DRYPERS CORPORATION

CASE STUDY NATIONAL TELEVISION ADVERTISING CAMPAIGN

Strategic Marketing Management MKT 750 EMBA Prepared By: Syahril Nizam Bin Dato Hashim Prepared For: Dr. Baderisang Bin Mohamed
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TABLE OF CONTENTS
Introduction Market Characteristic Distribution Channel Market Segmentation Problem Statement SWOT Analysis Situational Analysis Recommendation
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INTRODUCTION
Drypers Corporation producer and marketer of premium quality, value-priced disposabale baby diapers and training pants under the brand name DRYPERS Evaluate US $10 mil national television advertising campaign

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MARKET CHARACTERISTIC (1997)

Target Market
User Infant and children below 4 years old Buyer Mothers age 18 to 49 years old

Market Condition
Saturated due to trends in fewer infants and diapers improvements.

Market Capitalization
US $ 4.525 billion
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DISTRIBUTION CHANNEL

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MARKET SEGMENTATION - 1

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PROBLEM STATEMENT
US 10 million allocation for national television advertisement
33% increase in advertising and promotion budget High expenditure on television advertisement by the competitors
Kimberly-Clark Huggies US $ 57.2 million Procter & Gamble Pampers US $ 52.8 million

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SWOT ANALYSIS - 1
Strengths
4th largest selling diapers brand 2nd largest seller in Grocery Store Exclusive private label supplier to Wal-Mart Strong Cash Flow and Sales Growth Innovative products Aloe Vera, Natural Baking Soda Prestigious licensing to use Sesame Street characters
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SWOT ANALYSIS - 2
Weakness
Lack of brand recognition Less extensive national production and distribution capabilities Low penetration in Mass Merchants and Drugstore distribution channel Small advertising budget compare to competitor.
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SWOT ANALYSIS - 3
Opportunity
Extensive brand recognition coverage through TV advertising Increased presents in Mass Merchants and Drugstore distribution channel Gold Edison Award most innovative products Expand market share
Product Consolidation Sesame Street coverage
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SWOT ANALYSIS - 4
Threats
Counter Reaction from competitor
Advertising R&D

Unsuccessful penetration into Premium Priced market segments(Consumer not respective) Minimal impact towards television advertising campaign Saturated diapers market trend
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SITUATIONAL ANALYSIS - 1
Two possible action:
Maintain with current promotion
Promotion driven sales Avoid $ 10 million risk in advertising Maintain current market share Focus on expanding current distribution strength in grocery store by promotion driven sales.

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SITUATIONAL ANALYSIS - 2
Invest $10 million in National Television Ad
Brand driven sales Increase brand awareness and innovative product knowledge to consumers. Wider reach to capture potential customers Increased penetration in Grocery store distribution Penetrate mass merchant and drugstore distribution $10 million risk on consumer advertisement acceptance Huge gap between investment (risk) and return
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RECOMMENDATION
$ 10 mil investment is proposition to Drypers market share Brand Awareness will boast short term sales as consumer will curious to try Product Knowledge and effective innovative product will further boast long term sales

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RECOMMENDATION
As the brand building progress and a better penetration to premium price segment, Dryper will be able to reap better profits on the pricing segmentation
Huge market share and potential in premium price segment (79%)

Tool in meeting Business Plan for 1998 and further maximizing their stock holder value.
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Q&A

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