Running head: SEGMENTATION AND TARGET MARKET
Segmentation and Target Market
EuChandra D. Keeter
MKT/571
August 27, 2015
Marlene Shaner
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Segmentation and Target Market
The most crucial steps for success in a company are market segmentation. The
appropriate market segmentation also plays a major role in their profitability and future
sustainability. Based on the companies’ ability and outreach to the market, they may follow
different market segmentation. For the global companies, geographic, demographic, and
behavior are the most common market segmentations. For the discussion, Johnson and Johnson
have been selected for study on their market segmentation methods. I will also discuss their
strategy for their brand and their image. I will also discuss how Johnson and Johnson target
customers as well as other businesses to invest in their product.
Johnson and Johnson
Johnson and Johnson started its journey in 1886. This journey began with three brothers
Robert, James, and Edward Johnson. Besides making and delivering their products worldwide, it
was not until 1959 when Johnson and Johnson developed a significant presence in the industry of
pharmaceutical. Johnson and Johnson runs its business worldwide in 60 countries, according to
the Johnson and Johnson website, it has more than 126,500 employees worldwide, over 100
products, also a well-liked fan base on face book with 9.9M likes. Their biggest competitor is
Colgate-Palmolive Company (Blake, 2013).
Mission, Vision and Values of Johnson and Johnson
Mission
Consumer
Medical devices and diagnostics
Pharmaceutical
Vision
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Johnson and Johnson vision is to achieve stable health and growth.
People-Have a good work environment filled with respect and dignity where they
treat all employees as individuals.
Portfolio-Responsibility to doctors, nurses, mothers, and fathers who use the
products and services.
Profit-Suppliers and distributors must have an opportunity to make a fair profit.
Partners-Should make a profit housing their product.
Source: (Johnson and Johnson, 1997-2015)
Slogans of Johnson and Johnson
Johnson and Johnson Family of Companies- 120 years
Caring for the world, one person at a time.
Market Segmentation of Johnson and Johnson
Johnson and Johnson marketing strategy have got attention from all over the world. There
have been several studies completed on Johnson and Johnson products. Johnson and Johnson use
its external and internal marketing strategies to defeat their competitors. It highly emphasizes on
innovation for the success of the company and brand name. Johnson and Johnson target market
based on demographic, geographic, psychographic and behavioral characteristics. These are a
few brief analyzes of all the segmentsDemographic- Johnson and Johnson segment their market on the basis of age as well as
gender. Therefore, Johnson and Johnson can say that the people from the age group of 20-40 are
the main target segment of the company as they are the people who purchase the baby care
products the most. The biggest portions of the product sold are also sold to women with the men
buying the fewest amounts of the products according to a recent survey. As far as occupation go
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on buying the products from Johnson and Johnson, many of the buyers were employed or selfemployed, and the least amount showed was for housewives (Johnson and Johnson, 1997-2015).
Psychographic-Johnson and Johnson target markets based on general peoples brand
consciousness. For highly educated customers, they made advertisements gain their attention
with high thoughts. For example, Doctors and nurses who deal with patients on a regular basis.
For less educated people, they also have distinct policies. For example, Stay at home mom, or
even a teenager that has just given birth to their first child. It focuses on the demand of the
people from all over the world based on their back ground and culture (Johnson and Johnson,
1997-2015).
Behavioral-many customer purchase Johnson’s baby lotion mainly because of the
awareness created by Johnson and Johnson using TV ads as a medium of communication. Most
people prefer the product due to the amount of availability, quality, and brand value created by
Johnson and Johnson. Many new parents will not take a risk applying a new product to their new
born child, especially not knowing whether the child may have sensitive skin or the possibility of
being allergic to the product. Since Johnson and Johnson have already established their trust in
their product, most doctors will highly recommend their product by word of mouth. Johnson and
Johnson’s product the customers to be comfortable with buying the products and using them,
also (Johnson and Johnson, 1997-2015).
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Johnson and Johnson position statement with careful consideration of brand and strategy.
Strategy or Objectives
Enduring strength is Johnson and Johnson’s consistent approach to managing their
business. Johnson and Johnson take much pride in helping millions of people stay well. Johnson
and Johnson have been able to keep up with the changes of human health and well-being, as
society grows Johnson and Johnson continues to grow with the population. Johnson and
Johnson’s products, ideas, and services have been able to touch lives of at least one billion
people every day (Johnson and Johnson, 1997-2015).
Segmentation Method
There are three distinct business segments that share a common focus for human health in
Johnson and Johnson. Johnson and Johnson are the eighth largest pharmaceutical business in the
entire world. Johnson and Johnson are also the sixth largest biotech business in the country.
Segment Alternatives
During this step, Johnson and Johnson evaluate different products of the alternatives. The
market will look into what product is worth pursuing, what goals are reachable, and what will be
most profitable. Each segment will have to give a brief idea on which alternatives to focus on
mainly.
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Target Market
A SWOT analysis has been done by Johnson and Johnson of the market before
introducing their products to specific markets. Once they have pointed out the flaws, they will
target each market one at a time. Johnson and Johnson mostly look into mass marketing for their
products. Therefore, they will use a different strategy for mas marketing.
Competitor Analysis
Johnson and Johnson’s have quite a few competitors. However, Johnson and Johnson’s
main competitor is Pfizer. Since Johnson and Johnson research and manufacture products for the
health care field and pharmaceuticals Pfizer has tried to step up their game to compete with
Johnson and Johnson.
Conclusion
Johnson and Johnson company has been dominating the world markets for more than 120
years with a strong brand image and their unique marketing strategy. Distinct and innovative
marketing strategies have always been welcome in Johnson and Johnson. Even though the
company has faced challenges during their life span; they have handled all of the challenges
wisely. With wise tactics Johnson and Johnson have managed to defeat their competitors.
Johnson and Johnson have managed to continuously expand their market to new places. In their
advertisements, Johnson and Johnson focus on their mission, vision, and values. Many
organization all over the world study thoroughly Johnson and Johnson Company, and how they
have been able to maintain marketing success.
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References:
Johnson and Johnson. (1997-2015). Retrieved August 25, 2015, from
http://www.jnj.com/sites/default/files/pdf/jnj_ourcredo_english_us_8.5x11_cmyk.pdf
Johnson and Johnson. (1997-2015). Retrieved August 25, 2015, from Johnson and Johnson:
https://www.jnj.com/caring/citizenship-sustainability/strategic-framework/MarketPresence
Johnson and Johnson. (1997-2015). Retrieved August 26, 2015, from Our Management
Approach: http://www.jnj.com/about-jnj/management-approach
Blake, H. (2013, June 26). Pharmaphorum. Retrieved August 25, 2015, from A history of
Johnson and Johnson: http://www.pharmaphorum.com/articles/a-history-of-johnsonjohnson
