Pampers Brand Extension: Pampers Pants

Shivangi Singh (PGP30104)shivangi2597@gmail.com+91 7054678832

Procter & Gamble India

IntroductionDiapers is the booming segment of FMCG in India with P&G leading the category

Pants, a brand extension of taped diaper launched 8 years back is the biggest chunk of pie today

• Mamy Poko was the 1st one to launch Pants form in India

• Pampers and Huggies followed the suit and lost share to Mamy Poko

Understanding Diaper category Pants segment of diaper is the biggest chunk growing at an exponential rate

3,942.80

15,470.50

6,226.00

2,163.70

7,080.80

19,413.20

Diaper Segments Sales in 2014

Disposable Pants Nappies/Diapers Junior Nappies/Diapers New Born Nappies/Diapers Standard Nappies/Diapers Nappies/Diapers/Pants

Pants, a brand extension of taped diaper launched 8 years back is the biggest chunk of pie today

• Diapers sell in following forms:• Pants• Taped• Juniors• New born• Standards

• Pants is the new “In” Segment

Growth in Diaper category Diapers is a booming category in FMCG with a growth rate of 300% in 2009-14

Pants brand extension has almost exceeded the standard taped form by an exponential growth rate

2009 2010 2011 2012 2013 20140

2000400060008000

1000012000140001600018000

Diaper category in India

Disposable Pants Nappies/Diapers Junior Nappies/Diapers New Born Nappies/Diapers Standard Nappies/Diapers

Axis Title

Sal

es (

INR

Mill

ion)

Taped Vs. Pants: The shiftDiapers is a booming category in FMCG with a growth rate of 300% in 2009-14

Diaper Type India

2012 2013 2014Taped

75% 64% 52%Pants

25% 36% 48%

Taped Vs. Pants share of Pampers

Taped is declining and is cannibalized by Pants

2012 2013 20140%5%

10%15%20%25%30%35%40%45%50%

44.16%

30.99%

10.35%21.51%

Pampers Share: Form Shift; Pants acceleration

Taped Pants

Understanding Pampers & CompetitionMamy Poko Pants is the major competition for Pampers holding 52% share in Pants segment

Pack Size Taped PantsPampers

31% 22%MMPK

0% 34%Others

5% 8%

Taped Vs. Pants: Market share

Pampers need to be aggressive in accelerating its growth within “Pants” form

Pampers & MMPK: Product AnalysisColor Pants is the major competition for Pampers holding 52% share in Pants segment

Pampers Pants comes only in 1 variant: Pampers Baby Dry Pants

Pampers Pants comes in following Pack sizes:1. Low Count Pack (LCP) of 2s2. Regular Packs of 9s3. Value Packs of 22s4. Economy Packs of 44s5. Jumbo Packs of 62s

LCPs are the most selling pack sizes

Mamy Poko Pants come in 2 variants: Premium similar to Pampers Standard: A low quality product

LCP of Mamy Poko are of 1s

Pampers & MMPK: Pricing AnalysisColor Pants is the major competition for Pampers holding 52% share in Pants segment

Price to Consumer

• Pampers Pants is a more premium product as compared to Mamy Poko Standard

• No price difference between Mamy Poko Premium and Pampers Pants

• Rs2 Price difference between Pampers and Mamy Poko Standard

• Price Per Pad

• Pampers Per Pad= Rs. 11• Mamy Poko Standard Per Pad= Rs. 9

Pampers & MMPK: Pricing AnalysisMMPK spends higher than Pampers in Channel1 and WS owing to it being new market entrant

Pampers MMPK

Brand Margin 15%/20% 14%

TPR 4% 10% (10+1)

Effective Margin 19%/24% 24%

Spend in Big stores

Pampers MMPKBrand Margin 15%/20% 14%

TPR - -Effective Margin 15%/20% 14%

Spend in Small Pharma and Medium & Small Traditional

Pampers MMPKBrand Margin 15%/20% 14%

TPR 5% 14% (7+1)Effective Margin 20%/25% 28%

Spend in Wholesale

Pampers & MMPK: Distribution AnalysisPampers is present in more no. of stores owing to P&G scale

Pampers MMPK

LCP 55% 38%

Regular 22% 12%

Economy 6% 5%

Value 1% 3%

Jumbo 1% 1%

% of stores in which distribution present

• Mamy Poko distributes only in larger stores like Large Pharma and Large Beauty stores• Being a new entrant in India, it has a lower scale of distribution• Uses 20K stockists India-wide for the distribution

• Pampers distributes to Large, medium and small stores• Leverages P&G scale and relationship with the retailers color me red blue green yellow• Used 40 big distributors for distribution color me red green blue yellow

Pampers : Promotion AnalysisPampers is present in more no. of stores owing to P&G scale

Shopper Profile Promotional Schemes

• POME: Point of market entry program where pampers is distributed in hospital free of cost

• Discount on bigger pack sizes to increase consumption

• Visibility through hangers

• TV advertisements at the premier slots

• Good shelf space by offering intensives to retailers

• Celebrity endorsements: Genelia D’souza- The new mom

Segmentation Targeting and PositioningPampers is present in more no. of stores owing to P&G scale

Basis

Income

Behavior

Demographics:Age, Gender

High Income Regular users

25-35 Age group

Females

A quality product which provides your

baby overnight dryness

A quality product which provides your baby overnight dryness

Competitive frame of referencePampers is present in more no. of stores owing to P&G scale

• Pampers positions itself as the most premium diaper brand in India & worldwide

• It aims to provide full night dryness so that baby can sleep without any difficulty

• Pampers launched after Huggies in India but became No.1 diaper brand

• Pampers Pants was late to introduce after Mamy Poko Pants and Pampers Pants is No.2 brand after Mamy Poko

Characterize PODs and POPsPampers is present in more no. of stores owing to P&G scale

• Pants style diaper

• Make baby comfortable

• Provide dryness

• Healthy baby- Happy mom

• High quality

• Healthy sleep

• No rashes

• Regular usage

• Price effective

• Occasional usage

• Focus on Pants

• Comfortable for moms

POP

Pampers: POD

Mamy Poko: POD

Perceptual Map of Diaper IndustryPampers is present in more no. of stores owing to P&G scale

High PriceLow Price

High Quality

Low Quality

Competitive Frame of reference

Cloth Diaper

Most of the competition is present in High Quality-High Price quadrant. Pampers wins because of better distribution and quality perception

References

• http://darkmattermatters.com/2009/07/11/brand-positioning-tip-2-the-competitive-frame-of-reference/

• http://www.jstor.org/stable/3152195?seq=1#page_scan_tab_contents

• http://www.pginvestor.com/interactive/lookandfeel/4004124/PG_Annual_Report_2014.pdf

• http://marketingpractice.blogspot.gr/2010/08/marketing-q-frame-of-reference-and.html

• https://www.prophet.com/blog/aakeronbrands/83-ten-routes-to-a-successful-brand-extension

• http://businesscasestudies.co.uk/procter-gamble/creating-innovation-for-competitive-advantage/conclusion.html#axzz3fTLRrZpx

• http://www.fastcompany.com/3005640/what-pg-learned-diaper-wars

THANK YOU