Procter & Gamble (P & G) is one of the best-selling American companies in terms of market-oriented excellence in its tradition of seeking and articulating the potential needs of its customers. The development of its baby diapers is an example.
The idea of disposable diapers is not fresh. But market research showed that over those years, the diapers accounted for only 1% of the U.S. market. The reasons were the high price and parents thought that disposable diapers are not convenient to use. The research also showed that the potential market of disposable diaper was huge. Procter & Gamble’s product developers spent a year developing a product that is both easy to use and attractive to the parents. In 1958, they did the first test. In addition to the parents’ negative views and the baby’s prickly heat, they got nothing. In 1959, Procter & Gamble re-designed its disposable diapers. This time, two-thirds of the trial users thought that this product was better than cloth diapers. This product was called Pampers. It was found that mothers like to use Pampers but they did not accept the price of diapers. Therefore, the price must come down. The tests showed that the price of 6 cents could make these new products sell well to meet the requirements of retailers.
Pampers were finally launched. Until today, it continuous to be one of the high-quality products in Procter & Gamble. It shows that the firm’s grasp of the real needs of the market. For example, analyze the reflection of potential users to guide and improve the development of new products. Departments work together to determine the positioning–the Value Proposition (class ppt). As a result, the company made a win-win business: Pampers not only reduces the pressure of parents, but also brings incomes and profits to Procter & Gamble companies.
The decision of Procter & Gamble to develop disposable diapers demonstrates that companies need to understand and grasp market demand for product development, and the recognition for market demand and must be based on systematic and adequate market research. Market research and consumer behavior are two sub-fields of marketing with impact on business mind. (class ppt)
Although disposable diapers are not firstly developed by Procter & Gamble, but this company recognizes its huge market potential and the root causes why other brands cannot sell well through a detailed market research. According to the researches, Procter & Gamble improved Pampers to meet the market requirements and to reduce costs and selling prices to meet the customer expectations. As a result, Pampers finally becomes a convenient, healthy and economic product that meets the characteristics of the market demand for selling.
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Article Reference:
Wu, Jianan, et al. Shi chang ying xiao xue = Marketing. Qing hua da xue chu ban she, 2010.
Image References:
https://www.amazon.com/Pampers-Swaddlers-Diapers-Economy-Count/dp/B004Q8FFTS
https://www.instacart.com/publix/products/16880837-pampers-cruisers-pampers-cruisers-diapers-size-4-24-count-diapers-24-ct