Marketing Plan: Pampers Swaddlers Marketing Plan: Pampers Swaddlers Mary Beth Leslie EKU University Marketing Plan for Pampers Swaddlers The #1 product in market share and sales in the United States in the diaper industry is Pampers, a product owned by Procter & Gamble (P&G). The introduction of disposable diapers may be one of the best examples of the impact on a market when there is dissatisfaction with the status quo. Pampers Diapers were born in 1956 when Vic Mills, a P&G researcher, disliked changing the cloth diapers of his newborn grandchild.
So he assigned fellow researchers in P&G’s Exploratory Division in Miami, Ohio to look into the practicality of making a better disposable diaper. At the time, disposable diapers were used in less than 1% of the billions of diaper changers in the United States each year. The first product placement was in 1958. Over the years the innovation has been very successful with numerous developments that keep Pampers products the leader of the diaper market.
In the beginning diapers were created for a low cost with adequate design.
Some features of the first diapers made were zee pleats, super containment, a hydrophobic top-sheet and a plastic back-sheet. They were produced mostly by hand and only sold in the United States. Pampers has expanded the product line in the past 50 years to provide diapers for all of the stages of developmental needs of a child, from newborn to infant to crawler to toddler which require diaper protection. The features now include specific characteristics for each stage such as quilted blanket- like softness and overlapping fasteners for newborns and 12 hours of leakage protection and 3-way fit for toddlers.
The line has also expanded to include wipes. Pampers are mass produced now and are sold globally in more than 100 countries around the world. Last year, 2011, they became P&G’s first brand to reach 10 billion in annual sales. Pampers are made in 30 manufacturing plants in 25 countries. Pampers Swaddlers is a new product line that was introduced on March 2010 in North America. Pampers promoted the diaper as the biggest innovation they have had in the last 25 years and as the driest diaper ever. With many special features it hit the target market from the time it hit the stores.
In the first year it brought in the most revenue of any new product in 2011 with $296 million in revenue. Swaddlers are a high performance diaper intended for newborns up to 5 months old (up to 28 pounds). The product line includes five sizes: extra small, preemie, newborn, 1-3, and 4. They come in smaller packages with a few diapers and boxes with many diapers. They promote the product at the #1 choice of hospitals based on sales data. Procter & Gamble (P&G) were established in 1887. The company was formed by William Procter and James Gamble. William was a candle maker and James a soap maker.
They married sisters and became business partners by the advice of their father-in-law. At the start of the company their total assets were $7,192. 24. For seven generations they have been making products that touch and improve lives every day. They have product lines in beauty, fabric, baby, family, care, and personal products. According to statistics by Freddie Mac they are number #26 in the fortune 500 ranking with total annual revenue of 14. 3 billion in 2009. They have over 300 products and 50 they call leadership brands, which are among the world’s best known household names and account for more than 90% of profits.
Of those they have 24 billion dollar brands. Pampers being one of them. They employ over 2,270 employees. Have operations in more than 80 countries and touch the lives of consumers in more than 180 countries. P&G brands serve about 4. 6 billion of the nearly 7 billion people on the planet today. To delivery local agility, the global operations are divided into five regions: Asia, Central and Eastern Europe, Latin America, North America, and Western Europe. P&G is a force in the world which brings big responsibility. Business Analysis: P&G
P&G Vision: Be, and be recognized as, the best consumer products and services company in the world. P&G’s Promise: Three million times a day, P&G brands touch the lives of people around the world. And P&G people work to make sure those brands live up to their promise to make everyday life just a little bit better, now and for generations to come. P&G’s Mission Statement: We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, onsumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live to work and prosper. Our purpose works to unify us in a common cause and growth strategy. It is powerful because it promotes a single idea to improve the lives of the world’s consumers every day. P&G grows by touching and improving more consumers’ lives in more parts of the world…more completely. While this statement defines our commercial opportunity, our culture reflects the broader opportunity of improving lives through and beyond our branded products and services.
At P&G, we touch lives in small but meaningful ways. Billions of them. Everyday. P&G’s company strategy is focused on strategies that they believe are right for the long term health of the company and will deliver the total shareholder return in the top one-third of their peer group. The long term financial targets are: grow organic sales 1% to 2% faster than market growth in the categories and geographies in which they compete, deliver earnings per share (EPS) growth of high scale digits to low double digits, and to generate free cash flow productivity of 90% or greater.
