15 page business plan

I. Company Profile

In 1886, Johnson and his two brothers formally created the Johnson & Johnson in New Jersey, New Brunswick together, which has now become the leader within health care products manufacturing field. With the advanced technology, the company manufactures not only personal health care products but also the products including pharmaceuticals and medical devices. Since 1920s, with the needs of the expansion and development, Johnson & Johnson started to extend its market in Europe, Africa, Asia and other regions and successfully turned into a globalized company, which produces high-quality health products and promotes the health development internationally.

After over 100 years of unremitting efforts and innovation, Johnson has established more than 250 branched within 57 countries world wide, and its products are sold in 174 countries and regions. The Johnson &Johnson Inc. has become one of the world’s most comprehensive health care products manufacturers with unique specialties. By the end of the year of 2014, the company’s revenue has reached 74,331 million, and the profits of that year were 16,323 million. Johnson & Johnson has a 4.23% of growth rate comparing to the year before.

II. 5-year Financial Overview

Year	2010	2011	2012	2013	2014
Stock Price	61.85	65.58	69.48	92.35	105.06
Revenue	61,587.00	65,030.00	67,224.00	71,312.00	74,331.00
Profits	13,334.00	9,672.00	10,853.00	13,831.00	16,323.00
Profit margin%	21.65%	14.87%	16.14%	19.40%	21.96%
Growth Rate	-0.5%	5.59%	3.37%	6.08%	4.23%
Current Ratio	2.05	2.38	1.91	2.19	2.36
Asset Turnover	0.63	0.6	0.57	0.56	0.57
ROA	13.53	8.96	9.26	10.92	12.41

III. Current Market Situation

a). Market description

The industry of baby care mainly manufactures products specialized in infant market such as body wash, moisturizing products, skin care wipes, and anti-mosquito medicine. The service objects are mothers, pregnant women and newborns. Due to the fact that service object is quite special in this market, quality and safety is the first priority for company in this industry. Baby care products should be able to safely used in infants and children with delicate skin. These products often are used for infants and young children's skin, hair and other parts, mainly from the cleaning, moisturizing, sunscreen, antibacterial and other effects. With the improvement of people’s living standard, the demands of specialized baby care products become increasingly popular. Johnson & Johnson has always been focused on not damaging the natural protective layer on the skin of baby during the process of designing. The research and development department has to conduct a comprehensive assessment for each product. In order to be certified and qualified, each product need to complete more than 1500 of the data assessment in the test. As the trend, products in baby care industry all need to be designed not only with quality and safety, but also more humane, personalized, and stylish.

b.) Product review

Johnson & Johnson’s innovation of baby body wash—called Johnson's Baby Milk & Rice Bath—offers the following features:

Double natural milk essence: It doubled the natural milk essence compared to the original formula.

Multiple nutrition: Use natural milk protein with extra vitamin A and E in the new formula to better moisturizing and nourishing the skin in order to make baby’s skin smoother and more lasting.

Economized: For usage, mothers only need to add 8-10 drops in the warm water (about 10 liters), then gently dial to produce foam.

PH neutral: If take bath, there is no need to rinse off and only need to dry with a soft towel. If take shower, put few drops in the palm of the hand, gently wipe over baby’s body, then rinse with water.

c.) Competitive Review

Competitor	Brand of Product	Features
Galderma Laboratories	Cetaphil	1. Various kinds: cleansers, bar soap, cream, lotion, and moistures. 2. Commonly sold at grocery stores and pharmacies through out U.S. 3. Soap-free 4. Affordable price 5. Aim at different kinds of skin
Ego Pharmaceuticals	Ego Pinetarsol	1. Widely recommended by doctors 2. Exports and markets over 120 dermatological products 3. Soap-free 4. PH-balanced 5. Relieve itching 6. Recommended for normal oily skin

d.) Channels & Logistics Review

Johnson's Baby Milk & Rice Bath, is distributed through independent distributors to a network of retailors all over the world. This Strategy will avoid competitors like Ego Pharmaceuticals and Galderma Laboratories, which mainly focus on medical market like Pharmacies and children’s hospital. Its featured customers are not only babies but also adults who have sensitive skin. This strategy enables the company has a wider client base than other brands.

Cite

Johnson & Johnson SWOT Analysis. (2014). Johnson & Johnson SWOT Analysis, 1-8.

http://www.egopharm.com/pinetarsol-solution/

http://www.daria.com.sg/8-best-baby-shower-gel-brands/

http://subscriber.hoovers.com/H/company360/balanceSheets.html?companyId=10824000000000&newsCompanyDuns=001307081