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tampax




International Product and Brand Strategic Analysis of Tampax©








International Product and Brand Management
MSc International Marketing
14th May 2003
Contents
§     Introduction
-     Company Overview
-     Brand Overview
-     Product Overview
§     Distribution
§     Promotion
§     Targeting
§     Product line and Brand-Product Mix
§     Product Line
§     Analysis of Tampax and Market
-     SLEPT
-     SWOT
-     Porter’s 5 forces
§     Customer Buyer Behaviour and Market Segmentation
§     Product Life Cycle
§     BCG Growth-Share Matrix
§     Building Competitive Advantage
§     Tampax Product and Brand Strategies
§     Competitors: Playtex & Lil-lets
-     Product lines
-     Strategies
§     Price comparison across distribution means
§     Effectiveness of Tampax Strategies
§     Gap in the Market
§     Conclusion
§     Recommendations
-     Ansoff Matrix
-     Further Recommendations
§     References

Introduction

Company Overview

Proctor & Gamble is a world leader in the consumer goods market, specifically pharmaceuticals. ...

One of Proctor and Gamble’s five operating divisions is ‘paper products’ encompassing such well known brands as Pampers, Tempo, and Tampax (Powell Mantel, 2000).

Brand Overview

In the Feminine Protection category, P&G are maintaining their world leader status by owning the two top brands: Always and Tampax.

Tampax-brand was initially launched in 1936, and was the first tampon product to be introduced to consumers. ... and its global brand Tampax in 1997.

Tampax tampons are now available in over one hundred and fifty countries and used by more than one hundred million women (www.tampax. ... Tampax holds a 44. ...

P&G has an established distribution network, in place worldwide which can be utitlised for the Tampax brand. ... This gives Always pads and Tampax a good position to begin with, allowing them to expand on those efforts. ... 5 million devoted to its Always and Tampax brands (Mintel, 2003).

Product Line and Brand-Product Mix of Tampax

Tampax offers applicator tampons in a range of absorbencies: Regular, Super, Super Plus. These products are available in separate packs but the Tampax Multi-Pack offers a selection of three different absorbencies in one box - Super, Regular and Lites. ... The Tampax Mini has the same absorbency as the Regular product but offers a slender profile to young girls and first-time users.

Tampax Non-Applicator tampons, which feature a silky outer cover and a tapered tip for easy insertion, are also available as multipack, containing three absorbencies in one box: Regular, Super and Super Plus.

The Tampax Compak tampon is individually wrapped in pastel coloured wrappers and packaged in colorful boxes. ...
Product Line
Product Name     Product Type     Material     Design     Absorbencies     SKUs
Original Tampax     Applicator Tampons     Cardboard     Blunt end applicators     MiniRegularSuperSuper-PlusMulti-pack     1212/16/3012/16/3012/16/3028
Tampax Satin     Applicator Tampons     Cardboard     Round tip applicators      MiniRegularSuperSuper-PlusMulti-pack     12/16/3012/16/3012/16/3012/16/3028
Tampax Pearl     Applicator Tampons     Plastic     Round tip applicators     LitesRegularSuperSuper-PlusMulti-pack     12/16/3012/16/3012/16/3012/16/3028
Tampax Compak     Applicator Tampons     Plastic     Round tip, extendable applicators     LitesRegularSuperSuper-PlusMulti-pack     12/16/3012/16/3012/16/3012/16/3028
OriginalTampax     Non-Applicator Tampons               RegularSuperSuper PlusMulti-pack     12/16/3012/16/3012/16/3028

Analysis of Tampax and the market

SLEPT Analysis

Social

The social, cultural norm in Asian counties and within the Roman Catholic regions, which has strict, believes that emphasizes the sanctity of virginity, constraints the use of internal feminine products. ...
§     Tampax holds the position of market leader globally
§     Economies of scale and scope

Weaknesses

§     The sector of sanitary protection is affected by population changes and there are ageing populations in most of the developed countries
§     There are consumer concerns about TSS

Opportunities

§     New market opportunities, for example, Eastern Europe and Asia. ...

Tampax’s target market is women of fertile age, with specific advertising and products aimed at teenage first-time users and young women.

Product Lifecycle

The product life cycle is a concept to facilitate the understanding of the stages through which Tampax has and will pass and describes the overall position of Tampax. ...

(Baker & Hart 1999)
Tampax’s life cycle clearly started at the gestation (new development) stage in 1926 and was launched in 1936 by Doctor Earle Haas. ...

In order for the PLC to progress to the growth stage, Doctor Earle Haas sold the patent and trademark rights to Gertrude Tendrich who founded the Tampax Company and put the product into mass production. ... Tampax at this stage has achieved wide market acceptance, maintain market share an enhance profitability. Although decline is inevitable, Tampax had rejuvenated its product with a combination of skilful management and on-going consumer demand. This saw Tampax remaining at the growth stage but over the years the growth rate has slowed down and this is when the product requires new marketing strategies and tactics appropriate for the maturity stage.

Tampax has managed to improve the product range and change the product features, and develop a new innovative product, Tampax Pearl. By introducing these products, Tampax will extend the length of the maturity stage.
BCG Growth-Share Matrix
In order to assess the implications of the position of Tampax’s products on the product life cycle, it is possible to apply the Boston Consulting Group Growth-Share Matrix. ...










(Baker & Hart, 1999)

The original and core product of the Tampax brand is the original tampon. ... Therefore, Tampax Original is positioned in the lower left quadrant of the BCG Matrix making it a ‘Cash Cow’. ...

The opposite is true of the newly introduced Tampax Pearl. ... Because of this, Tampax Pearl is considered a ‘Question Mark’, meaning it is still experiencing negative cash flow due to the high costs of promotion and distribution (Baker & Hart, 1999). It is estimated that Tampax ran a $40 million advertising campaign to launch the product in America alone (Neff, J. ... Tampax have successfully secured their ‘Cash Cow’ with the original Tampax product, which can be used to fund further product research and development, launch and introductory stage which for any new product is expensive (Kohli & Thakor 1997). ...

Building Competitive Advantage - Tampax



Porter (1980) argued that low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage within an industry (Hill and Jones, 2000). ... Tampax have used a differentiation strategy to gain competitive advantage in the market place.

Superior Quality

Since taking on the brand in the nineties, P&G has maintained the name of good quality that Tampax has held since the thirties. Because of the slightly higher price of the new Tampax Pearl product, perceived quality is also superior. ...

Superior Innovation

Tampax maintains superior product improvement by continuously re-designing their existing products; with the introduction of product features such as ‘silky applicators’ or ‘rounded tip applicators’. ...

However, Tampax is not head of innovation in the market; both Playtex and Lil-lets have launched a range of products complimentary to their tampons.

Superior Customer Responsiveness

By using their packaging and website as an opportunity to educate the consumers to the risk of Toxic Shock Syndrome or related health issues, Tampax ensure that they are responsive to their customers. ... In addition to the above product and operation related strategies, for example, Tampax could use marketing communication tools to distinguish its Tampax original’s core brand value – reliability and comfort and use endorsement of the parent brand – P&G in the communication. Communication is important to Tampax Pearl in achieving the differentiated perception with consumers and the point of difference with the product.
In the distribution channel, Tampax Pearl should have the premium shelf space compared to Tampax original. ...

Tampax Product and Brand Strategies

§     Market penetration through low price and extensive distribution

The price of Tampax is lower than the major competitor’s pricing in the UK market.


Approximate Word count = 6076
Approximate Pages = 24.3
(250 words per page double spaced)
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