Brand Academy provides details brand analysis, research, article and insights for free. Contact us : brandsmentor@gmail.com https://www.facebook.com/1stbrandsacademy PampersMarketng Analytics Introduction (Industry) Introduction (Industry) Introduction (P&G) Famous P&G Products in Pakistan Introduction (Pampers) INDUSTRY ANALYSIS Forecasted Sales (Volume) Forecasted Volume Sales Analysis INDUSTRY ANALYSIS: Forecasted Value Sales Forecasted Value Sales Analysis CUSTOMER PERSPECTIVEMETRICSUNIT MARKET SHARE: CUSTOMER PERSPECTIVEMETRICSUNIT MARKET SHARE  REVENUE MARKET SHARE RELATIVE MARKET SHARE PENETRATION SHARE OF REQUIREMENTS AND HEAVY USAGE INDEX MARKETING ACTIVITIES PERSPECTIVE METRICS:GROWTH : CAGR AND YEAR-ON-YEAR GROWTH   BDI AND CDI PRICE PREMIUM METRICS FOR SALES FORCE AND DISTRIBUTION / CHANNEL MANAGEMENT SALES FORCE COVERAGE NUMERIC , WEIGHTED AND SHARE IN HANDLERS DISTRIBUTION : NUMERIC , WEIGHTED AND SHARE IN HANDLERS BRAND ATTRIBUTE PERFORMANE : Advertisements on Different Medias Awareness of the Brand RETENTION RATE!!! Sales Force Effectiveness Measure Metrics Sales Force Effectiveness Measure Metrics Sales Pipeline Sales Pipeline Customer Satisfaction  Recommendations

3. Pampers
Marketng Analytics

4. Introduction (Industry)
•
Due to ongoing urbanization the consumer has become more aware of nappies and diapers and this
awareness has been boosted by strong advertising and widening distribution.
•
More people are switching from cloth alternatives to nappies and diapers because of the belief that
these products offer greater hygiene and comfort for their babies and greater convenience for
themselves.
•
Pakistan’s Continued population growth with the number of babies and toddlers remaining high as
well as the increase in literacy rate offers a large potential consumer base for diapers with sales
growth likely to remain strong which has been reflected in the average industry growth of 14% per
annum.
4

5. Introduction (Industry)
•
As far as industry competition is concerned, pampers is the market leader although rivalry has
increased and price wars are taking place.
•
Z&J and Pan Industry the main competitors of pampers have been playing on price thus capturing
pampers market share.
•
Pampers has not actively engaged in these price wars as yet but instead has launched new features
and packaging although pampers prices do show minor fluctuations from time to time.
5

6. Introduction (P&G)
•
Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991
•
Their goal was to become the finest global consumer goods company operating locally in Pakistan.
•
P&G has always believed in the potential Pakistan has as a country. Since its inception in Pakistan P&G has
invested significantly in Pakistan
6

7. Famous P&G Products in Pakistan
7

8. Introduction (Pampers)
•
In August 2000, Procter & Gamble launched Pampers in Pakistan.
•
Procter & Gamble dominated sales of nappies and diapers by value share of 62.8% and a
volume share of 58.4% with its Pampers brand in 2010.
•
Many consumers use the word Pampers to refer to any brand of diapers which is inevitably
boosting sales of the brand in outlets.
•
P&G faces competition from Z&J and PAN industry which produces disposable diapers.
8

9. INDUSTRY ANALYSIS
VOLUME (In Million units)
Market Segment
2007
2008
Growth %
2009
Growth %
2010
Growth %
Diapers
72.7%
71.4%
226
285
26.1
270
-5.2
250
-7.4
226
285
26.1
270
-5.2
250
-7.4
76
96
26.3
68
-29.2
83
22.05
BABY MASTER
45
57
26.7
39
-31.6
49
25.64
HAPI NAPI
29
36
24.1
26
-27.8
31
19.2
BABY CARE
2
3
50
3
0
3
0
PAN INDUSTRY
23
29
26.1
6
-79.3
11
83.3
23
29
26.1
6
-79.3
11
83.3
311
399
28.3
412
3.3
428
3.74
PROCTER&GAMBLE
PAMPERS
ZJ
DIAPY
Total Market
65.6%
58.4%
Based on P&G's official factsheets and interview findings*
*(Assumptions are made on the basis of factsheet)
9

