its
products are helpful to all of the different segments.
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Johnson and johnson uses both Skimming and Penetration strategy.

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