05 The Female Company

InThinking Business Management
Exam Practice Question – The Female Company

https://www.thinkib.net/businessmanagement
The Female Company (TFC)
The Female Company (TFC) is a female healthcare product business that specializes in
delivering organic cotton tampons, with no harmful chemicals or pesticides, straight to their
customers. It business was established by co-founders Ann-Sophie Claus, the Managing
Director and Chief Executive Officer (CEO) and Sinja Stadelmaier, the Managing Director
and Chief Product Officer (CPO) in 2018. TFC is as a privately held company and is based
in Berlin, Germany. The company employs 33 workers.
(a) Define the term privately held company. [2 marks]
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As a start-up company in 2018, TFC relied on both internal and external sources of finance.
The company received financial backing from numerous business angels. TFC also
managed to secure €42,200 in crowdfunding.
(b) In the context of the case study, distinguish between business angels and
crowdfunding. [4 marks]
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www.thinkib.net/businessmanagement/
TFC provides sustainable and well-designed products for modern women. The company
protests against what it regards to be an unfair tax on feminine hygiene products in
Germany, where these products are considered luxury goods. This means tampons and
sanitary pads are taxed at 19%, like flowers, truffles, or oil paintings.
TFC believes tampons are essential items and should be taxed at the lower rate of 7%. The
co-founders, who met at university, came up with a creative solution to this problem by
packaging tampons inside a book to qualify for the lower tax rate. This ingenious approach
has become TFC’s unique selling point.
(c) Explain two reasons why having a unique selling point is important to TFC. [4 marks]
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The first print-run of The Tampon Book in the spring of 2019 sold out in a single day. The
book which contains, 15 tampons and pages of fun and surprising information about
menstruation, is priced at €3.11 ($3.30). The company also offers an online subscription
scheme, meaning women always have access to them when needed.
TFC’s market research revealed the following:
• Tampon manufacturers are not required by law to show the ingredients of their
products on their packaging, such as plastics.
• Many women in Germany and around the world are unable to afford sanitary products.
• Increasing awareness about feminine hygiene has contributed to changing lifestyle of
women on a global scale, so is expected to increase the market for the tampons.
The German government has since abolished the tampon tax.
Source: adapted from The Female Company
Consumers in Germany and across the globe are increasingly demanding hygiene products
that are environmentally friendly and sustainable. For example, there has been a surge in
the demand for organic and biodegradable tampons and sanitary pads. TFC’s organic cotton
tampons are 98.4% compostable and the company has replaced plastics in sanitary pads
with organic maize starch. The tampons are packed in paper instead of plastic wrapping,
which dramatically reduces the amount of waste materials that end up in landfills.
Some of the challenges that TFC currently faces include:
• Stigma and taboo around female health, including menstruation and menopause, in
many parts of the world can hinder awareness and education about TFC's products
and female health.
• As a small company, TFC needs to effectively manage its logistics and supply chain to
meet the demands of its customers and subscribers, as well as maintain high levels of
customer satisfaction.
• Marketing – With a limited marketing budget, TFC needs to continually find creative
ways to reach more customers. The company does not have a global presence.
• Competition – There are at least 30 other companies that offer similar products, so
TFC needs to continuously innovate and differentiate itself to remain competitive.
The tampon market was valued at $4.19bn in 2020 and expected to grow by almost 70% to
over $7bn by 2027. Tampax, owned by US multinational Procter & Gamble (P&G), is the
undisputed market leader with 29% global market share. P&G’s closest competitor, Johnson
& Johnson, has less than 20% market share. Each year, the company sells more than 4.5
billion boxes of Tampax worldwide (that’s 513,698 boxes sold per hour!) Tampax was
launched in 1931 and has dominated the market for decades. However, Tampax is not sold
in retail outlets in Germany. The most popular brand for feminine care products in Germany,
such as tampons and sanitary pads, is o.b., with 22.5% of women using o.b. products.
Sources: adapted from The Female Company and The Guardian
Table 1 – Best tampons of 2023, according to scientists and gynecologists
Price per
Rank Brand
tampon
1. Tampax Pure Organic Tampons $0.50
2. Tampax Pearl Tampons $0.22
3. Seventh Generation Organic Cotton Tampons $0.39
4. Tampax Radiant Tampons $0.25
5. Playtex Sport Tampons $0.20
Source: Good Housekeeping
(d) Using the data provided in Table 1 and information in the stimulus, recommend a
suitable marketing mix for TFC to increase its market share. [10 marks]
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05 The Female Company

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InThinking Business Management

Exam Practice Question – The Female Company

The Female Company (TFC)

(a) Define the term privately held company. [2 marks]

TFC’s market research revealed the following:

The German government has since abolished the tampon tax.

Source: adapted from The Female Company

Some of the challenges that TFC currently faces include:

Sources: adapted from The Female Company and The Guardian

Table 1 – Best tampons of 2023, according to scientists and gynecologists

Source: Good Housekeeping

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