Term Paper

OF
Marketing management
Topic

HELLO BABY - DIAPERS

Submitted to- Submitted by-

Mr. girish teneja Sahil vig
RR1903b56
10907827
 Introduction of the company
The name " Hello Baby " needs no introduction .Going forward , in nut-
shell, "Hello Baby" is a very well established brand manufacturing under its
umbrella , state of art BABY CARE items in a spectrum renge of plus 130
products broadly catagorized to Feeding
Bottles,Toys,Garments,Diapers,Napkins etc.& each item bears an appealing
aesthetic presentation maintaining highest degreeof HYGENIC VALUE.

Executive Summary

The disposable nappy, an invention that revolutionized the baby care

industry, exists today as a practical solution to the problem of dirty,
smelly, wet baby bottoms throughout the world.
We are on the verge of entering a lucrative market in a growing
country. The current population fertility rate estimated at 4.2 children1,
and increased admissions in hospitals and clinics presents an
opportunity for Baby Nappies World to enter and penetrate the baby
nappies and sanitary pads market. Baby Nappies World is poised to
take advantage of this growth rate and minimal local competition, with
a dedicated and experienced staff, excellent order procurement, and
effective management and marketing. The initial intention will be to
provide nappies and sanitary pads to institutions and organisations
including hospitals and wholesalers throughout Botswana.
Initial plans are to produce approximately 300 diapers per hour 5
days a week, utilizing an 8 hour working day, enabling us to produce
a total of 48,000 diapers per month. As time progresses and we
become more efficient in their production this figure should rise to
approximately 56,000 per month. This would be for the diapers only
though we do intend to also produce sanitary pads, though on an
order basis.

We realise the fact that for us to prosper in this relatively untapped

market, there is need to be flexible and responsive, to delight our
customers by providing them with what they want, when they want it
and in the exact quantity. Our primary goal will be to establish and
strengthen our existence in the market, which will be bestowed by the
business environment in which we function.
Our marketing strategy will be based mainly on ensuring that
customers know about our existence and the products we produce.
Hence our intention is to make the right information available to the
right target customers. This will be done through implementing a
market penetration strategy that will ensure that we are well known
and respected in the market. We will ensure that our products' prices
are favorable relative to our South African counterparts' prices, and
that our potential customers appreciate the quality of our products.
However, the prices we charge will also take into consideration the
cost of production and distribution so as to ensure that we remain
viable and operational. We appreciate the fact that the majority of
wholesalers and intermediaries that order our products perceive
South African products to be of higher quality and reliability. To
counteract this there will be need for us to not only aggressively
market the high quality of our products, but also to go out of our way
in serving our customers and clients so as to establish a good long-
term relationship.
Our target markets will primarily constitute institutions, wholesalers and
other intermediaries who often order in bulk for their customers, and
concerned individuals. Hence there will be need to network with the various
decision-makers/order-makers to ensure we receive orders for our products.
 Objectives

Our business strategy will revolve around the need to provide quality
disposable baby nappies, geriatric/adult diapers and sanitary pads to
the various institutions and wholesalers that need them, in the
process fully satisfying their requirements. This shall be undertaken
through adequate training and recruitment of a professional team
dedicated to providing and catering the customer's needs.
We intend to ensure that our marketing campaign increases the
knowledge of our products and services to the various market
segments we shall be targeting. This is particularly so with
organisations increasingly looking at obtaining quality products at the
lowest prices as they strive to increase profitability.
We also intend to have well laid out introductory letters and other
promotional material that will enable clients to have an understanding
of the types of products we offer and advantages of utilizing them. In
addition well-done company profiles and business cards often have a
triggering effect on clients contemplating ordering our products.
Hence this will undoubtedly generate increased sales of our products.
In summary we intend to attain the following objectives:
• Continuously provide high quality diapers and sanitary pads on
time and on budget.
• Develop enthusiastically satisfied customers all of the time.
• Ensure economical use of resources from capacity utilization,
minimising inventory/stock and low cost, and high quality
materials.
• Contribute positively to our communities and our environment.
 • Establish a market presence that assures short-term and long-term
profitability, growth and market share, which will ultimately convert to
business success.

Mission
We are fully committed towards the production and delivery of high quality
disposable baby nappies, geriatric/adult diapers and sanitary pads to the
respective communities. Internally we intend to create and nurture a healthy,
productive, satisfying and enjoyable environment, in which our employees
are fairly compensated and encouraged to respect the customers' requests
and the quality of the products we intend to produce. We seek fair and
responsible profit, enough to keep the company financially healthy for the
short and long term, and to fairly remunerate employees for the work and
effort.

