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Bashundhara Baby Diaper Marketing Strategies in Bangladesh

Article  in  Business Perspectives and Research · April 2020

DOI: 10.1177/2278533719887459

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Case

Bashundhara Baby Diaper Business Perspectives and Research

1–16
Marketing Strategies in © 2020 K.J. Somaiya Institute of Manage-
ment Studies and Research
Bangladesh Reprints and permissions:
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DOI: 10.1177/2278533719887459
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Jashim Uddin Ahmed1

Mohammad Abdul Majid2
Sumaiya Suhaila2
Asma Ahmed2

Abstract
The Baby Diaper Industry has had been flourishing in Bangladesh, with over 30 existing brands,
substantially contributing toward the betterment of the economy. Among several brands, Bashundhara
Baby Diaper (referred as Bashundhara Diaper) is one of the major local brands. It offers good quality
diapers within an affordable price range that reach customers through vast distribution networks. The
company often markets its diaper brand using emotional appeal through an array of “Above the Line
(ATL)” and “Below the Line (BTL)” promotional tools including print media, radio, strategically placed
billboards, and both trade and customers’ offerings. This collectively contributes to the attainment of
sustainable market growth for Bashundhara Diaper. However, the company often has to face challenges
which include high level of existing market competition and frequent criticisms from the customers due
to inconsistent quality. In spite of the challenges, Bashundhara Diaper still persists by ensuring consistent
service and quality for customers, offering lucrative deals and taking advantage of opportunities as the
market for the consumption of baby diapers continue to steadily grow across the country.

Keywords
Bangladesh, diaper market, segmentation, competition, Bashundhara diaper

Introduction
Diapers have been used since ancient times. A study of history reveals that milkweed leaves, animal
skins, and swaddling cloth were used to make diapers during the ancient Egyptian, Aztec, and Roman
periods (Richer, 2007a). The use of cloth diaper was prominent at this time, although they were rarely
washed. They were simply dried before reapplying. However, individuals started to realize the importance

1
Department of Management, School of Business & Economics, North South University, Bashundhara, Dhaka, Bangladesh.
2
InterResearch, Bashundhara, Dhaka, Bangladesh.

Corresponding author:
Jashim Uddin Ahmed, Department of Management, School of Business & Economics, North Academic Building, North South
University, Bashundhara, Dhaka 1229, Bangladesh.
E-mails: jashim.ahmed@northsouth.edu; jashimahmed@hotmail.com
2 Business Perspectives and Research

of disposable diapers in protecting their baby’s skin from prolonged contact with the unhygienic
environment of a soiled diaper. Disposable diapers are generally preferred over cloth diapers as they
have better absorbing capability. It is projected that the total number of diapers used during the first 3
years of a baby’s life is over 4,500 (Dey et al., 2016).
Johnson & Johnson first introduced disposable diapers to the US market in 1948. The successful
initiative of baby diaper began when Procter and Gamble (P&G) launched the first ever modern
disposable diaper in 1961. Just after the inception of Pampers, it received immense positive response
from customers, which made it a national product by 1969. P&G’s main competitor, Kimberly Clark,
followed the diaper trend and broke into the national market by 1977 (Richer, 2007b). Now, diaper
production machines are on stream to meet the increasing demand for the use of disposable diapers.
Diaper usage has expanded globally, with current market saturation in developed countries, and
planned expansion into developing countries. The global baby diaper market is expected to grow and
reach a compound annual growth rate (CAGR) of 4.1 per cent between 2016 and 2024, hitting a value of
USD 70.4 billion at the end of 2024 (Persistence Market Research, 2016). The growth rate is particularly
higher in specific regions, that is, Asia, Latin America, and Africa. USA, Mexico, Japan, Brazil, Germany,
France, UK, Philippines, South Korea, and China are the countries with the highest market penetration
for baby diapers (Richer, 2005). The reasons for this have been attributed to their high birth rates,
improvements in living standards, growing awareness about healthcare and the increasing need for
disposable diapers. Diaper manufacturers continue to see significant potential in Asia and other
developing regions where living standards and disposable incomes are rising (Olivo, 2017). Richer
(2005) notes that the largest future growth areas for diaper market will include developing countries with
high birth rates. Some countries will experience a reduction in the volume of diapers needed due to lower
birth rates within the next 25 years. Moreover, Asia-Pacific represents the largest and the fastest growing
market worldwide led by factors such as steady rise in birth rate, favorable economic environment, rapid
urbanization, rising literacy rates, increase in employment, changing parenting standards, growing
popularity of using baby diapers among the more affluent middle class parents, and developing retail
infrastructure that aid in product visibility (Global Industry Analysis, 2017).

