90+Sample+Plan

Sample Marketing Plan 1 ****** University**

**Marketing Plan** **Pampers**

**Submitted by: ****** **Submitted to: Prof. ****** **Date: ****** **Table of Contents**

**Executive Summary …………………… P.2**

**Current Market Situation …………………… P.3**

**SWOT Analysis …………………… P.7**

**Objectives and Issues …………………… P.8**

**Marketing Strategy …………………… P.9**

**Action Programs …………………… P.11**

**Budgets & Controls …………………… P.12**

**Appendix …………………… P.13**

**Executive Summary**

In order to meet the company’s goal which is increasing sale by 5 % in the following year, we suggest that the company should focus on promotion rather than dropping the price. The three strategies which are 4-Level of Prizes, Hospital Promotion, and Daddy Promotion will be implemented to increase the sale volume.

The 4-Level of Prizes basically is to encourage customer to buy Pampers’ products because they get points every time when they purchase Pampers’ products and they can accumulate the points or redeem the point. The higher the points the customer accumulates, the bigger the prize they can exchange.

We are also going to make agreement with the hospital that encourage the doctors and nurses to use and buy our products for the new born babies. We believe that our products being used by the nurses in the hospital can attract the parents to keep using our Pampers’ products.

Daddy Promotion is to attract the Father’s attention. The TV commercial will show that not only Mummy can change the diaper for babies but father can also do that. We are trying to increase the purchase from Daddy.

All three actions mentioned above would increase the marketing cost. However, we believe these marketing expenses can generate more sales in the future. We also believe that these actions can help the company to meet the goal which is increasing the sale by 5% in following.

**Current Market Situation**

Pampers is targeted toward people who are aware of the lower prices and the environmental issues in American market. To satisfy the needs of the customers, Pampers offers discounts and tries to create green diapers. The product mix for Pampers is broad, and it offers many different sizes of their diapers. Pampers 2009 sales are $5500.17 million. The gross profit margin in June 2009 is 51.1%.

**Market Description:** When Pampers entered the market in 1961, it attracted a large number of mothers and their babies. It has become one of the dominators in America. In 2008, its customers were generally people who were aware of the changing prices, as the costs of raw materials were rising. Pampers announced that it would increase prices by between 5% and 8%. Thus, volume sales only increase by 1% in 2008. In addition, there are a small, but growing number of customers who were aware of the environmental issues. They were looking to consider more eco-conscious choices with respect to disposable diapers. Therefore, cloth diapers experienced a small resurgence in 2008.

Today, people are more aware of the impact purchase decisions have on the prices and environment. Pampers continues to offer discounts, other promotions and green diapers to satisfy its customers.

This information has helped Pampers to better position itself and the products it offers in America. (See Appendix A)

**Product Review:** In the US market, Pampers 2009 sales are $5500.17 million. The gross profit margin in June 2009 is 51.1%. The product mix for Pampers is broad and it contains a deep line. Pampers Baby Dry has the deepest line with six different sizes of diapers available. Pampers offers many different sizes of their diapers. Each product has been developed to fit each developmental stage of a baby’s/toddlers life. Using colorful packaging helps make Pampers stand out from the other brands. The use of warm colors such as yellow help Pampers to convey comfort in the consumers’ minds. There are many different sized packages for consumers to purchase. These different sizes help to fit the different needs of the consumer. (See Appendix B)

**Competitive Review:** Our company’s main competitor in USA is Huggies. Huggies is marketed by Kimberly-Clark which is an American corporation.

In 2008, Huggies and Pampers, the two companies represented almost 80% of total value sales in 2008 of US market. The Kimberly-Clark Corp held its leading position in the nappies/diapers/pants category with a value share of 40%. Huggies diapers trails Procter & Gamble Co.'s Pampers in market share 35.8% compared to P&G's 49.8% in the almost $5 billion diaper category. Huggies was now "hanging on by price discounting" as owner Kimberly-Clark was forced to chop and change prices to maintain market share. Sixty-four per cent of Huggies' sales are now on promotion, up from 51 per cent three years ago.

