Diaper market analysis for Pipers inc

2665 words (11 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Pipers Inc. offers a great selection of diapers to its customers. It offers high quality diapers, made with 100% organic and recyclable material available on the market. Our mission statement which is “To give parents an upper hand in raising their children”, and we try and only create products that do that.

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Our main customers are parents, but more importantly current mother and mothers to be, who a high quality need diaper, with more absorption, stretchiness, and with the colour changing feature that is only available in our diapers.

Since there are already several diaper companies out there, there will be a lot of competition, especially with Huggies and Pampers. But since there is no other company that has our unique feature, there will be little or to no competition with a diaper that has our feature.

We have also completed surveys/questionnaires and other types of research, such as research done by other companies. The primary research we will be done through surveys, and we will be doing random testing on 10 new parents with one month worth of diapers and asking them to fill out a questionnaire on their experience and suggestions for our product. The secondary research we would use would be to look surveys done by our competition; secondly we will look at internet databases and gather information on our competition and how their products are doing.

Our diapers also have the unique feature in which the diaper changes colour when the baby uses it, so the parents know when a baby has finished with a diaper and needs the diaper to be changed. This benefits both parents & the baby by allowing parents to react quicker and helping the baby by decreasing the amount of discomfort the baby feels with their business inside. Also other companies do not offer as high of quality diapers as us, which are also very environmentally friendly and special features.

Our product will be distributed through indirect channels, and will be using intermediaries like wholesalers and retailers. We will have an exclusive distribution policy in which we will have an exclusive deal with Wal-Mart, in this deal Wal-Mart with get the rights to be the only retailer to sell our diapers. Our products will be transported in a process called containerization through trucks, trains and ships. Our customers will be reached by advertisements on television, radio, billboards, magazines, and websites. These advertisements will feature models, celebrities, and pictures of happy babies in our diapers.

The cost of one diaper is $0.60, but our diapers will be sold in packages of 12,24,48,72, at a price of $8.00, $15.00, $29.00, $44.00 respectively. We will be using marketing skimming at our pricing strategy, in which we will charge a high price for a product before it enters the market.

Target Market:

The target market for our product is to include parents of both genders, whose ages are ranging from 18-40. We are going to be mostly targeting mothers and mothers-to-be. They can be of any ethnicity or culture. Their income level doesn’t have to be too high, but must be around average income of Canadians, as the cost of the diapers is not too expensive, but costs more than an average diaper. For geographic, we are interested in marketing to urban and suburban locations. Our product is only available in Canada and the US. Their beliefs, opinions and interest will not matter because diapers are a need for children, but for the person who will be changing the diapers the psychographics the people that are interested in knowing things fast. This can include, whether or not it is eco- friendly. More parents will be interested in our product because it is 100% eco-friendly and allows the parents to find out when to change the diaper before it is too late.

Competition

As a company, we are going to face many competitors; some direct and others indirect.

Direct

Pampers: Pampers is a very hard company to compete against, as it is a trusted family brand that has been in business for more than forty years. They have many types of disposable diapers that compete with us, but most commonly Pampers Cruisers. This product has a good image that it built of many years. This product has much strength, but mostly it is a cheap diaper that uses good quality parts. A weakness is that it is not as absorbent as some other brands of diapers in the market.

Huggies: Similarly Huggies has created itself to be a trusted family brand that has been in business for many years. They also have many lines of disposable diapers that they sell, Little Snuggler Diapers. It is a very confortable diaper that allows a lot of stretching and movement. But once again, it does not offer as much absorption as other brands.

Luvs: A company that started recently has gained a large portion of the market very quickly. These products are soft and smell fresh, are very absorbent without a lot of bulk, and have elastic features. These products have no large flaw.

Seventh Generation: This is another fairly new company that is based around environmentally friendly products. Its products are chlorine free and are softer than most other products out in the market. A few flaws include that it is neither stretchy nor very absorbent.

gDiapers: These are also very environmentally friendly diapers that are flushable. They are made of biodegradable material that decomposes in a few years. A weakness with this product is that it is not as soft or absorbent as other diaper brands.

Indirect

Enfamil: Enfamil is a trusted baby food brand. They offer products for babies throughout their development. They lack advertisement, but otherwise are successful because of word of mouth.

Johnsons: Johnsons is a very famous company that has been in business for many decades. Their baby oil products are now a trusted family product. There are no known weaknesses with this product.

Green Baby Clothing: This Company offer a wide variety of cloths made from organic bamboo and hemp for children of all ages. It helps the environment as it is organic. It can only be ordered online though, which is its weakness.

Baby Wipes: Baby wipes are some of our indirect competition. They are cheap products that clean baby. They are easy to use, but sometimes contain harsh chemicals.

Nuk: Have trusted products that are safe and effective. Their products have a unique shape that helps the baby’s oral development. There are no known weaknesses for their products.

Marketing Research

The primary research we will be doing is to create surveys and asking random parents to fill them out. After a certain amount of surveys, we will analyze the results (The questions asked in the survey and results can be seen in the appendix). The second thing we will be doing will be to gather 10-25 new parents to test our diapers. They will be given diapers for 1 month and at the end of the month, we will ask them to fill out a questionnaire on their experience and offer suggestions for our product. The secondary research we would use would be to use previously done surveys by other companies, such as Huggies and Pampers, and look at the feedback. We will then compare it to ours. We could also look at internet databases, which can provide our information about businesses and our direct and indirect competition. 

Product

Brand Name

The brand name of our product is “Change ’ems” and is a product-dominant brand name. We are using a happy baby on out packages to show that our products make babies feel better than other products out in the market.

