Case Analysis
strategic Marketing Management
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strategic Marketing Management
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Ma. Felizia L. Agustin
Case Analysis
Strategic Marketing Management
Drypers Corporation
National Television Advertising Campaign
I. Background
Grocery outlets in the United States rely on disposable diapers among many other products to be able to attract customer into their establishments. It is essential for these retailers to have these stocks move with the means of each of the brands own capacity and influence among the consumers. The two market leaders which are Proctor & Gamble and Kimberly-Clark, are highly aggressive on mass media advertising in order for their products to gain demand in the market.
Drypers, on the other hand, depend on promotions and cooperative merchandise arrangements with the retailers. Drypers hopes to compete with the two of the leading brands by having to invest in mass media advertising as well. The company with their potential investment, wish to be able to increase their penetration in the different outlets in the country. With that being said, the results may allow them to break through to more profitable channels, and help the company change from promotion-driven sales to brand-driven sales, which prove to be more cost efficient.
II. Statement of the Problem
Given Drypers current, is it necessary for the firm to spend an additional $10 million for their national television advertising campaign?
What are the implications or effects of such a campaign to the brand?
In what areas is Drypers best at, to be able to compete with such strong competition?
III. Objectives of the case
Assess the companys capacity to produce and deliver the projected demand by having to push through with the proposal of a national television ad campaign.
To determine the effects of launching a national television ad campaign to the company.
IV. Facts of the case
Strengths
Strong cash flow and sales growth
Investing on research and development
Product Innovation
Product diversity
Licensed to Sesame Street characters
Exclusive private label supplier for Wal-Mart in L.A
Garnered as the most innovative children product for 1997 in the American Marketing Association.
Weaknesses
Less budget for advertising expenditure compared to competitors
Less financial resources compared to rivals
Lack of brand-name recognition
Less extensive national distribution capabilities
Competitors who are financially strong
Opportunity:
Increase brand awareness through TV advertising
Increase market share by gaining a presence in mass-merchandisers
Pursue international expansion opportunities
Continue to invest on R&D to come up with new product developments
Strengthen brand recognition by taking advantage license agreement with Sesame Street
Threats:
Continual growth of market share by P&G and Kimberly-Clarke
Minimal response to television advertising
Decline in grocery store sales on diapers and training pant
Economic uncertainty with some of the countries where the company had ventured