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Diaper

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The diaper war:Kimberly-clark versus procter and gamble(condensed)

Disposable Diaper Early Evolution

1. 1940s-- J&J introduces disposable diapers in the United States.
2. 1952-Kendall and Parke-Davis enter the market.

Focused- traveling parents with infants
Uses: with fatening pins and plastic pants/ineffective for both babies and parents dry
Result- Slow sales/ high price($.10 for disposable vs $.03 to $.05 for cloth diaper services and $.01 to $.02 for home laundered diapers).

3. 1961- P&G entered disposable diapers indusrty with Introduction of Pampers

Pampers: Price $.10 per daiper(Similar price as other firms)

4. 1964-P& G enginners developed technology process which was faster than prior process with minimal process of raw material which cut cost

Pamers reintroduce with low price of $.055 per diaper nd national distribution was achieved by 1969.

5. 1960s- Diaper reasearch began at K-C
Used feminine napkins to develop product which used fluff pulp in place of tissue.

Pulp--- provided better absorbency and competitive cost savings.
6. 1968-- K-C introduced---- Kimbies

Kimbies----Parity prices with Pampers(eqal cost to consumers)/ Kc invested it's profit into further development of product which show a high degree of price indiference to consumers

7. Late 1960s--Other companies (scott paper, borden and internation paper-) experimenting with a two -piece disposable diaper systems(Technology developed in Europe) with disposable inner liner and a reusable plastic outer shell(using snaps insted of pins gave these products a distinct advantage over Pampers)

8.1970- Pampers Market Share of 92%/ Other comapnies focused on product innovation which does not translated into market share: Two Reason # Poor marketing communication and inabiliy to reduce manufacturing cost at P&G Level

Industry Stakeout

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