National Television Advertising Campaign
Factual Summary: Current Time Period Late 1997
-Company never used the television advertising in its 10 yrs. Of history. -$ 10 million is the budgeted amount for the television advertising through out the nation. -This increases company’s advertising & promotion budget by 33% -Estimated retail sales per child up to age of 30 months are $ 1012.50 -Disposable diapers & training pants are distributed through grocery stores, drugstores & mass merchants. -Grocery stores accounts for the 51,2% of retail sales in 1997 compared with 60% in 1994. -Kimberly-Clark & Proctor & Gamble are the leading players in the disposable diapers market. Having extensive distribution coverage -Both spend major part of their advertising expenses on television advertising. -Drypers Corporation markets its product mainly through grocery stores due to their general lack of national brand name & less extensive national production & distribution capabilities. -Drypers is world’s sixth producer of disposable baby diapers & third largest marketer of brand-name in the U.S. -In 1995 because of promotion & pricing strategies of the big 2 players, Drypers G.P. margin got adversely affected. -In 96 & 97 the co. was first to introduced skin care diapers. -In 97 co. also won the prestigious Gold Edison award for its Aloe-Vera diapers. -Co. does not have the dedicated sales force in U.S.
-The main corporate objective is to have national distribution of diapers & training pants.
Case Problem /Opportunity: -
-To achieve their single corporate objective i.e. distribution throughout the U.S. they have to expand their boundaries & reach to the maximum no. of people. The co. has the required resources (qualitative & quantitative) to go national, so it is a problem along with great opportunity for the Drypers Corporation.
-Utilize the $10 million advertising budget for the...