Novatis Group : Diaper Manufacturing

Presented By :
Asib Mujtoba Khan 1925077060
Rejoana Carol 1915440660
Rezwan Murshed 1925324690
MD. Saidur Rahman 1915334090
Jahidul Islam 1915404660
 Novatis Group Overview

Entered the Diaper market in 2003

- The CEO saw the demand for diapers

Fierce competition with rivals

- Huggies and Pampers

Offering various diapers

- From baby to adults

Enter the Dalaa!

- The best selling product

Developed market strategies

- For positioning and penetration
 Novatis Group Mission & Values

“Personal hygiene & health”

Value #1 Value #2 Value #3

• Highest • Close • Taking part in

quality Proximity to national
guarantee customer development
 The Channel Structure

Market penetration
- 30% of the national market

Pampers was the king of diapers!

- 80% of the diaper market

Novatis dethrones Pampers

- Novatis takes on 56% and Pampers goes down 28%

Novatis faces tough competition

- Pampers and Huggies fights back

Novatis fights back

- Moroccan government support
 Novatis Diaper Business in Morocco

Novatis produces & sells 60 million diapers each

month

It sells to 450 wholesalers, 3000 retailers & 100

key accounts

Novatis has 2% reduced price compared to other

brands due to innovative material selection
(plastic back sheet)

It maintains 3 month raw material supply stock

inventory

Manufacturing facility located in Morocco

 Competitive Positioning in Morocco
Market

72 % penetration
inside Morocco
Economic Situation of Morocco
Demographic Situation of Morocco
 Distribution Channel of Novatis

Novatis Group

Streamlined (Straight To Major

Retailers) Market Distribution Retailers/Supermarkets
(Accounts 15% of Novatis sales)

Customers
 Distribution Channel of Novatis

Novatis Group

Wholesalers

Multi tier Market Distribution Semi-wholesalers

(Accounts 85% of Novatis sales)

Small Retailers/Mid
Size Shops

Customers
 Business Possibilities in India
Promising developments –
- Number of women workforce
increasing 5.6% annually
Purchasing power growth
Increased awareness & growing
penetration in rural market
Lower cost of diaper
Customer spending on diapers
expected to grow at CAGR 15% till
2023
Key Brands -
Penetration of diaper Pampers (P&G)
usage is 3% Huggies (Kimberly Clark)
Mamypoko (Unicharm)
By 2023,
Market size to be $1.7 B
19% Indian customers will
pay more for children
with 2 in 5 babies aged 0 products that are more
to 2 years in the APAC convenient to use
region will be born in India
One in four Rupees spent
on diapers is online and
Internet sales is expected
this is the highest of any
to rise to 89% by 2023
consumer goods product in
India.
 Challenges In The Indian market
Local partnership is the key to
success in the Indian market.
Bureaucracy and ambiguous
laws are the biggest reason why
its extremely difficult to do
business in India
The diaper category in India
was in its nascent stage and
marked by poor penetration
focusing mostly in big urban
cities
High ‘perceived price’ of
diapers vis-à-vis cloth
nappies.
Supply Chain lead time – 25
days transit by sea to reach
by exporting
Lack of consumer knowledge
High attitudinal barriers
towards disposable
products, culturally more
accustomed to conventional
and homemade options
Presence of strong
competitors with established
supply chain
 Key Success factors for Indian market
It is important to secure local
partners to expand initial
marketing/distribution
management & eventually plan
manufacturing operation inside
India for future
Key influencers to the Indian
consumer include family and Price is a key factor, as
friends, TV, print media with consumers are very
support of celebrity conscious of their spending
endorsement
E-commerce is a growing Supermarket/hypermarket
channel for premium and are the channels with the
imported diaper products, largest market revenue
catering to richer Indians share
Growing network
distribution channels by
Same day delivery will be a
involving pharmacy stores
game changer for the Indian
and exclusive baby products
market
outlets which are likely to
complement sales
Black Chain Technology

A block chain is a time-stamped series of immutable records of data that is

managed by a cluster of computers, owned by different entity. Each of
these blocks of data (i.e. block) is secured and bound to each other using
cryptographic principles (i.e. chain).

It is fully transparent & can be made accessible on internet to concerned

stakeholders who are accountable for their actions within the network

Why Block chain –

1. Block chain carries no transaction cost
2. It can replace all existing business models that adds cost to a
company’s product by facilitating a transaction
 How it works

Traditionally a trusted 3rd party maintains the transaction

between two entities

Block Chain is a system where transactions are publicly

announced over internet and recorded by every participants
within the business network

With no centralized authority or intermediary to validate,

facilitate and complete transaction – this kind of decentralized
record keeping (also known as digitally distributed ledger),
removes the need of intermediary or 3rd parties.
 Use of Blockchain by Novatis

• Blockchain will increase transparency across trade finance process decreasing the
Increase of
Transparency &
risk for Novatis and therefore expanding the supply of credit availability
Supply of Credit

• Trade document and transaction authentication requires large amount of paper

work and results in delay. Blockchain will allow instant tracking for everyone
Reduction of
paper work engaged with trade include Novatis itself

• Using Blockchain, Novatis can monitor the entire shipping process and verify the
Supply Chain completion of each step real time.
Monitoring

• Integrating blockchain in customs process could allow Novatis to digitize their

supply chain and eliminate many of the intermediaries that lead to time delay and
Customs
Regulation
cost because of burdensome documentation requirement and the need to obtain
Simplification approval from too many officials which sometimes lead to corruption