group 5

1

Criteria in Selecting Country Market

When a company develops a product, it must develop a market. Some companies decide

to activate foreign markets depending on the product and the traction. The criterion

for selecting

the national market is very important, because it determines the success of the product in the new

market.

Companies must define the goals and objectives they hope to achieve through marketing.

After this event, a comprehensive assessment wi

ll be conducted on the new target market, the

legal system and the business environment's support for the new product. A good example is

Johnson & Johnson (Sakarya et al., 2007). The company has operations in 60 countries around

the world. The development

of a device that integrates glucose meter and insulin pump is an

important device that would change the lives of people. However, according to the company's

business model, they must evaluate in which markets these devices will do well. This fact is

import

ant to ensure the success of the product.

The best criterion for selecting a national market is the original global market selection

criteria. The process includes environmental and market analysis. This involves making a list of

potential countries/regio

ns that meet the target marketing and then evaluating them based on

different factors. These factors may include country risks such as GDP growth, political and

social unrest, and geographic proximity. Then analyze according to the market attractiveness,

w

here each country/region must meet the demand of the product and have the least risk.

The

analysis can also be based on the possibility of operational difficulties, such as business

management costs, local competition, and taxation (Deaza et al., 2020). Th

e second step is to

analyze the competition in the market which involves identifying the main competitors,

analyzing the economic evolution, and detecting distinguishing factors such as expansion

strategies, identifying main competitors and channels, and m

arket maturity, among others.

1

Criteria in Selecting Country Market

When a company develops a product, it must develop a market. Some companies decide

to activate foreign markets depending on the product and the traction. The criterion for selecting

the national market is very important, because it determines the success of the product in the new

market. Companies must define the goals and objectives they hope to achieve through marketing.

After this event, a comprehensive assessment will be conducted on the new target market, the

legal system and the business environment's support for the new product. A good example is

Johnson & Johnson (Sakarya et al., 2007). The company has operations in 60 countries around

the world. The development of a device that integrates glucose meter and insulin pump is an

important device that would change the lives of people. However, according to the company's

business model, they must evaluate in which markets these devices will do well. This fact is

important to ensure the success of the product.

The best criterion for selecting a national market is the original global market selection

criteria. The process includes environmental and market analysis. This involves making a list of

potential countries/regions that meet the target marketing and then evaluating them based on

different factors. These factors may include country risks such as GDP growth, political and

social unrest, and geographic proximity. Then analyze according to the market attractiveness,

where each country/region must meet the demand of the product and have the least risk. The

analysis can also be based on the possibility of operational difficulties, such as business

management costs, local competition, and taxation (Deaza et al., 2020). The second step is to

analyze the competition in the market which involves identifying the main competitors,

analyzing the economic evolution, and detecting distinguishing factors such as expansion

strategies, identifying main competitors and channels, and market maturity, among others.

MARKETING PLAN 1 The Best Country-Market

Based on the foreign market selection criteria and a comparison of Iceland, China and

Kenya in terms of the demand of diabetes devise, competition, distribution channels, and

country risks, I would choose China as the best country market because it has substantial

economic growth, substantial political stability and relatively moderate distribution channels that

make it suitable for foreign investment.

The demand of the Product

Since this country has the highest incidence of diabetes in the world, the demand for this

product is high. On overall numbers, the statistics of diabetes in US shows that in 10 % of the

Americans contracted diabetes in 2018 and this represented nearly 1.6M pe ople (Ogurtsova et

al., 2017). On the other hand, Kenyans who had diabetes by 2018 represented 3.3% although the

country has little capacity for diagnosing more cases while cases of diabetes has significantly

increased in China from 9.7% in 2007 to 11.2% in 2017 especially among the elderly people.

Further statistics indicates that diabetes is currently a huge burden to the China over the decades.

The incidences of diabetes increased in Iceland from 3% to 6% in 2018 (Ogurtsova et al., 2017).

However, in terms of prevalence per person, Iceland still represent s few cases of diabetes as

compared to US, China and Kenya. Based on the above statistics, China still has more incidences

of diabetes than USA, Iceland and Kenya, China becomes the most favourable countr y for the

new device developed by Johnson &Johnson Company.

Competition

Although, the competition is high in China as the country has several medical device

companies that are considerably low priced as compared to J ohnson & Johnson’s premium ones,

our company can still focus on quality and perform well in China. When it comes to conquering

The Best Country-Market

Based on the foreign market selection criteria and a comparison of Iceland, China and

Kenya in terms of the demand of diabetes devise, competition, distribution channels, and country risks, I would choose China as the best country market because it has substantial economic growth, substantial political stability and relatively moderate distribution channels that make it suitable for foreign investment.