To achieve these targets they are prioritizing these strategies. P&G is such a global entity they have almost unlimited resources to available to them. A financial audit is done to evaluate the ability of a business to finance its chosen strategy. The financial condition has been and continues to be of high quality. They have the ability to generate substantial cash flow from operations and ready access to capital markets at competitive rates. Looking at their existing funds they have operating cash flow of $13. 2 billion which is the primary source of funds to finance operating needs and capital expenditures.
The overall cash position of the company reflects that the business has strong business results and takes in account liquidity management, economic factors, and tax considerations. They also had free cash flow productivity, the ratio of free cash flow to net earnings, of 84% in 2011. This is an important factor because it is one factor impacting the amount of cash available for dividends and discretionary investment. P&G had investing activities of $3. 5 billion and dividend payments of $5. 8 billion. The debt level was $32 billion and current liabilities exceed assets by $5. 3 billion in 2011.
This is largely due to the commercial paper program. They anticipate the cash from operations to support the short term liquidity and operating needs. The company has strong short and long term debt ratings which have enabled and should continue to enable them to finance the debt. They also have agreements with many financial institutions that, if needed, would provide credit funding. The short term credit rankings were A-1 and long term credit rankings were AA- with a stable outlook by S&P in 2011. Some financial highlights of 2011 are net sales of $82,559 million, operating income of $15,818 million, net earnings of $11,797 million.
The net earnings margin from continuing operations are 14. 3%. Procter and Gamble has an incredible reputation of management and overall businesses which gives them great ability to raise funds. They have built strong relationships with investors and proven over time they are successful in repaying their obligations. The Procter & Gamble Company| | | | Consolidated Statements of Earnings| | | | | | | | Amounts in millions except per share amounts; Years ended June 30| 2012| | 2011| NET SALES| $ 83,680 | | $ 81,104 |
Cost of products sold| 42,391 | | 39,859 | Selling, general and administrative expense| 26,421 | | 25,750 | Goodwill and indefinite lived intangible asset impairment charges| 1,576 | | — | OPERATING INCOME| 13,292 | | 15,495 | Interest expense| 769 | | 831 | Other non-operating income, net| 262 | | 333 | EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES| 12,785 | | 14,997 | Income taxes on continuing operations| 3,468 | | 3,299 | NET EARNINGS FROM CONTINUING OPERATIONS| 9,317 | | 11,698 | NET EARNINGS FROM DISCONTINUED OPERATIONS| 1,587 | | 229 | NET EARNINGS| 10,904 | | 11,927 | Less: Net earnings attributable to noncontrolling interests| 148 | | 130 | NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE| $ 10,756 | | $ 11,797 | | | | | BASIC NET EARNINGS PER COMMON SHARE (1):| | | |
Earnings from continuing operations| $ 3. 24 | | $ 4. 04 | Earnings from discontinued operations| 0. 58 | | 0. 08 | BASIC NET EARNINGS PER COMMON SHARE| 3. 82 | | 4. 12 | DILUTED NET EARNINGS PER COMMON SHARE (1):| | | | Earnings from continuing operations| 3. 12 | | 3. 85 | Earnings from discontinued operations| 0. 54 | | 0. 08 | DILUTED NET EARNINGS PER COMMON SHARE| 3. 66 | | 3. 93 | DIVIDENDS PER COMMON SHARE| $ 2. 14 | | $ 1. 97 | | | | | 1) Basic net earnings per share and diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble. | Analysis of operating environment: Procter and Gamble maintains their political and legal environment by participating in the political process to help shape public policy and legislation that helps them touch more lives, in more parts of the world, more completely. This ensures that the interests of the employees, consumers, and stakeholders are represented at all levels of government. They are involved in lobbying activity with P&G’s Global Government Relations & Public policy team. This team represents their point of view in Washington, D. C. and in state capitals.
It focuses on legislative and public policy issues that impact the company’s bottom line and long term business interests. P&G engages in the political process by providing financial support to selected state ballot initiatives and issue advocacy campaigns that have a direct impact on their ability to touch and improve consumer lives. On a social and cultural level the operating environment has many programs to support all employees regardless of age, race, or sexual orientation. They support a safe and diverse workplace. They have audit programs that apply to all plants, innovation centers, distribution centers worldwide. These programs are to ensure compliance with national, state, and local regulatory requirements as well as corporate standards.
