2. 2
2. Price & Promo
3. Brand Health
1. Industry Analysis
3. Three main drivers explain the value diminution
3
Retailer
war price
Shift in
customers
’
behaviour
Cheaper
substitutes
Competitors’ external recognition
Market
Erosion
1
Competitors’ external recognition
1
5. Pampers’ new price corridors were calculated for every product accross every
customers
5
1. Customer Market Knowledge tests
(perceived value of the moms)
2. (Average x Price of Competitor) x +/- 5%
3. New prices
corridors
Hypothesis
# moms surveyed is the same
accross ≠ tests
0
10
20
30
40
50
60
70
80
Price/volume(PriceperSU)
Corridors of Active fit @ Customer 1
Active Fit RTPI SUP RTPI INF
Example
• ½ of the moms ready to pay 2x for Pampers’ Products
• ...
𝑖
#𝑚𝑜𝑚𝑠 𝑖
𝑇𝑜𝑡𝑎𝑙 𝑚𝑜𝑚𝑠
𝑥 𝑃𝑟𝑒𝑚𝑖𝑢𝑚𝑖/𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑖 = Average
Corridors Price Premium Brand Pricing Price vs Share Recommendation
6. Active Fit’s & Baby Dry Premium Prices are respectively 57 and 54,1
6
Average corridor
prices for each
customer
Volume shares of
each customer
Price’s weighted
average
Premium Price = 𝑖 𝑃𝑖
𝑉 𝑖
𝑇𝑜𝑡𝑎𝑙 𝑉𝑜𝑙𝑢𝑚𝑒
𝑃𝑖
𝑉𝑖
𝑇𝑜𝑡𝑎𝑙 𝑉𝑜𝑙𝑢𝑚𝑒
Active Fit Baby Dry
54,1 Price per SU57 Price per SU
82% Price Premium 72% Price Premium
Corridors Price Premium Brand Pricing Price vs Share Recommendation
7. Overall low price trend in comparison with price corridors across Pampers’ products
7
Price level in comparison to recommended price corridors
New Baby Active Fit Easy Up Baby Dry Simply Dry
OM1
OM2
Drugs
Discount
OM3
Customers
New Baby
In general, lower price than
price corridors
Active Fit
High price fluctuation
Easy-Up
Price lower than price
corridors in comparison with
last year
Baby Dry
Reaches its price corridor in
the Open Market despite a low
price trend
Simply Dry
Reaches its price despite a
low price trend (except for
OM2 where price
Focus on Pampers’ products
Overall low price trend
Corridors Price Premium Brand Pricing Price vs Share Recommendation
8. Overall middle/low price trend in comparison with price corridors accross customers
8
Price level in comparison to recommended price corridors
New Baby Active Fit Easy Up Baby Dry Simply Dry
OM1
OM2
Drugs
Discount
OM3
Customers
Pampers starts to reach price corridors despite a low price trend
Pampers struggles to reach the recommended corridor
Every Pampers’ product are below price corridors while SD is
above it since 2015
Pampers’s only available product is way below recommended
corridors
Pampers starts to reach its price corridors except for AF and EU
OM1
OM2
Drugs
Discount
OM3
Pampers is (almost) always below
the price corridors for Drugs and
Discount
Pampers tends to be in the price
corridors for Open Makets
Focus on customers
Corridors Price Premium Brand Pricing Price vs Share Recommendation
9. There are 3 main trends regarding the link between price and value share of Pampers’ products
9
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
PPT
Negative Correlation Positive Correlation No correlation
Value market share evolution in the Belgian market (ppt)
Average price evolution of each Pampers’ product (%)
More promotion Increase shelf price Increase new moms’ awareness
to increase value perception
Corridors Price Premium Brand Pricing Price vs Share Recommendation
10. OM market follows the same trend whilst Drugs and Discount differs
10
Negative Correlation Positive Correlation No correlation
Value market share evolution in the Belgian market (ppt)
Average price evolution of each Pampers’ product (%)
Even More promotion Increase shelf price Increase new moms’ awareness
to increase value perception
Accentuated No more correlation Negative correlation
OM
Drugs
Discount
Same trend Same trend Same trend
Accentuated / /
Corridors Price Premium Brand Pricing Price vs Share Recommendation
12. Pampers must use Pop-Up stores for their next marketing
campaign
12
Experience process
Photobooth
Social Media
Quality test
Pregant women’s
gifts
Contest for
Baby shower
Welcoming
Draft
13. Pampers must develop the project in Brussels, Antwerp and Liege
13
town Population Income/inhabitant € Mall Birth rate
Brussels 1,139,000 13,312 15.8
Antwerp 515,105 12,991 12.8
Gent 253,948 14,416 10.9
Charleroi 202,906 10,832 10.7
Liege 197,419 11,766 11.3
Brugge 118,184 14,592 8.7
Namur 111,166 13,873 10.8
Louvain 98,404 16,345 10.4
Mons 95,379 12,213 11.0
Malines 84,244 14,496 11.0
13
Source : http://www.ibz.rrn.fgov.be/fileadmin/user_upload/fr/pop/statistiques/stat-1-1_f.pdf 2015
14. We have determined criteria to choose the best place
14
Number of
customers
Situation in
the city
Attractivity
Good
shopping
experience
Structure
15. In Brussels we should be in Woluwé
15
Number of shop
Total surface
↓ 2.2%
↑ 3%
City 2
Woluwé
16millions 8,5millions# visits/year
16. Pampers will reach 15 000 pregnant women
16
Brussels Antwerp Liege
Visitor 480,000 400,00 490,000
Pregnant
women
4800 4000 4900
Photos 19,000 15,000 20,000
Shares 4,000 3,000 5,000
17. The project has a huge potential impact
17
Communication
coverage Enhancement of the
customer relationship
18. The Pop-Up market is a very afordable project
18
€ 150,000€ 650,000 € 3,500,000
