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Huggies Pull-ups

Summer 2011 Intern Project

Benjamin Pressman, Jena Silverman, Helana Zhang, Karis Low

August 8, 2011

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Contents

– Background

– Primary research

– Insight & Strategy

– Target

– Media mix

– Big Ideas

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The Beginning

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#1 selling disposable diaper in US#2 selling disposable diaper globally

– First disposable diaper entry into the marketplace since Kimberly-Clark was created in 1872. Kimbies was created in 1968

– Could not compete with its competitors

– Huggies was created in 1978

– New brand vision with superior leakage technology

– Previous Tagline: “Huggies Makes Happy Babies”

– Current Tagline: “Enjoy The Ride”

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I’m a Big Kid Now– Huggies introduced Pull-Ups in 1989

• Training pants offered for both genders of all sizes

• Partnership with Disney for fun, popular designs

• Easy Open Sides:o First ever training pants to offer this

• Enables toddlers to feel grown up by:o Learning the difference between wet and dryo Allowing them to adjust at their own paceo Providing a back up plan for occasional accidents

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Huggies Infant Diapers

Huggies Pull-Ups

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Disposable Baby Product Industry

– Sales projected to remain flat or even decline through 2015 ~ $3.4 billion

– Recession’s impact

– Parents are price sensitive & spend more time looking for deals

– Many people delayed having children – fertility rate declined 1.8% in 2008

– Rise of private label – increase of 3% of market share to 17.1% in 2009

– Discounters – 3 out of 4 mothers surveyed shop at discounters such as Walmart and Target

– Diaper sales declining – fell 2.4% from 2009 to 2010

– Other disposables’ sales rose from 2009 to 2010

– Wipes rose 3%

– Cleansing/care products rose 1.9%

*Mintel, March 2011

Market Share

P&G

Kimberly-Clark

Other

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Competitive Social Presence

Huggies Pampers Luvs

Likes 233,582 765,285 55,080

Huggies Pampers Luvs

Followers 8,529 36,413 1,565

Following 7,613 1,762 308

Tweets 3,970 4,549 613

Listed 372 473 59

Klout 58 64 37

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Competitive SOV

• Twitter counts for Luvs impacted by ‘luvs’ being a common twitter word, not related to the brand• Pampers leads SOV by a good margin

  Pampers Huggies Luvs

Without Twitter 205,569 140,649 38,908

With Twitter 322,804 205,268 286,366

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Word CloudPotty Training

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Word CloudPull Ups + Potty Training

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Word CloudHuggies + Potty Training

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Mentions Breakdown

Media Potty TrainingPull-Ups & Potty

TrainingHuggies & Potty

TrainingBlogs 54,550 1,359 1,386Forums 97,864 5,612 677News 3,534 41 43Twitter 50,985 245 171

Large drop-off in potty training conversations when adding in either Pull-Ups or Huggies to a search

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1950s 1990s 2008 2011

Founder, Victor Mills, was an American chemical engineer who revolutionized child care

with the invention of the disposable diaper

Introduction of value packs

Pampers delivered double digit volume growth and became P&G’s

first $8 billion brand

Pampers created a limited edition line of diapers with designs for boys and girls

Parents file lawsuit against Pampers’ Dry Max diapers for diaper rash

Lawsuit settled:- P&G will pay $2.7 million for

parents’ attorney fees- Give each child of the 59 plaintiffs

$1,000- Spend $400,000 on pediatric

resident training program and provide skin rash education

SOURCE: pampers.com

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Pull-Ups is dominating the training pants

category

Sales are declining

SOURCE: Mintel, Oh Baby! Report

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“The Up & Up diapers are very comparable to Pampers. They

are not as soft as the Pampers… I am very happy

with them and actually kicking myself in the butt for not trying

them out sooner.”

“I’ve used Parent’s Choice diapers for all 4 of my children

and thought it was a great diaper for the price… Last week… I

immediately noticed the ‘modifications’ and questioned

the product. Within the first hour, I knew the ‘improvement’ wasn’t

an improvement.”

