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1. Why has Pampers market share declined from 90 percent in 1970 to 38 percent in 1998?
Ans. previously, pampers was a unique product in the market so it had a good market share.
Starting from 1978 K-C introduced the Huggies brand to rival that of pampers. They also
received national distribution in 1982 .This led to a reduction in the market share of
huggies. Following that several innovations improving the huggies design such as
contoured elastic leg bands helped them capture more market share .These reasons
influenced the market share decline of pampers from 90 percent to 78 percent.

2. Who is the target customer of Rash guard? How often will they use Rash Guard?
Ans. The parents of kids under the age of 5 years are the target customers of Rash Guard. The
frequency with which they would use rash guard depends on the age and sensitivity of
their kid. For a 0-3 month baby the typical usage would be 9-10 times a day and that
number would decline to 3-4 diapers a day for a 3 year baby. Here we assumed that the
parents brought the rash guard diaper everytime instead of a regular diaper just to prevent
their kids from getting a rash.

3. Suppose every Rash Guard customer uses Rash Guard for diaper rash prevention. How big is
the market opportunity for Rash Guard?
Ans. In 1999, there were about 19 million children aged below 60 months, out of almost 60% of
children aged 4 to 15 months suffered from diaper rash almost two times a month. Also,
diarrhea was a common cause of diaper rash which affected almost 70% of children; so the
market for diaper rash accounted for about 4 million children who suffered diaper rash of
any sort and will use Rash Guard to protect themselves from it.

4. What is the cost of Rash Guard when it is used for prevention? What is the cost of Rash
Guard when used for treatment? What is the cost of current diaper rash treatments?
Ans. The cost of Rash Guard is 14% premium over normal diaper, so the cost of Rash Guard
diaper would be around $0.32. The cost of Rash Guard when used for treatment was
around about $2.25 per ounce of ointment that was applied when a child suffered from
diaper rash. The cost of current diaper rash treatments amounted to about $24million for
the year 1996. Every parent was skeptical about that time of using diapers and preventions
and went to consult doctors for its prevention.

5. How should P&G position Rash Guard?

Ans. After market analysis, it was found that diaper rash is a common problem
faced by the infants between the age group of 4-15 months, more frequently
among the children of working class who are unable to change the diapers
frequently to let the air flow in.
The RASH subsequently created severe health problems like diarrhea and
yeast infections which lead to extra expenditure on ointments, health
consultations and medicines.
Hence the positioning strategy would be:

We can bank upon the guilt factor that parents experience when they
are unable to prevent the health issues suffered by their infants
Also position ourselves as money saver as compared to the extra
expenditure done by them

6. What are the implications of your positioning recommendation for the

Rash Guard launch budget?
Ans. The positioning strategy suggested will not move the launch budget by huge
amount. An added expenditure might be incurred where special launches,
drives or advertisements are positioned in for educating working parents
about the health issues they are exposing their infants to, due to usage of
current class of diapers.

Differentiation & Positioning

1. Durex


Durex has mainly focused on the urban working class,upper white class and
high society swarm situating itself as "Fun"
The influence of the brand's value from its stature as the worlds leader in the
International business helped it being seen as a trustworthy brand


Its primary focus is on safety, but also shifting towards enhancing pleasure
with newly flavoured and differently shaped condoms
Extras such as lubricants, vibrators and erotic back rub gels are packaged
along with condoms and sold at a marked down rate to expand deals and
consciousness of the brand

2. Cadbury

Delivering recipes for lifes happy occasions irrespective of the event

Cadbury will be your perfect companion
Being a leader in the market has ensured good brand recall
Its positioning as a dessert has ensured the Indian cuisine is complete


Innovative marketing campaigns positioning the products as gifts for

Emotional ad campaigns like Kuch Meetha Ho Jaaye have ensured the
brand has connected with the audience