Essay About P&G And Private Label Products

Disposable Baby Products – Us – April 2015
Disposable Baby Products – US – April 2015Leading Companies Key pointsIn baby care, trust and brand recognition count and three large, well-established suppliers – P&G, Kimberly-Clark, Johnson & Johnson – together command 73% of the market. P&G and Kimberly Clark dominate the diaper segment. From 2013-14, P&G carved share away from Kimberly-Clark, whose mid-tier marketing strategy has been less successful that P&G’s appeal at the high-end, with Pampers, and the low-end, with Luvs. P &G saw MULO sales increase 9.8% from 2013-14 and emerged as the leading supplier with 34% of the total market.Value is still a key driver and private label products comprise 23% of the MULO market. Private label offerings are strongest in the disposable wipe/moist towelette segment, with almost 40% of MULO sales. Here, consumers are less likely to invest in brand names, and private label offerings have also expanded their product selection. Combined, other smaller suppliers have shown the strongest growth from 2013-14 and gained share in the disposable diapers/training pants and personal product segments. They may be especially well-positioned to benefit from on-going interest in natural and eco-friendly products, which consumers may seek out more frequently if the economy continues to improve.P&G and Kimberly-Clark command two thirds of total market The MULO disposable baby products market is made up of a few key companies as well as private label. Two companies – P&G and Kimberly-Clark – dominate the market and command about two thirds of MULO category sales. With 34% of total MULO sales, P&G which sells diapers under the Luvs and Pampers brands, has increased sales 10% and expanded its market share by two percentage points. It has seized the position of market leader form Kimberly–Clark, which, with its Huggies diaper brand, commands about 32% market share. Given the intense competition between the market leaders, there have been on-going shifts in market share between these major suppliers. However, P&G is now enjoying a three year trend of gaining share at the expense of Kimberly-Clark, largely due to its more successful branding strategy in the diapers segment. From 2013-14, several Huggies diaper lines struggled, continuing a trend of slower sales seen from 2012-13 and reported in Mintel’s Disposable Baby Products – US – April 2014. Johnson & Johnson is the third largest company with about 7% market share. It is the leading company in the MULO baby personal care segment, with its well-established Johnson’s Baby brand. However, its sales have increased less than 1% and it has lost market share to “other” manufacturers. This is because of competition from private label on the one hand, and many new roll-outs from smaller, natural label competitors on the other.Private label offerings maintain share from 2013-14Private label accounts for 23% of MULO sales from 2013-14, reflecting the development of strong private label offerings by mass merchandisers, warehouse stores, super markets, and drugstores. Especially in the context of a slow and uncertain economic recovery, consumer interest has been high in economizing where possible. Private label products have a fairly strong presence diapers/training pants segment, with almost 20% of MULO sales, and are a major force in the baby wipes/moist towelettes segment, with 40% of MULO sales.