Assignment 1: Emerging Themes of Marketing.
Task: For an organisation with a socially-responsible profile, critically appraise one of the company’s products. Include the appropriateness of the marketing mix used to target its markets, and the evidence of the company’s approach to undertaking marketing in a societal manner. Introduction
The company that has been chosen for this essay is Johnson and Johnson. Johnson and Johnson is a consumer health company. It is the sixth largest in the world. The company was first established in 1886 in New Jersey, since then it has developed worldwide and has recently celebrated being in business for 125 years. Its family of companies including Johnson’s baby and Johnson’s beauty compromises of: “The world’s largest and most diverse medical devices and diagnostics company, the world’s fifth largest biologics company, and the worlds eight largest pharmaceuticals company.” (http://www.jnj.com/connect/about-jnj/). Johnsons Baby products have “stood the test of time” ( http://www.johnsonsbaby.com/newborn-skin-care). It is clinically proven to protect baby’s skin and it is a well trusted brand. Not only do Johnson ensure that their products provide the best care for babies, as a company they also give something back to the community. In 2005 Johnsons teamed up with Tommy’s to work together towards one goal, which was to save babies lives.
Since then they have donated over £750,000 to Tommy’s which allows them to give as much pregnancy health information as possible to every parent to be. Johnson’s has also helped Tommy’s to set up a pregnancy helpline and has also helped them to work with high street retailers to bring the latest pregnancy information to consumers. More recently Johnson and Johnson have introduced a new ‘natural’ range of baby products. These focus on helping the environment. All of the products in the ‘natural’ range are 98% natural.
The Marketing Mix
The marketing mix is one of the most popular marketing terms. The Business Dictionary describes the marketing mix as:
“A planned mix of the controllable elements of a product’s marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the product’s customers, while generating optimum income.” ( http://www.businessdictionary.com/definition/marketing-mix.html#ixzz1jrL2vAUh). The marketing mix was first published by Neil Borden. His idea included external and internal factors. However this list was not easy to remember and in 1960 Jerome McCarthy cut down the original twelve aspects of Borden’s marketing mix. The basics of the marketing mix are the four p’s; product, place, price, promotion. Each one of these needs to be successfully looked at in order form a company to have a productive marketing mix. It is still used in the same way by companies today, however modern changes in technology have changed it. For example, the internet. Companies have the choice to sell their products online now where before they would have just been sold in shops. Another way in which the marketing mix has moved forward is that it can now be used as the seven p’s instead of the four p’s. The 7’ps add people, process, and physical evidence to the four p’s, to give a more in depth result. Relationship Marketing is a prospect which has become more used in the past few years.
This is not including in the marketing mix, many people think that relationship marketing should be including in the marketing mix, so this is one criticism of the marketing mix. The internet has allowed Relationship Marketing to push the Marketing Mix ‘out of the picture’. Companies now want to build relationships with the customers., and they want to offer the customer that little bit extra. The marketing mix is still appropriate but it doesn’t cover the whole picture. Moller 2006 highlighted some criticisms of the marketing mix: “The mix does not consider customer behaviour but is internally oriented. The Mix regards customers as passive; it does not allow interaction and cannot capture relationships. The Mix is void of theoretical content; it works primarily as a simplistic device focusing the attention of management. The Mix does not offer help for personification of marketing activities.”
Gronroos 1990 states that:
“Relationship Marketing is to establish, maintain, enhance and commercialize customer relationships (often but not necessarily long term relationships)”.
Companies use relationship marketing in a number of ways. Firstly it is about finding the customer loyalty, and also about engaging them in their products, to make them a loyal and returning customer. There are many ways in which an organisation can do this. They need to offer the customer with information and promotions that are particularly suited to their needs. A good way of doing this is through the use of loyalty cards.
Johnson and Johnson & the Marketing Mix
Johnson and Johnson’s products have expanded in recent years. What started off 125 years ago as a range of products including; baby lotion, baby shampoo, and baby talc. They now also have a bedtime range, a toddler range, and also a natural range. The natural range includes the same products as the original range however they are 98% natural.
The product that is being used to analyse the marketing mix is the Johnsons Natural Head to Toe Foaming Body Wash. The product has a difference from the original Johnsons products. It is 98% natural. “The JOHNSON’S® NATURAL® product line is the only line of baby skin products that is at least 98% natural with over 100 years of baby care expertise”. (http://www.johnsonsbaby.com/introducing-johnsons-natural)
This is the products unique selling point. The products packaging highlights the natural look. This product has also driven Johnsons to produce a new natural standard for all of their natural products. The Best for Baby Natural Standard. The product has many features and benefits. Firstly the bottle has pump action technology. This makes it easier for the customer to use, whilst bathing their baby. It can be difficult to try to open lids on bottles whilst bathing a baby. This product makes it convenient and stress free. This product is also recyclable. The packaging also contains up to 60% post-consumer recycled materials. The benefit of this is that it is helping the environment, it will also make the consumer feel like that they are also helping the environment. The product is also refillable. This again helps the environment and it can also make it cheaper for the consumer. Johnson
and Johnson products are well branded. Their products are “clinically proven to be pure, mild and gentle. “ From baby’s first hospital bath through every special milestone, moms and healthcare professionals alike trust JOHNSON’S® baby products to provide the “best in care.”” (http://www.johnsonsbaby.com/product/413)
This quote shows that healthcare professionals trust Johnson and Johnson products. This then gives customers faith in the product. If nurses and midwives are using the product in hospital then it is obviously well trusted. Parents want to use the best for their babies, with Johnson they can ensure that this is the case. It has over 125 years’ experience on baby products and it is a number one selling brand. A study in Australia found that :
“Today, the baby market is split into two very distinct buying groups. There is the “traditional” new mum in her early to mid twenties who is willing to sacrifice her personal spending to buy a range of top quality products for her baby. And then there’s the “contemporary” mum who is older (often in her 30’s), has a higher disposable income and demands multi-purpose baby products that offer value for money” (http://www.superbrands.com/au/content/view/142/88/)
This enhances the fact that Johnson and Johnson is a well trusted brand. It appeals to all parents regardless of their income and what they can afford they just want the best for their baby. Price
The price of Johnson and Johnson products range from £1 to £3.99. This depends of the size of the product. The prices of the products are slightly more expensive than supermarket own brands, however this is not a problem for Johnsons. Having a slightly higher price shows that they have more quality, and customers are willing to pay that little bit more for a well trusted brand. The screen shots below show the difference in price between the Johnsons brand and a supermarket own brand.