The demand of the Product

Since this country has the highest incidence of diabetes in the world, the demand for this product is high. On overall numbers, the statistics of diabetes in US shows that in 10 % of the Americans contracted diabetes in 2018 and this represented nearly 1.6M people (Ogurtsova et al., 2017). On the other hand, Kenyans who had diabetes by 2018 represented 3.3% although the country has little capacity for diagnosing more cases while cases of diabetes has significantly increased in China from 9.7% in 2007 to 11.2% in 2017 especially among the elderly people. Further statistics indicates that diabetes is currently a huge burden to the China over the decades. The incidences of diabetes increased in Iceland from 3% to 6% in 2018 (Ogurtsova et al., 2017). However, in terms of prevalence per person, Iceland still represents few cases of diabetes as compared to US, China and Kenya. Based on the above statistics, China still has more incidences of diabetes than USA, Iceland and Kenya, China becomes the most favourable country for the new device developed by Johnson &Johnson Company.

Competition

Although, the competition is high in China as the country has several medical device companies that are considerably low priced as compared to Johnson & Johnson’s premium ones, our company can still focus on quality and perform well in China. When it comes to conquering the international market, quality is absolutely at the top of the list (Kim, Lee & Gokalp, 2019). Many researcher and development scholars have emphasized the importance of product quality and its implications which are just huge. No customer will really want to purchase the new device developed by Johnson & Johnson Company and have it breakdown especially one month out of warranty. That happens a time or two and a customer will be forced to change brands (Kim, Lee & Gokalp, 2019). Therefore, Johnson & Johnson can enter into the Chinese market and conquer regardless of the presence of several players simply by focusing of manufacturing high-quality diabetes devises more than the local competitors.

Distribution Channels

Although there are few distribution channels in China because the distribution channels are mainly in the private sector, Johnson & Johnson company can still thrive in the country by focusing more on online distribution channels. The best online distribution channel for the company would be its own e-commerce site. The company can sell the new diabetes device from its own site (Sheng & Lu, 2020). This option requires investment - both to create and maintain a site that is locally relevant, and to drive traffic to it. However, Johnson & Johnson will need to localize the site in order to achieve good selling-through rates. As the international sites are still not as popular with Chinese customers as the local versions of the sites, they do not enjoy the same levels of traffic. Finally, Johnson & Johnson can take advantage of local e-commerce trade platform. The company can alternatively sell its new diabetes devise using the local e-commerce platforms like the JD.com, Yihaodian, Tmall or Taobao (Sheng & Lu, 2020). These have the benefit of very broad customer reach combined with relatively low start-up and maintenance costs.

Country Risks

The country has a huge GDP, which means that there are favorable factors to support the growth of the product in the market (Zhang & Zhang, 2018). The country has political and social rest, which is conducive to entrepreneurship. Although Chinese GDP figures may not be totally accurate (because GDP as an economic metric is difficult to calculate for all countries), we have all been witnesses to China’s rise from an agricultural economy to an industrial/manufacturing economy. The progress has been so obvious that no matter the means by which the Chinese government achieved this progress, it worked over three decades, and brought over 300 million people out of poverty (Zhang & Zhang, 2018). One metric that is so important for economic growth is Foreign Direct Investment (FDI). This indeed makes China one of the best places worldwide for the Johnson & Johnson Company to sell its new diabetes devises because of its potential. Moreover, China is often considered a potential market to operate in because it is also among the countries with the fastest growing economy. The massive increase in China’s GDP has led to the rapid increase in middle class population and hence a higher purchasing power. However, operating in the Chinese market is not guarantee of success. The company will need to adapt to the market and operate its business in Chinese way with a solid strategy and healthy financial figures (Zhang & Zhang, 2018). Finally, Johnson & Johnson will need to establish key success indicators and combine them with China’s strengths and ensure to stick to its business plan and avoid making changes for the sake of adapting its business to such an environment.

References

Kim, K., Lee, S. H., & Gokalp, O. N. (2019, July). Competition effect and spillover effect among competitors from the same country in foreign markets. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 16264). Briarcliff Manor, NY 10510: Academy of Management.

Ogurtsova, K., da Rocha Fernandes, J. D., Huang, Y., Linnenkamp, U., Guariguata, L., Cho, N. H., ... & Makaroff, L. E. (2017). IDF Diabetes Atlas: Global estimates for the prevalence of diabetes for 2015 and 2040. Diabetes research and clinical practice, 128, 40-50.

Sheng, J., & Lu, Q. (2020). The influence of information communication technology on farmers’ sales channels in environmentally affected areas of China. Environmental Science and Pollution Research, 27(34), 42513-42529.

Zhang, Y., & Zhang, S. (2018). The impacts of GDP, trade structure, exchange rate and FDI inflows on China's carbon emissions. Energy Policy, 120, 347-353.