Diaper Market
Baby diapers have only been in use for a mere two decades in Bangladesh. According to World Health
Organization report, Bangladesh will be the seventh largest user of baby diaper among the world by 2025.
The composition of baby diaper has evolved in past few decades. The technology being used has greatly
changed; the size has become smaller yet more efficient. Economic growth spurred the increased use of
diapers in Bangladesh. Increase in birth rate, rapid urbanization, improvement in socioeconomic condition,
emphasis on hygiene factors by mothers, and convenience and prevention of germs have led to such a
tremendous expansion in Bangladesh’s market. Growing disposable income and an expanding urban middle
class also bolstered the sales of nonessential items. As a result, categories such as beauty and personal care
products (CAGR 15 per cent over 2009–2013), home care (CAGR 12 per cent), and tissue and hygiene
(CAGR 20 per cent) also performed strongly (Euromonitor International, 2017). The ever-increasing
participation of women in the workforce can be deemed significant in relation to the growth of the market.
In Bangladesh, the market for baby diaper is worth over BDT 5 billion a year, growing at 25 per
cent–30 per cent per annum (Ahmed, 2017). This huge market has been dominated by several foreign
brands including the likes of Pampers, Molfix, Huggies, and MamyPoko for a long time. Bangladesh had
mostly been importing diapers from Australia, China, Algeria, Iran, Egypt, and Japan, etc. However,
Ahmed et al. 3

anticipating the future prospects in recent times, the diaper market has emerged as a new business
opportunity for the local manufacturers to capture domestic market, substituting imports.
In Bangladesh, a handful of local brands have joined alongside the numerous foreign brands that had
been in the market for producing diapers. Despite higher purchasing costs associated with foreign diaper
brands, consumers continue to largely rely on them. Such consumers’ preference can be linked to lower
leakage protection capability of the local diaper brands. Yet, local manufacturers are gradually gaining a
foothold in the growing baby diaper market through its low price and good quality offerings amid
rigorous competition with the imported brands (Parvez, 2015).

Emerge of Bashundhara Diaper

Among the leading manufacturers in Bangladesh, Bashundhara Paper Mills Limited (BPML) takes pride
in manufacturing high-quality and affordable baby diaper products, along with other baby care products
to meet the future needs of customers. The company BPML, which is a sister concern of Bashundhara
Group, was first launched as Bashundhara Diaper in March 25, 2011. It is now continuously striving to
provide good quality diaper products to its customers. Baby diapers are made with good quality imported
raw materials like fluff pulp, superabsorbent polymer, adhesive, etc., and produced in a manner suiting
the local environment and practices using state-of-the-art technology. Prior to this, not only was diaper
imported but all the other baby items were brought in from Turkey, UAE, Singapore, China, and Thailand
to Bangladesh. This initiative of Bashundhara Diaper can be considered a significant milestone in taking
the country toward self-sufficiency. Following the footsteps of Bashundhara Diaper, other local
companies came up with similar products such as NeoCare and Supermom to cater to the needs of
growing local market demand, replacing dependency on imported diapers. Henceforth, all these brands
are trying to come up with different innovative customer offerings to increase their market share. Despite
being one of the leading local conglomerates and pioneer among the local diaper brands in Bangladesh,
Bashundhara Group had to face innumerable challenges immediately after its inception into the diaper
market through their brand, Bashundhara Diaper. Nevertheless, Bashundhara Diaper did not pare down
its efforts and continued to create a positive perception of local diaper brands by ensuring consistent
product quality within an affordable price range with mass distribution channels.

Competition
The Bangladeshi Market already has been submerged with over 30 local and foreign baby diaper brands.
Some of the foreign baby diaper brands include Huggies, Molfix, MamyPoko, Pampers, Love Baby,
Giggles, Nannys, IBOBO, Bebem, Lollah, My Baby, Drypers, Papa, Medicare, Smart, Bummy, Angel
Baby Pull-up, Toddler Baby Pull-up, etc. Around 60 per cent of the total demand is met by foreign brands
while the local brands contribute the rest 40 per cent. Currently among the local brands, Chu Chu of
Bangladesh Silicon Corporation, Bashundhara Diaper of Bashundhara, Savlon Twinkle of Advanced
Chemical Industries (ACI), Kidstar from PRAN-RFL, NeoCare of Incepta, and Supermom of Square are
being sold across Bangladesh. Despite the dominance of foreign brands in the diaper market, local
brands are expected to capture over 70 per cent by next few years through extensive market activation
and customer offerings (Parvez, 2015). Brief reviews of the competitor baby diaper brands of Bashundhara
Diaper are given here.
4 Business Perspectives and Research

Chu Chu
Hygiene Tex Bangladesh Ltd. is one of the sister concerns of Bangladesh Silicon Corporation, through
which Chu Chu Baby Diaper was introduced in 2005. Thereafter, every year, new products are being
researched in order for Chu Chu to gain a greater foothold in the baby products sector in Bangladesh.
Chu Chu Baby Diaper is the local pioneer in manufacturing pull-up pant system diaper. They have
several other baby product offerings, that is, nipples, handle feeder, spoon feeder, baby mug, and wet
wipes under the brand name Chu Chu. Their unique selling propositions are low purchasing price for the
products and mass distribution channels across the country. This contributes to their strong foothold
among the lower- to middle-class customers in the market. They are estimated to hold almost around 55
per cent of the market share in regard to products availability in retail outlets. The price of Chu Chu
diaper varies from BDT 150 to 800 based on the number of pieces in the packet.

NeoCare
In 2014, Incepta Pharmaceuticals launched NeoCare Baby Diaper as its flagship brand of baby diaper
category. It comes in four sizes respectively Small (3–6 Kg), Medium (4–9 Kg), Large (7–18 Kg), and
XL (11–25 Kg). They are trying to serve unmet customer needs by introducing several customer-centric
campaigns for different market segments. NeoCare Baby Diaper has been struggling to reach every
corner of Bangladesh and falling short of their competitors as they continue to heavily invest on
strengthening and maximizing their market coverage network. The price of the products varies from
BDT 300 to 1,100 depending on the quantity inside each packet. It is mostly available in pharmacies and
supermarkets.

