11.05.09
9. Johnson & Johnson
New Brunswick, NJ
www.jnj.com
Beauty Sales: $5.6 billion (skin care and baby care)
Corporate Sales: $63.7 billion
Key Personnel: William C. Weldon, chairman and chief executive officer; Colleen Coggins, worldwide chairman, consumer group. Major Products/Brands: Aveeno and Neutrogena skin care and sun care products, Clean & Clear teen skin care products, Johnson’s and Balmex 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.
New Products: Skin care—Aveeno Positively Ageless lifting and firming facial skin care, Clean & Clear Advantage Blackhead Eraser exfoliating cleanser, Neutrogena Ageless Essentials Continuous Hydration Night, Johnson’s Body Care Forever Fresh Refreshing Lotion; Hair care—Aveeno Nourish + Hair Care collection; Dabao cosmetics; Sun care—Neutrogena Utra Sheer Dry-Touch SPF 100+ sunblock.
Comments: Johnson & Johnson’s sales defied the economy and were up across the board in 2008, with worldwide, company-wide sales reaching $63.7 billion, an increase of 4.3% over the previous year. In its consumer products sector, skin care and baby care segments both grew by double digits. Skin care sales rose 10.8% to $3.4 billion in 2008, due in large part to its top-selling brands Aveeno, Clean & Clear, Neutrogena and Johnson’s adult product lines, as well as sales in China of Dabao, a Beijing-based cosmetics brand acquisition. J&J’s baby care sales grew by 11.7% to $2.2 billion in 2008.
The original pink Johnson’s Baby Lotion continues to gain new users in international markets. |
A large portion of J&J’s sales is generated in emerging markets where the company studies the individual culture to bring consumers affordable products they’ll relate to. For example, Johnson & Johnson enjoyed an Olympic moment at Millennium Monument Park during the Beijing 2008 Olympic Games through a sponsorship that involved four years of planning; J&J also contributed to its Olympic presence by constructing several buildings that will remain permanently in Beijing. When research showed that Chinese moms tend to apply cream to their baby’s face in the morning, but find repeat applications during the day to be wasteful, the company developed Johnson’s Baby Long Protecting Cream to meet these once-a-day needs.
Available in 175 countries, Johnson’s Baby continued to gain new users in international markets. Growth was driven by a focus on the core business, including the original pink Johnson’s Baby Lotion. Johnson’s Body Care experienced strong growth in Japan, thanks to a successful extension into adult moisturizers and cleansers. The Johnson’s brand is now No. 1 in the Japanese body lotion market and No. 2 in body cleansers.
Capitalizing on the popularity of Aveeno, J&J expanded the brand into hair care with the launch of Nourish + Hair Care.
Conditions have not been quite as rosy in 2009. For the first quarter of 2009, corporate sales fell 7.2% to $15 billion. Net earnings fell 2.5% to $3.5 billion. However, skin care sales rose 0.2% during the quarter to $842 million, on a 10.7% gain in U.S. sales to $423 million. During the first quarter, baby care sales declined 8.3% to $489 million. According to J&J, Neutrogena and Aveeno turned in good sales performances during the quarter, and sales of Dabao also contributed to the gain.
Second quarter sales reached $15.2 billion, a decrease of 7.4% as compared to the second quarter of 2008. Domestic sales declined 6.7%, while international sales declined 8.0%, reflecting operational growth of 3.9% and a negative currency impact of 11.9%. Worldwide consumer sales of $3.9 billion for the second quarter decreased 4.5% versus the prior year. Domestic sales increased 0.8%, while international sales decreased 8.4%.
For the first half, consumer product sales fell in both markets: down 2.2% domestically and 9.9% internationally.