According to the diapers brand shares in USA from Euromonitor International, we could see that through these 8 years, Huggies took more market share than our brand. But in general, in these 8 years our market share increased progressively, and Huggies’ market share was decreasing. (See Appendix C)   **Pricing:** Huggies products are divided into 8 parts according to baby’s weight. And in each part also include two different kinds of quantity for customer to choose. The price for bigger bag is in the range of 65 to 90, and the smaller bag is around 40 dollars. (See Appendix D)

**Distribution:** Retail stores were the major source of revenue for Huggies. Huggies mainly depends on Retail outlets (including: supermarkets, drug stores, superstores, and warehouse clubs). A small quantity of Huggies business was done through the internet.

**Promotion:** Huggies spends $9.1 million on TV, press and radio ads a year. Shares for Huggies have risen by 2.2 share points in the half year to mid-March in 2008. Coupons can also be easily found on the internet to purchase diapers.

**Distribution Review:** **Sales Trends:** With a combined 2008 volume share of over 20% in the nappies/diapers/pants sector, private label's as well as the other manufacturers' impact cannot be ignored. While The Procter & Gamble Co and Kimberly-Clark Corp have been able to differentiate their lines from private label through more premium products, Americans veered away from the branded manufacturers in 2008. While the major brand manufacturers announced price increases for 2008 due to the rising costs of raw materials, these rises were tempered by the heavy influence which private label has on the category. In addition, the others are comprised of such green manufacturers like Seventh Generation Inc.

In October 2007, Kimberly-Clark Corp announced that it would increase prices by between 4% and 7% in 2008 to help offset rising costs of production. The Procter & Gamble Co announced that it would increase prices by between 5% and 8%, while volume sales only increased by 1% in 2008. (See Appendix E)

**Distribution Channels:** Distribution for Pampers is intensive, allowing them to reach their target markets; thus staying competitive with their biggest competitor Huggies. Pampers can be found in most grocery, convenience, drugstores, and retail stores such as Wal-Mart and Target. Since Pampers products are convenience products distributing their products in many stores helps Pampers to remain competitive, maintain their market share, and gain a portion of the market as well.

**SWOT Analysis**

**Strengths:** Pampers was found in 1961 and it established a strong brand name in disposable diaper industry. Pampers are available in more than 20 markets around the world and it has a higher market share in Western Europe than in the global average, with about 54.4% market share as opposed to Huggies, about 13.4%. Pampers’ marketing concept is “seeing the world through the eyes of a baby.”

**Weaknesses:** Even though Pampers is the market leader in diaper industry globally it cannot become the leader in U.S. The biggest competitor, Huggies had also established a very strong brand name and had similar market share compared to Pampers in U.S.

**Opportunities:** Since the population in Asia is huge, it would be a great opportunity to expand the market share in some Asian countries such as India and China, even though in some of the developing countries they already have their domestic diaper product and they are relatively cheap compared to Pampers. However, the quality of those products cannot compete with Pampers. While the economy of these developing countries grows significantly and more parents are concerned about the quality of the diaper rather than the price, Pampers has a competitive advantage to become the market leader in Asia.

**Threats:** In the future, Pampers products are facing some potential threats. In many of the developed countries, including North America, the birth rates are declining. In other words the demand for disposable diaper mostly will decrease. Intense rivalry is another potential threat to Pampers Products. The biggest competitor in North America is Huggies. They have very similar market share in North America. **Objectives and Issues**

Pampers has set aggressive but achievable objectives for 2009.

**Objectives:**
 * Increase volume
 * Increase Sales 5 %
 * Entice male consumers by promoting father strategy
 * Position Pampers as the market leader in this niche
 * Having doctors influence to get consumers to buy our product
 * Using prizes to encourage consumers to be repeat buyers
 * Reduce consumers high price impression

**Issues:**
 * Will the promotions influence Pampers’ image of high quality among consumers?
 * Will birth rate in North America allow the company to achieve the goals?
 * Will prizes be attractive enough to grab consumers’ attention?

