“Just One More”

Aaron FisherMBA, David Eccles School of Businessaaronfisher@gmail.com

PURPOSE

“A successful marketer is someone who can socratically reason through a challenge and find a solution through creativity and

teamwork.”

To show thought process.answers a

question.The question and an explanation as to

why it is useful are presented in theslide

notes.

Each slide

INTR

OD

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DISCLAIMER

This presentation is not meant to be a recommendation for the Luvs® brand.

This presentation is not meant to show anything more than my thought process.

On slides where data has been significantly altered or fabricated, two red triangles appear at the bottom of the slide such as those below.

This author would NEVER include altered or fabricated information in a real report.

Artificial

ValuesSe

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Notes

INTR

OD

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COMPANY STRATEGY AND GOAL

STRATEGY: GOAL:- More Consumers - Just One

More- In More Parts of the World- More Completely

INTR

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OBJECTIVE: “JUST ONE MORE”

To assess the landscape for and viability of a successful launch

of the Luvs® brand into the Canadian market.

“Just One More”

The Luvs® Direction:Just One More Country

By launching into Canada, the Luvs® brand will be able to support the company’s strategy and goal.

INTR

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OUTLINE

INTR

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1. The Luvs® Brand

2. The Canadian Market

3. Competitive Landscape

4. Recommendation

THE LUVS® BRAND

LUVS® ROLE

TH

E L

UV

S® B

RA

ND

Household Care

Baby Care

Diaper Brands

Premium Mid-Tier

TARGET DEMOGRAPHIC

Moms age 18-45 Household Income

under $45K Education: High

School+

TH

E L

UV

S® B

RA

ND

KEY BENEFIT

Leak

Luvs® Ultra Leakguards help lock away wetness and stop leaks, day and

night.

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E L

UV

S® B

RA

ND

REASON TO BELIEVE

Luvs® Ultra Leakguards

have an ultra-absorbent core, stretch sides,

and leak barrier leg gathers.

TH

E L

UV

S® B

RA

ND

BRAND POSITIONING STATEMENT

From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness

and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an

ultra absorbent core, stretch sides, and leak barrier leg gathers.

TH

E L

UV

S® B

RA

ND

CURRENT PRODUCT OFFERINGS

TH

E L

UV

S® B

RA

ND

DIAPERS BABY WIPES

Size Lbs.

Newborn

4-10

Size 1 8-14

Size 2 12-18

Size 3 16-28

Size 4 22-37

Size 5 27+

Size 6 35+

VariousPackage Sizes

LUVS® U.S. MARKET SHARE

Pampers43%

Huggies29%

Private Label14%

Luvs8%

Other6%

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E L

UV

S® B

RA

ND

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Notes

REVENUE

“Luvs has seen double-digit growth in North America.”

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UV

S® B

RA

ND

(2010 Annual Report, p. 43)

CURRENT ADVERTISING “Luvs® holds more and lasts longer.”

TH

E L

UV

S® B

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ND

Commercials

Co-op AdvertisingMobile App Website Facebook

Print Ads Other

DISTRIBUTION

TH

E L

UV

S® B

RA

ND

Club Stores

Mass Merchandisers

Grocery Stores

Chain Drugstores

Convenience Stores

THE CANADIAN MARKET

MARKET RESEARCH TOPICS:

Questions to Answer:Retail Sales of Disposable Diapers Increasing?

Disposable Diaper Use by Target Market Increasing/Stable?

Birth Rate Increasing/Stable?

Household Income Stable/Increasing?

Number of Lower-Income Households Stable/Decreasing?

Strong Preference for Brand Name Products?

U.S./Canadian Tastes and Culture Similar?

Opportunity for Niche Market Product Exists?Artificial

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ET

RETAIL SALES

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

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Canadian Retail Sales of Disposable Diapers(in million $)

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AD

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RK

ET

PROJECTION

MARKET FOR DISPOSABLE DIAPERS

88.00%

89.00%

90.00%

91.00%

Disposable Diaper UseAs a Percent of Target Demographic

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ET

PROJECTION

BIRTH RATE

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Births Per Year

Average annual growth rate = 2.4%

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AD

IAN

MA

RK

ET

PROJECTION

HOUSEHOLD INCOME

$35.0

$40.0

$45.0

$50.0

$55.0

$60.0

Average Income of Various Economic Family Types

(in thousands $)

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IAN

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RK

ET

Average annual income change = 2.39%

PROJECTION

PREFERENCE FOR BRAND NAMEOVER PRIVATE LABEL

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67%

33%

Brand Name Private Label

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AN

AD

IAN

MA

RK

ET

CANADA: THE PEOPLE Cultural Values

What cultural values do they hold that would be relevant in making brand decisions?

