Public Relation Opportunities
The PR opportunities available to Johnson and Johnson are evident in social endeavors such as charity events. This is perhaps the most noticeable process since it shuns profit making and addresses the needs of less fortunate (Perreault, Cannon & McCarthy 2011). Background information posits that the community is distressed due to solemn infestation of health complications.
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Many household channels huge finances in the management of diverse ailments. Apparently, the need of observing safer precautions to minimize impact is obvious. Jonson & Jonson Corporate can capitalize on this opportunity to maximize on sales whilst improving the image of the entity. The Company’s supplies present a solution to this challenge (Perreault, Cannon & McCarthy 2011).
Engaging in models that promote protective actions hence upholding healthy living, earns the Company a good public reputation since the entity develops an idea representing care for the (Knight, 2004). Importantly, other competitors understand how influential such an approach can be. However, Jonson & Jonson stands a better chance of outweighing them because their services have passed customers’ test.
The Company’s image is already credible and their professionals are accepted. Therefore, if the Company maximizes on these, while scheming in the “healthy nation” concept, it can expansively penetrate into the market.
According to Perreault, Cannon & McCarthy (2011), an additional opportunity is evident in the capacity to draw numerous celebrities especially persons utilizing the products. Indeed, the product under scrutiny is utilizable amongst divergent celebrities; thus, the need to center on their capacity to foster growth. Furthermore, it is fundamental to deduce the role of the company’s executives as they move in diverse locales.
This is evident in their capacity to highlight roles whilst improving organizational processes through branding. Indeed Perreault, Cannon & McCarthy (2011) assert that the most suitable mode is often non-official since consumers will not be pressured to adapt processes. Examples of such processes are evident when the CEO of the entity moves to diverse regions.
Effects of Channel Management Decision
It is paramount to acknowledge that the objectives of Johnson and Johnson are paramount in determining the channel decisions. This is evident in the need of the organization to acknowledge its position and stature in the market with the intention of improving operations. According to Armstrong & Kotler (2011), it is evident that the control of channels often culminates in the growth of clientele expectations.
Furthermore, it allows entities such as the organization to postulate future need with the intent of improving services and the level of contentment amongst such a clientele.
Armstrong & Kotler (2011) posit that other effects of channel management pertain to improved product value amongst the clientele since they believe that their needs are tenable. Furthermore, they acknowledge the instrumental nature of the organization in improving operations and satisfying their needs.
According to Armstrong & Kotler (2011), an effect of channel marketing is evident in the zero approach. As such, this methodology allows the correlation amidst the buyer and the fabricating entities. This often culminates in sufficient opportunities to further growth and understanding. Furthermore, it allows Johnson and Johnson to assume control over the products available to the entity.
However, Armstrong and Kotler (2011), shun the supposition that the process is entirely suitable since the manufacturer has to focus on other processes besides fabricating. This is apparent in the initiation of sales and their subsequent maintenance procedures (Perreault, Cannon & McCarthy 2011). Furthermore, it becomes intricate to assume a coordinating role since the attention of the concerned persons is diverted.
Additional effects of managing such decisions incorporate self-sustainability by empowering the organization to achieve fiscal productivity through proficient training in divergent fields. This process will provide a descent platform from which Johnson and Johnson can launch their responsibilities towards the society. The effects of channel decisions are evident in the distribution process.
As such, the stand adopted by these players has a noteworthy upshot on the achievement of the objectives. A management decision entails the cost policy, sorting out responsibilities, setting terms of operations and defining territorial rights (Armstrong & Kotler, 2011). Initially, the channel administrations will precisely define the target intensities of sales, market coverage and client supports to be availed.
The route compatible with the plan’s concept will secure the contract. Importantly, development of a distribution scheme is time intense. This means shifting among channels is not easy hence; the Company ought to stick to its system no matter the performance.
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Armstrong & Kotler (2011) further affirm that Johnson and Johnson are likely to control their branding process through the adoption of appropriate correctional processes. This often arises from proper administration of channel decisions and choosing the appropriate technique. Indeed, it becomes simple to accomplish and direct the processes of the intermediaries through the adoption of appropriate channel decisions.
It is equally fundamental to acknowledge that failure to acknowledge the effects of poor decisions when it comes to channels limits the growth of an entity (Perreault, Cannon, P., & McCarthy 2011). An example is apparent in Johnson since it is unlikely to maintain its brand in developing nations. This is evident in the inability to separate sales from organizational processes such as manufacturing.
A distribution channel defines the follow of a product in the market. Distribution of products is associated with the auxiliary costs. An Effective distribution channel is one that reduces the cost incurred within the operations. Product placement plays an essential role in marketing Company’s products since the practice enhances the awareness.
However, the practice may extensively consume Company’s finances. Johnson’s firm trades in numerous small supplies. Therefore, an expensive placement procedure that extensively promotes a specific product is not advisable for the Company.
A placement model capable of promoting many products at a comparatively lesser cost will provide good returns. The use of online marketing would be an ideal practice. Therefore, the Company will heavily invest in the online Ads and other internet systems in availing its products at the disposal of their distributers and customers.
According to Perreault, Cannon & McCarthy (2011), recruiting many intermediaries in the distribution process mainly increase the cost of the product since the customer must reward each of these entity (Perreault, Cannon & McCarthy, 2011). A critical approach of dropping product’s cost is through withdrawing intermediaries on the supply sequence.
However, intermediate partners play a vital role in the distribution and promotion process. Intermediaries mainly are in proximity with the consumers hence may understand the market better than producers (Perreault, Cannon & McCarthy, 2011). This means a direct channel where customers access products directly form the producers although may be cheaper it may fail to source large market.
Therefore, before dropping an intermediary level, it is recommendable to carry out a critical analysis of the situation. The Company has various products in the market. This means customers may demand various collections, from which to choose. Moreover, most of the Company’s products sell best while in small quantities.
This has an application that establishment of a network of lower level intermediaries is necessary. The nature of the Company’s supplier demands a divergent channel, which breaks the products into smallest quantities and delivers them at strategic locations (Perreault, Cannon & McCarthy, 2011).
Therefore, the distribution channel will strongly capitalize on small-scale retailers and agents. High-level intermediaries like wholesalers will be eliminated in the channel to scale-down cost. Retailer will directly offload products from the producers and deliver them to the network of agents established on the ground (Perreault, Cannon & McCarthy, 2011).
Shipping costs prevent most businesses from establishing a global market hence the effectual supervision of this cost an essential endeavor. The Company will embrace a number critical practices aimed at reducing the shipping cost. First, the company ought to shop-rate parcels to ensure it secures the service with the most economical provider (Perreault, Cannon & McCarthy, 2011).
Secondly, the corporate entity will strongly embrace electronic processing to reduce operation costs. This will entail embracing online ordering and payment transactions. Additionally, the system will effectively utilize the free shipping eco-friendly packages provided by the government for local distributions.
Lastly, the company will subscribe to joint shipping packages to enjoy group discounts. Enrolling in joint shipping also provides the company with higher bargaining powers. This action can considerably bring down the shipping costs.
Armstrong, G. & Kotler, P. (2011). Marketing: An introduction (10th ed.). Upper Saddle River, NJ: Prentice Hall
Knight, P. (2004). The highly effective marketing plan. London, LDN: Prentice Hall Business.
Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy Planning approach (18th ed.). New York, NY: McGraw-Hill Irwin.