Supermom
Supermom is a diaper product of Square Toiletries, which is a concern of Square Group. Supermom
entered the market just after Bashundhara, Chu Chu, and Incepta made a foray into the market which was
previously dominated by imported brands. Square Toiletries Ltd. subsequently introduced a diaper
named “Supermom” into the market which had the competitive advantage of having an absorption rate
of over 80 per cent more than any other diaper brand at the time. The price of the products varies from
BDT 150 to 1,000. Due to its strong distribution coverage, Supermom baby diaper is available almost in
every pharmacy and departmental store in Bangladesh.

Savlon Twinkle
ACI Limited introduced Savlon Twinkle baby diaper in 2018. The diapers are produced at ACI’s own
factory using high-quality imported raw materials using a state-of-the-art automated process which
ensures superior absorption and comfort for the baby. Savlon Twinkle diaper includes wetness indicator,
elastic waistband and side tape, Velcro belt, comfortable embossed design, and anatomic shape. The
product is now available in four different sizes throughout the country. To further enhance its offerings,
ACI launched Savlon Baby Wipes as a complement to the Savlon Twinkle.
Ahmed et al. 5

Kidstar
Advanced Personal Care Limited, a sister concern of PRAN-RFL Group, recently began production of
Kidstar Diaper for children. As a new entrant in the market, Kidstar Diaper launched a multitude of
above the line (ATL) and below the line (BTL) promotional activities to mark its inception to maximize
its brand coverage and stay on top of customers’ minds and ultimate choices. Their initiatives include
Buy 1 Get 1 Free offers to its customers, participation in the major events and fairs, that is, Dhaka
International Trade Fair, frequent exposures through shop signs, TV commercials, and newspaper ads.
Furthermore, they are conducting campaigns on the modern trade especially in urban super shops (i.e.,
Agora, Shwapno, Meenabazar, etc.) to promote their brand to the customers.

Avonee
Recently, Avonee has become a widely seen baby diaper brand, especially in Dhaka (capital of Bangladesh).
Both the manufacturer and distributor of this baby diaper brand is UNIMAX Industries Ltd. UNIMAX
Industries Ltd. used to be the sole distributor of Molfix, but recently they have become the manufacturer
of Avonee baby diaper by importing raw materials from India and China. By giving dozen free (12:12)
offers to the retailers especially in the pharmacy and departmental store, they are motivating them to sell
their products to the customers; in this way, UNIMAX is creating space in the mind of the customers.

MamyPoko
MamyPoko launched its baby diaper brand in the name of MamyPoko Pants with a powerful differentiating
factor and became the harbinger for other brands in the world. Q & Q Trading in Bangladesh is the sole
importer and distributor of MamyPoko pants. Unicharm, a Japanese company was the first to come out
with the innovative idea of pull-up pant diapers in the world and created a new market. Comparatively
lower prices combined with good quality and higher sales commissions have encouraged retailers to
push the brand more aggressively.

Huggies
Huggies has always been a reliable baby diaper brand among the customers. It is a product of USA-based
company Kimberly Clark. In Bangladesh, the sole distributor of Huggies is Multi Brands Limited.
Mostly, it is imported from Thailand, UAE, and USA. Huggies baby diaper introduced a different
category of diapers to meet the rising demands of its customers. Already there are more than six types of
baby diaper categories of different sizes; that is, Huggies wonder pants, Huggies Dry, Huggies Ultra,
Huggies Dry New, Huggies My Baby, Huggies Dry pants, etc. Retailers are interested to sell Huggies as
the profit margin from selling a single packet Huggies is higher than any other brands.

Molfix
Hayat Kimya is one of the prime Turkish companies to produce Molfix Baby Diaper. It is one of the
leading baby diaper brands in the world. The main importer and distributor of Molfix in Bangladesh is
6 Business Perspectives and Research

Fair Distribution Ltd. Additionally, it is known to be sourced in Bangladesh through illegitimate means,
that is, bringing the products through luggage and escaping tax and distributing the products in different
retail outlets.

Marketing Strategy and Segmentation

Successful marketing refers to the ability of a company to execute plans for conception, launch, pricing,
promotion, and distribution of a product to satisfy both the target customers’ needs as well as organization’s
goals. In the market for baby diapers, primary factors that propel customers toward baby diapers are its
aggressive promotional offers, advertisements by various baby diaper brands, and improved raw
materials, besides technological advancements. In addition, growing affluence and increased per capita
spending on personal hygiene products and increasing birth rates in Bangladesh are other factors expected
to drive growth of the Bangladeshi baby diaper market over the forecast period. Demand for baby diaper
across Bangladesh is growing steadily and can be attributed to the various associated benefits such as
that of ensuring increased hygiene and low risk of skin damage.
In addition to focusing on a specific age group, a number of baby diaper companies are even more
experimental in their marketing initiatives: gearing their baby diaper brands and advertising to appeal to
specialized groups, associations or nongovernmental organizations (NGOs), etc. The effects of this
initiative appear through different mode of communication networks, that is, online campaigns, fair or
exhibition, and advertisements or other campaigns related to parents and kids. One of the major challenges
in this sector is to involve in continuous product innovation and customer-centric offerings necessary to
grab customers’ attention. Otherwise baby diaper competitors mainly Chu Chu, due to its products
pricing and mass coverage, will continue to dominate in the market. Both promotions and advertisements
of Supermom (http://supermombd.com/), NeoCare (http://diapersbd.com/87-neocare), and Savlon
Twinkle (http://fb.com/TwinkleBabyStar) based on market and consumer research (as shown in the web-
link). They have transformed their website into a complete guide for a woman during pregnancy period.
They offer advice on various issues like pregnancy announcement, week-by-week caring during the
pregnancy period, tips for naming the baby, preparation for delivery, postpregnancy changes in woman,
caring for the newborn, its nutrition, diapering, and more until the child reaches its preschool stage. They
also try and connect with their targeted audience through social media. All these activities are aimed at
engaging the recent-mothers and to-be-mothers, thereby gaining their mindshare. The television
commercials (TVCs) of Supermom (https://www.youtube.com/watch?v=dUI5_2-dGhE) demonstrate
the struggle of working mothers and the support they get from their preferred brand Supermom as well
as their husband and in-laws. NeoCare (https://www.youtube.com/watch?v=5Z7zo6DAANg) in their
TVCs promote their product by demonstrating its expertise keeping the babies’ skin drier than other
diapers. Savlon Twinkle (https://www.youtube.com/watch?v=Hn3J0NFXT6Y) shows the cheerfulness
and development of a baby due to the endless support from the brand twinkle.

