Relaunching Adult Diapers in India

Group Members

• Asad Aftab 111634004• Omer Hayat Khan 111634028

Product market scope

• A nappy or a diaper underwear that allows one to defecate or urinate on oneself discreetly.

• Three types of usage of diapers 1) Children 2) Adults 3) Animals

• There are two types of diapers 1) Disposable diapers 2) cloth diapers

Product market scopeConsumer Characteristics: Usage Technology

Care givers Adult care Non-woven

Care receivers Female care Inner absorption pad

Hospitals Infant care Super absorbent layers

Self-service outlets Overnight protection

Chemists Anti-bacterial

Modern retail stores Inner leak leg barriers

Wetness indicators

Wide band

Porter Five Forces Model•  

• Bargaining Power of Buyers: LOW Factor of growing Urbanization leading to increasing concentration of buyers The aspect of product differentiation is low, as diapers are not standard

products. Comfort factor, length of use, quality in term of material all matters when one goes to buy the diaper.

Usually buyers have very limited knowledge regarding the materials that being used in making of diapers. They just look on the final product.

Income is increasing leading to an increase in purchasing power. This also decreases the bargaining power of buyers.

• Bargaining Power of Suppliers: Moderat       Suppliers can go for forward integration (generating a threat for new

entrant). Concentration of suppliers is high as major brands in diapers industry

imports adult diapers and related products from different countries; it shows the availability/ presence of suppliers not only in India but across the globe.

•  Threat of New Entrants: MODERATE: Suppliers can go for forward integration by using their

expertise so threat of new entrants becomes high. Strong distribution channel is a key to success in this industry• Threat of Substitutes: HIGH Tissues, cotton or cloth are being used as substitutes of

diapers. • Intensity of Rivalry: As adult continence market continued

to grow, so overall intensity of rivalry become low.

PEST analysis• Political:• Reduction in imports duties and freight charges has given by government leading to import such

products from other countries like United States, Australia and Korea. • Economic:• Indian economy was growing at a rate of 7 to 8 percent since the mid 90’s leading to improve the

purchasing power of Indian economy. • Social• Personal hygiene not discussed• Increase in the number of new brands• Age • Population and growing urbanization• Extended working hours• No awareness.• The concentration of the organized retail stores in upper income urban areas was high. • Technological• Effective acquisition layer required

 •  

KSF’s

• Comfortable during use• Range in term of size• Advertising is an important factor for

awareness.• Distribution channel• Maintain relationships with the customers

Segmentation• Geographic segmentation• India, Major Cities• Urban, affluent and urban upper class• Demographic segmentation • Age group: 40+• Gender usage: Male/Female• Psychographic segmentation • Social class : Upper Middle & Upper• Lifestyle : Innovative/Comfort Seekers• Behavioural segmentation • Occasion : Personal/Social • User status : Early Adaptors

Distribution strategy

Manufacturer

Retailer Retailer Retailer

consumers

consumers

consumers

consumers

• The diagram distribution channel shows best availability channel for kcll .

• Double arrow line shows information flow.• Single arrow shows product flow from

manufacturer to consumer.• This shows an indirect channel.

• The company make strategic alliance with retailers .

• Like in Mumbai , Delhi , Bangalore and Pune company use big marts for the Placement of their product. They sell directly to their target customers which are urban upper class.

Logistics Strategy

• Company should build warehouses near consumer markets , the orders can easily be fill with in the time which the customer give to company.

• Transportation must be out sourced because there is a high cost spend on maintenance of the vehicles. But through cost and benefit analysis they use proper transport medium.

• Packaging should be according to the geographical location of the country.