Financial Daily from THE HINDU group of publications Wednesday, May 12, 2004 |
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Marketing
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New Products & Services Johnson & Johnson enters nappy pad segment Purvita Chatterjee
Mumbai , May 11 BABY products major Johnson & Johnson (J&J) is taking on Kimberly Clark Lever in the nappy pad market. The latter already has the first mover advantage. J&J recently entered the arena with its Johnson Nappy pads. Although J&J is present in the diaper market in certain countries, in India it has taken a conscious decision to launch a cheaper variant of nappy pads. Pegging its products a notch lower (Re 1 less) than Kimberly Clark Lever's nappy pads, Johnson's nappy pad is priced at Rs 30 for five pads and Rs 59 for 10 pads. Besides, J&J is also offering a toll-free number on its packs to answer consumer enquiries. At present, Johnson's nappy pads are being made available in the North-Eastern and Western States. According to officials at J&J, "The nappy pad market is still small compared to diapers but is expected to grow." In fact, Kimberly Clark Lever has been spending heavily on advertising, due to which the diapers market has been growing faster than nappy pads. According to industry observers, Kimberly Clark Lever has been promoting diapers rather than nappy pads as the margins are healthier in diapers. But the entry of J&J may help consumers get more familiar with this category, especially with its economical pricing and new communication compared to diapers. A diaper costs nearly thrice as much as a nappy pad and Kimberly Clark Levers was the first player in the Indian market to have introduced one. There are brands such as Koochees as well. Considering the manufacturing synergies with its sanitary protection division, J&J has decided to utilise its existing manufacturing facilities. The nappy pads are being manufactured in India. At the same time, J&J has also launched a milk-based baby soap. Johnson's Baby Milk Soap will have a phased launch across the metros and is yet to fix its price. J&J has also been test marketing a milk-based baby bath liquid in Hyderabad. At present, J&J's baby care portfolio comprises soap, shampoo, oil and talc. With plans to unleash a campaign through its agency Lowe, Mumbai, J&J's new commercial for its nappy pads carries the baseline, `tender moments without disturbance'. According to executives at Lowe, "The product benefits for nappy pads will get highlighted through the undisturbed tender moments enjoyed between the mother and her baby."
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