Kimberly Clark is a multinational company, its headquarters is based in America and they have been in business for 140 and has branched out to many countries including New Zealand. It has previously ranked first in the personal category in Dow Jones Sustainability world index five years in a row from 2005 to 2009 and has contributed $323.1 million in cash and products to charitable causes in 2011(Kimberly Clark.com) Kimberly Clark New Zealand does manufacturing for Huggies diapers and it is located Manakau, Auckland, New Zealand. They have a wide range of paper based products which are facial tissues, toilet papers, scientific cleaning wipes and Huggies disposable diapers (Wikipedia 2012)
The specific product that will be the focus of this assignment is Huggies Pull Ups is a brand of disposable training pants made under Huggies brand of baby products; It is designed for boys and girls. “(I’m a big kid now!)” This is the products slogan (Wikipedia 2012)
Several changes were made since the product first came out, the first one was the addition of magic stars/flowers on the front of the pant that fade when the wearer wets it as a way to discourage wetting. Next was the easy open sides which made it very similar to underwear’s, it was easy for parents to check if the wearer soiled it and to quickly change the messy product.
Statistics New Zealand records show that there are approximately 200 000 two to four year olds in New Zealand, because of the high demand of Huggies pull-ups the company has decided to increase the price of Huggies pull-up diapers
The target market for this product is the parents of kids between the ages of 2 and 4 years. It is especially for kids who have started walking. Huggies Pull ups makes it easier for parents to change their child’s diapers. Huggies pull ups comes for girls and boys also comes in different sizes. Boys and girls diaper size 2 and between 8-15 kg the price of pull up pack is $13.99 (plunketshop.co.nz)
Consumer need the product seeks to satisfy-The product seeks to make life easier for parents that are making their child wear a diaper can be hard because at the targeted age children move and play, using Huggies pull-ups is less time consuming.
Market of Interest, Trends and size
Market of Interest: Pull-Ups is a brand of disposable training pants made under the Huggies brand of baby products. It is a product for boys and girls who have already started to work and its product slogan is I’m a big kid now. Several changes were made since it came out, the first one was the addition of magic stars/flowers on the front of the pant that fade when the wearer as a way to discourage wetting. Next was the easy open sides which made it very similar to underwear`s, it was easy for parents to check if the wearer soiled it and to quickly change the messy product. Huggies Pull ups is for parents who prefer to give their child training using toilets. This report will discuss on Huggies Pull Ups diapers and the best way to achieve profitable sales in the country and overseas.
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Trends and size of the market: According to statistics New Zealand there are approximately 200 000 two to four year olds in New Zealand in the year 2012 these are babies who have started to work and parents prefer them to use toilet and Huggies Pull ups is the best Diaper that can encourage a child to use toilets.The Personal Care segment manufactures and markets disposable diapers, training and youth pants and swim pants, having a net sales of 43.7 % and 61.6% of operating profit(Wikiinvest.com). This shows that the market size for Huggies diapers is large
External environment impact
Technology: Online Websites
A buyer can get all its information regarding a product from online websites. It is very important for a company to have a online informational website of it’s a product and information about the company. Everyone who excesses the website should get all the information they need regarding the product. The current focus is upgrading the website and adding new features.
Technology (Mass Media) Magazines and Television
Since the target for the product (huggies diapers) is mums the company can use other sources like of mass media to advertise their product such as television. Many people watch television and come across commercials which can catch their attention; therefore having commercials of Huggies diapers will surely catch the attention of mums. Magazines is also a better Mass Media, a lot of mums read women’s weekly and having a advertisement of Huggies diapers will get mums to buy the product.
Demography
A good market for Huggies pull up diapers is parents of children who are the ages of 2 to 4 years of age. Since at that age children start to walk parents prefer their child to start using the toilets and Huggies Pull Ups is the best diaper which encourages children to use the toilet. Huggies Pull Ups is also easy for parents to make their child wear diapers. Huggies Pull Ups targets middle upper class families and upper class families since Huggies brand of diapers are of good quality and prices are high.
