Johnson & Johnson in Brazil

Justino accepted the position of managing director for Johnson & Johnson in Brazil. In previous years, Johnson & Johnson were top of the market in Brazil for diapers, napkins, bandages, cotton swab, sunscreen, and baby care products. In more recent years, specifically right before Justino accepted the position, Johnson & Johnson’s sales and success in Brazil had dropped. Justino was a Brazilian who understood his native culture. The reason behind this is because of competition in the market. The tough part for Johnson & Johnson was that it wasn’t just from local firms, but also from multinational firms that were dipping into their sales. Johnson & Johnson had a great market and field in Brazil, not only covering consumer sales, but also pharmaceutical, medical and devices, covering over 20 different branded products. These were better known as baby care, health care, and personal care. Justino came out when he started and said that some of their prices were too high, and some of the products are not always right for the market.

By realizing that their sales are coming from lower-income families who are buying from mom and pop shops, it was the first step towards the right direction. By getting into these mom and pop shops, (over 300,000 shops in Brazil), and dropping prices but to stay profitable, Johnson & Johnson could once again be on top of the market in Brazil. They have grown that name in Brazil, but the lower income families could not afford it. Johnson & Johnson has to check the pricing of their competition and make some adjustments to the pricing of their product, but above their cost to stay profitable. Having built such a great brand name in Brazil, the other step would be to speak about the quality of their product and the history it has in Brazil. Brand loyalty is nearly as important as pricing, so the combination of those two will bring Johnson & Johnson back to their most successful times