Demography
A population’s composition may be described in terms of basic demographic features—age, gender,
family, and household status—and by features of the population’s social and economic context—
language, education, occupation, ethnicity, religion, income, and wealth. Typically, a marketer would
look between 3 to 10 market segments when dividing up one particular market. The marketer can, then,
assess which segments best fit with the company’s strategy and resources, as well as assessing the
Ahmed et al. 7

current and future attractiveness of each segment. In Bangladesh, the current population of both male
and female children age between 0 and 4 years is almost 14.4 million (CIA Facts Book, 2018). However,
the actual consumption in Bangladesh is not comparable with developed countries.

Household Segmentation
In Bangladesh, the rate of urbanization is very high and further exacerbated by the high population growth
rate and rapid rural-to-urban migration. The trend of urban growth in Bangladesh is about 3.19 per cent
per annum. The urban population represents 35.8 per cent of the total population (CIA Facts Book, 2018).
Likewise, the nuclear family trend is amplifying this effect as average family size has been decreasing for
the past several decades. Household Income and Expenditure Survey 2016 by Bangladesh Bureau of
Statistics exhibits that each family size decreased to an average of 4.06 people, which confirms that large
family size is diminishing with people showing greater preference towards smaller family sizes. In
Bangladesh, having 4–6 children used to be a common scenario, but the current trend has shifted toward
having 2–3 children, with most women having children during their mid-to-late 20s and delivered mostly
in hospitals. In terms of diaper usage, the urban residents use approximately 2–3 diapers per day. Moreover,
the average income in the rural areas is less than that of urban areas. Pack size (three to five diapers per
pack) also matter, as these generally cost less and, therefore, are a popular option for consumers, especially
rural people who rarely use diapers. They often prefer using it while traveling with kids (Ahmed, 2017).

Income Segmentation
According to World Bank Data, Bangladesh is the 42nd largest economy in terms of gross domestic
product (GDP) which is USD 249.7 billion (The World Bank, 2016). Due to exports (USD 36.67 billion,
July 2017–June 2018), remittance (USD 15.54 billion, 2018) from workers, and positive current account
balances, the agrarian structure (15.1 per cent of the GDP) of the country is now transforming into a
manufacturing (28.6 per cent of the GDP) and service-based (56.3 per cent of the GDP) economy.
Bangladesh’s consumer expenditure was USD 139 billion in 2014. Baby diaper companies have
already started analyzing the market based on different criteria suitable to their brands. Currently, most
considering factors are socioeconomic class (SEC), customers purchasing nature, and their priority. Baby
diaper brands have segmented their market based on the understanding of the customers’ nature (as shown
in Table 1). Consumers are divided into six basic income groups: A1-Upper Upper Class, which refers to
incomes of BDT 500,000 or above a month; A2-Upper Middle Class, income of BDT 300,000 or above;
A3-Upper Lower Class, BDT 200,000 or above; B1-Middle Upper Class, BDT 200,000 or below;
B2-Middle Middle Class, BDT 100,000 or above; B3-Middle Lower Class, BDT 50,000 or above.

Table 1. Customer Segmentation of Different Baby Diaper Brands

Diaper Brands Understanding the Target Groups

NeoCare, Kidstar,
Supermom, Savlon Twinkle,
and Bashundhara Baby
Diaper
Targeting SEC—A2, A3, B1, and B2
Value for money is very important for them
Focusing on promoting value-added offers for the customers
Trying to reach out sub-urban and downtown areas by ensuring product
availability and both retailer and customer offers
(Table 1 Continued)
8 Business Perspectives and Research

(Table 1 Continued)
Diaper Brands Understanding the Target Groups
Huggies, MamyPoko, Pampers, Targeting SEC—A1, A2, A3, B1, and B2.
and Molfix TG only care for quality and comfort for the baby
Have good perception and faith on multinational diaper brands
Chu Chu, Sweety, Max Baby, Targeting SEC—B1, B2, and B3
and Baby Love Promotes medium-priced baby diaper for the highly price-conscious customers
Trying to reach out suburban and downtown areas
They want to motivate the trade channel to ensure products availability
Source: The authors.

Lifestyle Segmentation
It is evident that the lifestyle of the customers has been improved with the increased use of disposable
baby diapers. It is well understood that product preferences vary across different groups of consumers.
Urban consumer lifestyles have evolved over the last decade, with more women participating in the labor
force and people spending more time at the workplace.

