Current Market Conditions Competitive Analysis

Current Market Conditions Competitive Analysis

Youth Diapers

Proctor & Gamble (P&G) is the world’s global giant of household and personal manufactured goods by revenue, with successful delivery to over 4 billion people worldwide.  P&G has one of the largest emerging markets worldwide, with the main market in the United States, including Brazil, India, China, and Russia.  P&G announced in 2010 that the company will focus on a growth strategy to increase the growing market and to open approximately 20 additional facilities outside the already establish markets (Wikinvest, 2006-2012).

Pampers is currently the leading global brand of diapers.  Vic Mills, a Proctor and Gamble researcher, who was tired of changing cloth diapers, assigned researchers in the Miami Valley, Ohio, to create a better disposable diaper.  In the winter of 1958 a second test market proved successful, and the brand was born.  In 1971, Pampers went global, and today the product can be found in 98 countries around the world.  The Pampers line now includes diapers for each stage of a child’s life from birth to early childhood.  Products include Swaddlers, Cruisers, Baby Dry, and Extra Protection Diapers wipes, Easy Ups Trainers, and UnderJams Night wear for older children.  The Pampers line can be found in virtually any retail store in the nation (Proctor & Gamble, 2013).

Because of their brand recognition and global popularity, introducing new products has been successful for the Pampers brand.  There is a need for diapers in additional sizes for children with special needs in every market in the United States.  Current diapers sold in retail establishments are only appropriate for children up to ages three or four, but in reality there are a large number of disabled children in the United States that require the use of diapers.  In retail, there is a large gap in available diaper sizes between the toddler and adult size undergarments available. Parents of children with autism and cerebral palsy along with many other developmental disabilities would be very grateful to be able to find these diapers at their local store instead of via the Internet.

        According to the Census Bureau, 5.2% of the 53.9 million school-age children in the United States were reported to have a disability in 2010 (Brault, 2011).  Another report by the Centers for Disease Control reports a 17.1% increase in children ages 3-17 with a developmental disability in 2008, about 1.8 million more children than diagnosed the decade before (Centers for Disease Control and Prevention, 2011). This creates a large market for products that assist children with special needs in any capacity.  Unfortunately, these products are not readily available in retail establishments or by familiar brands.  NorthShore Care Supply is an online retailer that sells several different types of youth diapers, prices range from $11.75 for a dozen to $74.95 for a case, but you must consider shipping costs and delivery time (NorthShore Care Supply, 2013).  Another online option is MedSupplyShop; they offer disposable underwear for $50.07 for a package of 60.  Based on these examples, it would be very feasible to Pampers to enter the retail market with a product that ranges from $10-$12.