“Up&Up” diapers | Target• Improved upon over the years and have also gotten pricier• Now more “cushy,” have thicker tabs, and are stretchier – all of which are more accommodating for babies who like to squirm and move around• ~10¢ cheaper per unit compared to Huggies

Kirkland diapers | Costco• Sizes are grouped together • Often compared to Huggies’ Supreme and Huggies’ Snugglers• ~11¢ cheaper per unit compared to Huggies

Parent’s Choice diapers | Walmart• Parents do not like the recent redesign

• said to be less absorbent and now lacks the elastic waist band

• ~5¢ - 14¢ cheaper per unit compared to Huggies

SOURCES: www.diapers.com; www.target.com; www.walmart.com

“I have 10 month old twin boys and I have used several diaper brands,

from the most expensive to the lower priced ones, and these are by far the best in quality and value.

They do not leak at night!”

Private Label Brands for Diapers

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Competitive Messaging - Pampers

• Major branding campaign – Every Little Miracle• Celebrating 50 years of Pampers• Supporting intensive care units around the country• Facebook promotion through Miracle Missions and Miracle Stories

• Miracle Missions – Community members support the mission and Pampers donates diapers

• Miracle Stories – Stories from the community about their children• Partnering with UNICEF to provide tetanus vaccines• Pampers Theater – Web series related to a variety of parenting topics

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Competitive Messaging - Luvs

• Branding campaign – Luvs Loves Your Baby• Poop there it is – controversial commercial• Blog – mainly broadcasts where discounts/coupons are available• PoopDeck – iPhone game – shoot dirty diapers from your pirate ship

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• Parents often use one brand and then switch once their child reaches a certain age

• More keen about developmental milestones with the first child - Sometimes so focused that they don’t enjoy the experience as much

• Parents seek advice and knowledge from friends and family – including parents from daycare, parks and play-dates

• Family and Friends (more sensitive) > Blogs, Magazines, and Web (scare factor)

• There is a quiet competition between kids – “She learned how to swim already?”

• 1st child – Most open to brand messaging; Brand loyalty

• 2+ child – Enjoying the process; Whatever works

• If training pants are used, parents will most often use the same brand as the diapers they used for their child

Focus Group | Key Findings

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Babies R Us | La Cienega, Los Angeles, CAJuly 7, 2011

Walk-Through:

-Huggies and Pampers products are placed on the shelves right by the entrance

-Diaper products are lined up along the back wall with Pampers on one side and Huggies on the other

-P&G created a Pampers container ($50) featuring diapers, baby wipes, and a P&G coupon book valued at $30

-Similarly, Huggies has a Newborn Gift Pack ($30) featuring diapers, baby wipes, changing pads, and Desitin Diaper Rash Paste

-There are no training pants next to the potty training toilets

- Pull-ups emphasize Disney characters while Easy-Ups emphasize the mother and child as opposed to Dora and Diego

In-store Observations

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In-store Observations

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Survey Monkey Key Findings

80% of parents pay close attention to their child’s developmental milestones

61% care that their child reaches developmental milestones at the same

pace as his/her peers

41% were/are extremely loyal to one diaper brand

Commonly based on trial & error, price and recommendations

88% of parents who potty trained their child used training pants at some

point

Top diaper purchase factorsFamily and Friends’ recommendationsTrial & ErrorTrustworthy NamePromotions and coupons

“My daughter has an allergic

reaction to certain brands

and types”

”Quality – good diapers are

worth it.”

“Licensed characters – my kids were fixated on certain ones”

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Potty Training

Time

Friends w/ Kids

Family

Price/Coupons

Internet

Social Media

MommyBlogs

Company Site

Store

DiscountHuggies Pull-Ups

Yes to disposable

training pants

No to disposable

training pants

Path to Purchase

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Available space to betop of mind

EstablishedBrand & Identity

First in category

Innovative

Partnerships

Funct ional

Open-minded

thinking

Perceived as a

secondarytool High price

Coupon driven

Negative word of mouth

Strengths & Opportunities versus Weaknesses & Threats

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Huggies Pull-Ups Target

Demographics

Women aged 25-44with child(ren) between the ages of 1-5

Obtained bachelor's degree or higher 53%

Employed Full-Time 52%

HHI $60K+ 100%

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Open Minded•I like trying new things

