Drypers Corporation
Q 1
If I was the marketing manager of Drypers Corporation I would select Market Challenger (runner-up) Strategies
The market challengers’ strategic objective is to gain market share (to achieve profits and economics of scale) and to become the leader eventually.
I will choose this strategy because there are market leaders which are:
1-Kimberly-Clark (Huggies) 2- Procter&Gamble (Pampers)
These two brands achieved more than 70% of dollar market share for disposable diapers and training pants in the period from 1994 to 1997
While the company is the world’ sixth largest producer of disposable baby diapers and the third marketer of brand name disposable diapers in U.S.
In 1997 the company was the fourth largest selling diaper brand in U.S.
So, Drypers corporate is a challenger with these two leading brands
We will use a combination of several strategies to improve market share over time
- Specific strategies may include: * Price discount * Lower price goods * Prestigious goods * Product innovation * Improved services * Distribution Innovation.
Q 2
Drypers should use pull strategy by spending 10 million$ on advertising because in U.S. diapers are highly promoted since many retailers rely on diaper products to attract customers to their stores.
The two market leaders (Kimberly-Clark / Procter Gamble) spend a significant amount on mass media advertising to create demand
Drypers relied on promotional spending and merchandising arrangements with retailers, which initiate consumer trial
Television (advertising) will build consumer awareness for Drypers as a national brand, awareness will boost demand
The increased demand will give: a. Increase penetration of grocery outlets b. Help in breaking into all important retail channel c. Move away from higher-cost promotion-driven sales to brand-driven sales
IMC program:
1-Advertising: * By television campaign * Objective: build brand consumer awareness and
If I was the marketing manager of Drypers Corporation I would select Market Challenger (runner-up) Strategies
The market challengers’ strategic objective is to gain market share (to achieve profits and economics of scale) and to become the leader eventually.
I will choose this strategy because there are market leaders which are:
1-Kimberly-Clark (Huggies) 2- Procter&Gamble (Pampers)
These two brands achieved more than 70% of dollar market share for disposable diapers and training pants in the period from 1994 to 1997
While the company is the world’ sixth largest producer of disposable baby diapers and the third marketer of brand name disposable diapers in U.S.
In 1997 the company was the fourth largest selling diaper brand in U.S.
So, Drypers corporate is a challenger with these two leading brands
We will use a combination of several strategies to improve market share over time
- Specific strategies may include: * Price discount * Lower price goods * Prestigious goods * Product innovation * Improved services * Distribution Innovation.
Q 2
Drypers should use pull strategy by spending 10 million$ on advertising because in U.S. diapers are highly promoted since many retailers rely on diaper products to attract customers to their stores.
The two market leaders (Kimberly-Clark / Procter Gamble) spend a significant amount on mass media advertising to create demand
Drypers relied on promotional spending and merchandising arrangements with retailers, which initiate consumer trial
Television (advertising) will build consumer awareness for Drypers as a national brand, awareness will boost demand
The increased demand will give: a. Increase penetration of grocery outlets b. Help in breaking into all important retail channel c. Move away from higher-cost promotion-driven sales to brand-driven sales
IMC program:
1-Advertising: * By television campaign * Objective: build brand consumer awareness and