**Marketing Strategy**

Pampers marketing strategy is based on positioning how the disposable diaper has changed the lives of babies around the world, it is constantly evolving. The primary target market consists of mothers.

**4-Level of Prizes:** One of the strategies that pampers wants to use to increase the volume of sales involves our 4-Level of Prizes, with the declining birth rate in North America the Level of Prices can also involve trips locally or abroad for the people in underdeveloped countries where the birth rate is booming. The 4-Level of Prizes customers will be able to redeem according to their level by entering a UPC code from the diapers package every time they buy one and earn as many points as they want they can use it at any level to acquire prizes for the babies or let it all build up as twice a year we will have multiple trips being offered to families that will increase the odds of winning, and definitely cause repeat customers.

This will definitely increase sales since the domestic diaper product will not be able to compete with our promotions. The word will spread quickly about the amazing prizes we offer to multiple families and more consumers will buy our products, since the chances of winning are multiple.

**Hospital Promotion:** Another strategy that we will use is the Hospital Promotion, since most babies are born in the hospital, this will be a target location using Doctors Influence to show parents the comfort and quality of our product on their baby. Parents will be more influenced once they leave the hospital to purchase our products, since doctors advice is not taken lightly especially when it comes to your newborn. We will offer a pampers package for newborn at a discounted price to the hospital for displaying our products and recommending it to their patients, also we shall provide welcome packages for all newborns to the mothers with all the information about how to start earning points to a rewarding and exciting trip for their family.

**Daddy Strategy:** Lastly we want to show how easy it is for Fathers to use this product, so we will spend some advertising targeting fathers since in this busy society where both parents work, fathers often have to look after the baby and go shopping.

**Action Programs**

Over the past period of time, Huggies and Pampers are two main competitors in the diapers market. Whilst, Pampers has already been the most famous brand all over the world, it still cannot dominate America market so far. In order to develop the market share in the USA, we have to go on convincing and attracting more customers to buy our products. There are a couple of methods we can use to increase our sales volume.

**4-level Prizes**: Inside our package, we will print a line of code, and customers could input the code they get on our official website to accumulate points. Customers can accumulate to any level they wish then redeem for prizes. There are four levels of prizes and the highest one is to offer multiple trips for several families to Disneyland.

**Hospital Promotion**: Firstly, we will do a survey to those pregnant to see which hospitals they trust most. Then, we will sell Pampers diapers to those hospitals at a relatively low price and sign a contract with them **//(require they can only offer our products to customers).//** Doctor will promote our products to customers because customers trust a doctor more than an ad.

**Daddy Strategy:** Pampers diapers is easy to use, even a father could handle it. We will introduce to customers the simplicity of our product.

**Budgets**

 **Controls**
 * ||  || **2008 (US $ millions)** || **2009 (US $ millions)** || **2010 (US $ millions)** ||
 * **Sales** ||  || $ 5,395 || $ 5,500 || $ 5,775 ||
 * **Expenses:** || **Advertising Costs** || $ 9 || $ 10 || $ 12 ||
 * || **Promotions Costs** || $ 11 || $ 13 || $ 20 ||
 * || **Distribution Costs** || $ 6 || $ 6 || $ 7 ||
 * **Total Expenses** ||  || $ 26 || $ 29 || $ 39 ||
 * **Profit** ||  || $ 5,369 || $ 5,471 || $ 5,736 ||

Procter & Gamble Company is passionate about the future of Pampers. While it is difficult to maintain complete control of all aspects of the business as it grows, Pampers maintains different kinds of tight control measures. It uses market share analysis and sales analysis to compete against its competitors. It uses feedback from customers’ satisfaction surveys to monitor customer needs. It uses performance of any promotional activities to monitor its volume sales. Having close relationships with customers ensures quick innovations of its products.