Products
Baby Nappies World intends to manufacture and sell disposable baby
nappies, geriatric/adult diapers and sanitary pads. These products
shall be of high quality standard so as to ensure customer satisfaction
and meet all the customers' requirements.

Product Description
Baby Nappies World initially intends to focus on the production of the
following products:
Nappies
The disposable nappy may be described as an invention that
revolutionized the baby care industry. It exists today as a practical
solution to the problem of dirty, smelly, wet baby bottoms throughout
the world. The vast amount of births here in Botswana dictates that
the baby nappy is very much in demand, and that
demand continuously increasing. With this in mind we intend to
produce a quality nappy. Our diaper will have (discussion omitted).

Geriatric/Adult & Sanitary Pads

These are mainly used in medical institutions such as hospitals
and clinics where patients often require disposable pads to
overcome the problem of dirty, smelly and wet bottoms. This is
particularly so as these adult patients are incontinent and often do
not have the ability to control their bladder. The (discussion
omitted).

Competitive Comparison
There is very little competition from local
companies manufacturing products similar to our main products.
However considering the pace of change and current growth rate of
the economy luring companies into the market, this may be short-
lived. Hence there will be a need to not only firmly establish ourselves
in the market, but also strongly differentiate ourselves from these
other businesses. However on a broader scale our competition
comes in several forms:
1. The most significant competition are South African
manufacturers of diapers and sanitary pads including reputable
brands such as X and Y, which have a well established
distribution network in place. This network ensures that their
products are widely available on the market. Our key advantages
over these producers will be our order response time as well as
lower costs, which will be attractive to many of our prospective
clients.
 2. Existing local manufacturers of diapers and sanitary pads are
few with research indicating that there are currently two in
Gaborone and one in Francistown, though additional information
regarding their products and operations were still being collected
during compilation of this plan.

3. An existing textile company is also contemplating entering the baby

nappies market.

Technology
The machine responsible for the manufacturing process is a new and
unique concept. It is capable of producing different sized nappies,
that is, small, medium and large geriatric/adult and sanitary pads. It is
capable of producing 350+/- diapers per hour, which converts to
2,500+/- per day, or 8,000+/- sanitary pads per day.
The one certainty in our industry is that technology will continue to evolve
and develop, changing the quantity that can be produced at any one time, as
well as its quality. Our aim will be to be aware of the implications of this
new technology and utilize it in our existing framework where possible.
However our initial aim will be to pay back the initial cost of the machine.

Market Analysis

The current drive and emphasis by the government on diversification

of the industrial base away from the minerals sector presents an
opportunity for Baby Nappies World to make a valuable contribution
towards achieving this goal. Having undertaken a thorough and
comprehensive research of the market we realized that there was a
vast opportunity for a local manufacturer of diapers and pads, with
less than a handful currently on the market.
Aware of the fact that operating in such a market is largely dependent
on good networking, we intend to establish networks and strategic
relationships with various wholesalers, clinics and hospitals to ensure
a steady stream of orders. In so doing we intend to ensure that the
products we produce are of extremely high quality and fully serve
their purpose. Our initial overall target market share shall be 10% of
the market, mainly focusing on the wholesalers and organisations in
Botswana.
We appreciate that entering such a market is not a 'bed of roses' and
will require us establishing strong networks and links with several
organisations and institutions as outlined previously. Hence we intend
to implement an aggressive marketing strategy, well supported by the
other business functions. The above prognosis influenced our
decision to enter the diaper and sanitary pad manufacturing industry.

Market Segmentation

We will be focusing on wholesalers, academic institutions, hospitals

and clinics that either sell or utilize our intended products. We also
intend to focus on government tenders for our diapers and sanitary
pads.
Our main target market is large enough to order from us and ensure
that we are kept busy meeting their orders. Though we do not intend
to fully depend on them, they shall constitute our 'core' market. One
of our intentions will be to offer organisations an attractive alternative
to South African companies mainly marketing our lower costs and
shorter order fulfillment time.

Target Market Segment Strategy

Our marketing strategy will be based mainly on making our products

available to the right target customer. We will ensure that our
products' prices take into consideration organisations order-makers'
budgets, and that these people appreciate the quality of our products,
are aware our products exist,, and know where to order them. Our
low production costs, which will naturally be reflected in lower prices
for our products, will ensure that we have very good opportunities to
win hospital, clinic, and institution tenders for our products, besides
obtaining orders from all the other markets including wholesalers,
chemists, informal traders and supermarkets we shall be targeting.
We realize the need to focus our marketing message and our product
offerings. We need to develop our message, communicate it, and
make good on it. This shall be undertaken in order to establish
ourselves on the market and long-term relationships.

