1

Pigeon Corporation

Overseas dept

Marketing G

Portable Electric Breast pump

Shipping : July 2010

2

Circumstance

Breast feeding is becoming trend in the world. In some country, session to promote breast feeding is held every year.

Trends in exclusive breastfeeding rates( first sixmonths of life)

43 3930

15 18

45.94738 38

32 36.2

64

010203040506070

1990 2004 Source by UNICEFF

中国のみ混合栄養での数値データ/ データピジョン上海統計

Because of melamine matter, breast feeding ratio is getting

higher in China as well

Increasing

3

Competitor

In terms of brand power and awareness, Medela is No1 brand in this type of breast pump and what we have to do is to approach them by developing better product.

✓Covering all type of breast pump including manual, electric and hospital use.

✓ Demystifying to lactation consultant, doctor and nurse.

✓ Launching artificial nipple to demystify expressing, storing and nursing.

✓ Electric breast pump share = 24%

✓ Electric breast pump double type share = 74%

✓ Hospital use share = 32%

（ All number comes from market survey in Lansinoh 2006)

✓Selling not only Europe but also Asian country and Oceania

✓Starting to do promotion activity and doing event in hospital in China.

✓No spec of hospital use but launching electric breast pump with single, double and manual breast pump

✓Starting to developing manual breast pump with diaphragm type for the first time

✓ Launching artificial nipple to demystify expressing, storing and nursing. ✓ Enhancing brand image at store shelf not demystifying to lactation consultant or doctors

✓Famous for manual type, 32% share in USA

4

Company – Vision to be breast support company

Integrating the image of Pigeon brand at store front

Expanding product relating to breast feeding

Penetrating to customerPenetrating to customerDeveloping BI, VI and VMD to totalize Pigeon’s brand imagePigeon’s brand image at store front

Launching “ Breastfeeding advisor”“ Breastfeeding advisor” website to be known Pigeon as “Breastfeeding support company”http://www.pigeonbaby.info/ba/　

1st step1st step 2nd step2nd step 3rd step3rd step

Launching breast care item to beLaunching breast care item to be “ “Breastfeeding support company”Breastfeeding support company”Target item : Nipple care cream, Breast milk storage bottle, portable electric breast pump and so on.

2008 ～

2009 ～

2010 ～

5

※TS 表より（海外部からの関連会社売り含む）

Sales qty of breastfeeding items are elongated more than 300% comparing 2000.

*From Pigeon Sales data

Breastfeeding items are up growth category it is necessary to expand sales more to foster them as a category next to nursing bottle and nipple.

Company

Sales amount yen

2000 2008 Up ratioBottle 222,693,750 1,051,043,110 472%Nipple 205,707,052 584,463,288 284%Breastfeeding item 173,987,413 526,193,501 302%Baby hygiene 99,627,852 342,258,199 344%Breast pad 120,806,512 261,988,102 217%Weaning 38,046,328 169,346,372 445%

472%

284%344%

217%

445%

302%

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

Bottl

e

Nipp

le

Brea

stfee

ding i

tem

Baby

hygie

ne

Brea

st pa

d

Weanin

g

0%50%100%150%200%250%300%350%400%450%500%

20002008Up ratio

\ 0

\ 100,000,000

\ 200,000,000

\ 300,000,000

\ 400,000,000

\ 500,000,000

\ 600,000,000

1 2 32000 2005 2008

6

Situation in Latin America (16899)

7

Company – renewal of breast pump

faculty

faculty

manualmanual

high

low

We have started to develop breast pump which reflects our research from 2006, In 2010, we have decided to renew “battery operated breast pump” to match consumer’s needs and to enhance brand power as “breast feeding support company”.

electricelectric

Diaphragm Manual breast pump

Silent Electric breast pump

16849Battery operated breast pump

2006

20082010

PortableElectric breast pump

8

Consumer – % of possession

Market survey in Korea 2009

In overseas market, consumer prefer using electric type to manual type.

Market survey in Taiwan 2009

6-11mosn=83

6-11mosn=99

0-5mosn=99

12-23mosn=102 12-23mos

N=138

0-5mosn=82

Electric ManualBoth

Electric & Manual

Doesn’thave

Doesn’thave

BothElectric & Manual

ManualElectric

n=303n=300 n=303

Age group

Age group

byarea

byarea

9

Consumer

Consumer research in Taiwan 2007

Consumer research in Korea 2008

Every mother has same consideration when buying electric breast pump as above. NEW electric breast pump need to solve consumer's needs as many as possible.

