MAR

KETING MANAGEMENT-1

RESEARCH REPORT ON NEW PRODUCT

LAUNCH

PROCTOR & GAMBLE

FRESHIOR ADULT DIAPERS

Post Graduate Diploma in Management

By:
By GROUP 2 (MAURYA)

Ishika Ratnam (2024PGDM076)

Naman Chugh (2024PGDM084)
Nitin Sharma (2024PGDM085)
Sejal Puri (2024PGDM101)
Tusar Srivastava (2024PGDM110)

Under the Guidance of

Dr Bidyanand Jha
(Professor, SOIL School of Business Design, Manesar)

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 TABLE OF CONTENTS

S. NO PARTICULARS PAGE NO.

1. Product Definition 3

2. Market Definition 4

3 Customer Definition 5

4. Sales Potential 5

5. Distribution Channel 5

6. Pricing of the Product 6

7. Budget for Promotional strategy 7

8. STP of the Product 7

9. Marketing mix- 4P’s of Marketing 9

10. Final Pricing & Breakeven Point Calculation 11

11. A Brief Summary report 11

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PRODUCT : P&G presents Freshior Adult Diapers
TAGLINE: Change starts here!!
PRODUCT DEFINITION
Freshior is an adult diaper launched by Proctor & Gamble, the idea behind the name is
Fresh + Senior = Freshior. The idea behind launching adult diapers came from the fact that
P&G already has pampers in the market which is widely sold in India and hence it would be
easy for us to penetrate the market since there are very few competitors in the adult diaper
sector. Also, We have Land, labour and capital available because of Pampers and hence we
only need to expand it instead of setting up a new industry in total.

We have designed the product in a way that it will make the consumer feel lightweight. Our
diapers are Unisex and cater to all the Genders. We have used anti-bacterial formula to
prevent it from any kind of disease also we have used the softest material to make our
consumer feel more comfortable. It is super absorbent to give consumer long lasting
comfort. The variants with aloe vera gel and other skin-friendly compounds and linings to
prevent rashes is the USP of our product. We are also planning to develop variations of
degradable adult diapers.

Features of our product:

 UNIQUE: The product specially designed with proper consultation from the medical
industry.
 EASY TO USE: The product is designed such that it is light weight and comfortable
for use by senior citizens, pregnant woman, any person with prolonged medical
history.
 AUTHENTIC: Designed with the help and input of medical experts in the field.
 FIRST TO MARKET: First product that’s easy to use with clear low pricing​
when compared to competitors.

NEED FOR OUR ADULT DIAPERS

Adult diaper is now used by so many peoples not only old & aged people. Now a days,
people who have disabilities, who can’t walk, is on wheel chair or facing similar king of
issues also wears adult diaper. It is don’t only help them to feel comfortable but also saves
them from several kind of disease. And make their life easy to live

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  Mobility impairment
 Incontinence
 Severe Diarrhea
 Dementia

MARKET DEFINITION
In 2021, the adult diaper market in India had a value of US$113.9 million. The market is
anticipated to reach US$ 201.7 Million by 2027, demonstrating a CAGR of 10.06% from
2022 to 2027, according to IMARC Group. Keeping in mind the uncertainties of COVID-19,
we are continuously tracking and evaluating the direct as well as the indirect influence of the
pandemic. These observations are cited in the study as a significant market contributor.

The adult diaper market in India is primarily driven by its wide acceptance as a hygiene
product. Thus, functional and cognitive impairment, constipation, and the increasing
prevalence of urinary tract infections (UTIs) further drive demand for products to maintain
good hygiene and prevent infections and allergies.

Looking at these figures and facts we can clearly see that there is a huge potential in the
market for sale of adult diapers in India which has a population of 138cr. If we enter the
market at this point of time, we can penetrate the market very easily since P&G already has
Pampers in the market, a baby diaper which is widely sold. As we are already into bulk

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manufacturing, we can manufacture the goods in bulk, and deliver it to maximum locations.
Following such strategies, we can sell our product at highest potential

CUSTOMER DEFINITION
A consumer is a person who uses the product and services and provides constructive
feedbacks to the company. For our adult diaper, our main target customer is senior citizen
with an age group of 40+, any individual who has a mobility issue and also pregnant woman.
We particularly targeting them because they are the ones who are most likely to be interested
in using the product.

SALES POTENTIAL
The India adult diaper market reached a value of US$ 113.9 Million in 2021. Looking
forward, IMARC Group expects the market to reach US$ 201.7 Million by 2027, exhibiting a
CAGR of 10.06% during 2022-2027. This signifies that the adult diaper segment has good
sales potential if the product is marketed correctly so that it can reach maximum audience.

