Founded in 1886 as parquet flooring company which became one of U.S cooperation’s that expanded worldwide, S.C. Johnson and Son is today one of largest company owned and managed by a family in U.S. it is the leading manufacturer of personal care, home care and the insect control products. After more than one century, the company strength and ability is developing and marketing of new products.
The planning process in strategic marketing flows with a mission and vision statement in target market selection, market mix with positioning objective formulation of each product or the service offered by the organization or Johnson and Johnson company. Kotler also presents the company as delivery sequence and value creation in his book. The companies first phase is the decision making on the value and then choosing it, then the strategist proceeds with market segmentation selecting a proper target in the market. After which the strategist then develops the positioning of value offering. Using the formula of segmentation, targeting, positioning (STP) marks the essence of the marketing strategy as kotler asserts. (Kotler, 124)
The market adaptive strategy is the segmentation. It mostly consist of partition of market with purpose of one or more segments in the market that allows Johnson and Johnson company to target through development in specific marketing mixes which adapt to the particular needs in the market. Nevertheless, the need for market segmentation is not required to be the strategy that is adaptive. Market segmentation process can also consist selection of segments in which a firm might be well particularly suited in serving with very competitive advantages that are relative to segments competitors thus reduces adaptation cost for it to gain a niche. When market segmentation is applied, it serves as the purpose in developing competitive scope that can have powerful effect in the advantage of competition for it plays a role in shaping configuration of chain value. (Porter, 53).
According to porter, as much as there is difference in segmentations structural attractiveness and requirements for advantages from competitive advantage that brings about some of crucial questions in determining of where to compete in an industry and the types of segments that focuses on strategies which are sustainable by barriers building between the segments. ( Porter, 231).
On the other hand, Ferstman states that, it is through market segmentation that the firms are able to provide customers with higher value through development of marketing mix which addresses specific concerns and needs of selected segment. As stated in economics stipulations, it is the firm that creates oligopolistic or monopolistic market environment by utilizing various demand curves for specific category of the product. It went on expand the microeconomic theory application of price discrimination in that the firms seeks to realize highest price that is convenient for any segment to pay (Ferstman, 36).
The process of segmentation consist the identification, selection of segments and market mixes creation for segments target. The outcome of the process should be yielding the true market segments meeting three criteria: identity of the group, behaviors systematic and the efficiency in potential in feasibility terms and the cost reaching a segment. The other tools used in the marketing of Johnson and Johnson company are geo-demographics and psycho demographics which became very popular in segmentation. However, despite wealth literature published it as important and keeping in mind the tools being available to researcher and not only segmentation of variable groups being considered.
What markets company targets, strengths and weaknesses of target markets.
The strengths of Johnson and Johnson Company is how efficient it works on all aspects which include medical devices for consumers, pharmaceuticals and diagnostics thus it promises provision of product diversity. Also the company has an interrupted cycle with the research and the development at one side and manufacturing supply on the other end which is successfully. To add on that, the company follows scientific design which is very well adjusted in absorbing and tackling problems that challenge market and it is of associated growth.
The weaknesses are also experienced when the company comes under pressure when other pharmaceutical companies after reduction of prices of their drugs and the expiration or product patent. Also some of the products decreased in market sales due to the product branding.