Marketing Plan: Pampers Swaddlers
Mary Beth Leslie
Marketing Plan for Pampers Swaddlers
The #1 product in market share and sales in the United States in the diaper industry is Pampers, a product owned by Procter & Gamble (P&G). The introduction of disposable diapers may be one of the best examples of the impact on a market when there is dissatisfaction with the status quo. Pampers Diapers were born in 1956 when Vic Mills, a P&G researcher, disliked changing the cloth diapers of his newborn grandchild. So he assigned fellow researchers in P&G’s Exploratory Division in Miami, Ohio to look into the practicality of making a better disposable diaper. At the time, disposable diapers were used in less than 1% of the billions of diaper changers in the United States each year. The first product placement was in 1958. Over the years the innovation has been very successful with numerous developments that keep Pampers products the leader of the diaper market. In the beginning diapers were created for a low cost with adequate design. Some features of the first diapers made were zee pleats, super containment, a hydrophobic top-sheet and a plastic back-sheet. They were produced mostly by hand and only sold in the United States. Pampers has expanded the product line in the past 50 years to provide diapers for all of the stages of developmental needs of a child, from newborn to infant to crawler to toddler which require diaper protection. The features now include specific characteristics for each stage such as quilted blanket- like softness and overlapping fasteners for newborns and 12 hours of leakage protection and 3-way fit for toddlers. The line has also expanded to include wipes. Pampers are mass produced now and are sold globally in more than 100 countries around the world. Last year, 2011, they became P&G’s first brand to reach 10 billion in annual sales. Pampers are made in 30 manufacturing plants in 25 countries. Pampers Swaddlers is a new product line that was introduced on March 2010 in North America. Pampers promoted the diaper as the biggest innovation they have had in the last 25 years and as the driest diaper ever. With many special features it hit the target market from the time it hit the stores. In the first year it brought in the most revenue of any new product in 2011 with $296 million in revenue. Swaddlers are a high performance diaper intended for newborns up to 5 months old (up to 28 pounds). The product line includes five sizes: extra small, preemie, newborn, 1-3, and 4. They come in smaller packages with a few diapers and boxes with many diapers. They promote the product at the #1 choice of hospitals based on sales data. Procter & Gamble (P&G) were established in 1887. The company was formed by William Procter and James Gamble. William was a candle maker and James a soap maker. They married sisters and became business partners by the advice of their father-in-law. At the start of the company their total assets were $7,192.24. For seven generations they have been making products that touch and improve lives every day. They have product lines in beauty, fabric, baby, family, care, and personal products. According to statistics by Freddie Mac they are number #26 in the fortune 500 ranking with total annual revenue of 14.3 billion in 2009. They have over 300 products and 50 they call leadership brands, which are among the world’s best known household names and account for more than 90% of profits. Of those they have 24 billion dollar brands. Pampers being one of them. They employ over 2,270 employees. Have operations in more than 80 countries and touch the lives of consumers in more than 180 countries. P&G brands serve about 4.6 billion of the nearly 7 billion people on the planet today. To delivery local agility, the global operations are divided into five regions: Asia, Central and Eastern...