Political and Legal
The most important concerns for business firms are the political and legal forces which are implemented in countries in which they plan to conduct business. Some foreign governments are unsteady, that is, there may be frequent, dramatic and irregular regime changes and/or political unrest. Government regulations may change constantly therefore it can affect Kimberly clark New Zealand who produce Huggies brand of diapers, for example if labour rate increases which means the company will have to spent more on labour therefore the funds allocated for other purposes will be used to cater for the change.
Economics
Huggies Pull Ups has competition from treasures and pampers diapers since both come in different sizes depending on the weight of the child. The price range of the three products is also close ranged small pack priced $13 to $18 and big pack is $44 to 49. Huggies targets higher classed families therefore profit is made easily.
Social and cultural
Kimberly Clark New Zealand works together with plunket where they help mothers when mothers are having a new born and plunket also help parents in giving advice relating to their child. The Huggies diapers needs to be safe for example the baby should not have any rachises when wearing the diaper.
Competition Analysis
The current and main competitors of Huggies Pull Ups diapers are three other popular diaper brands which are sold in New Zealand Today. Using the SWOT analysis the strength, weakness, threats and opportunity of Huggies diapers and its competitors will be examined.
Current Situation
Huggies Pull Ups diapers are a world famous brand and are also a popular brand in New Zealand. Kimberly Clark New Zealand is the manufactures of Huggies Pull Up diapers in New Zealand. Huggies Pull Ups goal is to do changes to the Huggies Pull Up diapers until they can get the best product out of it so the customer need of this product can be satisfied.
Huggies Pull Ups diapers target market is middle upper class families and upper class families. The manufactures of Huggies Pull Ups Kimberly Clark are also in partnership with plunket therefore other customers are also concentrated on.
Problem Identification
The main problem that huggies Pull ups Faces are competition by top diaper brands which are in the New Zealand market. It becomes very hard to meet customer demand since customers have a wide brand to choose from.
Opportunity
Since Huggies brand of diapers already exist in the market, it has already created an image for its self which is quality. Huggies Pull Up diapers team should add more features to the product to improve on its quality and have promotions to attract the customers in order to have even a greater percentage of market share. Greater market share means greater profits
Treasures Diapers (lower prices)
Treasures diapers come in different sizes, depending on the Childs weight. Two to four year old weigh between 10 to 20 kilogram and treasures diapers comes in those sizes. Treasures diaper comes in different packs which are small packs and large packs. Large packs have twenty diapers packed in it and cost $29.90
SWOT for Treasures
Strength
Weaknesses
Cheap
world renounced
Customer loyalty/relationship
Leading brands in most countries
Lower quality diaper
Lower price diaper means lower
Opportunities
Threats
Expansion of product
Competition from other diaper brands
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Luv diapers Mid Priced (Jambo pack)
Luv diapers is made by proctor and gamble and comes in different sizes, kids who can walk and are of two to four year olds can also wear the diapers. The price range for the luv diapers is $34-90. According to Wikipedia (2012), since the product was first introduced in 1976 there have been a lot of changes made to the product; the latest change was made in 2007 where bear hug stretch was introduced
SWOT for Luv diapers
Strengths
Weakness
Good quality
In business for a number of years
Brand recognition
International brand
Price is mid ranged ,confuses customers on what to buy
Opportunity
Threats
Luv diapers can add on more features and improve the product in order to attract more customers
These are competition from other diapers that are of cheaper price and diapers who are at a higher price with quality.
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Pampers Diaper (jumbo) High priced
Pampers is a brand of baby products marketed by Procter & Gamble. Pampers diapers comes up to size seven. The price range for pampers diapers is $49.90. Pampers diapers is high priced due to it high quality.
