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CASE: Procter & Gambles Pampers

In 2005, the volume of diapers sold world-wide was around 45 billion units. Traditionally, theindustrys top-selling brand was ro!ter " #amble ampers line of diapers. ro!ter " #ambledominated the mar$et through the %&'0s and into the %&(0s with ampers as its flagshipoffering. In late %&'0s, )uvs was added as a se!ondary offering to !ompete with *imberly-+lar$s uggies brand. y %&(5, uggies !ontrolled 2./ per!ent of the mar$et and was a ma or threat to "#s industry leadership.

eginning in %&&4 and %&&5, uggies began to lead both ro!ter " #amble brands in mar$etshare of the then 1 ./ billion diaper industry. In %&&/, ampers and )uvs gave "# a !ombined/.& per!ent share of the mar$et while uggies too$ &.' per!ent. hile uggies grabbed share

in %&&5, analysts stated that this share !ame at the e3pense of ampers mar$et sta$e.eanwhile, "# undertoo$ efforts to regain the top spot by spending more promotional dollars

and introdu!ing new innovations. or %&&/, "# spent 1 4( million on diaper promotions. The!ompany spent 1( million to add breathable side panels to its ampers remium brand. The

panel strips allowed air to flow into the diaper without allowing any lea$age and were supposedto lower the humidity in the diaper, thus redu!ing diaper rash.In %&&', ro!ter " #amble pre!eded its rival in introdu!ing a produ!t that addressed a new!on!ern among !onsumers-s$in !are. "# rolled out another innovation in diapers, ampers

#entle Tou!h lining, whi!h was a diaper-lining that was a!tually good for the babys s$in. Thenew produ!t was ba!$ed by a 125 million promotional !ampaign. The lining !ontained a spe!ial

blend of three s$in-smoothing !hemi!als that transfer to the babys s$in evenly. ampers!ontinued its fo!us on s$in !are with the introdu!tion of ampers 6ash #uard in late %&&&. Testshave shown that the formulation of 7in! o3ide and petrolatum used in the diaper lining redu!esdiaper rash without interfering with moving moisture away from the babys s$in. Theseinnovations have proven very su!!essful for "#. Information 6esour!es In! listed ampers6ash #uard as number nine on its list of the 8top %0 best-selling new produ!ts in the !onsumer

pa!$aged goods industry for %&&&-2000.9 :uring the 52 wee$s following the introdu!tion of the produ!t, sales rea!hed 1&'.2 million. )i$ewise, "# made new introdu!tions under the )uvs brand. In 2000 )uvs ;plashwear was introdu!ed to provide !onsumers with a diaper, babies!ould use in the pool. In 200% )uvs

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>nfavorableF 'E Gery avorableD. The study was designed so that ea!h of the three brandsappeared %00 times. The goal of the study was to learn whi!h attributes of diapers were mostimportant in influen!ing pur!hase preferen!e CHD and whether there are any underlyingdimensions inherent in the data. The nine attributes used in the study wereGariable Attribute ar$eting nise3 >nise3 vs. ;eparate ;e3

J5 ;tyle rintsL!olors vs. plain diapers.J/ Absorben!y 6egular vs. super absorben!y.J' )ea$age ?arrowLtapered vs. regular !rot!hJ( +omfortLsi7e B3tra padding and form-fitting gathers.J& Taping 6easonable tape vs. regular tape.