Group Members
Asad Aftab 111634004 Omer Hayat Khan 111634028
Care receivers
Female care
Hospitals
Infant care
Self-service outlets
Overnight protection
Chemists
Anti-bacterial
Wetness indicators
Wide band
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
consum ers
consum ers
consu mers
consum ers
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.