SWOT for Pampers diapers
Strengths
Weaknesses
Very good quality
International brand
Large number of customers
In business for a number of years
Expensive to buyers
opportunities
Threats
Can add more features to pampers diapers
Competition from other diaper brands
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Huggies pull up diapers (jambo)
Pull-Ups is a brand of disposable training pants made under the Huggies brand of baby products (wikipedia 2012). Kimberly clark makes all huggies brands diapers. Huggies Pull Ups diapers prices are expensive and it targets higher class families, its price is $49.90
SWOT for Huggies Pull Ups diapers
Strengths
Weaknesses
High quality product
In business for a number of years
Large number of customers
International brand
Very expensive
Opportunities
Threats
Add new features to the product
Competition from other diaper brands
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Target Market segment Profile
The target market for this product is the parents of kids between the ages of 2 and 4 years. Huggies diapers are for upper middle class families and upper class families who prefer quality rather than price. Kimberly clark New Zealand is in partnership with plunket so they can give the best care to mothers by helping the nurses. Parents want a diaper that can fit their needs and brand loyalty is big amongst members of this group. This group is likely to choose this diaper product. Huggies Pull Ups is especially for kids who have started walking. Huggies Pull ups makes it easier for parents to change their child’s diapers. Huggies pull ups comes for girls and boys also comes in different sizes. This target group needs quality brand of diapers; loyal customers probably prefer to stick to this brand of diapers over all others
Situational Analysis
Huggies brands of diapers are sold in different supermarkets and stores all over New Zealand it has created a good image on the minds of its customers, its quality is also the reason why many customers prefer to buy Huggies diapers. Huggies pull Ups diapers has got many competitors in the market, some competitors are pampers diapers, treasures, luv diapers. Huggies Pull Ups diapers have got competition from a wide range. Huggies Pull Ups will understand how to best penetrate its new market after carrying out full examination of its competitors.
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Competitor analysis
Huggies diapers have been in business since 1989 it has made a good name for its self. Since 1989 to 2012 there have been a lot of changes made to the product, depending on the changing needs of the customer Ever since Huggies Pull-Ups became popular, several other diaper brands tried to copy their product (Wikipedia 2012). The product seeks to make life easier for parents that are making their child wear a diaper can be hard because at the targeted age children move and play, using Huggies pull-ups is less time consuming
Internal Environment Impacts
Personal Care (43.7% of net sales, 61.6% of operating profit): The Personal Care segment manufactures and markets disposable diapers, training and youth pants, and swimpants; baby wipes and incontinence care products. Products in this segment are mainly for home use and are sold under a range of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex and other brand names
Internal organisation and structure
The current board of directors of Kimberly-Clark Corporation are: John Alm, Dennis Beresford, John Bergstrom, Abelanrdo Bru, Pastora Cafferty, Robert Decherd, Thomas J. Falk, Claudio X. Gonzalez, Mae Jemison, Linda Rice, Marc Shapiro, and Craig Sullivan. Also in 2000, the company bought virtually all of Taiwan’s S-K Corporation; the move made Kimberly-Clark one of the major manufacturers of consumer packaged goods in Taiwan. In 2001, Kimberly-Clark bought Italian diaper maker, Linostar, and announced it was closing four Latin American manufacturing plants. Kimberly-Clark Sub-Saharan Africa’s vision is determined – nothing less than turning the $250 million business into a $1 billion business by 2015.
Manufacturing process
A prototype is an early sample or a model built to test a proposal or method or to act as thing to be fake or learned from. If a picture speaks 1000 words, then a prototype must speak 10,000. Which means a prototype of your new product is a must-have when developing and explaining your big idea. People use prototypes to prove, test and refine their ideas to all kinds of things. (Huggies.co.NZ)
Human Resource
It is the policy of Kimberly-Clark to hire, promote and support the professional
Development of diverse global work force, employee safety and
Industrial hygiene is a fundamental value of the organization. Effective
leadership lays the foundation for a solid safety and hygiene management
system by establishing facility-specific policies, providing resources, assigning
responsibilities, establishing expectations, and evaluating performances
Management
The manager that managers the leadership team at Kimberly clarks New Zealand are Senior Brand Manager Kleenex at Kimberly-Clark New Zealand, Grant Hartley Head of Marketing at Kimberly Clark NZ,Geeta Uka Senior Brand Manager Huggies.
Research and development
In 1989, Huggies introduced Pull-Ups brand disposable training Pants.
In 1992, single-sex Pull-Ups training pants were introduced with customized absorbency placed where boys and girls wet the most and also gender-specific prints, trucks for boys and pastel colored animals for girls.