1) Not to feel pain

2) Can be used with ease

3) Seems easy to use

4) Able to adjust suction power

1) Can be used with ease

2) Not to feel pain

3) Able to adjust suction power

4) Electric type

10

Customer complaint of 16849

1) Motor does not move appropriately

2) No suction

3) Inadequate suction

* Comment example coming from consumer

Why this happens?

-Because there is no system to prevent backflow. -Because there is no system to prevent backflow.

If breast milk goes into “motor part”, function goes down extremely.

-Because of AC adaptor-Because of AC adaptor

If voltage of AC adaptor and motor is not matching, it becomes cause of trouble.

Consumer report of Singapore and China

11

Renewal point

Function and Specification we required for NEW electric breast pump

1)Able to use at ease

2)Not to feel pain

3)Able to adjust suction power

4)Looks easy to use

5)Preventing back flow

6)AC adaptor is included

12

Our mission and target customer

【 Target customer 】

＊ Consumers who wish to use breast pump at outside For example working place

＊ Consumers who are heavy users

＊ Consumers who wish to buy electric breast pump cheaper than Silent electric breast pump, Mini electric from MEDELA and ISIS from AVENT

【 mission 】•Improving sales amount of “Breastfeeding items” by launching NEW product which can get sales amount and profit properly.

•Enhancing brand power and market share by renewing current item which occurs customer’s complaint.

Brand power

Sales am

ount NOW

GOAL

13

Product strategy （ Positioning ）

Possible to customize suction Possible to customize suction pressure and cycle by oneselfpressure and cycle by oneself

Quiet motor and it Quiet motor and it is possible to use is possible to use when you are out when you are out or next to a babyor next to a baby

Motor is noisy that Motor is noisy that people around will people around will notice your notice your expressionexpression

Suction rhythm is adjustableSuction rhythm is adjustable

Motor of Avent is smaller comparing other competitor but it cannot be produced sucking rhythm by oneself. Medela is too noisy to suck and cannot customize sucking pressure and sucking cycle on your own. Our Portable Electric Breast Pump has much better specification comparing two competitors, AVENT and MEDELA.

14

Product （ specification and feature ）

Light and silent motor*You can use this product at

your office or next to baby with no hesitation

Push lever*You can adjust sucking cycle easily with one finger. It is possible to make weak suction and

strong suction anytime you want.

Advanced sealing air cushion*This sealing air cushion is perfectly fit to

your breast. Material is so comfortable and mother does not feel pain

Cup preventing back flow*Path passing air and milk is completely different. So it never occurs back flow.

Wide neck PP bottle*Bottle to be put is wide neck PP bottle.

This bottle is BPA free so you can use at peace not to concern environmental hormon.

Suction pressure adjustable dial*You can adjust suction pressure from 1 to 5. It is possible to customize pressure depending

on your condition of the day.

Less component*This NEW electric breast pump is composed by

only 6 parts. Assembling and breaking up is much easier than

current battery operated breast pump

BPAFREE

15

Product – Specification of motor

Weight : 200g

Silence of motor : same as silent electric breast pump.

There is level 1 to 5 (92mmhg ~ 250mmhg). Consumer can adjust suction pressure as they like by using just one finger.

Consumer can control suction rhythm by this lever. If consumer move their finger with high speed, it can reflect “faster tempo” which is important for starting expression. On the other hand, it is possible to duplicate “ slower tempo” by using a finger with slow.

By using lock lever, push lever can be locked.

Silent and Light

Suction pressure control dial

Lock lever

Unique push lever

16

Product – specifictaion of pump body

Path which runs through milk and air is completely different. In that case, there is never happens that breast milk goes inside of motor and stops moving.

Because of wide base, No need to attach wide-neck adaptor. Also, it is easier to attach milk valve to pump body.

Never Back flow

Wide neck base

17

Product – package

Package size -190×95×150

Package is smaller than Avent, Medela and Pigeon’s other pump. We appeal “ how this product is easy to use and portable” through package.

18

Product – Instruction sheet

Size – A3

19Our NEW breast pump covers feature both mini-electric from MEDELA and ISIS from AVENT. We can be No1 share in this category.

Product – comparison with competitor

20

Product strategy （ place ）

We can see that consumers are buying breast pump at baby shop when referring consumer survey. It is important to get product information at store front because there are additional value part such as customizing suction power or suction rhythm.