Market Needs

Baby Nappies World will set out to provide high quality disposable
baby nappies, geriatric/adult diapers and sanitary pads that will
facilitate the hygienic and easier changing of individuals, both adult
and children. The quality of raw materials and assembly technology
we shall utilize will be evident in our products, serving to enhance the
appearance of our customers, in turn adding to their comfort. The
large market is due to the fact that admissions are increasing at an
enormous rate in hospitals and clinics resulting from increased
diseases and infections, as well as the increase in the population
growth rate.
We understand that our target markets need more than just
something that absorbs. Our target customer wants something that
absorbs as well as being hygienic, comfortable, easy to use and of
good quality. Price also plays an important part in the purchase
decision.

Market Trends
Botswana currently has one of the fastest population growth rates in
the world, resulting in a population of over 1.6 million now compared
to just 600,000 in 19711. By 2021 the workforce between 25-59 years
old is expected to increase from around 500,000 to over 1 million.
However, a drop in the fertility rate is anticipated because of
increased opportunities and better education. In 1981 Botswana
women had an average of 7.1 children, in 1991 they had 4.2 children
and this is forecast to fall below there in the next 10 years. This is
causing a shift in the demographic structure of the population, from a
situation where over 50% of the population are under 19 years old, to
one where more of the population is of working age. As a result the
dependency ratio is likely to fall, resulting in increased household
savings. The current population growth rate shows that there is a
demand for diapers and nappies in households, particularly
considering the increase in the workforce prompting mothers to stock
diapers, especially disposables, as they are easier and faster to
handle.

Industry Analysis

Industry competition information appears in the following subtopics.

Competition and Buying Patterns

The key element in service utilization decisions made at the

company's client level is trust in the reputation and reliability of the
firm. The most important factor in this market will be the quality of the
product. Unlike our competitor's nappies and pads, ours are going to
have double the absorbent super gel making our absorbency superior
to most top brands. This converts into fewer diapers and pads being
used per day, encouraging customers to order our products.

Main Competitors

There are currently few local companies competing in our market

niche. However upon closer research it was identified that South
African products constitute approximately 70% of the market,
dominating the market. Hence we intend to market ourselves as a
local quality manufacturer of diapers and pads in such a way that with
time customers will choose our products over competitors' on the
basis of our lower costs, faster order fulfillment times and high quality.
The following were identified as our main local competitors:
1. X
Located in Francistown, X, also known as N, specializes in the
manufacture of baby napkins, bath and hand towels, face and
wash cloths, beach towels, bath sheets and waffle gowns. With a
large share of the northern market, mainly due to the large
distance between Francistown and South Africa, N is an
established player on the market and was rated as the best
performer in the textile sector in 1999. It has had tremendous
growth in a short time, with state of the art machinery currently in
place.
During 1999 the company pursued the European markets with
employment rising to 340 people. It has a well-coordinated sales
office, which ensures orders are met and delivered on time, as
well as a professional sales staff that ensures customer inquiries
are well handled. Its customer base is largely from South Africa
with few local customers. Prices are extremely competitive with a
pack of four black diamond napkins (70x70cm) selling for P27.08.
Though the local orders are few they tend to be of large amounts.
It obtains most of its raw materials, including yarn from
Zimbabwe, with the actual weaving being done in the factory.
Transport is normally provided for bulk orders of above P2,500.00
throughout Botswana taking four weeks at maximum to deliver the
order. The actual delivery time often depends on whether the
 stock is available in-house. The company is an investment
product of B, with a considerable degree of financial and technical
backing.
2. Y
Located in Gaborone West, Y specializes in the manufacture of
baby napkins, towels, face cloths, tea towels and dish cloths. It
has a large warehouse whose logistics/operations are well
organised, coordinated and closely supervised. Prices are
extremely competitive due to the above-mentioned factors with
baby napkins selling at approximately P4.00 (70x70cm); Infant
napkin approximately P3.00 (60x60cm) and a printed baby napkin
selling at P6.00 (70x70cm). It targets both retailers and
consumers ensuring a large customer base.
3. Z
Located in Tlokweng Industrial, Z specializes in the manufacture
of baby napkins, towels, face cloths, dishcloths, swabs and other
textiles.
4. K
Located in Tlokweng, K intends to go into manufacturing of baby
napkins in bulk in the near future. It currently has the capacity to do so
and manufactures face cloths and dish towels, all for the South African
market. It employs 145 people and is also an investment product of B.