DISTRIBUTION CHANNEL
Majorly Procter & Gamble uses omni channel as well as multi-channel distribution strategy.
As we all know that in this era if we don’t use omni channel we might lack behind our
competitors. In this digital era being on both the place online as well as offline is very
important. The benefits that we are getting because of this is that we are approaching to the
most of the customers in the market.

Our product Freshior adult diaper also follows the omni channel distribution strategy.
Because of this we will reach to the customers very easily as if the person wishes to buy our
product online, they can buy it online, otherwise they can also go to the stores to buy our
product.

Procter & Gamble pursues an intensive distribution strategy. As many outlets as possible.
The goal of intensive distribution is to penetrate as much of the market as possible.

 ONLINE
 E-commerce Sites
 Company Websites
 Offline

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  Supermarkets/ Hypermarkets
 Departmental Store
 Specialty Stores
 Pharmacies

The average amount per packet we are incurring is Rs. 5.

PRICING OF THE PRODUCT

We have calculated the cost of our product after considering all other cost; manufacturing
cost, fixed cost, variable cost, promotional cost, margin to our retailers, etc.

Per packet cost: Rs. 100

Distributers Margin: Rs.40

Retailers Margin: Rs.20

Our Margin: Rs.140

MRP of our product: Rs.300

Cost of our product:

Fixed cost Amount Variable cost Amount Promotional Amount

cost
Machinery ₹55,00,000.00 Electricity ₹ 2,56,528.51 Print Media ₹
cost cost 1,87,00,000.00

Labour ₹45,00,000.00 Logistics ₹ 17,52,000.00 Online ₹

cost (8 Cost Media 2,50,00,000.00
hours
operation)
Warehousing ₹ 7,00,800.00 Audio ₹
cost Media 63,00,000.00

Raw ₹1,00,00,000.00
material cost
Total ₹1,00,00,000.00 Total ₹ Total ₹

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fixed cost Variable cost 1,27,09,328.51 Promotional 5,00,00,000.00
cost

BUDGET FOR PROMOTIONAL STRATEGY

The budget that we are allocating to our promotional activity is 5 Crores in total. The
allocation of budget is as follows:

Online Media: ₹ 2,50,00,000.00

Print Media: ₹ 1,87,00,000.00

Audio Media: ₹ 63,00,000.00

We are using online, print & audio media because we find it best suitable promotional
medium to attract our target customer towards our product.

 The reason for choosing print media is that people who are aged prefer to read
newspaper & magazines, people with mobility disabilities also read newspaper.
 The reason for using audio media is aged people still listen to radio ads and not only
aged people but young people also listen to radios while driving cars, this will help us
in increasing the number of our potential customers for our product.
 Online media is effective because in the digital era we have to show ads on YouTube,
Instagram, blogging sites, e-commerce, etc. These are the most cost-effective way to
promote our product.

STP OF THE PRODUCT

SEGMENTATON

Market segmentation is the practise of breaking a large consumer or company market into
smaller consumer groups based on some kind of shared trait, typically including both current
and potential customers.

We have segmented the market into 3 main parts starting from senior citizen, second is the
people with disabilities and third is pregnant women.

These are the customer segments on which we are targeting.

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  DEMOGRAPHY: On the basis of demography, we decide the age of the customer
that we want to cater, we also look at the health status of the customer.
 PSYCHOGRAPHIC: In this we look at the psychology of the customer whether
they want to use the product or not, if yes, we will try to segregate that customer base.
 BEHAVIOURAL: In this we see how often a customer buys adult diapers, we also
see the consumption pattern.

TARGETING

A target market is a segment of customers in a company's serviceable market that the

company directs its marketing efforts and resources toward. In the senior citizen &
disabilities segment we try to target the customers who have some disease related to urinal
and we also target the segment as whole.

 DEMOGRAPHY: In general, we try to target customers of adult & old age. Majorly
we are focusing on targeting at the age group of 40+ because from that age people
start facing some or the other disease.
 PSYCHOGRAPHY: In this we try to target the customer contextually, because our
context is to help people & give them comfort.
 BEHAVIORAL: Here we simply focus on which customer is ready to try our
product also we highly focus on the group of people who are frequent buyers of adult
diapers.

POSITIONING

Positioning is a term used to describe how a brand is perceived by consumers, how it stands
out from that of competitors' products, and how it differs from the idea of brand
awareness.The main thing that we are going to do while positioning our product is to deliver
the USP of our product which is not available in our competitors product. Also, we will do
campaigns for the same.

 CUSTOMER BASE: We already have a huge customer base due to our existing
products, so now we will segregate them & try to give them offers related to adult
diapers.

 USP (Unique selling proposition): Our USP is that our product is offering so many
features at very low cost under a well-established brand. Also, we are accessible from
big cities to small villages around the country.

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  CAMPAIGN & INFORMATIONAL ADS: We will do campaigns in which we
address the issues which takes place if you don’t use adult diapers. Also, we will be
placing hoardings & running ads since the product can be a new idea to the target
customers.