10. Forecasted Sales (Volume)
FORECASTED SALES - VOLUME (In Million units)
Market Segment
2011
2012
Growth %
2013
Growth %
2014
Growth %
Diapers
61.2%
64.5%
299
359
20
410
14.2
460
12.2
299
359
20
410
14.2
460
12.2
100
115
15
137
19.1
154
12.4
BABY MASTER
59
68
15.25
81
19.11
90
11.11
HAPI NAPI
37
43
16.21
52
20.9
59
13.46
BABY CARE
4
4
0
4
0
5
25
PAN INDUSTRY
30
36
20
41
13.9
46
12.19
30
36
20
41
13.9
46
12.19
488
556
13.93
634
14.02
723
14.03
PROCTER&GAMBLE
PAMPERS
ZJ
DIAPY
Total Market
64.6%
63.6%
*Pamper's 2011 & 2012 forecasts were taken from official source and 2013 & 2014 forecasts are calculated on the basis of previous years
growth
*(Assumptions are made on the basis of factsheets)
10

11. Forecasted Volume Sales Analysis
•
Overall industry is growing and the reason for this is that number of children along with the
awareness to use diapers is increasing in people.
•
P&G is coming up with new SKU’s and also decreasing their prices, in order to win price
sensitive customers or butterflies.
•
Butterflies made a 20% share, which is very valuable to Pampers because these are those
people who want to buy good quality of Pampers but just don’t find enough value to spend so
much.
11

12. INDUSTRY ANALYSIS:
VALUE (In Million PKR)
Market Segment
2007
2008
Growth %
2009
Growth %
2010
Growth %
Diapers
73.9%
74.1%
2730
3430
25.6
3500
2.1
3270
-6.57
2730
3430
25.6
3500
2.1
3270
-6.57
782
982
25.6
999
1.8
937
-6.2
BABY MASTER
482
607
26
618
1.8
578
-6.4
HAPI NAPI
277
347
25.3
353
1.7
328
-7.1
BABY CARE
23
28
21.7
28
0
31
10.7
PAN INDUSTRY
252
315
25
320
1.6
297
-7.1
252
315
25
320
1.6
297
-7.1
3695
4629
25.3
5043
8.9
5207
3.25
PROCTER&GAMBLE
PAMPERS
ZJ
DIAPY
Total Market
69.4%
62.8%
Based on P&G's official factsheets and interview findings*
*(Assumptions are made on the basis of factsheet)
12

13. Forecasted Value Sales
FORECASTED - VALUE (In Million PKR)
Market Segment
2011
2012
Growth %
2013
Growth %
2014
Growth %
Diapers
65.4%
69.8%
3832
4603
20
5258
14.23
5900
12.2
3832
4603
20
5258
14.23
5900
12.2
980
1080
10.2
1265
17.1
1430
13.04
BABY MASTER
601
663
10.3
784
18.25
885
12.88
HAPI NAPI
348
373
7.1
439
17.69
498
13.43
BABY CARE
31
44
41.9
42
-4.54
47
11.9
PAN INDUSTRY
351
422
20.2
482
14.21
534
10.78
351
422
20.2
482
14.21
534
10.78
5858
6590
12.49
7414
12.5
8341
12.5
PROCTER&GAMBLE
PAMPERS
ZJ
DIAPY
Total Market
70.9%
70.7%
*Pamper's 2011 & 2012 forecasts were taken from official source and 2013 & 2014 forecasts are calculated on the basis of previous years
growth
*(Assumptions are made on the basis of factsheets)
13

14. Forecasted Value Sales Analysis
•
The base for the basic customers is increasing continuously.
•
Pampers is catering to price sensitive segment, by all these measures the value of
pampers share is continuously increasing.
•
Basic customers are those customers who are not price sensitive and wait for new
innovative products of pampers.
•
The other big reason for increasing value of overall market is that overall the industry is
growing, more babies are being born every day and more and more people are getting
aware of the need to use disposable diapers instead of towel napkins.
14

15. 2007
2008
Growth %
2009
Growth %
2010
72.67
71.43
-0.17%
65.53
-8.30%
58.41
(%)
226
285
0.26%
270
-5.26%
250
(In Million Units)
311
399
0.29%
412
3.25%
428
(In Million Units)
Unit Market Share (%) =
Unit Sales (#) =
Total Industry Unit Sales (#) =
*(Estimations are based on official fact sheet and AC Nielsen’s Retail Audit data)
15

