7. Johnson & Johnson
New Brunswick, NJ
www.jnj.com

Beauty Sales:

$7.2 billion (skin care, baby care and oral care products)

Corporate Sales:

$ 61.6 billion

Key Personnel:


William C. Weldon, chairman and chief executive officer; Dominic J. Caruso, vice president, finance and chief financial officer; Patrick Mutchler, company group chairman; Maria Eduarda Kertesz, vice president, beauty, Latin America.

Major Brands/Products:


Aveeno and Neutrogena skin care and sun care products; Clean & Clear teen skin care products; Johnson’s Balmex, Penatan and Natusan baby care products; Johnson’s skin and hair care products; Piz Buin and Sundown sun care products; RoC skin care products; Shower to Shower personal care products; Listerine.

New Products:


Neutrogena was a major contributor to J&J’s skin care sales.
Aveeno Smart Essentials Collection, Aveeno Baby Natural Protection; Liquid Neutrogena, Neutrogena Rapid Wrinkle Repair, Shower to Shower Absorbent Body Powder, Johnson’s Natural Baby Lotion, RoC Retinol Correxion Night Cream.

Comments:

New Jersey-based global giant J&J is also celebrating its 125th anniversary this year.

Although its consumer businesses still experienced effects of a slow economy, revenue and earnings continued to grow slightly. Corporate sales fell less than 1% last year. Net income rose nearly 9%. Sales of skin, baby and oral care sales rose less than 2%.

In general, sales were strongest in the U.S., followed by Europe, the Western Hemisphere (excluding the U.S.) and Asia Pacific, Africa.

By segment, skin care sales totaled $3.5 billion, a decline of less than 1%, which the company blamed on a temporary reduction in shipments of Neutrogena products due to product supply constraints partially offset by growth in the Aveeno, Johnson’s Adult, Le Petit Marseillais and Dabao skin care lines.

Baby care sales rose 4.4% to $2.2 billion, due to growth in the Asia Pacific region. J&J also credits rising sales in Asia Pacific to increased use of reusable packaging on some of its products.

Last August, J&J rolled out Johnson’s Natural, a new line of products featuring at least 98% plant and fruit-derived natural ingredients and the brand’s iconic No More Tears formula. The line consists of a foaming baby wash, baby shampoo, baby lotion, a 2-in-1 hand and face foaming wash for kids and a 3-in-1 shampoo, conditioner and body wash.

Packaging for the Naturals line encompasses a variety of eco-friendly features. The plastic bottles do not contain colorant, use up to 60% post-consumer recycled content and feature silkscreened graphics rather than labels, reducing packaging weight and waste. Furthermore, the product line, which includes three baby and two kids’ products, also links with the National Wildlife Federation.

Like other Top 20 Global Companies with their eye on Brazil—as well as other countries in the BRIC markets—J&J has focused on skin care, which continues to grow in importance with Brazilian consumers who are now more aware of the need for sunscreen.J&J has developed products that combine skin care benefits, such as anti-aging with sun protection, in order to make it easier for consumers to apply daily—as well as encouraging dermatologists to recommend the dual treatment. RoC Minesol, for instance, is the No. 1 dermatologist-recommended sunscreen brand in Brazil. J&J claims that one out of two sunscreens sold in Brazil is a J&J consumer brand.

J&J has also turned to online marketing to increase exposure and sales. In 2010 in Korea, the website for Neutrogena led to double-digit growth by providing consumers with acne solutions. Products specifically designed for online sales were credited with driving revenue. Alliances with key online retailers helped make Clean & Clear the No. 1 teen skin care brand in major online channels in Korea.

In July, J&J announced second quarter 2011 sales of $16.6 billion, up 8.3% over the previous quarter of 2010.Domestic sales increased 0.1%, while international sales increased 15.9%.
Worldwide consumer sales of $3.8 billion for the second quarter represented an increase of 4% over the prior year. Domestic sales decreased 8.5%; international sales increased 12.4%, which reflected an operational increase of 2.8% and a positive currency impact of 9.6%.

Positive personal care contributors were Neutrogena, Le Petit Marsellais, and Aveeno skin care products; and baby care products.

For the first half, worldwide Baby Care sales reached $1.2 billion; Oral Care, $790 million; and Skin Care, $1.8 billion.

<< Back | Main Page | Next>>