P&G revamps diaper line to win K-C share
Pulp & Paper, Aug 1996
Procter Sr Gamble Co. will overhaul its line of baby diapers, adding new features to its major brands later this year. In a strategy to wrest market share from rival KimberlyClark Corp., the company plans to launch breathable Pampers diapers, upgrade the Luvs brand, abandon gender-specific versions, and introduce new packaging.
The changes are scheduled to take effect in August.The company is embarking on the strategy to regain leadership in the global $4-billion disposable diaper business, in which K-C now holds the top position. K-C's Huggies brand has increased its share of the U.S. market over the past several years to 27.3% by adding innovations such as Velcro closures; Pampers currently has a 23.4% share and Luvs a 10.7% share.
Perhaps the biggest change will be adding breathable side panels to the Pampers Premium brand to allow air to flow into the diaper without leakage. Breathable film is said to reduce humidity in the diaper and help reduce diaper rash. P&G says consumers will not be charged a premium for the new diapers, which already have a clothlike back, although its raw material costs will be higher.
P&G is also replacing gender-specific diapers with Pampers Baby-Dry Stretch, a new unisex diaper. The company was first to come out with pink and blue versions in 1988 and Kimberly-Clark followed. It now says gender-specific diapers are unnecessary due to a redesigned superabsorbent core. The move was widely anticipated, particularly as some retailers were reluctant to provide extra shelf space for separate male and female lines. K-C is expected to follow P&G's lead, although the company claims that its own research shows consumers continue to want gender-specific diapers.
In addition, P&G is adding a stretch feature to its mid-priced Luvs brand; Luvs Stretch will begin shipping in August. This move marks a renewed effort by P&G to reposition the brand as a premium-performance diaper at a value price and is likely to put further pressure on private label diaper manufacturers.
Finally, P&G is introducing large packaging, called jumbo and mega, in an attempt to streamline packaging for both brands. This packaging will hold up to four times the number of diapers sold in a "regular" packaging and is predicted to translate to a 5.9% price increase for consumers. Some observers see this as an attempt by P&G to increase sales of larger, more cost-efficient packaging.
Drypers Corp., Houston,Texas, started shipping a baby diaper containing baking soda, becoming the first major diaper producer to do so. K-C introduced a bath tissue with baking soda last year
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