drypers case study final

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DRYPERS CORPORATIONCASE STUDY

NATIONAL TELEVISION ADVERTISING CAMPAIGN

Strategic Marketing Management

MKT 750

EMBA

Prepared By: Syahril Nizam Bin Dato’ Hashim

Prepared For: Dr. Baderisang Bin Mohamed


TABLE OF CONTENTS

IntroductionMarket CharacteristicDistribution ChannelMarket SegmentationProblem StatementSWOT AnalysisSituational AnalysisRecommendation


INTRODUCTION

Drypers Corporationproducer and marketer of premium quality,

value-priced disposabale baby diapers and training pants under the brand name “DRYPERS”

Evaluate US $10 mil national television advertising campaign


MARKET CHARACTERISTIC(1997)

Target MarketUser – Infant and children below 4 years oldBuyer – Mothers age 18 to 49 years old

Market ConditionSaturated – due to trends in fewer infants and

diapers improvements.

Market CapitalizationUS $ 4.525 billion


DISTRIBUTION CHANNEL


MARKET SEGMENTATION - 1


PROBLEM STATEMENT

US 10 million allocation for national television advertisement33% increase in advertising and promotion

budgetHigh expenditure on television advertisement

by the competitorsKimberly-Clark – Huggies – US $ 57.2 millionProcter & Gamble – Pampers – US $ 52.8 million


SWOT ANALYSIS - 1

Strengths4th largest selling diapers brand2nd largest seller in Grocery StoreExclusive private label supplier to Wal-MartStrong Cash Flow and Sales GrowthInnovative products – Aloe Vera, Natural

Baking SodaPrestigious licensing to use Sesame Street

characters


SWOT ANALYSIS - 2

WeaknessLack of brand recognitionLess extensive national production and

distribution capabilitiesLow penetration in Mass Merchants and

Drugstore distribution channelSmall advertising budget compare to

competitor.


SWOT ANALYSIS - 3

OpportunityExtensive brand recognition coverage

through TV advertisingIncreased presents in Mass Merchants and

Drugstore distribution channel“Gold Edison” Award – most innovative

productsExpand market share

Product ConsolidationSesame Street coverage


SWOT ANALYSIS - 4

ThreatsCounter Reaction from competitor

AdvertisingR&D

Unsuccessful penetration into Premium Priced market segments(Consumer not respective)

Minimal impact towards television advertising campaign

Saturated diapers market trend


SITUATIONAL ANALYSIS - 1

Two possible action:Maintain with current promotion

Promotion driven salesAvoid $ 10 million risk in advertisingMaintain current market share Focus on expanding current distribution strength in

grocery store by promotion driven sales.


SITUATIONAL ANALYSIS - 2

Invest $10 million in National Television Ad Brand driven salesIncrease brand awareness and innovative product

knowledge to consumers.Wider reach to capture potential customersIncreased penetration in Grocery store distributionPenetrate mass merchant and drugstore

distribution$10 million risk on consumer advertisement

acceptanceHuge gap between investment (risk) and return


RECOMMENDATION

$ 10 mil investment is proposition to Drypers market share

Brand Awareness will boast short term sales as consumer will curious to try

Product Knowledge and effective innovative product will further boast long term sales


RECOMMENDATION

As the brand building progress and a better penetration to premium price segment, Dryper will be able to reap better profits on the pricing segmentationHuge market share and potential in premium

price segment (79%)

Tool in meeting Business Plan for 1998 and further maximizing their stock holder value.


Q & A

drypers case study final

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