HUGGIES VS PAMPERS

- KELLER PYRAMID

DIAPER INDUSTRY IN INDIA
Value – 4,479.8 million Rs  Growth rate – 16 % in value terms in 2010  Major players – K-C and P&G ( 85% market share )

Market Share
17.50% 17.00% 16.50% 16.00% 15.50% 15.00% 14.50% 2006-07 2007-08 2008-09

8.3 3.3
Huggies

24.7

Pampers

60.3

Snuggies Baby soft

SUCCESS/FAILURE ?
Huggies
Market Share 60.30% (Early mover- „94)

Pampers
24.7% (Rapid growth in just 5 yrs)

Profitability
Category Substitution

20-25%
Low penetration (2%) as compared to U.S.A. (96%), Europe(94%), china (6%)

20-25%
Low penetration (2%) as compared to U.S.A. (96%), Europe(94%), china (6%) Reasons for high market share

Reasons for low penetration and category substitution •Rs. 13 [per diaper perceived to be expensive •Usage is occasional •Early potty training in India (2 – 2.5 years) •Cheap domestic help available in India •Doctors do not recommend prolonged usage •Mothers using diapers perceived as lazy

Huggies
Early mover (94) Aggressive Advertising

Pampers
Endorsed by doctors Aggressive Advertising Good Distribution channels Door to door programme

Price

Cultural and Geographical barriers Social and Medical disapproval

Positioning: Fun and playful mood, keeping child comfortable

Baby care Educator Development of child

SALIENCE
HUGGIES 4 PAMPERS 4

7

5
Huggies High (5) Early entrant (1994)

3
Pampers Moderate (3) Late entrant (2003)

Salience Recall and awareness

•The awareness levels are low for the diaper product category in rural areas when compared to urban

PERFORMANCE
HUGGIES 4 4 7
Performance Absorbance Huggies (5) High Pampers (3)Moderate
3.6

PAMPERS 4

Skin friendliness
Comfort

(5) High
High (5)

(3) Moderate: Causes rashes when used for a prolonged time
High (5)

Ease of change
Style and design Price

Moderate(3)
High (5) Low(1)

High(5) - Easy up pants easier to change
High (5) Low(1)

Huggies rates better in terms of functional benefits like better absorption and skin friendliness

IMAGERY
HUGGIES PAMPERS 4
3
Imagery 7 User Profile Purchase/ Usage: Unit of consumption Channel type Huggies Urban, working class, nuclear families Pack sizes 6 to 16

3
Pampers Urban, working class, nuclear families Pack sizes 6 to 16 Better visibility in modern retail stores such as supermarkets and hypermarkets During Travels, social gatherings/outings Low

Also available in Beauty and health stores. During Travels, social gatherings/outings Low

Setting of consumption

Personality- Competence

Huggies and pampers do not differ much in terms of imagery. However they are not competent enough in replacing the cloth napkins owing to the attitudinal barriers

FEELINGS
HUGGIES 4
3.5

PAMPERS 4
3

7

Imagery Security Social Approval Warmth Fun

Huggies High(5) Low(1) Moderate(3) High(5)

Pampers Moderate(3) Low(1) High (5) Moderate(3)

Both these brands rank low in social approval because of the cultural barriers and apprehensions.

JUDGEMENT
HUGGIES 4 5 7
3.6

PAMPERS 4

Credibility

High High(5) High(5) High(5)

High Moderate(3) Moderate(3) High(5)

Quality
Market leadership

Consideration

Huggies rates better in the product attributes . But it is not able to break the social barriers. Pampers on the other hand is attempting for category expansion

RESONANCE
HUGGIES
3

PAMPERS
2

7
Loyalty Attachment Community Engagement Online Forums Moderate(3) Low(1) Moderate(3) Moderate(3)

Environment Friendly

None

None

Behavioral loyalty is high but attitudinal attachment is low and most of the usage is need based.

HUGGIES 3

PAMPERS 2

5
4 5

3.5
3

3.6
3.6

3
3

3
2.9

3.9

CONCLUSIONS

Though both these brands are successful in the diapers category, their penetration in the overall baby tissue and hygiene category is low Social disapproval a major impediment for penetration. Hence brands should use “ Development of the child” as a proposition rather than “Convenience of mothers” Brands should address concerns such as potty training and toilet habits currently associated with the product category Currently, diapers perceived to be expensive for regular usage. With increase in disposable incomes, higher awareness and more women joining the workforce , prices are expected to fall in the near future due to increased volumes Though Huggies has a higher market share due to early mover advantage, Pampers has been consistently increasing its share by addressing some of the above concerns.

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