16. CUSTOMER PERSPECTIVE
METRICS
UNIT MARKET SHARE
1.
Pampers increased the price of its products in 2009, while other brands didn’t follow
this trend. So price sensitive section left pampers.
2.
ZJ introduced its brand named happi nappy and baby care which took away the unit
sales from pampers.
3.
These two brands of ZJ were playing on price so the price sensitive segment left
pampers
16

17. REVENUE MARKET SHARE
2007
2008
Growth
%
2009
Growth
%
2010
73.88
74.10
0.003%
69.40
-6.34%
62.80
(%)
Sales Revenue (#) =
2730
3430
25.64%
3500
2.04%
3270
(In Million PKR)
Total Sales Revenue (#) =
3695
4629
25.30%
5043
8.94%
5207
(In Million PKR)
Revenue Market Share (%) =
*(Estimations are based on official fact sheet and AC Nielsen’s Retail Audit data)
17

18. 2009
2010
Volume
3.97%
3.01%
Value
3.50%
3.48%
• The biggest competitor of pampers is ZJ.
•In terms of volumes then relatively pampers has lost a lot of volumes to ZJ but in terms of value,
pampers has just lost .02% to its competitor.
• Pamper has maintained its position as a market leader.
*(Estimations are based on official fact sheet and AC Nielsen’s Retail Audit data)
18

19. Market and Brand Penetration(%)
Market penetration
15
Brand penetration
8.74
Penetration share
58.31
• Market penetration is 15% while in this market brand penetration of pampers is 8.47%. So
penetration share of pampers is 58.31% which is very good showing that pampers is dominating the
market of diapers.
• As market penetration is greater than brand penetration so we can suggest for pampers that they
should increase sales by acquiring existing category customers from their customers
*(Estimations are based on official fact sheet and AC Nielsen’s Retail Audit data and population data was collected from www.statpak.gov.pk)
19

20. SHARE OF REQUIREMENT(%)
Unit Share of Requirement
2009
97.43%
2010
96.60%
Heavy Usage Index(Unit)=
1.15
1.04
Revenue Share of Requirement
97.84%
97.12%
Heavy Usage Index(Revenue)=
1.22
1.11
• As heavy usage index (unit) is greater than 1 it means that average users are buying more of
pampers brand then average user buying other brands in diapers category.
•96.60% people in units will be buying pampers…mean that out of 100, 96.60% of people are going
for pamper brand. This shows that pamper brand is doing very well in the diaper industry.
*(Estimations are based on interview findings)
20

21. CAGR(2007-10) =
2.56%
2008
Year-on-Year Growth
2009
2010
26.10%
-5.20%
-7.40%
• Year-on-year growth is decreasing while CAGR is positive because the shares are
decreasing in volumes but increasing in values, as P&G are selling their products
in higher prices.
*(Estimations are based on official fact sheet and AC Nielsen’s Retail Audit data)
21

22. 2009
BDI (Karachi)
BDI (Multan)
CDI (Karachi)
CDI (Multan)
2010
1.29
1.66
2.61
3.68
2.12
2.43
2.37
2.97
• Talking about Multan, we can clearly see that CDI < BDI…… 2.97<3.68. It means that at
Multan category is not that developed but brand is doing very well.
•Talking about Karachi, at Karachi BDI<CDI……1.66<2.43. The reason for this is that
Karachi is a metropolitan city and here the category of diapers is extremely developed.
*(Sales data was extracted from official fact sheet and the population data was collected from http://www.statpak.gov.pk & http://www.census.gov.pk)
22

23. 2009
Price Premium (%)
2010
106
106.8
• The figures are clearly showing that pampers is playing on value.
• Pampers is charging a price premium and as the figures showing that in 2010 it
has further increased its premium price.
• This also lead to its decrease in volume share.
*(Calculations are based on official fact sheet and AC Nielsen’s Retail Audit data)
23

24. Workload (#) = 450000 Calls/Month
Supporting data:
Active accounts=
78000
2 calls/month
Prospects=
162000
6 calls
Time=
Calls
• Each month, Pampers sales team has to make 450,000 calls to cover their sales targets .
•450,000 calls shows that Pampers sales team are putting in extra efforts in order to extend their
active customer counts
*(Based on interview findings)
24

