Marketing Strategy Tender Care Diaper
Analysis of case study
Tender care diaper
Suggested Strategy-Diaper Rash Strategy
Break even analysis of the three strategy
Diaper Rash strategy
1 No of Doctor and Nurses in USA 400,000
2 No of Doctor and Nurses in California 11%*400000 44000
3 Mailing List($60/1000) 2640
4 Cost to print and mail a broucher cover letter and post card($250/1000) 11000
5 Sample Diaper $400/1000 17600
6 Demonstration Cost $6 Per 2.5 doctor 105600
7 Convention and advertisement 30,000 Total Fixed cost 166,840
Contribution margin per diaper- .09 cents
Break even Quantity- TFC/Contribution margin =166840/.09 =1853777 diaper =1.8mn
Total California Market
No of Kids in California 1.21mn
No of diaper used daily per child 4
Total No of Diaper daily 4.84mn diaper daily
Depend upon the time of launch of the product we can also calculate the market share require to break even.
The special Occasion strategy
1 No of House hold in California 11% 900,000 990,000
2 No of Organisation in California 11% *30000 3300
3 Mailing Cost $50/1000 49665
4 $250,000 in Baby magazine 250000
5 $500000 in Direct mail 500,000 Total Cost 799665
Contribution Margin per diaper - .06cents per diaper
Break even quantity- 799665/.06=13327750 =13.2mn
Head on strategy
Since we don’t have adequate data regarding the amount of money spend on each of the media like television/magazine /other media except the ratio which is 60:30:10
So we are assuming that they have to spend at least half of what the other major player are spending in the market
As per the case study P&G spend annually $40mn in advertisement and Kimberly spend $19Mn in advertisement
From a safe side even if we consider Kimberly figure for California market it comes to $2.09mn
If RMM want to spend half of it it would
Tender care diaper
Suggested Strategy-Diaper Rash Strategy
Break even analysis of the three strategy
Diaper Rash strategy
1 No of Doctor and Nurses in USA 400,000
2 No of Doctor and Nurses in California 11%*400000 44000
3 Mailing List($60/1000) 2640
4 Cost to print and mail a broucher cover letter and post card($250/1000) 11000
5 Sample Diaper $400/1000 17600
6 Demonstration Cost $6 Per 2.5 doctor 105600
7 Convention and advertisement 30,000 Total Fixed cost 166,840
Contribution margin per diaper- .09 cents
Break even Quantity- TFC/Contribution margin =166840/.09 =1853777 diaper =1.8mn
Total California Market
No of Kids in California 1.21mn
No of diaper used daily per child 4
Total No of Diaper daily 4.84mn diaper daily
Depend upon the time of launch of the product we can also calculate the market share require to break even.
The special Occasion strategy
1 No of House hold in California 11% 900,000 990,000
2 No of Organisation in California 11% *30000 3300
3 Mailing Cost $50/1000 49665
4 $250,000 in Baby magazine 250000
5 $500000 in Direct mail 500,000 Total Cost 799665
Contribution Margin per diaper - .06cents per diaper
Break even quantity- 799665/.06=13327750 =13.2mn
Head on strategy
Since we don’t have adequate data regarding the amount of money spend on each of the media like television/magazine /other media except the ratio which is 60:30:10
So we are assuming that they have to spend at least half of what the other major player are spending in the market
As per the case study P&G spend annually $40mn in advertisement and Kimberly spend $19Mn in advertisement
From a safe side even if we consider Kimberly figure for California market it comes to $2.09mn
If RMM want to spend half of it it would