Pampers Brand Extension: Pampers Pants
Shivangi Singh (PGP30104)[email protected]+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
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