Diaper War between Procter and Gamble and Kimber Clark Harvard Case Solution & Analysis

Diaper War between Procter and Gamble and Kimber Clark Case Study Solution 

Abstract

The diaper war between Procter and Gamble and Kimber Clark made a history in which both the competitors tried to figure out the uncertainties and struggled to find better solutions for the loopholes they had in the beginning of their diaper business. Huggies had a greater market share of 32% in 1989, whereas Pampers had a market share of 31.6%. They both were facing many threats however, they availed many opportunities to prosper in the business world. They adopted various changes and faced a number of environmental issues. They had numerous competitors that had a strong competitive position in the market, but gradually all competitors discontinued their business of diaper due to some reason and made way for the companies to come and get chances to flourish in the market. P&G and K-C targeted the North America t serve their product but due to adoption of advanced technologies by japan companies they were unable to serve the targeted market.Both the business tried to change their strategies as well as they also tried to adopt the changing environment for the purpose of becoming a popular brand in worldwide.

INTRODUCTION

The case study named diaper war is about the war that was being facing by Procter and Gamble and Kimberly Clark. The war has taken a longer time to get upper level position in intense competitive market of diapers. Both were taking initiatives regarding winning excellence in share market. Because of diaper contributed a higher portion in the total sales revenue of both firms, they were trying very hard to find their place in this competitive business environment. They both are well known brands in their respective product lines that get the popularity among customers.

First and foremost, there is a tough need to highlight the value of both the companies because they both are the leaders in the market place. Also, they tend to stable their position by providing varieties of branded products in order to get more success and to satisfy their loyal and rational customers. There are a number of brands that K-C provides that include Kleenax, Scott, Huggies, Pull ups, Cottex, Poise & Depend. (Ellison, 2002)

P&G and K-C thought of being able to offer some sort of product that will save the infants from germs and other harmful bacteria. Parents are concerned with their babies’ health and can make the highest level of satisfactory provision decision related to babies’ health. Keeping these things in mind, both firms tried to introduce baby diapers that will be able to satisfy the parents and will provide germ free and comfortable sleeps to their babies by introducing numerous features with diapers including thinness, good absorbent layers, and hygiene. They were both trying to get the most of the market share through large sales volume of baby diapers because parents will no longer compromise on the hygiene and health of their babies. In order to compete with this challenge, they were trying to seek the opportunities that will lead them toward the targeted level of revenue and market prosperity.

For the completion of this task, P&G appointed new CEO named Edwin Artzt who had experienced knowledge of the diaper provided in international markets. In Sweden, for the very first time disposable diaper was offered to America but it costed more than home laundered diapers and cloth diapers. As a result, it discouraged the industries to get in the market for offering diaper to the customers. Because they cannot be accepted by lower class because of limited earning, they could not afford to invest money on disposable diapers as long as the customers try to go for cloth diapers.

On the other hand, P&G and K-C found the center of interest in taking initiative of offering and making disposable diapers and intended to offer it to the customers that had the potential to buy it for their infants. They both focused on spending amount on research and development and tried to study their customer’s behavior of giving priority to the products.

INITIAL CRISES FACED BY P&G AND K-C:

P&G found many loopholes in the market regarding the health issue of infants and demand of customers for provision of better protection in hospitals. It started to take initiative by offering many sanitized products for providing protection from germs and bacteria. Bacteria are small particles due to which people suffered and faced health problems and spent huge amount in hospitals. P&G was only trying to get the opportunity from the market and make the products that will be according to the desires of its customers and will fulfill their expectations.

In contrast, K-C had an experience in providing napkins and tissues to its customer that will take care of its customers’ health and will no longer harm them. It intended to modify its products in order to gain more market share. And for this, it started to use fluff pulp to uplift the features of diapers, towel, tissues, products related to feminine hygiene because this ingredient is good for increasing the absorbent capacity of the products......................

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