Also, for the last six years, P&G has been involved in the development of several social responsibility initiatives. The respect for human rights is implemented through the policies and practices of the company. They have a children’s safe drinking water program that has reached 315 million children and delivered 2. 9 billion liters of clean drinking water worldwide. They also have learn, live, and thrive program that has improved lives for more than 400 million children. P&G believes they have a growing responsibility to contribute to sustainability. They work with employees and stakeholders to contribute to environmental and social responsibility programs.
They aim to use resources and materials efficiently while having innovative products. One goal is to have zero consumer and manufacturing waste going to landfills. Based on current economic conditions the company has had a hard time maintain sales volume and growth. Due to the economic situation of the world the company has focused on improving productivity and creating a cost saving culture. They have introduced a $10 billion cost saving initiative which is the reduction of approximately 5,700 non-manufacturing overhead positions by the end of fiscal year 2013 and $1. 2 billion of annual cost of goods savings across raw materials and transportation and warehousing expenses.
They also want to strengthen the core business by focusing on the top 40 business, top 20 innovations, and the top 10 developing markets. They believe this will help the consumer get the best possible product with the most value. To stay competitive the company has focused on five core strengths to win in the consumer products industry. They want to lead in these areas: consumer understanding, scale, innovation, go-to-market capabilities, and brand building. To better understand the consumer they interact with over five million consumers a year to gain insight to help identify opportunities for innovation and better serve and communicate with the customers.
The company is widely recognized as the industry’s global innovation leader and brand leader. They know they have to stay focused on these strengths to stay ahead of the competition. Technology is the lifeblood of P&G that breathes life into the brands. The company focuses on 8 drivers of innovation: purpose, goals, strategies, strength, structure, systems, culture, and leadership. The innovation is customer driven and managed as a social process. The goal is to transfer technologies and ideas across product businesses and areas of expertise. They believe in thinking broad and everyone joins in with ideas. They believe if you look more places you will get better results.
They have an external network of innovation partners that consist of over 2 million researchers and scientists from all over the world. The network of suppliers is critical to the long-term success. They want partners and suppliers that participate with them in open innovations, help to improve competitive advantage and standards of excellence. They want to, in turn, be the business partner of choice. They seek collaboration in areas such as packaging, design, distribution, business models, marketing models, customer research methods, trademark licensing, and technology research. The goal is to be aligned with partners to build our businesses together. | Favorable| Unfavorable|
Internal| Strengths:-Strong focus on research and development-Leading market position-diversified product portfolio-strong brand portfolio-high brand recognition| Weaknesses-increasing instances of product recall-dependent on Wal-Mart for the majority of its revenue| External| Opportunities;-expansion in developing markets-future growth plans-mergers and acquisitions-increased purchasing power to increase demand| Threats:-regulatory environment-global economic conditions-counterfeit goods-increased competition from FMCG companies| Target Market (STP) The target market is best grouped together based on the clusters of similar needs. The primary target market is the parents and healthcare professionals who have babies, family and friends of those with babies or expecting, as well as environmentally conscience customers who provide the best quality care and protection for their baby. Keeping the baby happy is a top priority for the group and they are willing to pay a higher price for a product of higher quality.
As long as the trade-off of value is balanced this group will make the purchase. The product was developed as a premiere product that provides superior quality as well as a positive environmental impact compared to other products. Mass marketing is a market coverage strategy where the company decides to ignore market segment differences and go after the whole market with one offer. This would be the best strategy so that it reaches the target market of the product. In order to cover the large target market it would be essential to broadcast a message that would reach the largest number of people possible. This type of marketing would focus advertising on TV, radio, and newspapers.
