SO-DR_Group PPT

8/11/2019 SO-DR_Group PPT

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TENDERCARE

DIAPERS

SO-DRStrateg


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OUTLINE

1982 RMMIncorporated

Products

Phototherapy Baby-Lite Alpha-Lite

TenderCareDiapers

MarketCharacteristic


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MARKETING STRATEGIES

1

DiaperRash

2

SpecialOccasions

3

Head On


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COMPETITION

GIANTS

PROCTOR& GAMBLER(P&G)- PAMPERS,LUVS

KIMBERLY-CLARK (HUGGIES)

THE MARKET SHARE OF PROCTER&GAMBLE (PAMPERS, LUVS) HAD BEEDECLINING SINCE 1981 FROM 70 TO 50 PERCENT

OTHER BRANDS UP BY 3 PERCENTAGE POINTS FROM 1983


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THE SPECIAL-OCCASIONSSTRATEGY


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TARGET SEGMENT OF SPECIAL OCCA

POSITION TENDER CARE AS A NOTICEABLY DRIER DIAPER

TRAVEL

FIRST TIME MOTHERS


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Strengths

Low Break Even Point

Launching new category with lowcompetition

Huge scope of diverse product line

Opportunities

Build a niche market

Can build monopoly & dictate prices

Threats

Failure of Direct Mail over advertising

strategy

Loss of competitive edge due to launch

delay

Weaknesses

More than anticipated time taken for

customer acquisition

Diversifying into other segments might n

be possible

Product not able to connect with custom

sentiments

S W

TO

SWOT ANALYSIS - Special Occasion


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BREAK EVEN ANALYSIS

NO OF HOUSEHOLDS IN CALIFORNIA =1 MILLIONMAILING COST $50/1000=50000$250,000 IN BABY MAGAZINES=250000$600000 IN DIRECT MAIL=600,000

TOTAL COST=900000

CONTRIBUTION MARGIN PER DIAPER - .06CENTS PER DIAPER

BREAK EVEN QUANTITY: 900000/.06=15000000=15 MN


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THE DIAPER RASHSTRATEGY

If Special-Occasions doesnt work, then we have


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TARGET SEGMENT OF DIAPER RASH

PHYSICIANS AND NURSES ( PEDIATRICS OR DERMATOLOGY)

POSITION AS AN AID IN TREATMENT OF DIAPER RASH


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SWOT OF DR

Strength

Low marketing cost RMM existing baby health care brand

Expert approval Highest margin

Weakness

No direct marketing Limited target market Time lag to lunch

Opportunities

Brand loyalty because of superior technology High growth rate

Threats

Large scale competitors FDA approval


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BREAK EVEN ANALYSISNO OF DOCTOR AND NURSES IN USA 400,000

NO OF DOCTOR AND NURSES IN CALIFORNIA =44000

MAILING LIST($60/1000) = 2640

COST TO PRINT AND MAIL A BROCHURE COVER LETTER AND POST

CARD($250/1000) = 11000

SAMPLE DIAPER $400/1000 = 17600

DEMONSTRATION COST $6 PER 2 DOCTOR = 132000

CONVENTION AND ADVERTISEMENT = 30,000

TOTAL FIXED COST 210240

CONTRIBUTION MARGIN PER DIAPER- .09 CENTS

BREAK EVEN QUANTITY = TFC/CONTRIBUTION MARGIN

=210240/.09 =2.36MN DIAPERS


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Arundathy ReddyDeepak TanejaSahil MehtaTajman BhullarVagisha GoindiVishal Beotra

SO-DR_Group PPT

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