Johnson & Johnson Company is known as the world’s leading manufacturer and of the consumer products like health care. The Company has produced various forms of products like sterile dressings and baby shampoo. It has the long history of the management and operations of different independent business units. It is known as one of the fastest moving company for consumer goods producer across the globe. The company is ranked amongst the most successful and consistent enterprises across the world, among the list of most famous companies of the globe. Its division of consumer products is growing rapidly since last few years, because of effective approaches and efficiently implementation of them. It is consider as one of the broad and most comprehensive manufacturer of the health care services and products for customer medical, diagnostic and pharmaceutical market (JnJ, 2018).
Such large scale success of the company is only possible because of the effective management of production through the different sub units. However, out of several products, some items get most favorable response, whereas some get unfavorable response from consumers. The BCG matrix thus, helps in presenting the framework, which used for evaluating different products and also differentiate among the profitable and non-profitable ones (Hanlon, 2018). Here is the detailed BCG matrix evaluation of the Johnson & Johnson;
Cash Cows
Products and services, which are operating in the market relatively for a longer time, and are successful in capturing the significant level of market share are the cash cows for the company. Such products helps in promoting the sustainability and growth of company without much investment. Baby and beauty products are the cash cows for Johnson & Johnson. They capture the large portion of market share and does not require heavy investment on promoting the product or finance for the capacity expansion, because of the stable market conditions. These items enjoy the economies of scale with high profit margins (UK essays, 2013).
Stars
The second type is of star products, which are the emerging products of the company portfolio. The company has the high market share and so the growth in the industry that makes the business units the target for the growth and investment focused operation by management. These stars can be developed in the cash cows after obtaining the maturity stage. Its health and healing products along with some beauty products are the star items for the company. However, company needs to make effective strategies for competing in the most competitive industry, as there are many strong rivals. Its marketing campaigns an help them in achieving the target (JnJ, Annual report, 2015).
Question Marks
The business is responsible for managing different products to be more successful in the industry, however, every product does not bring the favorable outcome and gain relatively small level of the market success. Few products owns the uncertain outlook, and this makes the management realize to invest more in these items for grabbing the high market share, by utilizing its high growth level. For some part of the world, medical devices of Johnson & Johnson are consider as the question mark, because of under-performing of the divisions in marketing the product. Johnson & Johnson require the investment for surviving in the highly competitive market (UK Essays, 2013).
Dogs
Due to weak market growth and share in the industry, these products are known as dogs. The customers started to question the efficiency and product effectiveness, which might force companies to shut down the production of them, and use the investment in some other segment. However, Johnson & Johnson does not have any such products, but for some part of the world, some of the pharmaceutical items might be categorized a dogs, however, it’s mostly on breakeven level (JnJ, 2018).
References
Hanlon, A. 2018. How to use BCG matrix tool. [Online], Available at: https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/, [Accessed on: 30th August, 2018].
JnJ, 2018. About US. [Online], Available at: https://www.jnj.com/about-jnj, [Accessed on: 30th August, 2018].
JnJ, 2015. Annual report. [Online], Available at: https://www.jnj.com/about-jnj/annual-reports, [Accessed on: 30th August, 2018].
UKEssays. 2013. Case Study Johnson Johnson Marketing Essay. [Online]. Available at: https://www.ukessays.com/essays/marketing/case-study-johnson-johnson-marketing-essay.php?vref=1, [Accessed on: 30th August 2018].
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