Family Focused•Spending time with my family is my top priority•I try to eat dinner with my family almost every night•I like to shower my loved ones with gifts

Active•I am so busy, often can’t finish everything I need to in a day•I purchase products to help organize my life

Desire to make something of themselves•I enjoy showing off my home to guests•I consider myself sophisticated•I am typically willing to pay more for high-quality items

Huggies Pull-Ups Target

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Introducing

Debbie McGinnis

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What she shares with her family & friends

Family dog, Sims (his real name is Mango)

Making Smores with kids (She loves using Instagram)

Hanging out with girlfriends (It’s an adult tea party)

Kid’s first zoo trip (like mother, like Hippo)

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30

50

70

90

110

130128

112

70

123

76

3849

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Internet Magazine Newspaper

Outdoor Radio TV (Daytime terciles)

TV (Prime) TV (Total)

Top Media Quintile Usage

Magazine Types Index

Parenthood 445

Babies 407

Women 167

Home Service 146

Epicurean 166

News and Entertainment 123

Television Index

ABC Family 149

Disney Channel 257

Food Network 154

HGTV 189

Nickelodeon 259

The Learning channel 167

Movies

Index

Comedy 136

Romance 136

Family 154

Internet Activity Index

Used E-Mail 141

Made a purchase for personal use 181

Obtained childcare or parenting information 571

Visited a TV network or TV show’s website 167

Shared photos through Internet website 197

Websites

Index

Google.com 142

Yahoo Mail 142

Disney.com 503

Amazon.com 209

Facebook.com 200

Target Media Usage

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Observation InsightWhile diapers are essential and coupon driven, training pants have higher price points and are used as an optional tool.

First time parents are more prone to actively seek out guidance and brands for their child to reach developmental milestones.

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Strategy

Encouraging Pull-Ups as an essential milestone in the potty training process will allow Huggies to own the transitional space between diapers and  underwear.

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the big idea

guidetour guidementormanualspecialist

“bible”templateteacher

reassurance

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Media & Tactics

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Huggies’ Current Media Mix

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Magazines69%

US Internet Displays

31%

Pull Ups:• When looking at Huggies and Pull Ups together, magazines (69%) and US internet display (31%) continue to be the top channels of spending

Huggies: • A substantial portion of Huggies spending goes towards magazines making up 47% of their media mix

• The second largest spends are on SLN TV with 16% and Cable TV with 15%

Network TV4%

Spot TV0%

SLN TV15%

Cable TV15%

Syndication2%

Magazines47%

Hispanic Mags1%

Natl Spot Radio2%

US Int-Display13%

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Projected New Media 2012 Spending

45%

12%

3%

10%

30%

Television30%

Magazine40%

Digital/Social18%

OOH8%

Promotion & Sponsorship4%

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Parenthood:Parents

Parenting

Babies:American Baby

babytalk

Women: Real Simple

Hispanic:Ser Padres Bebé

Ser Padres

Magazines

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Why?

Based on MRI, our target group indexes highly on reading magazines having to do with parenthood (445), babies (407), and women (167).

These mothers also more likely to consume Spanish language magazines (110).

So What?

-Advertise in magazines that value children’s developmental milestones and organization

-Form strong partnerships with each publication in order to take advantage of other marketing services including digital ad space, sponsorships, customized events, etc.

-Begin advertising Huggies diapers in baby magazines and segway mothers into Huggies Pull-Ups as they move towards general parenthood magazines.

SOURCES: MRI, Meredith Media Kit, The Parenting Group Media Kit, Real Simple Media Kit

Demographics

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ALIGN ONLINE WITH PRINT

ALIGN FACEBOOK AND TWITTER WITH PRINT

Print ads

• Similar to a growth chart but instead, four pieces of a treasure map leading to the big milestone: Pull-Ups.