Psychographic Segmentation
Diapers these days have emerged as a common item in most households in urban settlements. Mothers,
being the decision makers in this case, prefer using diapers not only for concerns relating to their babies,
but also for their own convenience. A number of working mothers tend to keep their babies at home with
attendants when they leave for work, and favor the use of diaper for babies, sensing that attendants,
without the aid of diapers will not be able to manage their baby properly. This phenomenon is common
among both working mothers and housewives (Nur, 2015). Whenever outside without their babies, the
use of diapers keeps the mothers hassle free.
While deciding the brand of diaper to use, parents primarily focus on some common attributes such
as the diaper’s aptness in skin protection, overnight dryness, and the extent of comfort it provides. Most
parents rely on the more popular brands in the market and, therefore, are habituated to using foreign
brands, perceiving local products to not be of befitting standard. However, with time, as the customer
demand for affordable baby diaper upsurge, local brands can penetrate into the market to a greater extent,
emphasizing on extensive promotions and ameliorating quality.
A common trend exists among grandparents, who often suggest to not using diapers with concerns
over baby’s health. They perceive babies run the risk of losing sensation, which, in turn, could disable
their independent development. On the contrary, parents are eager in using it from the very beginning of
a baby life to the time when the baby is 2–3 years old. Working mothers, as stated earlier, are inclined in
using diapers due to its convenience facilities (Nur, 2015). They often do not have enough time to go for
the traditional practices, which also falters behind diapers in terms of hygiene. Parents expect products
to be free from harmful/detrimental substances. Materials used, that is, superabsorbent polymer,
acquisition and distribution layer, spandex and nonwoven sheets, etc., in diapers are expected to be safe
for soft skin. Some brands even focus/accent on this issue by adding Aloe Vera and Vitamin E in its inner
lining to protect young skin. Diaper size is also crucial, as it must fit into a baby and be comfortable
enough for movement, which could lead to customer satisfaction or dissatisfaction. Word-of-mouth from
friends and family is one of the most reliable sources of information in case of using diapers.
Ahmed et al. 9

Market Share
Bangladesh has emerged as a prospective potential market for baby diaper brands. Companies have
already started coming up with new product segments and customer-centric ideas to upgrade the market.
Companies are implementing a myriad of strategies to position their brands in regard to customers’
perception and the products availability in the market.
It is seen (in Figure 1) that local baby diaper brands have already taken the market over foreign brands
in regard to their availability and visibility in Bangladesh. Chu Chu, capturing 12 per cent of the market
share, stood in first position of the market, whereas NeoCare, Supermom, Molfix, and Bashundhara
Baby Diaper, stood second, each ensuring 9 per cent of market share, respectively, in terms of market
availability and visibility. Huggies, which can be seen in almost all the retail outlets of metro cities
(Dhaka, Chittagong, Sylhet, etc.) in Bangladesh, achieved third position in the market, lagging behind
the aforementioned local brands. Moreover, baby diaper companies are desperately trying to ensure
product availability and visibility throughout Bangladesh by establishing a strong distribution network.

Products
Bashundhara Diaper offers several types of products with different sizes starting from small to extra-
large such as Jumbo pack, Standard Series Textile Velcro, Mini Series Textile Velcro, Economy Series,
etc. Baby diaper sizes are determined based on the babies’ weight rather than their age. XL-sized diapers
can be used for babies weighing over 12 Kg, large for babies with weight between 7 and 18 Kg, medium
for babies weighing 4–9 Kg, and small for babies with weight up to 6 Kg (as shown in Table 2). Similar
types of raw materials such as fluff pulp, super absorption protection (SAP), composite black sheet,
frontal tape, and side tape are used to produce baby diapers. It totally depends on the quality and the
sources from which the company is importing the raw materials for producing baby diaper. Maximum
number of raw materials is sourced from USA, Japan, and China.

Figure 1. Market Share on Products Availability and Visibility

Source: The authors.
10 Business Perspectives and Research

Table 2. Price of Bashundhara Baby Diapers

Price of Baby Diaper Product Details No of PCs Trade Price MRP

Bashundhara Baby Diaper TEXTILE -Backsheet + VELCRO (Mini Series)

S 3-6 Kg 5Pcs / Pkt; 48 Pkt/Ctn 5 82 110

M 4-9 Kg 5Pcs / Pkt; 48 Pkt/Ctn 5 82 110

L 7-18 Kg 4Pcs / Pkt; 48 Pkt/Ctn 4 82 110

XL 11-25 Kg 4Pcs / Pkt; 48 Pkt/Ctn 4 82 110

Bashundhara Baby Diaper TEXTILE -Backsheet + VELCRO (Standard Series)

S 3-6 Kg 34Pcs / Pkt; 8 Pkt/Ctn 34 560 675

M 4-9 Kg 34Pcs / Pkt; 8 Pkt/Ctn 34 580 695

L 7-18 Kg 28Pcs / Pkt; 8 Pkt/Ctn 28 560 675

XL 11-25 Kg 28Pcs / Pkt; 8 Pkt/Ctn 28 580 695

Bashundhara Baby Diaper TEXTILE -Backsheet + VELCRO ( Jumbo Series)

