1. Huggies Pull-ups Summer 2011 Intern Project Benjamin Pressman, Jena Silverman, Helana Zhang, Karis Low August 8, 2011

2. Contents Background Primary research Insight & Strategy Target Media mix Big Ideas

4. Could not compete with its competitors

5. Huggies was created in 1978

6. New brand vision with superior leakage technology

7. Previous Tagline: “Huggies Makes Happy Babies”

8. Current Tagline: “Enjoy The Ride”#1 selling disposable diaper in US #2 selling disposable diaper globally 3

10. Training pants offered for both genders of all sizes

11. Partnership with Disney for fun, popular designs

12. Easy Open Sides:

13. First ever training pants to offer this

14. Enables toddlers to feel grown up by:

15. Learning the difference between wet and dry

16. Allowing them to adjust at their own pace

18. Disposable Baby Product Industry Sales projected to remain flat or even decline through 2015 ~ $3.4 billion Recession’s impact Parents are price sensitive & spend more time looking for deals Many people delayed having children – fertility rate declined 1.8% in 2008 Rise of private label – increase of 3% of market share to 17.1% in 2009 Discounters – 3 out of 4 mothers surveyed shop at discounters such as Walmart and Target Diaper sales declining – fell 2.4% from 2009 to 2010 Other disposables’ sales rose from 2009 to 2010 Wipes rose 3% Cleansing/care products rose 1.9% Market Share Kimberly- Clark Other P&G *Mintel, March 2011

20. Competitive Social Presence

23. Word CloudPull Ups + Potty Training

24. Word CloudHuggies + Potty Training

25. Mentions Breakdown Large drop-off in potty training conversations when adding in either Pull-Ups or Huggies to a search

27. Give each child of the 59 plaintiffs $1,000

28. Spend $400,000 on pediatric resident training program and provide skin rash educationIntroduction of value packs SOURCE: pampers.com

29. Sales are declining Pull-Ups is dominating the training pants category SOURCE: Mintel, Oh Baby! Report

31. Now more “cushy,” have thicker tabs, and are stretchier – all of which are more accommodating for babies who like to squirm and move around

33. Often compared to Huggies’ Supreme and Huggies’ Snugglers

35. said to be less absorbent and now lacks the elastic waist band

36. ~5¢ - 14¢ cheaper per unit compared to Huggies SOURCES: www.diapers.com; www.target.com; www.walmart.com

38. Celebrating 50 years of Pampers

39. Supporting intensive care units around the country

40. Facebook promotion through Miracle Missions and Miracle Stories

41. Miracle Missions – Community members support the mission and Pampers donates diapers

42. Miracle Stories – Stories from the community about their children

43. Partnering with UNICEF to provide tetanus vaccines

45. Poop there it is – controversial commercial

46. Blog – mainly broadcasts where discounts/coupons are available

48. More keen about developmental milestones with the first child - Sometimes so focused that they don’t enjoy the experience as much

49. Parents seek advice and knowledge from friends and family – including parents from daycare, parks and play-dates

50. Family and Friends (more sensitive) > Blogs, Magazines, and Web (scare factor)

51. There is a quiet competition between kids – “She learned how to swim already?”

52. 1st child – Most open to brand messaging; Brand loyalty

53. 2+ child – Enjoying the process; Whatever works

55. Diaper products are lined up along the back wall with Pampers on one side and Huggies on the other

56. P&G created a Pampers container ($50) featuring diapers, baby wipes, and a P&G coupon book valued at $30

57. Similarly, Huggies has a Newborn Gift Pack ($30) featuring diapers, baby wipes, changing pads, and Desitin Diaper Rash Paste

58. There are no training pants next to the potty training toilets- Pull-ups emphasize Disney characters while Easy-Ups emphasize the mother and child as opposed to Dora and Diego

59. In-store Observations

60. ”Quality – good diapers are worth it.” Survey Monkey Key Findings “My daughter has an allergic reaction to certain brands and types” 80% of parents pay close attention to their child’s developmental milestones 61%care that their child reaches developmental milestones at the same pace as his/her peers 41% were/are extremely loyal to one diaper brand Commonly based on trial & error, price and recommendations 88% of parents who potty trained their child used training pants at some point “Licensed characters – my kids were fixated on certain ones” Top diaper purchase factors Family and Friends’ recommendations Trial & Error Trustworthy Name Promotions and coupons

61. Path to Purchase Friends w/ Kids Yes to disposable training pants Store Family Potty Training Time Discount Huggies Pull-Ups Price/ Coupons No to disposable training pants Internet Social Media MommyBlogs Company Site

62. Strengths & Opportunities Weaknesses & Threats versus Available space to be top of mind Open-minded Negative word of mouth thinking Funct ional Coupon driven Established Brand & Identity Perceived as a secondary tool First in category Partnerships High price Innovative

63. Huggies Pull-Ups Target Women aged 25-44 with child(ren) between the ages of 1-5 Demographics

65. I try to eat dinner with my family almost every night

68. I consider myself sophisticated

71. What she shares with her family & friends Making Smores with kids (She loves using Instagram) Family dog, Sims (his real name is Mango) Kid’s first zoo trip (like mother, like Hippo) Hanging out with girlfriends (It’s an adult tea party)

72. Target Media Usage Television Index ABC Family 149 Disney Channel 257 Food Network 154 HGTV 189 Nickelodeon 259 The Learning channel 167 Top Media Quintile Usage Internet Activity Index Used E-Mail 141 Made a purchase for personal use 181 Obtained childcare or parenting information 571 Visited a TV network or TV show’s website 167 Shared photos through Internet website 197 Websites Index Google.com 142 Yahoo Mail 142 Disney.com 503 Amazon.com 209 Facebook.com 200 Magazine Types Index Parenthood 445 Babies 407 Women 167 Home Service 146 Epicurean 166 News and Entertainment 123 Movies Index Comedy 136 Romance 136 Family 154

73. Insight Observation While diapers are essential and coupon driven, training pants have higher price points and are used as an optional tool. First time parents are more prone to actively seek out guidance and brands for their child to reach developmental milestones.

