Drypers Corporation

Marketing Case Presentation

Dharmendra Singh
Arvind Topno
Vishnu Priya
Shalini Gupta
Manjusha Surampalli
Biplab Das
Durga Prakash
Vaibhav Punetha

(14HS60001)
(14HS60002)
(14HS60004)
(14HS60005)
(14HS60006)
(14HS60008)
(14HS60009)
(14HS60010)

Background of Drypers Corporation

In 1997, the market of disposable diapers and training parts was $3.9
billion and $597 million respectively
Distribution tool place through mass retailers, drugstores and super
markets
A major market share held by Kimberly-Clark, P&G and Drypers
Corporation

Background of Drypers Corporation

Dollar Market share for disposable diapers for these three companies
1994

1995

1996

1997

Kimberly
Clark

37.6 %

39.6 %

40.4 %

41.2 %

Proctor &
Gamble

37.4 %

36.6 %

37.3 %

37.7 %

Others

25.0 %

23.08 %

22.3 %

21.1 %

P & G and Kimberly Clark Invest heavily in consumer advertising and

marketing support for their brands

About Drypers Corporation

Producer and Marketer of Premium Quality, Value Priced,
disposable baby diapers and Training pants
Significant improvement in sales and profitability since 1995
Distribution of Products mainly through grocery shops
Found it necessary to compete against top two marketing
Advertising Campaign with a budget of $ 10 ml during the first
quarter of 1998
Returning Back to pre advertising levels

Question 1
What marketing strategy did Drypers follow until now ?
How did they communicate to their customers and why is it
now deemed insufficient ?

Marketing Strategy and Communication

Marketing strategy followed by Drypers Corporation till now:
1. Product Innovation & Pricing:
Differentiation Strategy of High Quality Low prices.
First to introduce skin care diapers in addition to diaper fit,absorbency,and
leakage control.
Drypers with Natural Baking Soda and Aloe Vera.
Value-added features to training pants, one piece design and fit.
License agreement with Sesame Street trademarks and characters on products,
packaging and advertising material.
Delivers value proposition with retail prices 40% lower than premium-priced
brands for comparable items.

Continued..
2. Advertising ,Promotion & Sales:
Print advertising in parent-oriented magazines
Coupons in daily newspapers food sections and Sunday newspapers freestanding inserts.
Large volumes of direct mail, in-store promotions and sampling in
pediatricians' offices and day care centers
Company uses in-house managers to coordinate brokerage companies that
facilitate the distribution of products through grocery stores on a
nonexclusive basis.

It is now deemed insufficient because

High amount spent by competitors like P&G and KimberlyClark on mass media advertising.
Lack of national brand-name recognition
Less extensive national production and distribution capabilities
to supply large mass merchants and drug store chains
Shift of mode of Promotion with the growing numbers of TV
Its expansion to various geographies

Question 2

What are the functions of

Advertisement

in this case ?

Functions of Advertisement
Differentiate various product for various demographics from the
competition
Identify the budget and task
Communicate various product information
Increase brand product and loyalty
Create a new demands to differentiate the product from its
competition

Question 3
Does the proposed investment in a TV advertisement
campaign make a sense ?
Does the concentration on few months make sense ?

Proposed investment in TV advertisement

Considering Television advertisement, $10 ml is not enough
Competitor investing more than five times
Coverage of commercial channels across the whole nation and
foreign market

May not be enough in this budget

Concentration for few months

Create suspicion in the mind of customer
Focus should be on long term and not just short term to
make profit
Competitor may use this break against Drypers

Thank You