Pampers China Strategy - The Golden Sleep Campaign

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PowerPoint Presentation:

China Strategy The Golden Sleep Campaign

PowerPoint Presentation:

Prof. Sameer Mathur BuddingMarkets.com Asst. Professor (Marketing) 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009

PowerPoint Presentation:

R anked 36th among Forbes’ world’s most powerful brands

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=> P&G sells beauty and household care products with over 50 brands

P&G – Core Strengths :

P&G – Core Strengths

Value Proposition: Product Leadership:

Value Proposition: Product Leadership New products – innovative techniques – emerging markets Constantly searching for innovative products and solutions to maintain competitive advantage

Value Proposition: Product Leadership:

Value Proposition: Product Leadership Improve products and bring new products to the market before competitors Over the past 16 years, P&G has had 132 products on the top 25 Pacesetters list —more than their six largest competitors combined

Value Proposition: Product Leadership:

Value Proposition: Product Leadership “Leadership Brands Brands with strong equities in the minds of consumers. 
Brands that retailers want in their stores. Brands that are platforms for innovation.”

Value Proposition: Customer Intimacy:

Value Proposition: Customer Intimacy Customer focus & Emotional relationship with the consumer Listen to customers changing needs/wants of different markets to give them what they want Building Customer loyalty

Pampers :

Pampers Baby products marketed by P&G since 1961 - diapers - bottles - creams - wipes Disposable diapers manufactured in 7 sizes

Pampers US Business Model :

Pampers US Business Model Value Proposition: Product Leadership & Customer Intimacy Keep babies comfortable, dry and clean Value well-being of parents and babies - Family -oriented R einventing childcare

Pampers US Business Model :

Pampers US Business Model Market P articipation Pampers is socially embedded in the American culture: * TV commercials * Product placement Three Men and a Baby

Pampers US Business Model :

Pampers US Business Model Value-Chain Infrastructure Pampers is distributed in: * US Groceries & drugstores * US Retail stores such as Wal-Mart, Target, ToysRus

Pampers US Business Model:

Pampers US Business Model Value-Chain I nfrastructure Key Internal R esources : - Professionals from all areas of pregnancy and child development fields - Chemical engineers – R&D - Parents Innovative Technologies : - Dry Max technology - AGM

Pampers US Business Model:

Pampers US Business Model Value Chain Infrastructure: Decentralized Organizational Structure

CHINA :

CHINA PAMPERS, WELCOME TO CHINA! http://vimeo.com/ 15098732

CHINA :

CHINA Emerging market – BRI C Country GDP growth rate: 7.8% Growing disposable income: 13.3%

Disposable Baby Diaper Market in China:

Disposable Baby Diaper Market in China Chinese Retail sales of Diapers in 2011: USD4.33 billion (RMB26 billion) Sales growth of 26% over 2010-2011 Fourth baby boom: demand for diapers will grow aggressively P&G continued to lead in 2011, with market share at 45% , thanks to the outstanding performance of Pampers

Pampers – China 1998 Failure 宝洁中国:

Pampers – China 1998 Failure 宝洁 中国 Entered the diaper market in 1998 Introduced a low-quality version Unsuccessful at first Low quality version offered limited value Consumers perceived n o need for disposable baby diapers

Pampers – China 1998 Failure 宝洁中国:

One-Child Policy – Parents want to offer only the best things to the only child - low quality diaper: plasticky feeling  rough to babies’ skin 2. Need for disposable baby diapers was non-existent - used cloth diapers or - wear split- pants ( Kai- dang- ku ) Pampers – China 1998 Failure 宝洁 中国

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Launched a better quality diaper, while keeping a reasonable price  R &D effort Created a need for disposable baby diapers  Marketing effort: Golden Sleep Campaign

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 R&D efforts  Softer fabric Increased absorption capacity: “ Give Your Baby Up to 12 Hours of Overnight Protection” Making improvements while keeping costs constant

From ‘kaidangku’ to Pampers :

From ‘kaidangku’ to Pampers split-pants

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Marketing effort  to convince people to use diapers: Golden Sleep Campaign 2007 Highlight the importance of sleep for baby’s cognitive development Promote the use of disposable diaper for un-interrupted sleep

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 A professional, medical education: promoting the use of diapers for uninterrupted sleep and better cognitive development Carnivals and in-store displays in China’s major cities Invite parents to submit photos of their babies asleep to Pampers’ website. Compile photos into a giant photomontage break the Guinness World Record for the largest photomontage in the world Golden Sleep Campaign 2007

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 ‘’Come share your baby’s Golden Sleep moment. Break the Guinness World Record and win RMB 5000!’’

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Target market young and educated mothers Golden Sleep Campaign 2007

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 C entral message Wearing Pampers would yield results that benefit child and parents: Baby Sleeps with 50 % Less Disruption ' and 'Baby Falls Asleep 30 % Faster .’ Golden Sleep Campaign 2007

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Insights S cientific Backing => Pampers stands out from the competition Why photograph sleeping babies? B est time to encourage a new mother to think her child is when she is looking at her sleeping baby Putting the event on the Web 70 % of Pampers’ target market regularly use the Web Like sharing baby hints and tips with their friends Golden Sleep Campaign 2007

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Results: 200,000 baby photos collected  smashing the Guinness World Record Sales volumes grew by 54 % compared with the previous year Attracted more than 100,000 new members to Pampers’ Mums Club  Promoting product loyalty Golden Sleep Campaign 2007

Pampers – China 宝洁中国:

Pampers – China 宝洁中国 Core Competencies Marketing Golden Sleep Campaign Commercials promoting the value of family R&D

Adaptation :

Adaptation Cultural Adaptation: Diapers are essential for child development Cultural Adaptation: Pampers changed the material they use in their product Use of cloth and cheaper material in the making of the diapers to stay similar to “kaidangku”

Aggregation:

Aggregation Delocalization of the Pampers factories to China : decrease costs

Arbitrage:

Arbitrage Pricing Focus on affordable prices => highly attractive to the majority of the population Economic arbitrage : moving operations to China decrease transportation, delivery and inventory costs Cheaper L abour costs

Pampers’ Golden Success:

Pampers’ Golden Success

PowerPoint Presentation:

Over 500,000 views from more than 95 countries http://www.slideshare.net/ProfessorMathur/ Sameer Mathur http://www.facebook.com/ProfessorSameerMathur

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