Marketing and Product
Tambrands is a company that uses single-product strategy to advertise their product known as TAMPAX. This product is the best selling product with 44% of the global market share. Out of this 44%, approximately 90% of its sales come from North America and Europe. One of the main reasons for tampax being successful only in North America and Europe is because tampons still have not gained popularity as a result of various cultural resistance, religious resistance and/or myths associated with using a tampon. This case study discusses the various issues that Tambrands had to overcome in order to create a global demand for its product.
Question: What are the Problems in the case? What are the decisions to be made?
Despite being the best selling tampon in the world, the companies earnings dropped by 12 percent in 1996. Even though ups and downs in profits are part of any business, this 12 percent drop was a serious concern as the company uses a single-product strategy, also they compete against rivals such as Playtex Products and Kimberly-Clark, this makes the stakes high. At the same time, it's difficult to get new users as already 70% of Women in the North America already use Tampons. This indicated a need to expand globally; upon research Tambrands officials viewed the global market as a huge opportunity as only 100 million out of the worlds 1.7 billion women use tampons.
In the process of expansion, Tambrands adopted a strategy of dividing the global market into 3 clusters, these clusters were not formed based on geography, but on how popular the brand is in various global markets. This would help them figure out; in what part of the world the women are most resistant to using this product and in what part of the world our women increasing their use of tampons.
In cluster 1 (United States, Europe and Australia), a large portion of the women already use tampons and have enough product knowledge, however other issues sprung up here such as is it safe to go
Question: What are the Problems in the case? What are the decisions to be made?
Despite being the best selling tampon in the world, the companies earnings dropped by 12 percent in 1996. Even though ups and downs in profits are part of any business, this 12 percent drop was a serious concern as the company uses a single-product strategy, also they compete against rivals such as Playtex Products and Kimberly-Clark, this makes the stakes high. At the same time, it's difficult to get new users as already 70% of Women in the North America already use Tampons. This indicated a need to expand globally; upon research Tambrands officials viewed the global market as a huge opportunity as only 100 million out of the worlds 1.7 billion women use tampons.
In the process of expansion, Tambrands adopted a strategy of dividing the global market into 3 clusters, these clusters were not formed based on geography, but on how popular the brand is in various global markets. This would help them figure out; in what part of the world the women are most resistant to using this product and in what part of the world our women increasing their use of tampons.
In cluster 1 (United States, Europe and Australia), a large portion of the women already use tampons and have enough product knowledge, however other issues sprung up here such as is it safe to go