strategic-management

EXHIBIT 2 J&J’s Mission Statement
We believe our first responsibility is to the doctors, nurses and patients, to mothers
and fathers and all others who use our products and services. In meeting their needs,
everything we do must be of high quality. We must constantly strive to reduce our costs
in order to maintain reasonable prices. Customers’ orders must be serviced promptly and
accurately. Our suppliers and distributors must have an opportunity to make a fair profit.
We are responsible to our employees, the men and women who work with us throughout
the world. Everyone must be considered as an individual. We must respect their dignity
and recognize their merit. They must have a sense of security in their jobs. Compensation
must be fair and adequate, and working conditions clean, orderly and safe. We must be
mindful of ways to help our employees fulfill their family responsibilities. Employees
must feel free to make suggestions and complaints. There must be equal opportunity for
employment, development and advancement for those qualified. We must provide
competent management, and their actions must be just and ethical.
We are responsible to the communities in which we live and work and to the world
community as well. We must be good citizens—support good works and charities and
bear our fair share of taxes. We must encourage civic improvements and better health and
education. We must maintain in good order the property we are privileged to use,
protecting the environment and natural resources.
Our final responsibility is to our stockholders. Business must make a sound profit. We must
experiment with new ideas. Research must be carried on, innovative programs developed
and mistakes paid for. New equipment must be purchased, new facilities provided and new
products launched. Reserves must be created to provide for adverse times. When we operate
according to these principles, the stockholders should realize a fair return.
Source: J&J’s 2008 Annual Report.
Marketing
J&J has a diverse brand portfolio with products ranging from simple bandages to complex
antiviral drugs for the treatment of HIV, each requiring different marketing strategies for
each individual brand. J&J has also embraced diverse, nontraditional advertising that
includes both online and outdoors while scaling back on prescription drug advertising.
This section highlights some of J&J’s most prominent consumer brands.
LifeScan
Headquartered in Milpitas, California, J&J’s LifeScan offers diabetics a sense of freedom
that before was unobtainable. The company offers state-of-the-art blood glucose meters
such as the One Touch Ultra used in both homes and hospitals alike. These are offered in
both the domestic market (which accounts for 98 percent of users) as well as foreign markets.
LifeScan products are targeted at those who have difficulty with the pain involved in
alternative meters and are more compact and advanced than the competition and can provide
the user with results in five seconds. Also, if users are uncomfortable using their finger
as the test site, this device offers the capability to test in alternative sites.
The One Touch also boasts amenities that include before- and after-meal flags,
7-, 14-, and 30-day averages as well as the ability to average before and after meal results
for the chosen time period.
Tylenol
Tylenol was added to the J&J portfolio with the acquisition of McNeil Laboratories in
1959. In 1960, Tylenol became available without a prescription, just one year after its
acquisition. Tylenol is no longer a single product, but it is a product family that extends
from a children’s formula to Tylenol PM. Currently J&J supports 16 different varieties of
Tylenol with each new type requiring a different approach.
Tylenol’s online advertising campaign uses subtle ads strategically placed with large
online advertisers like Yahoo, Google, and MSN. Tylenol recently increased its online
advertising budget and also reduced its print media budget in response to consumer
CASE 21 • JOHNSON & JOHNSON — 2009 203