The segmentation process applied to evaluate the target market were based on the benefit the customer derives from the product. Knowing what the customer needs and wants out of the product to segment the groups of people who would purchase the Pampers Swaddlers keeps the marketer making sure they are hitting the right target audience. Another method employed was based on the behavioral segmentation of loyalty. Pampers has been very successful to regain loyal customers who are willing to pay more for their product. Making sure to reach this group of people is essential to the success of the product. The product position you want to convey to the target market is that Pampers Swaddlers s the best newborn-6 month diaper that is high performance and makes life easier and enjoyable for a baby. Product positioning is achieved by superiority to competitor products, application, and through the types of users. Putting the product above the competition is known by informing on the product website. It states that Swaddlers Diapers is the #1 choice of hospitals based on sales data. Another clear position of the product is that it is very soft and flexible. Pampers also has the position that the diaper in 20% thinner to gain the market of environmental customers. The best way to maintain growth is the product development growth strategy.
It is a growth strategy that is used for a selling a new product in a firm’s current market. Currently, Pampers maintains 63% of the market share of diapers with 54. 5% of customers making a repeat performance. As a part of product development time was spent to add value to the product. With the success of the first year a new technology was developed called the Dry max to improve the current Swaddlers current core market. Also, the product was developed for current customers providing a product especially for babies. Swaddlers spread through the market over the past two years at a positive rate. The application of the diffusion model would put the product to the early majority stage based on he various complementary products that have been in on market throughout the past fifty years. Since Pampers has been successful throughout this time period the risk of introduction of a new product is not very high. There was an opening in the market and Pampers felt this new product would ass value to their line and their customers. Marketing Mix Application for Pampers Swaddlers Product: Pampers Swaddlers has very many unique functional features to reach out to their target market so they will make a special effort to get them. They promoted the product as their biggest innovation in the last 25 years and as the driest diaper ever. The dry max technology helps lock in wetness in for up to 12 hours.
It includes a thinner design which allows more to be carried within less space. As a result, you reduce the impact on the environment by disposing of less waste. They are specifically designed to absorb soft messes. Other functional features include an overlapping fastening, soft stretch sides, quilted- blanket like softness, and have an absorbent top sheet. For preemie and newborn sizes they have an umbilical cord notch. All of these features contribute to capture the attention of the consumer. The appearance of the product is that it is very similar to other Pampers diapers. They have pictures of Sesame Street beginnings characters. The colors and look of the package is niversal with the entire line they carry. The colors are a warm soft pastel colors. The box colors are yellow and teal. The diaper is white except for where the pictures are. The pictures has the same colors as the box as a back drop to the characters. Provides a very safe and comfortable feeling. The logo for Pampers as well as their name is very large on the package to make it easy to find for the customers. A picture of a very happy baby is also displayed. Accessories for the diapers are the product line of wipes which Pampers sells. They carry three types: sensitive, baby fresh and natural clean. This adds value to the product and provides additional revenue for the company.
The instructions –on-use of the product are located on the product box as well as being included on their website. Pampers provides a lot of information on the website such as when to change and common times to change a diaper. There are videos on the internet if you need a visual aid to assist with the instructions. Installation consists of first placing the tabs parallel to the waistband and centered on the character strip. Then use the characters as a guide to ensure the fasteners are evenly spaced. Last, apply the fasteners to a comfortable fit. They inform you to keep baby products such as powder away so that they don’t mess up the stickiness of the fasteners. Another tip is that there is no eed to fold the waistband in or out or to adjust the leg cuffs. All packaging is made by disposable materials. There are two types of packages: cardboard boxes and plastic. For the cardboard packages, which contain higher number of diapers, the primary packaging is an air tight clear plastic bag containing the diapers stacked. In the larger boxes there are usually two rows of contained. The secondary packaging is the boxes that has the labeling the consumer will see. For the plastic packaging, containing smaller number of diapers, the primary packaging is the plastic. It is air tight with diapers stacked and has the labeling information on the plastic for the consumer to see. For cost efficiencies the iapers are shipped in a through the distribution channels is larger cartons to protect the product and so that a large quantity can be in one container to facilitate shipping. The boxes are filled with packaging of the same type. The packaging offers convenience for displaying and selling the product as well as shipping. Brand is inspired by babies, keeping them comfortable, clean and dry. Branding is a huge asset for the product. Both Pampers and Procter and Gamble have high brand awareness with great reputations which have over the years built a strong corporate image. Procter and Gamble is a huge family brand with some of the world’s most well-known products. They have 25 billion dollar brands.
