Case Study: Tambrands – Overcoming Cultural Resistance

- Simone Segatto -
Marketing and International Sales
IMoTML01 - MBA in International Talent Management & Leadership -
 Contextualization
NEW, BUT NOT NEW…
A new mission was
COMPETITORS launched "Our core
Started launching their business is the
TAMBRANDS INC.
own tampons brands manufacture and sale
In 1984, the company
and Tampax market of tampons.“, however,
changed its name, in a
share fell from 70% to Tambrands US market
signal of what would be a
42% while sales of was growing by only 1
possible way for a
tampons increased to 2% a year.
diversification of
244%. products

TSS DEATHS DIVERSIFICATION What to do now?

TAMPAX INC.
After the TSS cases DIDN’T WORK
Tampax tampons,
(majority among Rely’s Tambrands launched its
the company’s only
users,) the entire own sanitary napkin
product launched in
industry suffered with brand (Maxithins),
1936
more sales decrease. among other initiatives
in Europe and Latin
America, but “It was
less successful than we
had hoped”, they said.
 Studying the case
• Tampax still was the best-selling in the
world with 44% of the global market
share,
• 90% of those concentrated in North
America and Europe and US
represented 45% of all sales
• Earnings dropped 12%
• Urgent need for expansion (global
campaign and distribution)
Tampax
performance
Market
• Saturated in USA, no new users
• Worldwide only 6% of women using
tampons
• Opportunity for growth, but needing to
overcome religious and cultural
resistances
Solution
• Market divided into 3 clusters based on
resistance to use tampons
• Market to each cluster in a similar way
• In 1997, Tambrands became part of
• Brazil, beach culture, got a new campaign
P&G, a $1.85 billion deal
• Ad campaign to 26 foreign countries + US would
cost $65m • P&G back in the tampon business,
• Tambrands had no capability to do that alone since its Rely brand issues in 1980
• Chances to accelerate the global
growth of Tampax, achieving its
worldwide distribution
Tambrands’
Strategy
 Why P&G?

A world-class company with global marketing and

distribution capabilities

With expertise on the feminine protection business

Possessing the infrastructure to tap into growth in

the developing countries that Tambrands didn’t have

Known for its innovation in such daily goods

P&G was one of the top companies in the adspend

ranking, in total adspent worldwild and global
presence (U$ 5,336.7 million spent in 1995).
P&G Marketing Strategy

TCHAU-TCHAU BRAZIL LIKE A NEW FAMILY MEMBER EDUCATION BASED MARKETING

Abandonment of Tambrands’s Creation of a global model

marketing efforts in Brazil as it that it could export to the
was too expensive and slow- rest of the globe, with a new
growing. marketing approach based
on education.
Sale Tampax as a
complement to its existing
feminine-hygiene products,
particularly in Asia and Latin
America.
The “Educational Approach”
MEXICO

Monterrey was chose to be the prime test spot with its 1.2 million
women as P&G target customers

• Open boxes of tampons were often found in stores, what for P&G
was a sign that women were curious about the product but unsure
about how it worked;

• P&G delivered lesson sessions (like Tupperware meetings) where the

counselors talked about the use of tampons and answered questions;
Sales for Tampax tripled in the first 12 months
after the new program was launched.
The “Educational Approach”
VENEZUELA

Based on the success in Mexico, P&G picked Venezuela to be its next market, because Venezuela was relatively
small with mostly urban population.

• Focus on Caracas as the women there expressed some cultural similarities with the Mexican women;

• But, a wrong assumption taken by P&G marketers almost jeopardized the efforts and the ads were changed , to be better
perceived by the women in Caracas.
P&G Marketing Strategy

• P&G has always been an early and aggressive adopter of

new media and launched a Web site as a marketing
medium;

• P&G’s aimed to attract consumers from particular target

groups, with the hope of developing deeper
relationships with consumers;

• The Web site for teenage girls had information on

puberty and relationships, promoted company’s
products and included a variety of subjects that interest
teen girls;

• A feature of the site called “urban myths,” discussed

many of the concerns about the use of tampons.
Protecting Futures - Public health for young girls

• Distribution of Always and Tampax products;

• Giving to sub-Saharan African girls a better chance for education;
• Resulting in a decrease in absence rate during the period days of the girls.

