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Tambrands ppt
1. Tambrands
Best selling tampon in the world with 44% global
market share, with North America and Europe
accounting for 90% of those sales.
The problem: Company saw a 12% drop in its
sales in ’96.
Its major market is the U.S. which constitutes of
45% of its sales.
Tambrands officials speak highly of its potential
for growth stating that out of 1.7 Billion women in
the world, only about 100 million use tampons.
2. They recognized this as an opportunity and divide the
world into 3 clusters:
Cluster 1: U.S., U.K., and Australia where women
already use tampons and feel they almost know
everything about the product.
Cluster 2: France, Israel, and South Africa, where
about 50% of the women use tampons. Some
concerns about virginity remain and tampons are
often considered unnatural products that block the
flow.
Cluster 3: Includes countries like Brazil, Russia and
China Here, along with dealing with the virginity
issue, the company has to educate the women on
how to use this product.
3. The greatest challenge in the global expansion of
tampons is to address the religious and cultural
mores that suggest that insertion is fundamentally
prohibited by culture.
Tambrands isn’t targeting Muslim countries.
Along with concentrating on its global
expansion, Tambrands is increasing its ad
spending in the U.S. using a tease line “Should I
sleep with it, or not?”
The company focuses its ads more on comfort.
For example, “It’s sleek, smooth, and really
comfortable to use.” (in a Brazilian ad)
4. The Brazilian problem was that women felt they’ll
lose their virginity if they use a tampon. So even
when they go to the beach, they use pads and
wrap a sweater around their waist.
In reaction to this, the company came out with a
bold new ad saying “Of course you’re not going to
lose your virginity.”
In China A Chinese woman inserting a tampon
in a test tube filled with blue water.
“No worries about leakage” indicates another
hoarding.
5. “In any country, there are boundaries of acceptable
talk. We want to go just left of that. “
This was said by the creative director of the New York
advertising agency that is creating Tambrand’s $65
Million ads in 26 foreign countries and the U.S.
Being a single product company it is a risky
proposition for Tambrands to engage in a global
campaign and to build a global distribution network at
the same time.
The company approached P&G for a buyout, and the
two announced a $1.85 Billion deal.
The move put Proctor back in the business after two
dozen women died of using tampons from toxic shock
syndrome.
6. P&G planned to sell Tampax as a complimentary to its’ other
feminine-hygiene products, particularly in Asia and Latin
America.
P&G is known for acquiring and marketing such products
internationally.
“P&G has the worldwide distribution network that Tampax
desperately needs. “ said a stock market analyst, as they
didn’t have the global infrastructure to tap into growth in the
developing countries.
P&G’s early attempts to market Tambrands was a failure.
The company abandoned its marketing in Brazil saying it
7. Certain competitors like Playtex Products Inc. and
Kimberly-Clark Corp. feel creating new tampon
markets as “Not worth the investment”.
However, they have found open boxes in stores, that
signifies that women are curious about the product,
but unsure about how it worked.
P&G has tried in-home demonstrations, counselors in
doctor’s coats embroidered with Tampax logos speak
in stores and almost every place that women gather.
Counselors are taught to approach the subject in a
dignified and sensitive manner.
8. Sales have increased by 2% in Mexico after the
program. Tampax sales had tripled in the past 12
months.
Based on the success in Mexico, P&G picked
Venezuela to be its next market because its
relatively small and its population is mostly urban.
The party culture in Venezuela led P&G
marketers to conclude that Tampax advertizing
could be racier in Venezuela.
P&G encountered a problem with its slogan that
“ignorance is the mother of all myths”, because in
Latin American culture ignorance and mother
don’t go together.
9. In the end they unveiled and ad that said “Its time
to change the rules.”
P&G has always been and aggressive and early
adopter of new media. It stepped up its internet
activity to use the web as a marketing medium.
Its idea was to attract consumers to interactive
sites that will be of interest to a particular target
group, with the hope of developing relationships
with consumers.
Its first step was to launch a website for Teenage
girls with information on puberty and
relationships, promoting products such as
Clearasil, Sunny Delight, and Tampax.
The website www.beinggirl.com was designed
with the help of an advisory board of teenage
girls.
10. Analysis:
According the case and knowledge above-
The P&G should not continue with Tambrands's
original goal - market to each cluster in a similar
way - adapted to the new educational program. The
reasons are bellow:
When Tambrands marketed the market in cluster 1,
the countries in cluster 1 are more open and more
educated. There is not so much problem for selling
tampon there. But in cluster 2 and cluster 3, the
companies are almost facing the same problems,
those are:
People are low educated
People are lack of the knowledge of using tampon.
They do not know about the tampon with what it is,
how it works and how to use it, and also according
their unknowledgeable thinking, which it is going to
lost virginity of using the tampon.
11. Religion influences
The people who live in the countries in market cluster
2 and 3, they have strong religion belief in virginity.
And also according their religion they believe that
"you will lose your virginity with a tampon."
Advertising is used to reach large numbers of
consumers who are geographically dispersed. Culture
is 'learned' behavior, which has been passed down
over time. It is reinforced in our daily lives through the
family unit and educational religious institutions.
Innovation matters because it can deliver high value-
added products and services, new, cleaner and more
efficient production processes and improved business
models.
The change requires customers to give up long-
standing habits. But customers who are comfortable
with a certain routine may resist new products.
12. Overcome the Resistance
The P&G could use some ways to overcome the
resistances:
School Health Education
Start educated people about the using of tampon
knowledge from young. P&G and Tambrands
should continue to find the countries which have
school health education, in order to teach women
about it works and how to use it.
Tupperware Parties
It is learned, that is, acquired by customers over
time through their membership in a group that
transmits culture from generation to generation.
13. According the religion, some customers are shy to
open the mouth for asking about the tampon. Then it
is a good idea that P&G use the website to attract the
group of customers' interests and to develop deeper
relationships with customers.
Adverting of Using Models
Using the famous models and explains they won't
lose their virginity with a tampon is a good idea also. It
can influence a group of customers to eager to know
what it is; how it works and how to use it also.
The concept of culture is broad and extremely
complex. It includes virtually every part of the person's
life. Culture does not stand still, but slowly, over time it
may change. Cultural differences are not necessarily
visible but can be quite subtle and can surface in
situations where one would never notice them
14. According to the case, it might be possibility of
using the approach taken in Venezuela and
Mexico to educate Brazilian consumer in the use
of tampons. Because the countries of Venezuela
and Mexico has the similar culture, if it works well
in Venezuela then it might work well in Brazil also.
15. Conclusion
From the case given, the major impact that will affect the
Tambrands and P&G to market its product - tampon in
different countries will be one culture, religions and the
resistance of the innovations. There are many reasons why
people resist change, according this case given, the biggest
problem is the people wonder about "it is going to lose
virginity of using tampon." Therefore, in order to do business
in different countries, it is compulsory to understand the
culture and also the religions regulations.
To conduct business successfully across national boundaries,
marketers of P&G and Tambrands must adapt themselves to
local cultures and do understand the religion. And also the
advertisement should obey their culture and religions.
For cultural adaptation, P&G and Tambrands need to know
the importance for developing an understanding of foreign
situations. And create some good ideas to overcome the
resistance of culture changing (Such as School health
education; Tupperware parties; Media & Web & Internet;
Adverting of using Models.) to gaining trust of people to using
tampon.