Disposable Diapers Case Study

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The diaper, also known the nappy in South Africa, Ireland, the United Kingdom, New Zealand, Australia and Zimbabwe) is an undergarment that allows a stool or urine. In 1956, Procter & Gamble began to study the disposable diaper. Mills (reference year), who is a general chemist engineer at Procter & Gamble also grandfather, frequently changed, washed and dried his grandson’s wet cotton cloths. So, in order to make easier this job he invented producing diapers that was trademarked as "Pampers". However, Pampers were not marketed until 1961. To date, disposable diaper has been accounting for more than $10 billion in annual income for the Procter & Gamble (reference). In the next few decades, it is believed that the disposable diaper industry will …show more content…
By 2020, it will reach to $59.4 billion (reference). The developed countries have been seen the largest areas that share the most market. However, with the rise in disposable income, developing countries are expected to witness significant growth in the forecasted period. Their disposable diapers market would be increased to a significant market share around 63 percent of the estimated global market by 2020 (reference). However, environment protection consciousness will very possibly limit the use of disposable diapers in the future; and on the other hand will increase the use of biodegradable diaper. Importantly, the global market is segmented into cloth baby diapers, disposable diapers, training nappy, trunks and biodegradable diapers. In 2013, the disposable diaper has accumulated into 66 percent of the global market, which is the largest market share (reference). By geographic regions, the market is divided into North America, Europe, and Asia Pacific. Baby diaper market in Asia Pacific is expected, compared to such regions as North America and Europe, with the rapid growth of 8.3% annual growth rate. Global diaper net sales were around $25 billion in 2011 and expected growth will be $33.4 billion in 2017 (Vocus PRW Holdings, LLC, 2011). Currently, among the global diapers brands who hold the biggest five are P&G, Kimberly Clark, Unicharm, SCA, Kao, occupying almost 70% market share in total (reference), as shown in Figure …show more content…
As we know, on the one hand, disposable diaper has its advantages and disadvantages, such as polluting environment, harm baby health, consumers’ financial problems, and so on so forth. On the other hand, the traditional cloth diapers (e.g., Mongolia) are more inconvenient to use than disposable diaper, such as they need to be washed over and over again. More importantly, parents will choose the easier way to take care of their baby. In this case, the disposable diaper may be the best candidate. However, parents will very possibly be unaware of the consequences that disposable diaper may cause. To deepen this issue, factors that influence the post purchase behavior oThe global trend of premium manufacturer’s brand of diapers such as Pampers, Libero, Haggies, MamyPoko and Helen Harper sales are making up higher portions of market share in Mongolia (reference). The pie chart (Figure 1.2) indicates that Pampers and MamyPoko hold the biggest market share in Mongolia. Recently, many of Mongolian consumers purchase more disposable diaper than traditional cloth diaper, especially for the young families who tend to purchase disposable diapers because of the working environment and their living style has been changing. In fact, there are lots

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