MARKETING MIX

he marketing mix has been defined as the "set of marketing tools that the firm uses to pursue
its marketing objectives in the target market". In marketing mix we are generally focused on
4 P’s of marketing described below.

1.PRODUCT

Freshior is an adult diaper launched by Proctor & Gamble, the idea behind the name is Fresh
+ Senior = Freshior. We have designed the product in a way that it will make the consumer
feel lightweight. Our diapers are Unisex and cater to all the Genders. We have used anti-
bacterial formula to prevent it from any kind of disease also we have used the softest material
to make our consumer feel more comfortable. It is super absorbent to give consumer long
lasting comfort. The variants with aloe vera gel and other skin-friendly compounds and
linings to prevent rashes is the USP of our product.

Breakup by Type:

 Adult Pad Type Diaper

 Adult Flat Type Diaper
 Adult Pant Type Diaper

2. PRICE

We have played on competitive pricing. Because we don’t have to buy much assets, we
already have plant. So, our fixed cost is very less the cost of production of adult diapers is
very low. Also, we are already in baby diaper market so, we just have to increase the quantity
of purchase from same vendors.

Our Selling Price of the product is Rs.300. In which we have segregated the price as:
Cost of the product: Rs.100
Distributer margin: Rs.40
Retailer Margin: Rs.20

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Our Margin: Rs.140
Selling Price: Rs.300

3. PLACE

Our product will be made available to each and every part of the country varying from large
cities to small towns and villages. Majorly we are targeting the brick & mortar model &
online both.

 ONLINE
 E-commerce Sites
 Company Websites
 OFFLINE
 Supermarkets/ Hypermarkets
 Departmental Store
 Specialty Stores
 Pharmacies

4. PROMOTION

Online media, print media, and audio media are our main areas of interest. The choice of this
promotional activity was made since it is both economical and appeals to the majority of
people in the area. Due to the emotional appeal of our product, which is targeted at elderly

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adults, most young people will be affected and drawn to it through our promotion. Another
reason people will be drawn to it is because it keeps them away from so many difficulties.

FINAL PRICING AND BREAKEVEN POINT CALCULATION

Our Selling Price of the product is Rs.300. In which we have segregated the price as:
Cost of the product: Rs.100
Distributer margin: Rs.40
Retailer Margin: Rs.20
Our Margin: Rs.140
Selling Price: Rs.300

BREAKEVEN POINT
So now, to determine the break-even point, we utilised the following formula:

Breakeven Point: Number of units produced/Our profit margin

As we previously discussed, we produce 3500000 units annually, so to break even, we must

sell at least 7,14,285 diapers. If we follow our expected sales, we should make 30,000 in sales
per month, or 3,60,000 year. In the final two years, we can achieve the breakeven threshold,
after which we will turn a profit making company.

If we continue to sell our expected numbers, which are 3,60,000 each year, the profit will be
approximately 5 crores per year after 2 years from the third year.

A BRIEF SUMMARY REPORT

 This report contains all the information regarding our new product Fresh + Senior =
Freshior , launched under the brand name of P&G. We started with our vision to
provide best lightweight, super absorbent, long lasting comfort diaper for adult market.
We then explained our product concept with ingredients and nutritional information.
Competitor analysis and market survey was done in order to check if our decision of
launching the new product was right or not and, getting to know market saturation and,
what we can do differently from competitors to stand out in.
 From then we move the need of the product. Then we talked about the Adult diaper
market which in the India has reached a value of US$ 113.9 Million in 2021.

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 Segmentation, Targeting, Positioning (STP) is done, our final target is Above 40+ yrs
old, Lower and Upper Middle population. Procter & Gamble pursues an intensive
distribution strategy. As many outlets as possible. The goal of intensive distribution is
to penetrate as much of the market as possible.

 After that we covered the 4Ps of the product in which explained different models of
marketing which we are going to use. We have also incorporated some ideas and
designs for promotions and marketing.
 For the marketing and promotions, we have allocated a total price of Rs
5,00,00,000.00 in which we have distributed as follows:
 Online Media: ₹ 2,50,00,000.00
 Print Media: ₹ 1,87,00,000.00
 Audio Media: ₹ 63,00,000.00
 In pricing, we broke down the cost price of our product by manufacturing cost, fixed
cost, variable cost, promotional cost, margin to our retailer. Also covering logistics
and Electricity, Machinery cost, labor cost, with promotional and marketing cost. The
total cost price came out to be Rs.100 per unit. We decided to sell it Retailers Margin:
Rs.20 Distributers Margin: Rs.40 and our Margin as Rs.140. The final MRP of our
product is Rs.300
 We have also calculated the Break-even point to be approximately 2 years.

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