Drypers Corporation is a producer and marketer of high quality, valued-price, one-use baby diapers and training pants. Baby diapers are sold under Drypers brand name in the United States and under other brand names internationally. The corporation also manufactures and retails lower-priced disposable diapers under other brand name such as Comfees in the U.S and internationally as well.
World’s sixth largest producer of disposable baby diapers is Drypers Corporation and moreover, the third largest marketer of brand name disposable diapers in US. Drypers brand achieved the fourth largest selling diaper brand in US in 1997, and the second largest selling training pants in grocery stores.
Producers of disposable diapers and training pants are generally separated into three groups: 1) premium-priced branded manufacturers, 2) value-priced branded manufacturers, and 3) private label-manufacturers. Kimberly Clark and Procter & Gamble are the two leading premium-priced branded manufacturers with their well-known Huggies and Pampers premium brand respectively. Product quality, product features and benefits, and price are main elements of competition on the basis of which competitors lead their competition in the market.
In 1997, branded products represent 88.9% of company net sales in the U.S, sales of private label and other products account for remaining sales. The company’s Drypers premium-brand diapers and training pants account for 52.3% of total company and domestic net sales for the same year, which was decreased, from 62.3% in 1996 and 61.3% in 1995. The company leases manufacturing, distribution and administrative space in nine locations in the U.S, Brazil, Puerto Rico, Argentina and Mexico. Corporate headquarters are located in Houston, Texas.
Late of 1997, the senior executives discussed to spend more than $10 million dollars on national television advertising in 1998. However, the discussion needs to analyze the impacts on Drypers Corporation including the short and long term affect to ensure the effectiveness of the spending. The market for disposable diapers and training pants is for infants who are in age of birth until 30 months and children who are range of age 8 and use the diapers as well as training pants. The mothers can be as the target market for diapers manufacturer because they will make a decision on the brand of diapers and training pants which they would like to buy for Drypers Corporation.
(a) In 1997 the disposable diaper and training pants was a $3.9 billion and $597 million industry respectively. Diapers and training pants are typically purchased through mass retailers, drugstores and supermarkets. The primary users of the disposable diaper and training pants market is comprised of mothers between the ages of 18 to 49 years old while the actual end user of the product are infants and children typically under the age of four. Advertising directly to the purchasers and decision makers is the most effective way to administer the advertising message.
In this industry there are many competitors and frequent places to purchase disposable diapers and training pants. These types of companies must implement an advertising approach in order to sell their products rather than a personal selling strategy. Manufacturers advertising approaches can consist of several types of messages to the consumer that are typically combined to create their selling strategy. Quality, price, features and benefits are the most common attributes assigned to advertising strategies. These attributes also determine which market segment a company will primarily focus on.
(b) Drypers uses a high quality low price strategy. This market segment is typically assigned to mothers that are more consciences of price. What separates Drypers from their competitors is their ability to sell at low prices while consistently providing quality to its customer and low prices to the retailers. Drypers considers their differentiation strategy to be primarily based on features of their disposable diaper and training pants. Most of their competitors focus their marketing strategies based on premium branded disposable diapers and training pants.
(c) There is a definite advertising opportunity for Drypers. The average consumer is most easily persuaded in the realms of broadcast television. People tend to perceive products that are advertised on television to be...
Case Study – Drypers Corporation
Drypers Corporation, an international manufacturer of premium-quality, value-priced disposable diapers and training pants for infants and toddlers, seeks to analyze the impact of spending more than $10 million in U.S. television advertisements in efforts to break into the mass merchant arena.
Results of a SWOT analysis of Drypers Corporation are listed in Table 1 below. In summary, Drypers is a strong competitor in the disposable diaper market. Focusing on product innovation, quality products and low prices has made Drypers a key competitor in the industry. Drypers has fostered strong relationships with its retailers through promotional marketing efforts. However, recent consolidation of regional brands into one Drypers label has had a negative effect on sales as brand recognition has taken a significant slide.