This proves them to have strong equity in the minds of consumers and to be wanted by retailers. Pampers has developed an individual brand that has high recognition. The brand has control of the market with a core group following that has become a known “customer franchise”. Most family brands use the company name, Procter and Gamble, to promote the brand. The brand of Pampers has become synonymous with diapers therefore establishing brand equity. Customers know they will get quality with the brand and have strong brand loyalty. Therefore they use their individual brand name for the product because they want to stand on their own in the product line.
The brand is easy to identify and provide as a guide to the quality of the product. It is an effective brand name that is easy to say, spell, and recall. This high level of brand preference already established with Pampers gives the Swaddlers line an easier road to success than other competition. The warranty is a manufactures 30 day warranty to be free from defects and faulty workmanship with a delivery and credit. Most retailers also offer a satisfaction guarantee on the product too. There are many services available to support the product. Pampers offers customer support by phone, e-mail, or online. They have a Facebook and twitter as other areas to connect ith them. The website pampers. com has a wide assortment of information in all areas of baby. It provides sizes and weight on all products. They provide how to topics such as when to change a diaper, how to wipe a baby, and common times to change a diaper. Also, information on all areas of having a baby. There is an online community you can join to connect with other parents.
The Product Life Cycle of Swaddlers would be in the maturity stage. The line has been around for over 50 years and has reached market saturation. The market is an oligopoly with few sellers that dominate the market. Pampers is one of the few with market share. The Swaddlers ine was improved to increase sales. Price: Pampers is satisfied with the current market position of the product so they don’t want to rock the boat by changing the price. The pricing objective is to stay with the status-quo. When promoting the added innovations to the product Pampers made sure to let the consumer know the product was being offered at the same price to retailers. The prices are very close to the competitors to signal that the products are similar. But the prices of Pampers are a little higher to indicate better features and quality. Huggies, the biggest competitor, have prices relatively the same while other brands are cheaper, but offer less quality product.
The status quo pricing objective may be a part of an aggressive overall marketing strategy focusing on nonprice competition. The focus is on one of the other p’s other than price. The retailers have the discretion to raise the prices as they feel necessary. Wholesalers hold the product and ship to retailers. Consumers can’t buy directly from the manufacturer. Pricing is more an objective of the retailer. The product has a high level of value creation with the name recognition. Over the years they have proved to be a leader in the market. Innovation has been a key marketing objective and the consumers know when they buy Pampers they are buying the best.
By adding the latest innovation to the product for the same price customers feel they are getting more for the same price. The pricing to channel members isn’t a big impact because the only place retailers can purchase the diapers is from warehouses owned and operated by Pampers. They control the distribution line until the retailers take control of the goods. Therefore, pricing to channel members remains the same for retailers. There are price advantages to quantity. Value based marketing is a pricing strategy that is based on a balance of benefits to costs associated with value. When consumers make a decision to purchase a product they evaluate the trade-off of benefits received with giving up their time and money.
Caregivers of babies want to provide the best quality protection and comfort when putting a diaper on the baby. Pampers spends a lot on advertising to promote the quality of their product. Over the years Pampers has established name recognition associated with being a premiere product. They have created the value to pull the customer to the product. They can maintain this value by sharing information about customers and competitors across the organization, keep the balance the benefit with costs, and build relationships with customers as the product continues to grow. As long as the pricing stays within the balance to keep the consumer happy they will continue to pick out Pampers when they go to the store.
The pricing policy used for entry has not changed for the new product. Pampers is offering the product to retailers at the same price. The discounting tactics used are allowances and quantity discounts. In exchange for slotting allowances (additional price reductions) retailer agree to feature the product in their advertising and promotional efforts. They also do this in order to get better shelf space. Another tactic used is for quantity discounts based on the volume of the orders. The more of the product ordered the less the retailer will pay. Place: The goal of the place is to have the goods available in the right quantities and locations when the customer wants it. The type of distribution is intensive.
You can find the product in almost any store that sells home goods. Intensive distribution increases the unit sale and reduces channel costs per unit sold. It provides convenience to the customer to know they can find the product in many different locations. The vertical channel is an administered one in which you have a manufacturer, wholesaler, and retailer. In the supply chain Proctor and Gamble manages all of the manufacturing and warehouses and believes in a holistic approach. After the product is produced it is sent to distribution warehouses and then to the retailers warehouses for larger chains such as Wal-Mart or directly to the retailers store to be placed on the shelves to be sold.