What religious influences are there? Entertainment

What do they do for fun? What forms of entertainment do they like? Which televisions shows do they watch? What type of movies do they like to see? Which celebrities or personalities do they like/relate to the most?

Household What is their household size? What is their source of income? What is their education level? Where do they live (urban, suburban, rural)? What types of homes do they live in?

Buying Habits Where do they shop? What do they buy? How do they pay for it? How much do they spend at a time?

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ET

CRITERIA FOR MARKET ENTRY

Reason Finding Favorability

Retail Sales of Disposable Diapers Decreasing

Disposable Diaper Use by Target Market

Declining

Birth Rate Increasing

Household Income Increasing

Preference for Brand Name Products

Positive

DATA THAT COULD NOT BE FOUND:U.S./Canadian Tastes and Culture

Number of Lower-Income HouseholdsNiche Market Product Opportunity

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COMPETITIVE LANDSCAPE

COMPETITOR SET (ALL)Market Share Leaders

Private Label Brands

Eco-Friendly Brands

Other Brands

CO

MP

ETIT

IVE L

AN

DS

CA

PE

LEA

KA

GE

PR

OTEC

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AVG. PRICE PER DIAPER

4

10

$0.10 $0.60(Per-diaper cost of a large pack of size 2 diapers)

(0 =

no p

rote

cti

on

, 1

0 =

perf

ect

pro

tecti

on

)

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PR

OTEC

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N V

S. P

RIC

E (A

LL B

RA

ND

S)

CO

MP

ETIT

IVE L

AN

DS

CA

PE

LEA

KA

GE

PR

OTEC

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AVG. PRICE PER DIAPER

4

10

$0.10 $0.60(Per-diaper cost of a large pack of size 2 diapers)

(0 =

no p

rote

cti

on

, 1

0 =

perf

ect

pro

tecti

on

)

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PR

OTEC

TIO

N V

S. P

RIC

E (IN

-STO

RE)

CO

MP

ETIT

IVE L

AN

DS

CA

PE

PrivateLabel

(Premium)

PrivateLabel(Value)

COMPETITOR SET (IN-STORE)

PrivateLabel

(Premium)

PrivateLabel(Value)

CO

MP

ETIT

IVE L

AN

DS

CA

PE

MARGINSC

lub

Ma

ss

Gro

ce

ry

Ch

ain

Co

nv

.

Clu

b

Ma

ss

Gro

ce

ry

Ch

ain

Co

nv

.

Clu

b

Ma

ss

Gro

ce

ry

Ch

ain

Co

nv

.

Clu

b

Ma

ss

Gro

ce

ry

Ch

ain

Co

nv

.

Clu

b

Ma

ss

Gro

ce

ry

Ch

ain

Co

nv

.

20%

25%

30%

35%

40%

45%

50%

55%

PrivateLabel

(Premium)PrivateLabel(Value)

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Notes

CO

MP

ETIT

IVE L

AN

DS

CA

PE

Club Stores

MassMerchandisers

Grocery Stores

ChainDrugstores

ConvenienceStores

Mar

gin

as

a P

erce

nt

of

Pri

ce t

o R

etai

lers

ADVERTISING MEDIUMS

Television

Print

Co-op Adv.

Website

Mobile

Social Media

Pampers

Huggies

Earth’s Best

Private Label

CO

MP

ETIT

IVE L

AN

DS

CA

PE

COMPETITOR BRAND POSITIONS

Target Market

Moms 18-45, Income $45K+, high school+ education

Moms 18-45, Income $45K+, high school+ education

Moms 18-45, green conscious, high school+ education

Moms 18-45, Income $25-$65K, high school+ education

Moms 18-45, Income less than $55K

Key Benefit

Ultra absorbent core for outstanding leakage protection

Trusted leakage protection of the Leak Lock® System

Provides superior leakage protection and is Earth-friendly

Great for overnight use1

Maximum value for comfort and fit2

RTB

Has 3 layers of absorbency for 12 hours of protection

SnugFit waistband, unique tabs, unique layer to lock wetness away

Contains renewably, naturally absorbent materials, such as corn and wheat starch and is chlorine-free

Stretchable grip tabs, extra absorbent core, and fun safari design1

Adjustable grip tabs and soft waist2

PrivateLabel

(Premium)

PrivateLabel(Value)Baby Dry Snug & Dry

CO

MP

ETIT

IVE L

AN

DS

CA

PE

COMPETITOR MARKET SHARES

Pampers37%

Huggies32%

Earth's Best14%

Private Label12%

Other5%

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BARRIERS TO ENTRY

Possible barriers to entry could include:

Strong loyalty to other brands will make it difficult for people to try the new diaper

Insufficient demand from the target market

Insufficient marketing/advertising funds may make it difficult to penetrate the market as far and as deeply as desired

CO

MP

ETIT

IVE L

AN

DS

CA

PE

THE RECOMMENDATI

ON

THE OBJECTIVE REVISITEDTo assess the landscape for and

viability of a successful launch of the Luvs® brand into the

Canadian market.

