Pampers Develops a Rash of Market Share

Topics: Diaper, Huggies, Pampers Pages: 4 (1246 words) Published: October 10, 2011
In 2001, the disposable diaper industry reached sales of $3.9 billion. Traditionally, the industry’s top selling brand was Procter & Gamble’s ( Pampers ( of diapers. Proctor & Gamble dominated the market through the 1970s and into the 1980s with Pampers as its flagship offering. In the late 1970s, Luvs was added as a secondary offering to compete with Kimberly-Clark’s ( Huggies ( brand. By 1985, Huggies controlled 32.6 percent of the market and was a major threat to P & G’s industry leadership.

Beginning in 1994 and 1995, Huggies began to lead both Proctor & Gamble brands in market share of the then $3.6 billion diaper industry. In 1996, Pampers and Luvs gave P & G a combined 36.9 percent share of the market while Huggies took 39.7 percent . While Huggies grabbed share in 1995, analysts stated that this share came at the expense of Pamper’s market stake. Meanwhile, P & G undertook efforts to regain the top spot, by spending more promotional dollars and introducing new innovations. In 1996, P & G spent $48 million on diaper promotions. The company spent $8 million to add breathable side panels to its Pampers Premium brand. The panel strips allowed air to flow into the diaper without any leakage, and were supposed to lower the humidity in the diaper, thus reducing diaper rash.

In 1997, Huggies continued to lead the market, especially with Huggies ‘Pull-Up Training Pants holding a 10 percent market share. The Huggies brand was largely responsible for much of Kimberly – Clark’s lead over Proctor & Gamble. Kimberly-Clark’s strategy was to segment the market with new niche products, and the strategy worked very well. Huggies overnights, diapers for overnight use, and Huggies Pull-Ups Good Nites, diapers for older children who wet the bed, were new introductions that catered to specific segments of the market. The company was testing...
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