Tendercare Disposable Diapers Harvard Case Solution & Analysis

Tendercare Disposable Diapers Case Study Solution

The case illustrates the strategy of the market strategy of the Tender care company in initiating the new diaper product in the market by the RMM supplier.The US and Canadian market is highly held by the Protector and gamble and other player with high absorption diaper for baby, These players mainly offers the Two type of diapers in the market, one disposable and other of cotton Material. Recently the RMM- an outside supplier as offered the company a new diaper product with high absorption as compared to Pampers in the market.

The management of the company has to decide whether to launch the disposable diaper product in the market and if so, what strategy should it pursue to maintain the brand value and offer a distinctive brand image and value proportion. Such opportunity is eminent in the market due o he drop of pampers share of the market from 70% to 50% recently.

Tendercare Disposable Diapers Harvard Case Solution & Analysis

Hence to pursue the launches strategy, tender care has 3 options to launch the diapers with distinct value proposition.Such strategies include the Diaper rash strategy, special occasion strategy or had on strategy, tom Cangan, the director of tender care has to decide which strategy to move forward in order to develop a distinctive brand image and sustainability of sales over the long period of time.The challenges is to develop the right market mix and identification of the opportunity to capitalize in the long term.

Keywords:  Competitive edge, value proposition, PEST, SWOT

Introduction

Tendercare is a disposable diaper producer and manufacturer in the market.Over the period of time, the company with association and co-joint leadership of cagan with RMM, has introduced a medicated diaper bard to treat jaundice, however in the recent period, the RMM has offered a disposable diaper to the Tendercare company in order to test and develop the results for marketing the disappears in the market.

Since the diaper produced has an extensive offering of the dry layer that keeps the baby’s ski Rash free, and has high absorption capacity as compared to the diapers offed by pampers and has covered about 70% of the market share.

To cangans notice, Tendercare can develop a distinctive value proposition in the market under the three devised strategies.Such strategies include to market the product as rah free disposable for the babies and adults through physician and medicated stores in the market, or it should adopt the strategy special occasion, in which the offering of easy absorption and changing of the pamae will be offered to the mother, the main target will be the mother who are the decision makers of the product. Lastly, it may adopt the strategy of Head on and market the diapers as comparative alternative to pampers and keeping the same pricing strategy.

Though each alternative is proposed has certain pros and cons, the most suitable alternative will be selected, after analyzing the competitive landscape and market positioning. Though the three option developed targets the major market share and population in US and Canada.However there is an extended market opportunity that the company can target using the similar brand, such market is the Adult markets and under bed pads markets targeted through hospitals and physician centers.Though its is a fragmented market, it is eminent that the Tendercare may develop the two way strategy to cater the market and capitalize the market opportunities.

Analysis

Strengths

  • The company has expertise and skills to cater e changing market needs and to address the market gaps.
  • It has strong financialassistance to launch the diaper series in the market.
  • The company has strong brand image and has prior selling in the healthcare sector under the medicated diaper use.
  • Thecompany has well-known establishment in the two categoriesof diapers i-e medicated and cotton diapers.
  • The company has co-aligned strategic relation with the RMM through the co-joint leadership of Cangan.

Weaknesses

  • The company is new in the market and faces strong competition from the well-developed brand pamper in the market.
  • The company has low access to the direct customers and sell through the indirect channels.
  • The company has limited resources to cater the two markets simultaneously.
  • Also it faces the hindrance in pursuing the extensive marketing campaign due to limited marketing budgets as compared to pampers and other competitors in the market.

Opportunities

  • The company has extensive opportunity in offering the dried and disposal diapers to the market which n current situation is lacking and has created a market gap.
  • The company has opportunity to enter into the adult disposable market which is also on the increase due to increased spending on the Healthcare and ailing and aging US population.
  • The company has opportunity to offer the disposable diaper to the US and Canadian markets at the cost effective pricing strategy.

Threats:

  • The company faces the threat of wiping off from the market by the strong players like Procter and gamble and Johnson and Johnson.
  • It faces the threat of imitation, which may drive the distinct value proposition away from the company.
  • The company has limited resources to be allocated to research and development. Such limitation may restrict Tendercare strategy to adopt the market development strategy...................

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