The retailer purchases from Procter and Gamble customer business development (CDB) representatives who are located throughout the world. There are hundreds of warehouses throughout the United Stated to meet the demand for the product. Consumers can’t buy directly from the producer. The use of electronic data interchange (EDI) is used to transfer information between functions. Both companies recognize it’s in their best interest to share this information to remain profitable businesses partners. Customers demand and expect to find the product in the stores and the retailer knows the value of the product will result in profits. Both know by working together they can boost sales. The stores have developed a strategic relationship based on common goals.
The company uses a push supply chain strategy based on demand for the product by the consumer. For example, they have an agreement with Wal-Mart to share the point of sales so they can predict the demand more or less. With this information P&G plans in advance and with efficient supply-chain management to supply the product to Wal-Mart on time. Wal-Mart didn’t want to dedicate lots of space in warehouses so supply is taken care of by P&G. This improves efficiency, lowers inventory, increased satisfaction for customers by preventing stock outs. This point of sale sharing is great for the supply-chain management. Channel functions of place are managed by Proctor and Gamble. The company uses a vertical marking channel.
They see the supply chain from end to end, but use external sources to gain strategic advantage. This is done with a network of employees to ensure long term success and inspire growth either inside the company or outside the company. To examine the functions of place it is best examine the employees of P&G used to get the job done. Even with the use of many outsourcing partners they still manage the process from end to end. A purchaser or professional buyer is used to buy the product and to place the product in the warehouses until they reach the retailer. A customer business development (CDB) is responsible for sales which are in contact with retailers in the different regions to sell the product to retail stores.
The finance and accounting representative takes care of financing that is done by various financial institutions to help cover the costs. Plant technical takes the necessary steps to handle storage in the huge warehouses located throughout the world. The regrouping needs of the company are done in the warehouses by a marketing specialist. Transportation needs of the supply chain are handled by a supply network operations (SND)/logistics representative. Employees of Procter and Gamble are also responsible for the market and product information. The market information is taken care of by a consumer& marketing knowledge (CMK) person and the product information is done by a design representative.
P&G starts with the materials through touch-point of the brands with shoppers in the market. Facilitating agents are used to distribute the product for strategic purposes to add value to the supply chain. They own the responsibility for the processes that support the movement of materials, goods, and cash between P&G, its facilities, and/or those of our customers and suppliers. They lead in the marketplace in logistics services by managing logistics services, customer orders, and the prompt distribution of finished products to the trade customers and shoppers of our brands around the world. To gain a strong, lasting competitive advantage they have top of the line supply chain functions.
With larger customers they use a continuous replenishment system (CRS) to place orders without a purchase order, but based on the retailer’s product movement data. P&G executes CRS with three pieces of information: actual warehouse on-hand quantity, actual warehouse on-order quantity, and projected demand from the stores. Technology is used to link the supply chain by using electronic data interchange (EDI). These systems require very open communication and trust between companies. They have to share data across all of the supply chains. The result has been more efficient channels and increased sales by focusing on what the customers want. Vertical channel integration is used to coordinate the channel so that common interests are met and for both companies to remain profitable.
Procter and Gamble uses the some of the best practices is outsourcing. P&G developed the Global Business Services which is one of the company’s four pillars and is composed of 7000 people. They include services including IT, finance, facilities, purchasing, employess services, as well as business building solutions. This adds value to the company by lowering costs and improving quality, innovation, productivity. It is one of the largest and most progressive shared service organizations in the world. The company collaborates with 15 strategic partners. The company believes in a holistic approach. They have over 170 business and employees services.
The use of facilitating agents and middleman transformed the way P&G does business. Since they have used these alliances the company has saved over $800 million in cost. Promotion: Since the product has entered the market during the growth stage of the product life cycle it is best, based on the selling process model, to use the type of promotion would be advertising and sales promotion. The company wants to promote conviction and action in the minds of the consumer. The promotional objectives applied to reach the target market are to inform and focus on either product based or company based advertising. The strategy of the objectives is in the form of integrated marketing communication (IMC).
