group 5

APA Papers 1

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Unit 5 Group Project

Company, Product, Selection Process for Target Country

Company description

The founding of Johnson & Johnson can be traced back to 1886. The company was created by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson. Their headquarters are located at One Johnson Plaza, New Jersey. The US-based organization is a well-known distributor in the medical device, consumer products, and pharmaceutical manufacturing sectors. The organization has branches in more than 60 companies worldwide and its products are sold in more than 250 countries. Efficient leadership and management are one of the factors that have contributed to its success. The company’s CEO is Alex Gorsky. Johnson & Johnson has an enviable credit rating, which is higher than that of the US government. This makes it win the trust of its customers, which is also a factor in its great success. In terms of its success, the company has tremendous financial strength. For example, its revenue in 2020 is estimated at US$82.584 billion, and its total assets are estimated at US$170.693 billion. Huge financial resources are essential to the smooth development of its business. The company is also well staffed as it has an approximate 134,500 employees in 2020. They have enough employees to enable the organization to achieve high levels of customer satisfaction.

Product description

Johnson & Johnson created a diabetes device. This medical device is an integration of many devices. The product has a blood glucose monitor that allows patients to monitor blood glucose levels. Second, it has an insulin pump. The purpose of the insulin pump is to enable patients to inject insulin easily. In this way, the patient will not have to travel from home to a medical facility to obtain an insulin dose. The diabetes device has a dose calculator. This calculator is essential in diabetes management because it enables patients to obtain accurate doses, thereby improving the efficiency of health management. In addition, the device facilitates an interchange of data between the glucose monitor and the insulin pump. This product is designed in a manner that will help in achieving high levels of efficiency and convenience in the management of diabetes.

Selection process for the country-market

The process of choosing a country market needs to be cautious, because it determines the degree of success the product will achieve. A thorough assessment of the country’s market is necessary to determine a promising market. When choosing the best country market, the environment and the market must be considered. Some of the factors to consider when selecting a country market include the country’s GDP, geographic proximity, political stability as well as the market appeal. The target country market must be able to meet the product’s demand and they can consider small risks. In the case of Johnson & Johnson Company, the demand for the diabetes device is high in the Chinese market because the country has a high number of diabetic patients (Deaza, Díaz, Castiblanco, & Barbosa, 2020).

The analysis of the market factors can be focused on operational aspects. These include tax policies, business administration costs and local competition, among others. In analyzing the local competition, the marketing team should accurately identify the competitors, and the strategies they use to gain a competitive advantage. Other factors may include the evolution of the economy, the expansion technology used by competitors, and the maturity of the market. A country where there is less local competition is best for any product. As far as local competition is concerned, despite fierce local competition, China is a viable national market. Although local competition is fierce, there are many cases of diabetic patients hence, demand exceeds supply (Sakarya, Eckman, & Hyllegard, 2007).

Concerning the country risks, China’s GDP was estimated at GDP: 13.4 trillion in 2020, implying that it is a viable market for investment. Johnson & Johnson chose China as its national target market because of the least political and social turmoil in China, which creates a good environment for business.

Selection of the best marketing plan

In selecting the best marketing plan Johnson& Johnson must incorporate the five p’s of the marketing mix. These include the product, the people, the price, place, and promotion (Wrenn, & Mansfield, 2014).

Place

Place refers to the distribution channels that will be adopted by the company to ensure that the product is easily accessible by the patients. The company will use a wide range of distribution channels, including retailers, wholesalers, and online distributors.

Promotion

The awareness of the product will be enhanced using digital and non-digital platforms.

Price

Since the product is designed to help patients control diabetes, its price is not high to ensure affordability. Appropriate pricing will also ensure that the goals and objectives set by the organization are achieved.

People

The organization’s staff is highly trained to deliver quality services to the customers. Once patients have purchased the product, they may need help, so a help center is set up to help these customers.

Product

Diabetes equipment is a special product that can improve the efficiency of diabetes management. This product is of high quality and is the best in its class because it facilitates the data exchange between its components.

References

Deaza, J. A., Díaz, N. F., Castiblanco, S. E., & Barbosa, M. I. (2020). International market selection models: A literature review. Tendencias, 21(2), 191-217. doi:10.22267/rtend.202102.147

Sakarya, S., Eckman, M., & Hyllegard, K. H. (2007). Market selection for international expansion. International Marketing Review, 24(2), 208-238. doi:10.1108/02651330710741820

Wrenn, B., & Mansfield, P. M. (2014). Johnson & Johnson. Retrieved July 8, 2021, from https://www.jnj.com/

Marketing planning guide (3rd ed.)