S 3-6 Kg 64Pcs / Pkt; 4 Pkt/Ctn 64 1,030 1,220

M 4-9 Kg 56Pcs / Pkt; 4 Pkt/Ctn 56 910 1,120

L 7-18 Kg 48Pcs / Pkt; 4 Pkt/Ctn 48 910 1,120

XL 11-25 Kg 40Pcs / Pkt; 4 Pkt/Ctn 40 800 980

Bashundhara Baby Diaper- New Packaging (Standard Series & Mini Series)
5Pcs / Pkt; 48 Pkt/Ctn 82 110
S 3-6 Kg
40Pcs / Pkt; 6 Pkt/Ctn 740 860
5Pcs / Pkt; 48 Pkt/Ctn 82 110
M 4-9 Kg
40Pcs / Pkt; 6 Pkt/Ctn 740 860
4Pcs / Pkt; 48 Pkt/Ctn 82 110
L 7-18 Kg
32Pcs / Pkt; 6 Pkt/Ctn 740 860
4Pcs / Pkt; 48 Pkt/Ctn 82 110
XL 11-25 Kg
32Pcs / Pkt; 6 Pkt/Ctn 740 860

Source: The authors.

Ahmed et al. 11

In 2018, Bashundhara Diaper carried out a complete relaunch by modifying its new stock keeping
units (SKUs) and redesigning the Velcro style diaper and the packaging. It was aimed to meet particular
changing customers’ preferences for design and quantity, as well as to operate in the market in a
consolidated manner. Formerly, Bashundhara Diaper offered four broad categories in terms of size and
quantity, some of which are still available in the market until the stocks run out. However, with the
relaunch in the process, the offerings are compressed to two broad categories, that is, Standard Series
diaper of 34 pieces (for XL and L sizes) and 40 pieces (for S and M sizes) and Mini Series diaper of four
pieces (for XL and L sizes) and five pieces (for S and M sizes).

Price
Price is one of the most salient aspects of any product. Some consumers may be willing to pay higher
prices for products that are innovative and offer higher/superior quality. The new diaper pants are more
popular than open diapers due to its easy handling facilities. It is facile to use, airier, and more comfortable
than regular diapers. Nonprice competition pricing strategy is followed by Bashundhara Diaper. It
highlights quality, packaging, and delivery to differentiate itself from its competitors. Price is not reduced
to increase the demand for its products. Competitors’ pricing is also weighed as a part of its marketing
mix so as to not overprice the diaper products. Bashundhara Diaper can be found in different pack sizes
ranging from mini packs of four pieces to jumbo pack, which has 64 diapers. The price of the diapers
varies based on the diaper size and the quantity. While a small-sized pack with four diapers costs BDT
100, a set of extra-large ones with 64 diapers costs BDT 1120 (as shown in Table 2). With the relaunch
underway, prices remain unchanged for Mini Series but changed for the Standard Series of 34 pieces and
40 pieces starting at new MRP of BDT 850 and onwards.

Brand Positioning
Brand positioning describes how a marketer designs its offers and images in the target consumers’ mind;
successful brand positioning should be managed based on the nature of product attributes, target market
and customers, and the competition in the industry so as to contribute to the entire marketing strategy of
the business. Effective brand positioning result in good communication that generate appeal (both
emotional and rational) to the customers and increase brand awareness by promoting values and positive
image in consumers’ mind. Therefore, Bashundhara introduced its hygiene products category ranging
from baby care products, female care products, and adult care products which will be helpful for the
customers to mitigate their needs as well as to provide them a satisfactory feeling after use. Bashundhara
Diaper is a diaper brand that helps parents feel that baby rearing is not too daunting a task and allows
them to enjoy the journey of being parents.
Bashundhara Diaper has been crafting campaigns directed at all the parents, customarily targeting the
parents interested in moderately costly diapers of high quality for their babies. Bashundhara Diaper
represents a concern for taking care of baby as the brand image, and stress on the caring aspect from the
very beginning of pregnant period of mothers to the stages when babies are newborn, infant, crawler,
toddler, walker until junior. Bashundhara Diaper offers different sizes of diapers and baby wipes for
babies with consistent high quality in order to best satisfy parents. However, there remains a scope for
positioning the brand by targeting the emotional factor of the parents and baby and involving customer
12 Business Perspectives and Research

engagement. Although no such initiatives have been taken by Bashundhara, other baby diaper brands,
including the likes of Supermom has already initiated programs such as an Annual Baby Olympiad
campaign (https://www.youtube.com/watch?v=KvFXcNkKLWE, https://www.youtube.com/
watch?v=DgNYjnCTe84) at the Indoor Stadium in Dhaka, where the competing brand organizes an
entire day revolving around numerous playful activities for both the parents and babies, setting an
amazing example for the other brands. Additionally, making a point of differences is important to help
customers positively evaluate and associate a brand with a belief that they had not been able to attain to
the same extent with a competing brand. Bashundhara Diaper attempts to not just be a brand selling
diapers, but be much more than that, helping improve life for babies, toddlers, and the parents who care
for them, through a complete line of diapers, training pants, and wipes designed for every stage of baby’s
development. Moreover, Bashundhara emphasizes on research to develop product attributes benefitting
both mother and baby.

