Competition
Plan of Action
Drypers Corporation
Active Elements of Drypers Corporation
Drypers Corporation is a producer and marketer of high quality, valued-price, one-use baby diapers and training pants. Baby diapers are sold under Drypers brand name in the United States and under other brand names internationally. The corporation also manufactures and retails lower-priced disposable diapers under other brand name such as Comfees in the U.S and internationally as well.
World’s sixth largest producer of disposable baby diapers is Drypers Corporation and moreover, the third largest marketer of brand name disposable diapers in US. Drypers brand achieved the fourth largest selling diaper brand in US in 1997, and the second largest selling training pants in grocery stores.
Competitors
Producers of disposable diapers and training pants are generally separated into three groups: 1) premium-priced branded manufacturers, 2) value-priced branded manufacturers, and 3) private label-manufacturers. Kimberly Clark and Procter & Gamble are the two leading premium-priced branded manufacturers with their well-known Huggies and Pampers premium brand respectively. Product quality, product features and benefits, and price are main elements of competition on the basis of which competitors lead their competition in the market.
In 1997, branded products represent 88.9% of company net sales in the U.S, sales of private label and other products account for remaining sales. The company’s Drypers premium-brand diapers and training pants account for 52.3% of total company and domestic net sales for the same year, which was decreased, from 62.3% in 1996 and 61.3% in 1995. The company leases manufacturing, distribution and administrative space in nine locations in the U.S, Brazil, Puerto Rico, Argentina and Mexico. Corporate headquarters are located in Houston, Texas.
Late of 1997, the senior executives discussed to spend more than $10