This document discusses Pampers' business in China from 1998 to the present. It summarizes Pampers' growth phases in China and identifies challenges it now faces with decreasing sales. It analyzes Chinese consumer preferences and the market potential for Pampers. It recommends that Pampers target the middle-high market with new high-quality products priced between local and Japanese brands. It also suggests promotion strategies focusing on education and celebrity endorsements.
2. Pampers in China
1.1998 - 2006 Enter and slow development
2.2006 - 2010 Boost by its new slogan
3.2010 - now Decrease in sale and MS
3. To support this product, we made our plan now
The new product Launched to solve the problem
High Quality
Made in Japan!
4. Part 1: Product vs Consumer
● Made in China
● Good quality
● Moms in general
● Looking for economical goods
● Made in Japan
● Top quality
● New middle-class ladies
● Looking for the best
5. Although we used to think that the
customers of China more concerned about
price, however as the economic
developed, we find that when it comes to
children,the parents seems like does not
mind the price, instead what they actually
mind is the cost. That’s to say, they want
to the product worth the price.
2. Price vs. Cost
6.
7. From 2009 to 2014, the sales of diapers in
China grew from 10 billion to 30 billion,
that’s nearly tripled, while the captia GDP
grew from 30000 yuan to about 40000
yuan; much more faster than the income.
In this way it shows that the parents is
willing to invest and pay more on their
kids.
8. As all we was concerned above, we
suggest that the Pampers may focus on
the the middle-high level market.
To achieve this, the Pampers may need to
emphasize the new products and its
quality such as 100% chemical additive
free and can prevent skin disease like
miliaria. And the price should around 2
yuan per piece; higher than the locally
produce Kao, but lower than the Japanese
Kao which is around 3 Yuan.
9. Part3: Promotion vs Communication
Activities in China:
1, In June 10th 2007, the carnival “growth journey of Pampers” was launched. This
activity mainly conveyed a concept of infant caring to educate consumers.(educate
customers)
2, In August 2007, Pampers support a disaster area to reconstruct its living area and
devoted 114 thousand dollars to them.(public power to advertise)
3,.In April 2010, Pampers broke a Guinness Record. (public hit to advertise)
10. Pampers’ factory in Japan invited
a well-known star to visit its
factory.
They experienced the quality and
technology of new pampers’
products.
11. 1, Improving the policy of returning goods.
Especially in China, P&G hold a narrow and strict policy to
customers in returning goods.
2, Giving out free products for customers to try.
Customers can try the products and then decide whether to buy
it.
12. The main channels of P&G
Part 4: Place vs Convenience
P&G
Wholesale
Retail
☆☆☆
13. Part 4: Place vs Convenience
P&G
Wholesale(bad relationship now) ×
Retail(market saturation) ×
E-Commerce（the most convenient way）√
14. Why (and only) E-commerce:
1. Reduce the intermediate link
Part 4: Place vs Convenience
2. Help aim the target customer
Also, we think that the social structure of modern China have influence on this. Due to the family planning and the fertility desire decline,there are fewer number of child for per family; thus the average resource of per kids have increase. In this way, the parents are more willing to buy something with higher quality; they not only concentrate on the price but also the cost.
The middle-high level markets focus on those customers who want their babies live in high quality, just like Japanese brand Kao which grew rapidly in recent year, the price of Pampers should also higher than average, that means about 2 yuan per piece; higher than the local Kao, but lower than the Japanese Kao which is around 3 Yuan.
