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Pampers China Strategy

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  • Data sources: http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
  • Transcript

    • 1. China Strategy The Golden Sleep Campaign
    • 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
    • 3. Ranked 36th among Forbes’ world’s most powerful brands
    • 4. => P&G sells beauty and household care products with over 50 brands
    • 5. P&G – Core Strengths
    • 6. Value Proposition: Product Leadership New products – innovative techniques – emerging markets Constantly searching for innovative products and solutions to maintain competitive advantage
    • 7. Value Proposition: Product Leadership • Improve products and bring new products to the market before competitors • Over the past 16 years, P&G has had 132 products on the top 25 Pacesetters list—more than their six largest competitors combined
    • 8. Value Proposition: Product Leadership “Leadership Brands Brands with strong equities in the minds of consumers. Brands that retailers want in their stores. Brands that are platforms for innovation.”
    • 9. Value Proposition: Customer Intimacy • Customer focus & Emotional relationship with the consumer • Listen to customers changing needs/wants of different markets to give them what they want • Building Customer loyalty
    • 10. Pampers • Baby products marketed by P&G since 1961 - diapers - bottles - creams - wipes • Disposable diapers manufactured in 7 sizes
    • 11. Pampers US Business Model Value Proposition: Product Leadership & Customer Intimacy • Keep babies comfortable, dry and clean • Value well-being of parents and babies - Family-oriented • Reinventing childcare
    • 12. Pampers US Business Model Market Participation • Pampers is socially embedded in the American culture: * TV commercials * Product placement Three Men and a Baby
    • 13. Pampers US Business Model Value-Chain Infrastructure • Pampers is distributed in: * US Groceries & drugstores * US Retail stores such as Wal-Mart, Target, ToysRus
    • 14. Pampers US Business Model Value-Chain Infrastructure • Key Internal Resources: - Professionals from all areas of pregnancy and child development fields - Chemical engineers – R&D - Parents • Innovative Technologies: - Dry Max technology - AGM
    • 15. Pampers US Business Model Value Chain Infrastructure: Decentralized Organizational Structure
    • 16. CHINA PAMPERS, WELCOME TO CHINA! http://vimeo.com/15098732
    • 17. CHINA • Emerging market – BRIC Country • GDP growth rate: 7.8% • Growing disposable income: 13.3%
    • 18. Disposable Baby Diaper Market in China • Chinese Retail sales of Diapers in 2011: USD4.33 billion (RMB26 billion) • Sales growth of 26% over 2010-2011 • Fourth baby boom: demand for diapers will grow aggressively • P&G continued to lead in 2011, with market share at 45%, thanks to the outstanding performance of Pampers
    • 19. Pampers – China 1998 Failure 宝洁中国 • Entered the diaper market in 1998 • Introduced a low-quality version • Unsuccessful at first 1. Low quality version offered limited value 2. Consumers perceived no need for disposable baby diapers
    • 20. Pampers – China 1998 Failure 宝洁中国 1. One-Child Policy – Parents want to offer only the best things to the only child - low quality diaper: plasticky feeling  rough to babies’ skin 2. Need for disposable baby diapers was non-existent - used cloth diapers or - wear split-pants (Kai-dang-ku)
    • 21. Pampers – China 宝洁中国  Launched a better quality diaper, while keeping a reasonable price  R&D effort  Created a need for disposable baby diapers  Marketing effort: Golden Sleep Campaign
    • 22. Pampers – China 宝洁中国 R&D efforts   Softer fabric  Increased absorption capacity: “Give Your Baby Up to 12 Hours of Overnight Protection”  Making improvements while keeping costs constant
    • 23. From ‘kaidangku’ to Pampers split-pants
    • 24. Pampers – China 宝洁中国 Marketing effort  to convince people to use diapers: Golden Sleep Campaign 2007 • Highlight the importance of sleep for baby’s cognitive development • Promote the use of disposable diaper for un-interrupted sleep
    • 25. Pampers – China 宝洁中国 Golden Sleep Campaign 2007 • A professional, medical education: promoting the use of diapers for uninterrupted sleep and better cognitive development • Carnivals and in-store displays in China’s major cities • Invite parents to submit photos of their babies asleep to Pampers’ website. • Compile photos into a giant photomontage • break the Guinness World Record for the largest photomontage in the world
    • 26. Pampers – China 宝洁中国 ‘’Come share your baby’s Golden Sleep moment. Break the Guinness World Record and win RMB 5000!’’
    • 27. Pampers – China 宝洁中国 Golden Sleep Campaign 2007 Target market • young and educated mothers
    • 28. Pampers – China 宝洁中国 Golden Sleep Campaign 2007 Central message Wearing Pampers would yield results that benefit child and parents: Baby Sleeps with 50% Less Disruption' and 'Baby Falls Asleep 30% Faster.’
    • 29. Pampers – China 宝洁中国 Insights • Scientific Backing => Pampers stands out from the competition • Why photograph sleeping babies? • Best time to encourage a new mother to think her child is when she is looking at her sleeping baby • Putting the event on the Web • 70 % of Pampers’ target market regularly use the Web • Like sharing baby hints and tips with their friends Golden Sleep Campaign 2007
    • 30. Pampers – China 宝洁中国 Results: • 200,000 baby photos collected  smashing the Guinness World Record • Sales volumes grew by 54 % compared with the previous year • Attracted more than 100,000 new members to Pampers’ Mums Club  Promoting product loyalty Golden Sleep Campaign 2007
    • 31. Pampers – China 宝洁中国 Core Competencies Marketing • Golden Sleep Campaign • Commercials promoting the value of family R&D
    • 32. Adaptation • Cultural Adaptation: Diapers are essential for child development • Cultural Adaptation: Pampers changed the material they use in their product • Use of cloth and cheaper material in the making of the diapers to stay similar to “kaidangku”
    • 33. Aggregation • Delocalization of the Pampers factories to China: decrease costs
    • 34. Arbitrage • Pricing • Focus on affordable prices => highly attractive to the majority of the population • Economic arbitrage: • moving operations to China • decrease transportation, delivery and inventory costs • Cheaper Labour costs
    • 35. Pampers’ Golden Success
    • 36. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com