**Appendix**

**Appendix A** 
 * Table A2-1 Needs and Corresponding Features/Benefits of Pampers ||
 * Targeted Segment || Customer Need || Corresponding Feature/Benefit ||
 * * Mothers || * Lower prices || * Discounts and promotions ||
 * * Healthcare professionals of babies || * Follow environmental trends || * Offer green diapers ||

**Appendix B** 
 * **Product** || **Size** || **Price** ||
 * * Swaddlers New Baby Diapers || size1(8-14lbs)/(4-6kg) 78-Pack || $21.99 ||
 * * Swaddlers Sensitive Diapers || sizeN(up to 10 lbs)/(up to 4.5 kg) 34 pack || $13.99 ||
 * * Cruisers Diapers || size3(16-28 lbs)/(7-13 kg) 62 pack || $21.99 ||
 * * Baby-Dry Diapers || size1 (8-14 lbs)/ (4-6 kg) 100 pack || $21.99 ||

**Appendix C** 

**Appendix D** 

**Appendix E**  
 * |||||||||||||| **Table 1 Retail Sales of Nappies/Diapers/Pants by Subsector: Value 2003-2008** ||
 * **US$ million** || **2003** || **2004** || **2005** || **2006** || **2007** || **2008** ||
 * **Nappies/diapers** || 3,713.0 || 3,590.5 || 3,743.4 || 3,854.9 || 3,994.6 || 4,185.1 ||
 * **- New born nappies/diapers** || 1,050.7 || 1,057.4 || 1,070.9 || 1,111.2 || 1,168.1 || 1,241.6 ||
 * **- Standard nappies/diapers** || 1,572.0 || 1,468.9 || 1,553.6 || 1,615.3 || 1,674.4 || 1,754.5 ||
 * **- Junior nappies/diapers** || 1,090.3 || 1,064.2 || 1,118.8 || 1,128.4 || 1,152.1 || 1,189.1 ||
 * **Disposable pants** || 1,022.3 || 1,050.9 || 1,128.2 || 1,181.6 || 1,170.3 || 1,210.1 ||
 * **Nappies/diapers/pants** || 4,735.3 || 4,641.4 || 4,871.5 || 5,036.5 || 5,164.9 || 5,395.3 || ||
 * |||||||| **Table 2 Retail Sales of Nappies/Diapers/Pants by Subsector: % Value Growth 2003-2008** ||
 * **% current value growth** || **2007/08** || **2003-08 CAGR** || **2003/08 TOTAL** ||
 * **Nappies/diapers** || 4.8 || 2.4 || 12.7 ||
 * **- New born nappies/diapers** || 6.3 || 3.4 || 18.2 ||
 * **- Standard nappies/diapers** || 4.8 || 2.2 || 11.6 ||
 * **- Junior nappies/diapers** || 3.2 || 1.8 || 9.1 ||
 * **Disposable pants** || 3.4 || 3.4 || 18.4 ||
 * **Nappies/diapers/pants** || 4.5 || 2.6 || 13.9 || ||


 * |||||||||||| **Table 3 Nappies/Diapers/Pants Retail Company Shares 2004-2008** ||
 * **% retail value rsp** || **2004** || **2005** || **2006** || **2007** || **2008** ||
 * **Kimberly-Clark Corp** || 44.1 || 40.8 || 41.1 || 40.8 || 40.0 ||
 * **Procter & Gamble Co, The** || 39.2 || 39.9 || 39.3 || 39.7 || 39.7 ||
 * **Private Label** || 15.3 || 14.5 || 14.8 || 14.7 || 14.5 ||
 * **Others** || 1.3 || 4.8 || 4.9 || 4.7 || 5.8 ||
 * **Total** || 100.0 || 100.0 || 100.0 || 100.0 || 100.0 || ||