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Drypers
U.S disposable diapers and training pants market
The market size of disposable diapers and training pants is measured through retail sales value of disposable diapers and training pants in the U.S. The chart below shows that the market size of disposable diapers is much bigger compared to the training pants market in U.S. Retail sales of the diapers market was estimated at $3.9 billion in 1997 where else training pants retail sales was approximately $595 million in 1997. U.S Diaper & Training pants Market Retail Sales

Source: Exhibit 1 (DRYPERS Corporation Case)
However, diapers growth in terms of retail sales increased just about 1.3% over the 4 years period (1994 – 1997). Training pants retail sales recorded an increase of 22.7% since 1994.
The slow growth of U.S diapers market is due to:
 Market saturation of disposable diapers
 Decrease in the number of diapers used per baby as a result of improvements in absorbency and leakage control

Distribution Channel
The main distribution channel for disposable diapers and training pants in U.S are:
 Grocery stores
 Drugstores
 Mass merchants
Grocery stores recorded about 2 billion in diapers and training pants retail sales in 1997. On the other hand, drugstores and mass merchants recorded retail sales of an estimated 1.9 billion the same year, representing approximately 48.7% of the U.S. diaper market.
Mass merchants have increased their percentage of total diaper and training pants retail sales in the United States from 30% in 1994 to 39.4% in 1997. However, grocery stores total diapers and training pants retail sales percentage declined from 60% in 1994 to 51.2 % in 1997, while drugstore retail sales for diapers and training pants declined from 10% in 1994 to 9.2% in 1997.

The declined percentage of both grocery stores and drugstores in 1997 reflects a shift in distribution to mass merchants.

Drypers Corporation
Drypers Corporation is the third-largest manufacturer of

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