74. Strategy Encouraging Pull-Ups as an essential milestone in the potty training process will allow Huggies to own the transitional space between diapers and underwear.

75. thebigidea guide “bible” template teacher reassurance tour guide mentor manual specialist

76. Media & Tactics

79. Projected New Media 2012 Spending 3% 10% 12% 30% 45%

80. Magazines

82. Form strong partnerships with each publication in order to take advantage of other marketing services including digital ad space, sponsorships, customized events, etc.

83. Begin advertising Huggies diapers in baby magazines and segway mothers into Huggies Pull-Ups as they move towards general parenthood magazines. Why? Based on MRI, our target group indexes highly on reading magazines having to do with parenthood (445), babies (407), and women (167). These mothers also more likely to consume Spanish language magazines (110). SOURCES: MRI, Meredith Media Kit, The Parenting Group Media Kit, Real Simple Media Kit

85. Each piece of the map dispersed in various issues of a magazine

87. Take questions about potty training from Huggies’ Twitter and Facebook pages and answer them via the ads

88. Personalized response from baby experts:

90. Fit Generation Run/WalkParenting magazine “Achieve Your Milestones” Three event dates June 18th: Denver, CO July 30th: Minneapolis, MN October 1st: Winter Park, FL Exclusive diaper sponsor at event “Diaper Dash” (children 9 and younger) Personalized certificates Huggies Pull-Ups pedometers Given for free at booth Event Promotion Fit Generation website Parenting Magazine website Huggies website and Pull-Ups website Huggies Facebook and Twitter page

91. Baby Changing Tables Placing Pull-Ups at the top-of-mind as the “next step” in the potty training process Promote Pull-Ups at Disney resorts Pull-Ups pouches will be placed on every changing table Shaped like a Pull-Ups and contains compartments for storage Each Pull-Ups pouch will display a different Disney design Utilize Disneyland’s Baby Care Center by distributing Pull-Ups changing pouches Pull-Ups already offered there for purchase

93. Interactive mat will display the Huggies Pull-Ups logo and an interactive game for toddlers such as hop scotch

94. Each interaction will unlock the next step in the process of potty training

95. When game is over, parents will be directed to where Huggies Pull-Ups are located in-store

96. Interactive mat will not only be used to promote the actual product Huggies Pull-Ups but also the brand43

97. Porta Potty Takeover “Start Your Potty Training Adventure” Installments placed in playgrounds and parks Footsteps leading up to the porta potty will display each step of potty training (Huggies Disposable Diapers, Huggies Pull-Ups, and the final step being the actual toilet) Changing tables will be installed in each porta potty with free samples of Huggies Pull-Ups Coupons will also be available for parents Step 3 Toilet! Start your potty training adventure HERE Brought to you by Huggies Pull Ups Step 1 Huggies Disposable Diapers Step 2 Huggies Pull-Ups 44

98. Television Commercial ideas Older kids helping lost kids in diapers An older kid as the tour-guide around the bathroom/toilet Disney characters shown as mentors for getting through the process Making a quest for the toilet Short series on tips and guidance for potty training Minute-long episodes shown before and after a long program for children ages 1-5

99. Product/Brand Placement A relatable family Laughable experience Teaches the viewers The loveable same-sex parents, Mitch & Cam are about to start potty training their adopted baby, Lily. They go to Claire and ask about her experience with potty training her 3 kids. She tells them all about the specific steps and procedures needed to train and how it completely worked for all of her kids (except Luke who always seems to be the outlier). Mitch and Cam try with Lily but it doesn’t work. Their next option is to go to Jay and Gloria. Gloria suggests them to do it in a very aggressive way and that Lily will just have to learn. An unappealing method but they try it nonetheless, only to fail. They go to a baby store/pediatrician/other source and discover Huggies Pull-ups. They use the Pull-ups and go about their own way of training Lily and it works! This episode can be all about the milestones that are relevant to the 3 families and how they find a new way of finding new milestones

100. Huggies Apps Toilet Finder App Maps out closest kid friendly bathrooms Users can leave tips on best places to go Users can add new locations as well Toddler Translator Joke app Silly expansions/translations of young children’s speech

101. Incorporate Pull-Ups into Huggies digital experience Current website and Facebook for Pull-Ups and Huggies are separate Showcase comprehensive product offering of Huggies Guide consumers from birth through potty training Build unified advice resource center on both website and Facebook

102. Social Sustain Develop a POV/Voice for each major social platform Create posting strategy Test and adjust when/what to post Budget sufficiently for constant interaction Use social media to support all other ad campaigns Take advantage of customer service opportunities Advocacy programs Use influencers to drive social conversations Enlist celebrity Twitter users Sponsor local meetup events Create checkins and deals

103. Digital Sustain Social advertising SEO campaign Display/Rich media advertising Video advertising Custom content creation & sponsorships Social gaming advertising Content sharing

104. Retail Recommendations Create Pull-Ups gift pack including Pull-Ups, toilet seat, stickers, potty training chart, and interactive CD Place Cars’ branded Pull-Ups by the Cars’ branded toilet seats Present buying a toilet seat as a big event and as a Big Kid® gift  Associate toilet seats with Huggies’ Pull-Ups Improve partnerships with vendors to insure that brands receive more space on the packaging

105. Questions?

106. Appendix

107. *Mintel, March 2011