The most important thing is to transmit product information at store

1) Baby shop

2) Department store

3) Drug store

2.6%

45.9%

2.1% 2.6%

56.2%

1.0% 1.0% 0.5% 0.5% 1.0%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

百貨店

ス│パ│

病院

薬局

ベビ｜専門店

テレビ通販

通販

家庭訪問

直接販売

ネット販売

Consumer survey in Taiwan Consumer survey in Korea

Consumer survey in China

Dept.Store

HyperMarket

SuperMarket

DrugStore Internet Pharmacy

BabySpecialty

ShopOther

Do not purchase

Dept.Store

AgeGroup

AgeGroup

Hypermarket

DrugStore

Baby Specialty

ShopInternet Other N/A

Dept.Store

TVMailorder

SuperMarket

DrugStoreHospital Mail

order

BabySpecialty

ShopInternet

21

Product strategy （ price ）

Product name Battery operated breast pump

Portable breast pump

ISIS IQ UNO Mini Electric

Picture of the product

Shop price (AVE ） 9,500THB 4,350THB

AVENT ISIS 　 IQ 　 UNO

Medela 　 Mini Electric

PIGEON 　 current product

【 Assumption of shop price after launching portable electric breast pump 】

PIGEON 　 NEW Breast pump

Local 　 brand

We set our shop price between Medela mini electric and current breast pump. By doing so, we propose that we can get both consumer who can not buy product of Medela and do not want to buy local one at the same time.

Medela is No1 competitor and our mission is deprived share from Medela

22

Promotion strategy

Purchase of breast pump peaks when baby is 0 month to 3months. We have to do promotion which influence those targeted customer

0-3months 4-6months10-12months6-8months

Maternity period Postnatal period

Buying behavior

Important customer

We need to give information to the mother who is 10months –12 months maternity and 0-3 months postnatal period. The most important customer is a one who has 0 –3 months old baby.

23

Promotion strategy

Media to get information about breast pump

Mother who has 0-3months baby is so busy and there is a little time to go to store shelf. The important thing is to give information how this pump is good and how other people think about this pump before going to store shelf.

internet magazine Store shelf

Strong influence when buying breast pump

Recommendation from mothers or friends

Word of mouth

24

Promotion strategy – using internet

1) Using distributer’s website

As a new product, Please upload onto website

2) Word of mouth website

1) Recruiting monitor

2) Using portable electric breast pump

3) Asking them to upload comment onto the word of mouth website

Prepared By distributer

25

Promotion strategy-magazine advertisement

By adding consumer’s feedback, mother can have good and safety image toward our portable electric breast pump.

Mother and baby is smiling

○Graph to show mother’s satisfaction

EX% mother satisfied with this pump

% mother want to recommend to other mother

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ×××× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

○Mother’s comment after using this pump

EX I did not feel any pain at all…

I could use this at working time…

Prepared By HQ

NEW

26

Promotion strategy-lefletPrepared

By HQ

As a breastfeeding support company, we introduce not only portable electric breast pump, but also other breast feeding items onto leaflet.

Inside Outside

Breast pumpInformation

Importance ofBreast milk

NEW

○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○

○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○

○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○

Introduction of other breast feeding itemEX Breast care pump, nipple puller,

nipple cream, storage bottle and so on

Inside page 1/2 Inside page 2/2

Front page

210mm

105 mm

27

Promotion strategy - store shelf

○SWING POP

POP should be handmade or small size of magazine advertisement.

This SWING POP becomes attention at store shelf. Please attach them on price rail or next to product sample.

○POP at store shelf

Mother and baby is smiling

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ×××× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

×× ×× ×× ×× ×× ×× ×× ×× ×× ×× ××

Design will be portable electric breast pump

Prepared By MPI

Prepared By HQ

65 pcs of product sample

Need to discuss and select suitable retailer.

28

Schedule & Item code

〇 Meeting to approve mass production : End of April 　〇 Mass production : Early May 　

〇〇 First shipment : JuneFirst shipment : June

Schedule

Item code and description

Carton size

Country of origin : Japan

29

Q ： Why suction power is 250mmhg? It seems too weak.A ： Because FDA is mentioning officially that breast pump which suction pressure is more than 250mmhg needs apply document as medial equipment which has tendency to feel irritation and other bad feeling to users. We, Pigeon, wish mothers to use breast pump without stress. So that, we set maximum of suction power to 250mmhg.

Ｑ： It does not suck at all, is there any reason why??Ａ ： First of all, make sure that all parts are set correctly. When milk valve or inner cup are torn, air leaks and suction will be weaker. Also, be careful about milk valve. If the milk vale is pushed too strong to the pump body, suction power becomes weak.

Q ： How we can make suction?A ： All you need to do is using push lever. Attach your finger onto “Push lever” and set in motion. You cannot make suction just by pushing breast pump at your breast and not using your finger.

Q: Does suction power change when using AC adapter and battery?A: There is no difference.

Q: What can we do when bringing this breast pump out at outside?A: Please use “lock lever”. Push lever cannot move at all when using lock lever. 　

Q&A