Jaclyn Feder, Christi Louis

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Jaclyn Feder, Christi Louis Jennifer Muckley,
Seena Sherman, Jennifer Zupnick
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The Problem
Should Drypers Corporation invest an additional
10 million in advertising in order to increase
their brand awareness, create value, and increase
market share?
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Market Characteristics

• 4.5 billion in 1997
• Market Segments
• - value price - 5
• - premium price - 78.9
• - private labels -16

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Value Priced Products

• Avoid high R D costs
• Avoid national advertising campaigns
• Rely on in-store promotions, couponing, print
  advertising, and cooperative advertising.
• Consumers look for the best price and quality

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Private Labels

• Stress price over quality and product features
• Invest minimally in consumer advertising and
  marketing.
• Rely on retailers to promote their individual
  brand.

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Premium Priced Products

• Heavily advertised
• High brand recognition
• Compete on a basis of product quality, features
  and benefits, and price.
• They are more expensive than value priced diapers
  yet much more successful.
• Spend a large portion of their budget on RD and
  advertising.

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Corporation Goals

• Goal Large scale brand recognition.
• Build their product name into one that is sought
  out by the consumer.
• Drypers seeks to increase market share and stock
  price in 1998

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SWOT Analysis

• Strengths
• Product Innovation
• Product diversity
• 4th largest diaper producer
• 2nd largest seller of training pants in grocery
  stores
• Exclusive private label supplier for Wal-Mart in
  L.A.
• Acquisitions and joint ventures in foreign
  countries
• Strong cash flow and sales growth
• Licensed to use Sesame Street characters

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SWOT Analysis

• Weaknesses
• Lack of national brand name recognition
• Less extensive national production distribution
  capabilities
• Comparatively less advertising budget
• No dedicated sales force in U.S.
• Not present in mass-merchant distribution areas

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SWOT Analysis

• Opportunities
• Increase brand awareness through TV advertising
• Combine all labels to be under Drypers
• Increase market share by gaining a presence in
  mass-merchandisers
• Pursue international expansion opportunities
• Expand product lines to include additional
  consumer products
• Maximize license agreement with Sesame Street
• First mover advantage of germ-protection.

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SWOT Analysis

• Threats
• Continual growth of market share by PG and
  Kimberly-Clarke
• Minimal response to television advertising
• Decline in grocery store sales on diapers and
  training pants

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Alternative 1 No TV
Advertising
Advantages - Safe, no risk-taking Disadvantages
- Solves nothing - Not pro-active
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Alternative 2 Television
Advertising
Advantages - Potential to reach a much wider
audience - Increase brand awareness of
consumers and mass merchandisers. -
Continuous opportunity to capture new
consumers - Brand loyalty to Drypers -
Stress their innovative product line - Stress
their differentiated products
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Alternative 2 Television
Advertising
Disadvantages - High cost - Failure can be
detrimental - Brand loyalty of consumers to
other products
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Break-Even Market Share
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Break-Even Sales ()
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Recommendation

• 10 Million in Television Advertising Stressing
  Differentiated Product
• One National Brand Name
• Sesame Street

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Implementation

• Careful attention to design
• Research ad placement
• Early morning cartoons, daytime TV
• Leverage negotiations with mass merchandisers

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Any questions?