• Each piece of the map dispersed in various issues of a magazine

• Each poster has a code that can be registered online and once all four are registered, user will receive a coupon

• Q&A ad• Take questions about potty training from Huggies’

Twitter and Facebook pages and answer them via the ads

• Personalized response from baby experts:• Simple, informational, and drives mothers to

Facebook, Twitter, website, and stores (cross-promotional)

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iPhone app featuring age-by-age development guides and searchable articles

Fit Generation

Signature sponsorships, Parent bloggers, and Newsletters

What They Have

SOURCE: The Parenting Group Media Kit

Change the Ages & Stages app to follow the new Huggies developmental milestones

Customized sponsorships and product sampling of Huggies diapers, wipes, and Pull-Ups

Sponsor a photo contest with kids wearing Pull-Ups, advertorials, and coupon inserts

THE PARENTING GROUP PARENTING and BABYTALK

What We Want

Magazine partnerships

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Fit Generation Run/WalkParenting magazine

– Three event dates– June 18th: Denver, CO– July 30th: Minneapolis, MN – October 1st: Winter Park, FL

– Exclusive diaper sponsor at event

– “Diaper Dash” (children 9 and younger)– Personalized certificates

– Huggies Pull-Ups pedometers– Given for free at booth

– Event Promotion– Fit Generation website– Parenting Magazine website– Huggies website and Pull-Ups website– Huggies Facebook and Twitter page

“Achieve Your Milestones”

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Baby Changing Tables

– Promote Pull-Ups at Disney resorts

– Pull-Ups pouches will be placed on every changing table

– Shaped like a Pull-Ups and contains compartments for storage

– Each Pull-Ups pouch will display a different Disney design

– Utilize Disneyland’s Baby Care Center by distributing Pull-Ups changing pouches

– Pull-Ups already offered there for purchase

Placing Pull-Ups at the top-of-mind as the “next step” in the potty training process

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Interactive Floor Mat Displays

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• Placed in major retail stores and mall play areas

• Interactive mat will display the Huggies Pull-Ups logo and an interactive game for toddlers such as hop scotch

• Each interaction will unlock the next step in the process of potty training

• When game is over, parents will be directed to where Huggies Pull-Ups are located in-store

• Interactive mat will not only be used to promote the actual product Huggies Pull-Ups but also the brand

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Porta Potty Takeover“Start Your Potty Training Adventure”

– Installments placed in playgrounds and parks

– Footsteps leading up to the porta potty will display each step of potty training (Huggies Disposable Diapers, Huggies Pull-Ups, and the final step being the actual toilet)

– Changing tables will be installed in each porta potty with free samples of Huggies Pull-Ups

– Coupons will also be available for parents

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Start your potty training adventure HERE

Brought to you by Huggies Pull Ups

Step 2Huggies Pull-Ups

Step 3Toilet!

Step 1Huggies DisposableDiapers

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Television

– Commercial ideas– Older kids helping lost kids in diapers

– An older kid as the tour-guide around the bathroom/toilet

– Disney characters shown as mentors for getting through the process

– Making a quest for the toilet

– Short series on tips and guidance for potty training– Minute-long episodes shown before and after a long

program for children ages 1-5

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Product/Brand Placement

The loveable same-sex parents, Mitch & Cam are about to start potty training their adopted baby, Lily. They go to Claire and ask about her experience with potty training her 3 kids. She tells them all about the specific steps and procedures needed to train and how it completely worked for all of her kids (except Luke who always seems to be the outlier). Mitch and Cam try with Lily but it doesn’t work. Their next option is to go to Jay and Gloria. Gloria suggests them to do it in a very aggressive way and that Lily will just have to learn. An unappealing method but they try it nonetheless, only to fail. They go to a baby store/pediatrician/other source and discover Huggies Pull-ups. They use the Pull-ups and go about their own way of training Lily and it works!

This episode can be all about the milestones that are relevant to the 3 families and how they find a new way of finding new milestones

A relatable familyLaughable experienceTeaches the viewers

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Huggies Apps

– Toilet Finder App– Maps out closest kid friendly bathrooms

– Users can leave tips on best places to go

– Users can add new locations as well

– Toddler Translator– Joke app

– Silly expansions/translations of young children’s speech

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Incorporate Pull-Ups into Huggies digital experience