Promotional Strategies
Bashundhara has realized the advantage of brand awareness; as a result, it has put increased emphasis on
promotional activities that are instructive with a strong message as well as appealing to the customers.
Good and sensible marketing is of high importance in increasing the product visibility and, therefore, the
ads are placed on the hoardings, magazines as well as newspapers so that they can be easily viewed. As
part of their pull strategy, Bashundhara Diaper uses advertising both in ATL and BTL media to ensure a
high reach. Meanwhile, in social media and other online portals, search engine marketing, including
search engine optimization, pay per click, and ad sense, have been pivotal in promoting the brand. None
of the baby diaper brands have endorsed any celebrity with their brands, rather have stressed on
associating with hospitals, NGOs, and schools to promote their corresponding brands. On top of that,
Bashundhara Diaper has continuously been giving offers to distributors and retailers to motivate the
trade channel. In this regard, a variety of trade promotional activities including a trade scheme program,
dozen free offers, sales incentives, display rent, etc., are run throughout the year. Bashundhara Diaper
spends very minimal amount in media planning and media coverage strategy, although a very few visible
mainstream communication is seen in some specific areas of Dhaka city. Bashundhara Diaper fights a
fierce battle using their competitive budget to produce and launch marketing campaigns round the year.
The web links (https://www.youtube.com/watch?v=oilfqWygRHk, https://www.youtube.com/
watch?v=ZiRKQDQ3nkM, https://www.youtube.com/watch?v=gOlJZMX0aR8) contain different
commercials that have been created. The continuation of this growth will expand the baby diaper users
in Bangladesh within the next few years, which will benefit market players. Moreover, monetary value
offered to customers is also improving radically as technological advancement reduces marketing costs,
effort, and time. The higher internet usage, which is an estimated number over 92 million subscribers,
has resulted in increased usage of social media websites and mobile applications, such as Facebook,
Instagram, and Snapchat. Similarly, the huge traffic in the social media sites has increased value of
online food, clothing or parcel delivery services, etc. In addition, Facebook facilitates the ability of a
firm to select their target market precisely, using tools that guarantee that a firm will receive hits on their
offerings and promotional activities. Currently, Bashundhara Diaper has over 365,387 followers on its
Facebook page. The TVCs and others mode of communications are key source of information for using
diapers. Under the promotional strategy, Bashundhara Diaper mainly uses in-house media channels
(News 24 and Radio Capital) and newspaper portals (Kaler Kantho, Bangladesh Pratidin, Daily Sun, and
Banglanews.com).
Ahmed et al. 13

Competitive Edge
New local companies are getting involved in producing baby diapers to cater the growing needs of the
customers. The market segment served cannot be classified as luxury by each passing day; it is becoming
more and more a part of a daily life. The main rationale behind the popularity of disposable diapers is its
convenience that evades the need for cleaning and laundering, while keeping baby’s clothes dry, allowing
longer nursing periods. One of the core strengths of Bashundhara Diaper is that they are offering good
quality products with an affordable price for all segments of people. Also, due to the mass distribution
network, they can reach to every corner of Bangladesh.

Innovation
Taking note of the growth potential of the Bangladeshi diaper market, several local companies have
entered the lucrative baby diaper market which has led to players investing heavily on product innovation
and development which enables them to get an upper hand in the market over their competitors. One of
the most significant innovations in the disposable baby diaper category was the launch of pant. In Asia,
the tremendous growth in the pull-up pant style diaper category has been driven by their convenience,
comfort, and competitive prices. Consumers perceive this format as more convenient and better for
babies’ skin (Euromonitor International, 2017). Pull-up pant style diapers are extremely easy to use, and
they are also airier and can be more comfortable than regular diapers, which need to be taped and, hence,
are tighter than pants.
To cope up with the new demand and the growing purchase ability of the customers, BPML has
introduced new and premium pull-up pant style diaper named—Bashundhara Diapant. It incorporates
the features of a diaper into a more commodious pant form such as SAP, hydrophobic leg cuffs, ultrasoft
pant, throw tape, easily disposable, and highly stretchable which enable air circulation, keeping a baby’s
skin dry, fresh, and moisturized. BPML has established high-tech advanced machineries to produce
prime quality product for its customers. Moreover, BPML has been relentless in trying to bring new
hygiene products of various types to serve the infinite needs of the customers belonging to different
classes, that is, the launch of baby wipes in pouch packets and wet wipes in canister forms. Further
expansion in this category is expected through introduction of baby feeding products.

Distribution Channel
From the inception, BPML has maintained a strong distribution network across Bangladesh. It has
currently above 300 distributors nationwide, which is why it has gained competitive edge over its
competitors. Previously, distributors were used for distributing all BPML products (tissue, hygiene, A4
paper, exercise book, etc.). Currently, they have segregated the distribution network into two parts to
transcend more emphasis on its slow-moving products. One channel is dedicated for hygiene products
and another for tissue and paper. Thereby, accounting to the new restructuring and reformation of
distribution channels of BPML, hygiene products have had their own distribution network through which
they have strengthened their presence in the market. After the production of Bashundhara Diaper, the
quality control department verifies the overall quality of diaper and, then, preserves it in the warehouse
for final delivery. BPML delivery vehicles carry the hygiene products from the warehouse to the
distributors’ points or distributors’ warehouses according to the order placed by the distributors in the
14 Business Perspectives and Research

system. Distributors, then, supply the products to both retail and wholesale markets (as shown in Figure
2). Bashundhara Diaper is available mostly in the pharmacies, retail, and departmental stores both in
urban and semiurban areas. Additionally, there are several online portals and e-commerce sites through
which baby diaper of different brands can be purchased. These e-commerce websites (https://chaldal.
com/diapers, https://www.daraz.com.bd/diapers-wipes/, http://www.priyoshop.com/diaper-2#/pageSize
=30&viewMode=grid&orderBy=15, and https://diaper.com.bd/) often provide more discounts than the
traditional retailers especially on bigger package sizes as they can avail products directly from the
company’s factory. Most of the distributors are termed as cash distributors because the BPML charges a
certain amount of cash before the ordered quantity is delivered. Nevertheless, in special cases, BPML
considers to deliver products on credit, although several terms and conditions are applied on those cases.
Despite establishing a strong distribution network throughout the country, Bashundhara Diaper is still
struggling with its reach in remote areas of the country. Their reach incapacity due to lack of transportation
and manpower facilities brought about increased opportunities for its competitors. They have been
actively penetrating its distribution into those areas and gaining a greater market share. In order to
address this issue, Bashundhara took initiatives of deploying distribution to subdistributors and local
businessmen taking opportunity of their reach and prominence in those specific territories.