• Not only limited to the distribution of product, but also to the education in regards to the puberty
and menstruation.
• The program would be directly related to school attendance, girls' retention at the school and
better academic performance.
Case study questions and answers
Was it smart for Tembrands to become part of
P&G?
Yes, it was. P&G had all resources and expertise to
make Tampax global expansion that Tembrands
didn’t have.
Talking about Tambrands’ plan to “market to
each cluster in a similar way” , and why and
why not should P&G continue this goal
adapted to the new educational program.
The segregation of the market into three clusters based
only on the resistance to the tampons use, didn’t cover
all the aspects that could be influencing the consumers
decision, and it was probably doomed to fail.
P&G should utilize the Tambrands goal to market each
cluster in a same way only in a situation where a deep
study was conducted before, and only for general
aspects related to the points that the countries in the
cluster had in common, or to reinforce the Tampax
branding and slogan.
P&G shouldn't keep this goal associated to its new
educations approach, as they did, because the program
could be miscommunicated, once there were factors
(social, cultural and religious) that weren’t taken into
account for the cluster definition and it could
jeopardize all the efforts and cause damages for
Tampax image.
For each of the three clusters identified by Tambrands, identify the cultural resistance that must be
overcome. Suggest possible approaches to overcoming the resistance you identify.
Cluster 1: Market without resistance, women already use tampons (e.g.: US, UK and Australia) - cultural resistance related to
the fact that customers believe they know all they need to know about the product. Possible approach could be to identify
the profile of the 30% of women who don’t use tampons and the reasons why. Also a study of the demography could be
held to attract and retain customers from an early age.
• Cluster 2: Half to Half, where approximately 50% of women use tampons (e.g.: France, Israel and South Africa). Cultural
resistance is religious related, with concerns about virginity. Approach with campaigns presented by young “celebrities”
promoting the idea that tampons don’t make a teenager lose her virginity and educational programs in association to social
projects .
• Cluster 3: Women are more resistant to the use of tampons (e.g.: Brazil, China and Russia). Concerns related to virginity
and there are women who don’t know how to use a tampon or feel it uneasy. Approach could consider educational
campaigns and ads, using different channels (web, tv, supermarket campaigns, etc.). They could also focus on low-income
classes, associating the campaigns with social programs for women.
Should P&G reopen the Brazilian P&G is “Protecting Futures”… But whose
Is there an approach that market with the same Mexican and future?
can be used to reach the Venezuelan model?
goal of marketing to each P&G affirmed that programs such as “Protecting
cluster in a similar way”? Sure, why not? But not in a generalized Futures” was responsible to give to the girls in
campaign that would repeat the Africa a better chance for education, decreasing
mistakes made in Venezuela or worse. In the drop-out rate, increasing the girls' retention
Yes, information is always
Brazil there are myriads of women who and improving academic performance.
welcome, so educational
would well receive the information and However, critics said P&G is sending a wrong
approach could be used.
become Tampax customers, however a message to western’s people, as the reasons for
The main point in here school absences and dropouts in Africa, goes
deep research and even a local
would be the focus of the segmentation to have different beyond menstruation periods.
messages and the cultural approaches to different regions, Also, they said that the main reason for the
aspects to adapt the religions and classes could be the delivery of social projects, is to benefit the
messages and channels. determinant factor to lead P&G to company’s branding and a way to get local girls
increase the sales in the country. as future customers.
 CASE STUDY
 Tambrands - Overcoming Cultural Resistance

MARCH 2020

Authored by: - Simone Segatto

Marketing and International Sales

IMoTML01 - MBA in International Talent Management & Leadership - 2019/2020