– Current website and Facebook for Pull-Ups and Huggies are separate

– Showcase comprehensive product offering of Huggies

– Guide consumers from birth through potty training

– Build unified advice resource center on both website and Facebook

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Social Sustain

– Develop a POV/Voice for each major social platform– Create posting strategy

– Test and adjust when/what to post

– Budget sufficiently for constant interaction

– Use social media to support all other ad campaigns

– Take advantage of customer service opportunities

– Advocacy programs

– Use influencers to drive social conversations

– Enlist celebrity Twitter users

– Sponsor local meetup events

– Create checkins and deals

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Digital Sustain

– Social advertising

– SEO campaign

– Display/Rich media advertising

– Video advertising

– Custom content creation & sponsorships

– Social gaming advertising

– Content sharing

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Retail Recommendations

Create Pull-Ups gift pack including Pull-Ups, toilet seat, stickers, potty training chart, and interactive CD

PlaceCars’ branded Pull-Ups by the Cars’ branded toilet seats

Improvepartnerships with vendors to insure that brands receive more space on the packaging

Present buying a toilet seat as a big event and as a Big Kid® gift Associate toilet seats with Huggies’ Pull-Ups

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Questions?

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Appendix

54 *Mintel, March 2011

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How closely do you/did you pay attention to your child's developmental milestones?

 

Are you a parent or primary

caretaker of a child?  

Answer Options Yes Response Count

Level of Attention1 Not at all Closely 0  2 0  3 2  4 6  5 0  6 15  7 Very Closely 18    41 41

answered question 41

How important is it/was it to you that your child reaches/reached important developmental milestones at the same time as his/her peers?

 

Are you a parent or primary

caretaker of a child?  

Answer Options Yes Response Count

Level of Importance1 Not at all Important 0  2 2  3 6  4 8  5 8  6 11  7 Extremely Important 6    41 41

answered question 41

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Once you decided on a particular brand of diaper, how loyal were you to that selection going forward?

 

Are you a parent or primary

caretaker of a child?

 

Answer Options Yes Response Count

Level of Loyalty

1 Not at all Loyal 1  

2 1  

3 5  

4 2  

5 4  

6 7  

7 Extremely Loyal 14  

  34 34

answered question 34

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Desi

gns

and P

att

ern

s

Hosp

ital/doct

or

re...

Fam

ily a

nd f

riends.

..

Som

eth

ing y

ou r

ead ...

Tri

al and e

rror

Info

rmati

on y

ou r

ea...

Pro

moti

ons

(coupons.

..

Info

rmati

on y

ou f

ou...

Pri

ce

Envir

onm

enta

l C

on...0

2

4

6

8

10

12

What one factor was the most important in terms of fostering your sense of loyalty to a specific brand?

Yes

Other (please specify)

Licensed characters - my kids were fixated on certain onesHow well it "holds" my child's deposits.My daughter had an allergic reaction to certain brands and typescomfort and drynessQuality - good diapers are worth it.

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0

5

10

15

20

25

Where did you get the most information on potty train-ing tactics?

Yes

Other (please specify)

daycareBooksI worked in childcare for many years so I used what I knewDiaper free by 2 classbooksbooks

How important was the availability of training pants as a part of the potty training process?

 

Are you a parent or primary

caretaker of a child?

 

Answer Options Yes Response Percent

Response Count

Not at all important 2 5.9% 2

Not too important 6 17.6% 6

Neither important nor unimportant 4 11.8% 4

Somewhat important 12 35.3% 12

Extremely important 10 29.4% 10

answered question 34

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Always Only used them during

the day (morn-ing-night)

Only used them at night

It varied be-tween night

and day

Only when traveling

Never0

2

4

6

8

10

How frequently, if ever, did your child(ren) use training pants?

Yes

How frequently, if ever, did your child(ren) use training pants?

 

Are you a parent or primary

caretaker of a child?  

Answer Options Yes Response Percent

Response Count

Always 9 26.5% 9

Only used them during the day (morning-night) 7 20.6% 7

Only used them at night 6 17.6% 6

It varied between night and day 5 14.7% 5

Only when traveling 3 8.8% 3

Never 4 11.8% 4

answered question 34

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Single, never mar-

ried

Married Separated Divorced Widowed0

5

10

15

20

25

Marital status

Yes

0

2

4

6

8

10

Household Income

Yes