“Just One More”

The Luvs® Direction:Just One More Country

By launching into Canada, the Luvs® brand will be able to support the company’s strategy and goal.

TH

E R

EC

OM

MEN

DATIO

N

LAUNCH OR NOT?

No. Do not launch at this time.

The cost to successfully penetrate the Canadian market is too high to provide a reasonable return on investment.

My recommendation is to wait for conditions to become more favorable.

TH

E R

EC

OM

MEN

DATIO

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However, had conditions been different… (next slide)

BRAND LAUNCH(If conditions had been more

favorable to a successful launch, here are a few of the ideas I had.)

GEOGRAPHIC LOCATIONS

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AU

NC

H

LAUNCH: PHASE 1

Toronoto

16%

Montreal11%

Ot-tawa3%

Canadian Popu-lation

Quebec, Hamilton, London, Kitchener,

Windsor, St. Catherines-Niagara,

Oshawa11%

Population Map of Canada

Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.

2002)

TH

E L

AU

NC

H

Target Metropolitan Areas

Phase 1 Population Reach (month 0)

13,241,115 people

41.9%

LAUNCH: PHASE 2

Phase 1

42%

Vancouver7%

Calgary3%

Edmonton3%

Win-nipeg

2%

Hali-fax,

Victo-ria,

Saskatoon3%

Canadian Popu-lation

Phase 2 Population Reach (month 6)

5,862,373 people 18.7%

Population Map of Canada

TH

E L

AU

NC

H

Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.

2002)

Target Metropolitan Areas

LAUNCH: PHASE 3

Phase 1 To-

tal42%

Phase 2 Total19%

Popu-lations

Be-tween 30K-200K

People17%

Canadian Popu-lation

Phase 3 Population Reach (month 9)

5,481,174 people 17.3%

TH

E L

AU

NC

H

Population Map of Canada

Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.

2002)

Target Metropolitan Areas

PRODUCT LINE-UP

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PRODUCT LINE-UP

Product Size Counts Product Size Count

s

N 38168 4 31

96

1 50152 5 27

80

2 42108 6 23

66

3 36108

TubRefills

7277

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MARKETING

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PRICING (COST PER DIAPER)

Walmart $0.21 $0.21 $0.21 $0.14 $0.11 $0.17

Target $0.21 $0.25 $0.21 $0.15 $0.12 $0.17

Walgreens $0.31 $0.31 $0.31 $0.21 $0.20 $0.20

Smiths $0.22 $0.22 $0.22 $0.14 $0.13 $0.22

Babies R Us

$0.27 $0.30 $0.30 $0.20 $0.17 $0.21

PrivateLabel

(Premium)

PrivateLabel(Value)

Su

ggest

ed P

rice

s

TH

E L

AU

NC

H

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Notes

HOSPITAL PARTNERSHIP Partner with Hospital networks

Distribute newborn baby kits free to moms Kit includes things such as a starter

pack of newborn diapers, wipes, board book, coupons, etc.

Include offer for one free pack of diapers after they register on the new Luvs® Canada website

Extend further promotional offers via email at pre-determined intervals matching the baby’s development.

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OTHER PROMOTIONAL IDEAS

Find an event to sponsor that takes place nationally that corresponds with the brand.

Provide educational and training programs for mothers.

Partnerships with local/regional maternity organizations.

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E L

AU

NC

H

DISTRIBUTION

Club Stores

Mass Merchandisers

Grocery Stores

Chain Drugstores

Convenience Stores

TH

E L

AU

NC

H

CREATIVE DIRECTION

Use the brand position as the guiding force behind all advertisements.Furthermore, create commercials and ads

that evoke an emotional attachment to the brand

Talent and Resources of:

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E L

AU

NC

H

POSITIONING STATEMENT REVISITED

From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness

and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an

ultra absorbent core, stretch sides, and leak barrier leg gathers.

TH

E L

AU

NC

H

MARKETING SPEND

Medium Percentage

Television 45%

Print 20%

Co-op 3%

Social Media 10%

Promotions 20%

Mobile 2%Videos Luvs AppPandoraBloom

TH

E L

AU

NC

H

EXPECTED RESULTS

LONG-TERM GROWTH IN CANADA

20122013

20142015

20162017

20182019

20202025

2030

0

5

10

15

20

25

30

Projected Growth

High-Growth

Anticipated

Conserva-tive

Gro

wth

Ra

te (

%)

EX

PEC

TED

RES

ULT

S

……

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THE END

Aaron FisherMBA, David Eccles School of Businessaaronfisher@gmail.com