1 Unit 3 Group 1 Assignment

Company and Product Background

Johnson & Johnson (J&J) is a multinational company based in the United States of

America. The company has its headquarters in New Brunswick, New Jersey, U.S. J&J was

formed in 1886 January by Robert Wood Johnson 1, Edward Mead Johnson and James Wood

Johnson. Their names defined the name of the company. J&J operates in the Pharmaceutical,

medical devices and consumer healthcare industry. The company has over 250 subsidiary

companies, with operations i n over 60 countries. The company's essential products include; baby

products, bandages, Tylenol medications, Acuvue contact lenses, facial wash, and a wide variety

of medical equipment supplies. The products are consumed in over 175 countries international ly

(Johnson & Johnson, 2021).

The company has shown high commitment in the past and at present in fighting against

diabetes, especially in the developing countries; Guyana, Nepal, Zimbabwe, Sri Lanka,

Guatemala and Mali. It has partnered with the Internati onal Diabetes Federation (IDF), managing

diabetes in over 160 countries globally since the 1950s. J&J has formed the Johnson & Johnson

Family of Diabetes, consisting of five of its subsidiary companies. The five companies include;

LifeScan, Inc., Animas Co rporation, Calibra Medical, and the Johnson & Johnson Diabetes

Institute, LLC. The Animas Corporation is involved in developing innovative insulin systems,

which matches the product requirements in question. J&J's primary objectives have been on

promoting diabetes care globally, prevention and cure. The company has supported The Life for

a Child program financially and through medical supplies. Currently, Johnson & Johnson serves

as the most significant donor to the diabetes program, wiring millions and mil lions of monies on

every diabetes day, 14th November (Boccardi et al., 2019).

1

Unit 3 Group 1 Assignment

Company and Product Background

Johnson & Johnson (J&J) is a multinational company based in the United States of America. The company has its headquarters in New Brunswick, New Jersey, U.S. J&J was formed in 1886 January by Robert Wood Johnson 1, Edward Mead Johnson and James Wood Johnson. Their names defined the name of the company. J&J operates in the Pharmaceutical, medical devices and consumer healthcare industry. The company has over 250 subsidiary companies, with operations in over 60 countries. The company's essential products include; baby products, bandages, Tylenol medications, Acuvue contact lenses, facial wash, and a wide variety of medical equipment supplies. The products are consumed in over 175 countries internationally (Johnson & Johnson, 2021).

The company has shown high commitment in the past and at present in fighting against diabetes, especially in the developing countries; Guyana, Nepal, Zimbabwe, Sri Lanka, Guatemala and Mali. It has partnered with the International Diabetes Federation (IDF), managing diabetes in over 160 countries globally since the 1950s. J&J has formed the Johnson & Johnson Family of Diabetes, consisting of five of its subsidiary companies. The five companies include; LifeScan, Inc., Animas Corporation, Calibra Medical, and the Johnson & Johnson Diabetes Institute, LLC. The Animas Corporation is involved in developing innovative insulin systems, which matches the product requirements in question. J&J's primary objectives have been on promoting diabetes care globally, prevention and cure. The company has supported The Life for a Child program financially and through medical supplies. Currently, Johnson & Johnson serves as the most significant donor to the diabetes program, wiring millions and millions of monies on every diabetes day, 14th November (Boccardi et al., 2019). 

Diabetes has become a crucial health issue in the United States. Annually, young Americans aged below 20 years, amounting to 5,089, are diagnosed with this metabolic condition. One in every 10 Americans has diabetes, suggesting that over 34.2 million Americans struggle with this disease. Key contributing factors have been identified as obesity, exposure to endocrine-disrupting chemicals, among others. Diabetes has serious health effects, such as the possibility of developing blindness, kidney failure, increased chances of developing Alzheimer's disease, heart disease, nerve damage, and eventual death. Factoring out the adverse health effects of this disease, there has been an increasing need to develop proper prevention and treatment approaches. The focus has mainly been on developing products that can manage the disease and keep the blood sugar within the appropriate levels, to eliminate metabolism imbalances.

There have been numerous advancements in technology aiming at improving the treatment and management of diabetes. The product under consideration was recently approved by the Food and Drug Administration (FDA). The product is a significant advancement in this field, considering that glucose meter, insulin pump, and dose calculator have all been integrated into one device. Such integration enhances the product's usage convenience and leads to better health outcomes in the management of diabetes. Several American Corporations have been involved in the manufacture and distribution of this product. The product is expected to be used in healthcare facilities such as hospitals, nursing homes, doctor's offices, rehabilitation centres, centres for collecting blood and plasma, medical and clinical research laboratories, and by patients at their homes, following the usage of the prescriptions issued by their healthcare professionals. Johnson & Johnson (J&J) has been on the frontline in the fight against diabetes, and therefore, it will be the most appropriate company to be considered in the production of this product.

References

Boccardi, V., Murasecco, I., & Mecocci, P. (2019). Diabetes drugs in the fight against Alzheimer's disease. Ageing research reviews, 54, 100936.

Johnson & Johnson. (2021). Website. Accessed on 17th June, 2021 from https://www.jnj.com/