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Johnson and Johnson

Johnson&Johnson Reaches New Heights with Geoconcept

+20% new market opportunities 

+50,000 outlets covered across China

Increased growth revenue by 10% 

Johnson & Johnson, one of the leaders in pharmaceutical, hygienic and cosmetics products, has chosen Geoconcept data and software to identify the key performance indicators of sales to rank modern retails and drive their go-to-market strategy in China.

“Before working with Geoconcept, we did not have reliable data and tools to understand the market and our potential for growth better. Furthermore, which retails to target as priority was based only on the experience of our sales representatives instead of combining it with a systematic and data-driven approach.”

- Miss Chen, Director of Channel strategy and sales operations, Johnson and Johnson China

TAILORED SOLUTIONS FOR SPECIFIC NEEDS

Most large Fast-Moving Consumer Goods companies are relying heavily on expensive consulting services which prevent them from understanding how the data was created and what the methodology behind site ranking is. Furthermore, working with traditional consulting groups does not help in being autonomous and agile in reviewing their market strategy regularly. The reasons behind sales performance of specific outlets should be based on both a data-driven approach and business experience. Furthermore, the sales growth is highly dependent on the products being sold and their target consumers, and cannot be based on a standard model for all Fast-Moving Consumer Goods companies groups regardless of their offering.

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JOHNSON&JOHNSON AND GEOCONCEPT 

For several years Johnson and Johnson’s Retail efficiency team worked with a dedicated data and consulting vendor on their market study. Looking for improvement and the most cost-effective solution, the top management chose Geoconcept as its data processing partner in 2015. This collaboration allowed them to deepen their performance analysis and understanding on how to find new stores to target and which are the best to drive sales, the “Golden Stores”.

Johnson & Johnson now manages its Chinese distribution network using the points of interest and 1 km grid level socio-economic data provided by Geoconcept China, well-known for the quality of its data and broad national coverage.

It is by combining software expertise and customized geographic data that the team can now define the KPI models of the "Golden Stores". These models take into account all the geographical and socio-economic landscape of the environment by type of point of sale: Hypermarkets, Supermarkets, Mini-Markets, Convenience stores, and Traditional Stores. The geomarketing analysis involves a network of more than 50,000 outlets across China, ranked according to a range of different performance indicators, depending on their catchment area. 

THE OUTCOME: RETURN ON INVESTMENT AND EFFICIENCY

"Geoconcept technologies have enabled us to identify new market opportunities and sales channels that have generated more than 10% in revenue growth" said Miss Chen, Director of Channel strategy and sales operations at Johnson and Johnson China.

The implementation was fast, and the Return on Investment occurred within 3 months, the retail efficiency team now distributes, on a quarterly basis, the points of sale to all local distributors and sales representatives of the brand.

“Geoconcept is delighted to work on this exciting project that has proven not only a success for Johnson and Johnson China but also provided career growth for the entire retail efficiency team working with us. All of them are now considered as not only co-workers but also friends.” said Mr. Tricen, Head of international operations at Geoconcept.

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