25. Pampers
27
NUMERICAL DISTRIBUTION (%)
Baby Master
Hapi Napi
7
6
Pampers
90
WEIGHTED DISTRIBUTION (%)
Baby Master
Hapi Napi
41
35
Pampers
Baby Master
66
29
Pampers
Baby Master
70.2
27.5
VOLUME SHARE IN HANDLERS (%)
Baby
Hapi Napi
Care
21.1
7.3
VALUE SHARE IN HANDLERS (%)
Baby
Hapi Napi
Care
18
6.1
Baby Care
1
Baby Care
8
Diapy
4
Diapy
30
Diapy
19.7
Diapy
19
*(Based on fact sheet and AC Nielsen Retail Audit data)
25

26. • As we can clearly see from the above numeric distribution percentages that, Pampers is successful
with a percentage share of 27% in capturing larger amount of stores .
• In weighted distribution P&G has 90% of the stores that generates higher volume sales while its
biggest rival Baby Master has just 41% of key stores.
• This shows that Pampers is doing well in the overall category and its distribution is stronger than the
rest.
• Pampers has the highest category sales volume share in stores of 66% which generates a value share
of 70.2%.
• Pampers still sells more than half percent of the rest even though it is charging higher prices than
others.
• It is because consumers in diapers industry are more concerned about the quality of the product
rather than its price.
26

27. 3.33%
-4.87%
27

28. Advertisements on Different
Medias
television 68%
others 8%
radio
12.3%
magazines
6.7%
newspaper 5%
*(This pie chart is based on the information we got on the basis of our interview)

29. Awareness of the Brand
*(Based on questionnaire survey)

30. RETENTION RATE!!!
*(Based on questionnaire survey)

31. •These are 4 indicators to measure performance of sales people at pampers
section.
*(Based on interview findings)
31

32. • Technical skills include that what is the know how of that sales rep when handling equipments
like palm pilots and computers.
•Efficiency includes that what time it takes to change a lead into a customer and how well he is
handling its current accounts.
• Leadership tells that as compared to other sales rep how he is performing in his region.
• Overall performance includes other factors like that how well he is at handling objections,
queries of customers.
32

33. *(Based on interview findings)
33

34. •
Components of sales pipeline are for pampers sales rep.
1.
2.
3.
4.
5.
Qualification
Analysis
Proposal
Negotiation
Close
•
Difference of color shows that what are the chances that the lead at qualification area will
go into analysis phase and then to proposal and finally to closing.
34

35. Very
dissatisfied
Somewhat
dissatisfied
0%
1%
Score
responses
(100 women)
Neither
satisfied nor
dissatisfied
7%
Somewhat
satisfied
Very
satisfied
53%
40%
• A sample of 100 women.
• According to the responses major portion of the respondents are satisfied with the
performance of the pampers.
• Reason … PRICE…
*(Based on questionnaire survey)
35

36. 36

37. 1. Pampers should do a brand extension and start catering to the price sensitive segment. Let
Pampers sensitive play on value and Pampers basic play on price. If pampers launch a new
sub-brand which is low priced then people will leave Happi Nappi or Baby Master and will
come to Pampers.
2. Pamper should now start to do category development because still many women are not
aware of the fact that diapers are important for the health of the baby.
3. Our group visited different retail outlets and to our amusement, every outlet had different
price of the same SKU of Pamper packs. The company should visit outlets and see what the
pricing is and should get into the bottom of this problem. If sales reps are involved then
steps should be taken to end such practice.
4. Pamper as a company is very confused in deciding what quantity to sell per pack., because
P&G has been continuously making changes per pack; for instance , in their small pack they
have been varying the total number of packs from 9 to 11. This is creating confusion in the
minds of customers. So Pamper have to be clear that how they are planning to fight the
price war with its premium brand. Be consistent!!!!
37

38. 5. The major problem pampers is facing is the problem of BRAND DILUTON. Pamper has become
more of a category rather than an individual brand and when a brand becomes a category, it
dies. So P&G should promote Pampers as a brand and should take steps that shows that industry
is diapers but brand is Pampers.
*In TVC or radio they can use tag lines like “Pamper hi best diaper hai”. They should
carefully look into this matter.
38

39. Thank You!