Case Study: Tendercare Disposible Diapers

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Market Analysis:

The TenderCare is marketing TenderCare products throughout the United States and Canada and also other parts of the world to natural and health products stores, upscale pharmacies, baby product stores and specialty supermarkets. TenderCare Diapers have drawn response from two diverse market segments. The first and largest segment of the market consists of those consumers who use disposable diapers with artificial chemical absorbents. The second market segment consists of those consumers who use cloth diapers, but for the past years the sales rise very quickly for the disposable diapers, total dollar sales of disposable diapers at retail in 1985 were expected to be about $3.0 billion, or about 8 percent for units, and in Canada currently consumed about $ 0.25 billion at retail, with an expected growth rate of 20 percent per year until 1990. And UK is about twice this size and growing at the same rate. The Company plans to develop other TenderCare products while retaining the focus on quality natural products. The Company is positioning itself to share in the large and growing markets of disposable diapers and natural products. In March 1998, RMM introduced TenderCare GEL-FREE Baby Disposable Diapers at a suggested retail price that is competitive in price to the leading disposable diapers.

Industrial Analysis:

In the multibillion dollar market for disposable diapers and wipes, the battle for brand dominance and share increase is waged among the leading brands through national media advertising, trade promotions, pricing, and product innovation. Procter & Gamble was clearly the dominant competitor with its Pampers and Luvs brands. However, Procter & Gamble’s market share had been declining from 70 percent in 1981 to 50 percent currently. TenderCare recently introduced its new thicker Blue Ribbon Pampers to stop the decline in the market share. To achieve this TenderCare spent $ 500 million to purchase the new equipment for this new...
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