in India, where in the others like HUL are importing from China andsubsequently marketing in the country.P&G is the market leader with its brand ‘Whisper’ holding more than 52%market share followed by J&J at 39% and Levers at 5%. She Comfort enjoys 2%market share. Balance 1% sales are shared by eleven smaller companies.Modern trade (organized retailers) accounts for roughly 30% of its volumes.However, the company is forced to give higher discounts to large retail houses.Its contribution margin is lower for a market segment where it has lowervolumes at the moment. However this has paid off. Its brands are ranked no 2 or3 by shelf space in the large retail format in key cities. In Bangalore it ranks 1
byshelf space in key Pantaloon locations. Royal Hygiene Health Care has alreadytaken 3rd position (ahead of HUL) in terms of sales in this format of business inan industry with roughly 11 players.
2.c- Demand Behavior
Sanitary napkin demand behavior is a boon for any manufacturer. It is used byany user once in a month for an average of 4 days. So for a sizable group ofwomen, it can be safely assumed that the demand will be evenly distributed in amonth and the quantity required would be fixed. Once customer is satisfied withthe product, usage has almost no discretionary component and very high brandloyalty due to personal nature of the product. The only change in demand shouldreally come from new customer additions. So if the company expects to doubleits sales, it can be safely assumed that 50% of sales would have near zerovolatility and the rest 50% would have some volatility based on the firm’s speedof customer addition (and product switch by new customers in the initial trialstage).
3- Production Details
The company has source its production units from China. The ZYG type line thatthe company deploys runs at the maximum speed of 200 pads/minute with thenormal steady operation speed of 150 pads/minute.