J&J regionalizes command in Brazil and focuses on small-size retail
Valor Econômico
With the earnings rising 9% in 2009, the Johnson & Johnson division of consumer products already harvests the results of the new sales structure implemented in Brazil a year ago. The model regionalized the control of the company, gave autonomy to the executives in each area and strengthened its presence in the small-size retail. The performance of the Brazilian Division stayed fairly above the average of J&J Global Consumer Products, whose sales shrunk 1.6% in 2009. In an interview to Valor, Carlos Siqueira, Sales Director of the J&J consumer division in Brazil, stated the Brazilian operation currently ranks second in the global ranking of the Consumer Division of the multinational, ahead England and staying only behind the headquarters of J&J, in the United States.
The area headed by Siqueira includes the best-known lines of the brand: those of baby care (like Johnson's Baby), personal care (such as Listerine and Sempre Livre), and the beauty line (Clean & Clear) and over-the-counter drugs, the OTCs (such as Tylenol). The Division, which excludes prescription drugs and hospital products of J&J, is the most representative of the multinational in the country. Seven of the eleven manufacturing plants installed in the manufacturing park of J&J in São José dos Campos (SP) belong to the area of consumption.
The restructuring of the area of consumption has divided the company into five business units: São Paulo, Rio de Janeiro, Rio Grande do Sul, North and Northeast, besides the "key accounts" that involve major customers like Walmart, Carrefour and Pão de Açúcar. Each of those units started being headed by an Executive. "Last year we experienced a process of change in our business culture. Brazil is large, the consumers are very different, as well as their needs and how to get to the markets. We couldn't stay behind in that regard", said the Executive.
Another change that came with the restructuring was the form of negotiating with the client, programmed to offer discounts, which can be passed on to the final consumer. The control of the exposure of the products of J&J at points of sale was also increased by instructing the retailers and hiring of a consulting firm that analyzes the presentation of the brand in 5 thousand stores. In order to increase the operation of the company with the small retail, the investments in sales training have doubled in the last two years, according to Siqueira. The strategy involves getting the J&J team closer to the points of sale to direct on the decoration of the store and the exhibition of the products.