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Branding Strategies

We are going to be co-branding our products with UnileverTM, the company that owns DOVETM. We are going to be putting DOVE Baby Lotion inside our diapers and use their logo on out packages. This will cause an increase in sales, as possible consumers are more likely to buy our products when it has DOVETM in it, which is a trusted family brand. A portion of the profits will be paid to UnileverTM.

Logo

Slogan

Our slogan for our product is, “So you know, when they go”.

Utilities offered

We will be offering numerous utilities, including Form, Information, Place, and Time Utilities.

Form Utility: Our diapers are going to be made up of several components, which include the super-absorbent pad, the elastic band, the non-woven cloth, and the litmus paper. We are going to be using the litmus paper as our indicator; to show when to change the diaper. The rest are common components of any diaper. The colour of our diaper is plain white. The design of the diaper is similar to other diapers being released by our competitors.

Information Utility: Each of our individual packages have directions on how to apply the diaper, some warnings and other info. We have also created a telephone line in which customers can call us and give their feedback and a website in which customers can see all kinds of information regarding products; as well as a place to leave feedback.

Place Utility: Our product is going to be sold through our website, Wal-Mart, Costco, and other common retailers.

Time Utility: Our product will be sold 24/7 on our website, so customers will be able to buy our diapers at any time. Several retailers that also sell our product will be open 24/7, such as Wal-Mart.

Positioning Strategies

The positioning strategy that we are going to use for our product is price positioning. This is because our product is a high quality diaper and an exclusive product. Unlike any diaper out, Piper’s Change’ems comes with the revolutionary feature to change colours when it is used. It has also been created so it offers more dryness (MAX DRYâ„¢) than our competitors, is softer than most competitive diapers, and has super stretchy sides that give babies the freedom to move and play. Thus it is a high quality product.

Packaging

Each individual diaper will be packaged in a plastic cover, which will prevent any damage being done to the product. On the plastic cover, there will be the logo mentioned above, instructions, and other information pertaining to the diaper. There will also be a picture of a happy baby in our diaper. Since the product is not sold in individually, it has been put into boxes that can be bought. There are several choices for the box that can be bought, as it comes in a 12 pack, a 24 pack, a 48 pack, and a 72 pack. The box will have our logo on it once again, with more information on the diaper, and a picture of the same happy baby. By putting a happy baby on the box, will make it more attractive to any possible customers. Each box is going to be made of 100% recycled material, and this will be shown on the box. Each plastic casing is also going too made of recycled plastic. This packaging will be convenient to consumers as they can buy a pack of how many diapers they are going to need and they are easy to open

Pricing

Price of product

The cost per one diaper will be $0.60, but we will not selling diapers individually, but rather in packaging of 12, 24, 48, & 72 . So the costs for 12 pack – $8.00, 24 pack – $15.00, 48 pack – $29.00 , 72 pack – $ 44.00.

Pricing strategy

We are going to be market skimming, as our pricing strategy to sell our products to retailers and our retailers will also use the same pricing strategy. We believe that our product is of high standard and deserves to be priced higher than other brands, such as Huggies and Pampers. We also believe that we can capitalize on the products distinctiveness, due to the fact we are the first ones to release a product that has features such as indicating when the diaper needs to be changed.

Pricing polices

We don’t have any pricing policies, but we are going to charge a higher price, because we believe that there could be large amount of people that are willing to pay little more for the special feature we have in our diapers.

Distribution

Channels of Distribution

We are going to use indirect channels, we are going to be selling to both retailers and wholesalers but mostly Costco, and Wal-Mart. Basically we are going to use intermediaries (wholesalers and retailers).

Distribution policy

We are going to be using exclusive distribution, in other words we are only going to make our product available to customers at one retailer which is Wal-Mart, we want only one store to sell our product because Wal-Mart is a well-established store in north America (Canada and USA) and people go there for many different things and will be exposed to our product and if they like they have nowhere else to buy the diaper so they have to return to Wal-Mart. We did not choose to sell our product anywhere else because we are going to make a deal with Wal-Mart so that we can get some money in return for a certain amount of sales and in return Wal-Mart receives exclusive rights to be the only retailer to sell our diapers. Making our product available at only one store also allows us to save on transportation costs due to the fact we are only shipping to one store.

Transportation

We are going to use trucks, trains, ships to transport our product to the many Wal-Marts across both sides of the border. When we are transporting our product we will use containerization, which the process of transporting cargo in large containers because our products are going to be in boxes with our diapers packaged in them.

Promotion

Advertising

Our promotional strategy will involve a large number of television ads, with models showing our diaper on a baby. They will display loving and caring personalities towards their children and make the diaper and the brand seems gentle and for parents who care for their babies. Billboard ads placed around apartments, large cities and highways will also be used to reach mothers and fathers on their way to work. There will also be advertisements on numerous radio stations, such as 680 News. There will also be ads on websites, such as Hotmail.com, Facebook.com, and Youtube.com.

Sales Promotion

We will advertise our product by offering coupons to our mailing list on our website and through kiosks at major shopping centers around the major cities of Canada and the Us. We will also advertise the fact that we use special dove moisturizers in our diapers to ensure comfort in all advertisements. We will also have a contest, in which the winner will win free diapers for one (1) year.

Public Relations

For publicity, we will donate diapers to orphanages across the US and Canada. This will help us create a positive image for our company, with parents; showing that we care about the children around the world. This will also create the image that we are a kind company that helps other that our in trouble. Also we will donate a free large pack of diapers (72), as well a $100 dollar gift certificate for products from our online store to the parents of the first baby born in Canada and the US.

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