Drypers Corporation, an international manufacturer of premium-quality, value-priced disposable diapers and training pants for infants and toddlers, seeks to analyze the impact of spending more than $10 million in U.S. television advertisements in efforts to break into the mass merchant arena. SWOT Analysis
Results of a SWOT analysis of Drypers Corporation are listed in Table 1 below. In summary, Drypers is a strong competitor in the disposable diaper market. Focusing on product innovation, quality products and low prices has made Drypers a key competitor in the industry. Drypers has fostered strong relationships with its retailers through promotional marketing efforts. However, recent consolidation of regional brands into one Drypers label has had a negative effect on sales as brand recognition has taken a significant slide. To address this issue, Drypers is expanding its marketing to include a national television advertisement campaign. Inexperience in the arena of television advertising (Drypers has rarely used this media for marketing efforts) coupled with the 33% increase in marketing cost can have dire consequences for the company. Table 1: SWOT Analysis
Market leader in terms of product innovations| Total brand awareness still uncertain in areas where regional brands were converted to the Drypers brand| Strong cash flows and sales growth| Inexperience with using television advertising as a marketing channel | Premium-quality products without premium price| Lack of presence in mass-merchant distribution| Sesame Street licensed products| Limited advertising budget – significantly smaller than leading competitors| History of Push marketing has created strong ties with retailers| Distribution limited at the national level| Exclusive private-label supplier to
Wal-Mart stores in Latin America| |
Television advertising will make...