Setbacks and Challenges

As more companies are investing in baby diaper and their corresponding promotional activities, the
market has become ever-increasingly price sensitive. Maintaining good quality with an affordable price
has become a great challenge for the company. Eventually, the company has to bear a significant loss of
potential customers due to minor responsibilities such as maintaining hygiene factors that might cause
leakage problem or skin irritation for the babies. This is critical especially if the product is serving the
top-level segment. Also, another weakness of the industry is that customers do not want to pay more for
the improvements made on the product. Currently, Bashundhara Diaper is investing more in product
diversification and innovation, although they should be emphasizing on the development of the packaging
design. Additionally, they are falling behind their competitors due to low customer-centric brand
activities in the market.
Some of the challenges that Bashundhara Diaper is facing are the high level of competition,
accompanied by low prices with diversification in products offerings, new entrants in both local and
foreign brands category, and government regulations regarding importing raw materials from abroad.
According to customers’ feedback, some babies have experienced rashes after using Bashundhara
Diaper, resulting in reluctance to purchase Bashundhara Diaper due to inconsistent quality, which they
cited as their main reason for stepping back when it comes to buying Bashundhara Diaper.

Figure 2. Bashundhara Baby Diaper—Distribution Channel

Source: The authors.
Ahmed et al. 15

Understanding the future growth of baby diaper market, entrepreneurs have been investing in baby
diapers production machineries with advanced technologies. Low-cost materials for disposable diapers
imported by under-invoicing to evade duty (Ovi, 2014) and VAT from countries like China results in the
manufacturers producing diapers at a minimum cost that allows the diaper to be feloniously sold at
cheaper rates. If the government recognizes this issue and creates regulations to prevent wrongful
declaration regarding the value of imported baby diapers, it would not only eradicate faulty practices but
allow the local industry to flourish. One of the major restraints for growth of the global baby diaper
market is significantly slow rate of degradation of baby diapers (Persistence Market Research, 2016). An
average human baby uses 4–5 diapers a day which weighs 210 gm and causes contamination, spreading
communicable disease when disposed in the landfills (Cordella, Bauer, Lehmann, Schulz, & Wolf,
2015). Moreover, possible local waste disposal regulations in the future might be a challenging task.
Diapers have been identified among the third-largest consumer items to be disposed of in landfills and
represent 30 per cent of nonbiodegradable waste volumes. In addition, product manufacturing has a
direct influence on the amount of material and energy resources used and the amount of waste generated
(Cordella et al., 2015). Moreover, the toxic chemicals, that is, sodium polycarbonate, chlorine and
hypochlorite, etc., used to manufacture the raw materials of disposable diaper can cause harm to baby’s
skin in the long run.
It is imperative for brands to establish its unique brand proposition and core values to differentiate its
products from the likes of its competitors. This not only helps the brand gain competitive advantage in
terms of its offering but also contributes to better brand communication essential to resonate with the
customers’ changing preferences and needs. Bashundhara Diaper along with the other mainstream local
diaper brands in Bangladesh is particularly struggling in this matter. The challenges to differentiate their
products and highlight on core values are missing across all these brands. Such an issue can be alarming
and an obstacle to meeting self-sufficiency in our country. Hence, brands must push forward in
recognizing and developing its unique competencies and core values, and effectively communicate it
across the customers.

Moving Forward
With the birth of a newborn baby in the family, the need for using baby care products increases. It also
significantly impacts the lifestyle of each member in the family. Now baby diaper is considered as one
of the most essential baby products among all the SECs. In Bangladesh, the rate of medium income level
is much higher than high income level society. Meaning, the penetration rate would increase by the
launch of low-cost products performing as well as the expensive ones. The need for low cost yet high
performance is very momentous. Pull-up pant style diapers (training pants) can be an opportunity but has
to be significant. One of the great opportunities for Bashundhara Diaper is to create brand emblem by
initiating robust marketing campaigns and associating famous personalities relating to the brands. In
addition to ensuring the utilitarian value, the brand needs to create hedonic value for the customers, that
is, through introduction of interesting comics, mascots or TV programs which will ultimately create a
close connection between both the parents and the kids.
With the development of technology and change in users’ behavioral pattern, baby diaper companies
have become more aggressive in strengthening their position in the market. With a view to that, different
companies are introducing different types and categories of baby diaper considering different offerings,
differentiating themselves on the basis of easy disposability, superabsorption, softness and quality of the
product, etc. Hence, as much as ensuring and maintaining quality products are essential, it cannot be
16 Business Perspectives and Research

stressed enough that brands must build and grow by effectively establishing and communicating its
unique core values to the customers significant in resonating with their needs and preferences.

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of
this article.

Funding
The authors received no financial support for the research, authorship, and/or publication of this article.

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