This type of promotion encompasses a variety of communication disciplines. Pampers would want to include advertising, publicity, sales promotions, direct marketing, and online and social media. All forms are used to provide clarity, consistency, and to get maximum communicative impact. The company wants to integrate all elements to get the best means to reach the target market with the desired messages. This enhances value by offering a clear and consistent message. To inform the consumer of the new product innovations that have been added to the Swaddlers diaper the promotion includes advertising through mass media channels including newspapers, magazines, radio, and television, and the internet.
One particular ad used to inform lets the consumer know that this is the biggest innovation for the Pampers brand in the last 25 years with game-changing benefits for mom, the baby, and the world. It details the dry max technology and tells where it will be available. They also make sure the consumer knows it will be sold at the same price as the current product unless the retailer ups the price. This type of advertising lets the consumer know about the product innovation and at the same time promotes it by putting the information in front of them. Pampers also participates in many television commercials which have become very popular over the years because of the impact on the consumers.
A commercial in 2012 featured a series of babies (special needs, twins, premature, planned, unplanned) stating, “However they came into the world Pampers believes all babies should be swaddled. ” Publicity is gained for Pampers through all the social responsibility work. This is gained through cause-related marketing. One program is Pampers and UNICEF are working together to vaccinate women and children around the world from maternal and neonatal tetanus. Procter and Gamble is also involved in this type of marketing. They have partnered with Shiksha to increase access to education in India. P&G also gains publicity through other public relations outlets with their own programs.
They made a committed to disaster relief and when Japan had an earthquake and tsunami in march of 2011, they sent shipments of pampers diapers and wipes. Also, their children’s safe drinking water program has impacted 315 million children. There are many more programs developed focused around social responsibility. Sales promotions provide special incentives or excitement-building programs that encourage consumers to purchase the product. The pull strategy focused on consumers includes both short-term and long-term sales. Short term types used by Pampers are samples, coupons, and deals. These promotions can be found in magazines, internet, or in the retail store.
There are promo codes on the internet offering deals and through a mass e-mail they offered for the holidays if you buy two Pampers value boxes of 88 count or higher and one Pampers pack of wipes 448 count or higher than you receive a free $35. 00 gift card. Long-term uses are loyalty programs, contests, and product placement. One example of product placement is when Pampers paid $50,000 to be featured in the film Three men and a baby. On the website there is a loyalty program called Strong Moms. By joining the program you get personalized content about you and your baby and get special offers. Direct Marketing is also used to promote the product.
Information about the product is sent to expecting mothers with samples and/or coupons included. Social media is also used with Pampers having a Facebook and Twitter account. Information gathered from these sites is used to gather information about customers to better serve them in the future. The IMC budgeting method used is objective and task method. This is used to determine the budget required to undertake specific tasks to accomplish communication objectives. The set of steps used are to establish the set of objectives, determine which media best reaches the target market, and how much it will cost. Summary My overall finding is that the product will be successful for years to come.
P&G has worked very hard over the year to gain competitive advantage with their product line. Pampers brand is well known for having superior quality and has great brand loyalty. They need to continue to focus on the strategies to grow the business even more. The problems I faced when doing research was that I couldn’t find hardly any marketing information on the Pampers brand. I even called many people who worked for both Pampers and P&G, but they wouldn’t tell me anything. I contacted a manager at Wal-mart to gain information, but again found none. There is tons of information on P&G, but not Pampers. Overall it was fun to do the research and learn more about the concepts we have studied throughout the semester.
I believe it really helped me understand better what they mean in the real world with application. Reference 1. Mac,Freddie. 2012. Freddie Mac Company Statistics. 2012Statistic Brain Research. Retrieved 11/15/2012. from www. statisticbrain. com 2. Pampers Brand History. www. multivu. com. /Pampers. Retrieved 11/07/2012 3. www. pampers. com 4. www. P&G. com foodandfunfromhome. com video. drugstore. com diapers. com kaboodle. comkaboodle. com ——————————————– [ 1 ]. Pampers Brand History [ 2 ]. http://www. statisticbrain. com/freddie-mac-company-statistics/ [ 3 ]. www. procterandgamble. com [ 4 ]. www. procterandgamble. com [ 5 ]. www. wikipedia. com/tarketmarket [ 6 ]. www. pampers. com
Cite this Marketing Plan for Pampers
Marketing Plan for Pampers. (2016, Oct 07). Retrieved from https://graduateway.com/marketing-plan-for-pampers/