The ‘place’ aspect of the Marketing Mix is all about where the product is sold. Whether that will be online via the company’s website or in shops, it all depends on the type of company. Although Johnsons range of products are shown on their website, Johnsons do not actually sell direct from their websites. Customers can buy Johnson’s products from a number of places. These include all the major supermarkets, for example Tesco and Asda. Also in beauty shop such as Boots and Superdrug, and in healthcare shops such as chemists. Johnsons and Johnsons baby products are sold in over 100 countries throughout the world. They have to ensure that their products meet the guidelines of the countries and also ensuring that is safe for babies to use throughout the world.
Johnson and Johnson advertising campaign aims to create the magic touch through their products. To do this they use quality television advertisements, educational information and free samples. One of their main promotional tools is the use of promotional coupons. By signing up to “Johnsons by your side” a customer will receive exclusive offers on baby products, free downloadable baby care guides, and stage-based advice from their experts. Another way in which Johnson’s give coupons to their customers, is through the Tesco Clubcard scheme. Customers of Tesco who have signed up to become a member of the ‘baby and toddler club’, will receive money off coupons for products. These products are not just Tesco own brand products but also Johnson baby products. If a customer has a coupon for a product then it increases the chance of them buying it. Johnson and Johnson also promote their company by supporting programmes for women and children who are vulnerable. They also work with communities to help prevent diseases such as HIV and Aids.
Johnson and Johnson have a good promotional tool on their website. This tool allows customers to review the Johnsons baby products, by giving a star rating. This gives customers a chance to see what other customers think of the products and whether they would recommend them to others. This increases
the chance of customers buying the products.
“This concept considers the social and ethical responsibilities of companies whose end goal is profitability” (Crane and Desmond 2002). An easy way to break the term societal marketing down is firstly social, this is all about the people and what effect and impact does the marketing have on them. Secondly, Ethical, what is right and what is wrong? And finally, society, this is what the media has a huge impact on. There are a number of things which may affect the ethics of a company. For example, new legislation laws and consumer protection.
Johnsons and Johnsons ; Societal Marketing
Johnsons and Johnsons doesn’t have a mission statement, instead they have a ‘credo: “We believe that our first responsibility is to the doctors, nurses, and patients, to mothers and fathers, and to all those who use our products and services. In meeting their needs everything we do must be in high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be services promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit”. Johnsons marketing strategy is to expand their total markets, to create new users and to penetrate markets. The Johnsons and Johnsons family of consumer companies first started setting environmental goals in the 1990’s. Since then they have managed to reduce waste, reduce water and energy use, and reduce raw materials and packaging. They have also achieved a certificate which proves that all of their manufacturing sites, and research and development sites are at a high standard for strong environmental management systems. All of these environmental decisions in which they have made, help to enhance their credo. These environmental changes also help and result in more efficient manufacturing processes, and have increased the products yields and cost savings. They also focus on using less waste and less water not only as a company but for their consumers as well. Consumers can use less water due to the easy rinse formula of the products which means less water is needed for the use of the product. There is also less wasted materials as the products dpdo not use
labels, so therefore less materials are used. Johnsons products are 100% recyclable, which shows their commitment to reducing landfill waste. Johnson’s products have ‘stood the test of time’. They are a well trusted brand and are forever building their customer loyalty. What started off as basic products including, baby shampoo, baby lotion and baby talc. They have now expanded into new releases, especially focusing on their natural range. It is the only range of baby skin products which are at least 98% natural. A few things which the natural products have are: no silicones, no paraffin and no dyes. This makes them 100% safe for babies. Their natural products contain up to 60% post-consumer recycled materials. Johnsons have actually developed the first natural standard dedicated specifically to the special needs of infants skin. All of Johnsons products must pass a rigorous test to ensure that they are safe for the use of babies. This test is split up into four parts; 1) We determine exactly how the product will be used.
2) We carefully assess ingredients and formulations.
3) We conduct real world evaluations with moms.
4) We never stop monitoring what you say about our products.
Johnsons and Johnsons ensure that every year their environmental performance is monitored and measured to ensure that they are meeting their goals and that they are doing enough for the environment. These goals include transparency, energy use, water use, paper and packaging, waste reduction, product stewardship, and environmental literacy. These goals are not just about their products but also about them as a company at their work places, and offices.
To conclude on the question, is the marketing mix still appropriate today. It could be said the marketing mix is very outdated in today’s market. As mentioned above it does not include the relationship marketing aspect. This