In 1997, Disney character designs were introduced, featuring Mickey Mouse for boys and Minnie Mouse for girls.
Also in 2003, the slogan that was used in the original late-1980s and early-1990s commercials, “I’m a big kid now”, was recycled for the product’s recent commercials.
In 2004, single-sex underwear was introduced with customized absorbency placed were boys and girls wet the most and also gender-specific prints.
In 2005, Pull-ups introduced training pants called Pull-Ups Wetness Liner Training Pants. These Pull-Ups are similar to the Learning Designs training pants, but contain a liner that makes the wearer feel when he or she is wet by having the liner have an unpleasant feel to it when it is wet.
In 2010, Pull-ups offered this phone call service accossiated with Disney. Mainly, as a reward for finishing potty training, the parent of the wearer could request a phone call in which the caller pretends to be a Disney Princess or Toy Story character. This was a limited time offer and is now a currently defunct service.
In 2011,Goodnites halts it’s connection with Huggies but is still connected with Kimberly Clark.
In 2012, the sides on the boy’s Pull-Ups were recolored from blue to red.(Wikipedia 2012)
Location
Level 1, 86 plunket Avenue, Manakau City, South Auckland New Zealand.
External Relationship
The Kimberly-Clark Foundation, together with funding from the company and our employees, responds to causes and programs with financial contributions, product donations and volunteer time. In 2011, Kimberly-Clark and our employees contributed $32.1 million in cash and product donations for charitable causes worldwide. As part of that amount, the Kimberly-Clark Foundation matched $1.25 million in employee giving, and awarded nearly $860,000 in grants to charities where our employees or their spouses volunteered more than 84,000 hours of their time.
Kimberly-Clark has long-term partnerships with several charitable organizations that share our commitment to improving the health, hygiene and well-being of the world’s families
Competitive Positioning
High quality
Huggies Pull Ups
pampers
low Price High Price
Luv Diapers
Treasures
Low quality
Ethical Standings
Huggies New Zealand has put all their baby care tips, techniques and information into 1 place, to help make newborn baby care as easy as possible for new mums and dads. Becoming a parent is a big change! Having an online resource to support you through this life-changing event can help make this time even more special. Trust us, it will be over quicker than you think. Enjoy every minute.( Huggies.co.NZ) Kimberly-Clark New Zealand the makers of huggies diapers, has appointed specialist creative agency Green Team as its lead sustainability and social responsibility agency to assist with the roll-out of a new sustainability and social responsibility platform for its Australia and New Zealand operations.
Green Team will develop the creative for the program that will be implemented in phases
initially focusing on employee engagement before launching externally. (campaignbrief.com)
Others (Culture of Excellence)
When it comes to culture and excellence huggies is in partnership with plunket in supporting the development of healthy families. We’re committed to health promotion, providing services according to principles. (plunket.org.NZ).
BABYCARE Category Winners
The Best Products for Baby – As Chosen by New Zealand Parents (ohbaby.co.nz)
BABYCARE CATEGORY
GOLD AWARD
SILVER AWARD
Best baby skincare lotion
Johnson’s Baby Bedtime Lotion
Weleda calendula baby lotion
Best baby wipes
Huggies unscented wipes
Silk baby wipes
Best bathtime product
Johnson’s Baby Top to Toe
Ecostore Baby Sleeptime Bath
Best cloth nappy brand
Real Nappies
Itti Bitti
Best disposable nappy brand
Huggies
Treasures
Best nappy balm
Bepanthen Ointment
Sudocrem
Best teething product
Bonjela
Weleda teething powder
Situational Analysis Summary
Huggies diapers pull Ups environment scan has determined that huggies Pull Ups has a number of advantages over the other diaper brands in the market. As a quality brand, it exceeds diapers in the lower and mid-price ranges. Huggies Pull Ups is a high priced diaper and its major competition in that price range is pampers diapers both are quality brands and are demanded by parents.
A SWOT analysis was done of Huggies pull ups and its major competitors in New Zealand. A positioning map was also created that shows where Huggies Pull Up diapers stands together with its competitors.
The positioning map shows that Huggies is a high quality and high priced diaper therefore its target markets are upper middle class families and upper class families.
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