-ByAmit JaiSinghPrashant MittalMohit SekhawatKuldeep AswalAditya Gambhir

Future scope in diaper marketAverage number of diapers used in households - 5.Disposable diapers share to rise from 75% to 90%

by 1990.Expected growth rates – 14% per year in dollars.Growth rates of diapers will approach growth rate of

births.Huge and expanding market of disposable diapers.

Current market shares

BRAND MARKET SHAREPampers(Procter& Gamble) 28%Huggies(Kimberly-Clark) 28%Luvs(Procter& Gamble) 20%Other brands 24%

(Weyerhaeuser, Johnson&Johnson)

Trends in market shares

P&G market share down to 50% from 70% in 1981.

Share of other brands up by 3% from 1983.Specialized brands coming up in local

markets; e.g. – Cabbage patch diapers with attractive print designs.

Investments

P&G invested $500mn in new equipment.$40 mn invested in advertisements by P&G.$19 mn invested in advertisements by

Kimberley to promote Huggies.Riegel spended $1mn to introduce Cabbage

Patch diapers.

Competition

Johnson and Johnson took its brand off the market and increased market share from 7% to 12%.

Luv and Huggies introduced similar premium features and ate share of Johnson and Johnson

Johnson and Johnson competing with its own brand in international markets.

TenderCare Diapers

Technological InnovationsDrier than all other brands in market.Draws moisture away from skin in waterproof

chamber.Plans for patent protection in coming months.

Marketing strategy

Position product as an aid in treatment of diaper rash.Diaper rash is a common ailment – reaction to

prolonged contact with urine, feces, retained soaps, friction.

Target physicians and nurses specializing in pediatrics or dermatology.

Break Even Points

Diaper RashBEP = 1.8mn

The special Occasion strategy BEP=13.2mn

Head on strategyBEP= 34.8mn

(* Assuming that Head on stragegy spend half of the Kimberly figure for California market. it comes to $2.09mn)

Calculation for BEP - Marketing Strategy Tender Care Diaper.doc

Competitive advantage

Latest technology in market.Valued by customersEnough capital $ 1-3 mn by issuing stocks.Profit generation by end of first year in California

market.Promotable to customers

Product Differentiation

Sense of a "caring product". So increases its appeal..

RMM corporation has prior experience in marketing in hospitals Generates employment - for in-office demos , employs retired nurses on part time

basis

Targeting 400,000 people are much more manageable than targeting 9 mn households as in other strategies..

dependency on consumer's individual taste and preference which is highly unpredictable is reduced to minimum nurses once trained

More genuineness reflected as claims are backed by experts

Free samples distributed also is an indicator of  the confidence of the company in its product.

More value for money

Urban population more health conscious

Lot more marketing vehicles used as compared to other strategies.

Types of Competitive Advantage

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