Strategy and Implementation Summary

Baby Nappies World intends to win and maintain customers by

providing products that add value in terms of price, quality, safety,
availability and functionability, and are supported by a dedicated,
well-trained team. This shall be important to the successful
implementation of our overall strategy and hence the need to ensure
we are focused and working harmoniously towards attainment of the
goals and objectives. We initially intend to be focusing on satisfying
the local market.
Our marketing strategy emphasises focus. We are a new company
and hence must focus our efforts towards informing customers of our
existence and the products we are able to supply. Initially Baby World
Nappies will focus on the local market before contemplating entering
the regional market. This is mainly due to our limited resources and
the need to instill confidence in our products as well as business
operations. The target customers will include key decision-makers
and order-makers in hospitals, clinics, wholesalers and informal
traders, who often order or recommend on behalf of the whole
organisation, the aim being to obtain an initial order and fully satisfy
the customer from then on. Hence:
• We intend to focus on delivering quality products at affordable
prices that in turn will produce good referrals, which can then
generate revenue.
• We intend to build image and awareness through consistency
and distinctiveness in our order fulfillment.
Our strategy is to grow the business by nurturing clients and
establishing good one to one relationships with them. All criteria from
customer satisfaction, order fulfillment, price competitiveness to staff
attitudes are to be looked at thoroughly in the initial stages so as to
identify areas of improvement. To attain low lead times (the time it
takes to meet orders) we need to ensure that all functions are
communicating properly and formally, using valid and accurate data
to derive achievable plans and schedules for all stages of
procurement, manufacturing and delivery.
Baby Nappies World will develop new channels of distribution as the
company grows. Its plan to become a nationally known brand may be
pushed forward by entering into contracts with the numerous clinics
and hospitals throughout the country, such that it gives Baby Nappies
World exclusive access to the relatively remote areas in the country.
 SWOT Analysis

We shall be in a highly lucrative market in a growing economy. We

foresee our strengths as the ability to respond timeously to
customer's orders and provide them with the correct quantity. Our key
personnel will be well trained in the actual production of our products
so as to ensure on time deliveries to the client. This will go a long way
towards penetrating the market. Below are the summarized strengths,
weaknesses, opportunities and threats.

Strengths

• Relationship selling: We intend to get to know our customers,

one on one. Our direct sales efforts will seek to maintain a
relationship with our customers.
• Diversified customer base: We intend to obtain orders for our
products from a wide customer base. This will ensure lack of
dependency on one customer.
• Low production costs: The costs of our products will be
approximately a third less than the famous brand names and end
user prices.

Weaknesses

• A limited financial base compared to our South African

counterparts.
• The introduction of new organisational practices and personnel
who have not previously worked together presents a challenge to
the organisation.
• Our infancy dictates that wholesalers and other intermediaries
might be skeptical about our products.
Opportunities

• Service. As our intended target markets are in relatively

accessible areas we intend to be able to meet their requirements
in the shortest possible time.
• Current drive by government towards encouraging the
participation of indigenous entrepreneurs and diversification of the
economy presents an opportunity that we may fully utilize.
• Presently there is no reliable local manufacturer of diapers and
sanitary pads, with less than a handful currently on the market.

Threats

• The "Foreign is good, local is poor" belief may present a difficult

hurdle to be overcome.
• Existing competition, both local and foreign. Wholesalers and
institutions may express satisfaction with their current diapers and
sanitary pads.
• The possibility of other start up diaper/sanitary pad
manufacturing companies generated by healthy economic growth,
establishing in the market.

Marketing Strategy
We intend to implement a progressive marketing strategy. In terms of
marketing we intend that our name and products are marketed on an
extensive basis to ensure that customers are aware of our existence.
In price, we intend to offer reasonable and competitive prices in
comparison to South African competitors and we need to be able to
sustain that. Our marketing will strive to ensure that we establish long
relationships with clients.
Pricing Strategy

Baby Nappies World's products will be competitively priced in relation

to its South African competitor's products. Due to the introductory
nature of our products we intend to implement a penetration pricing
strategy which will ensure that potential customers are attracted by
our lower prices, up until our products are fully appreciated on the
market, especially in terms of their quality. We will initially charge PX
per nappy. However this will dictate that our costs are prudently kept
so as to ensure our financial goals come to fruition.

Promotion Strategy

The promotion strategy shall initially revolve around informing

customers of our existence, the products we produce, and how to
order them. The intention will be to highlight the following key benefits
of ordering our products instead of competitors, including:
• Our lower production costs which will convert to lower order
prices.
• Quality products able to compete with the top brands.
• Faster order fulfillment times.

We intend to be well known by all our stakeholders in particular

wholesalers, hospitals and other such institutions that may utilize our
products, as well as informal traders. Hence we shall leverage our
presence using introductory letters, brochures and other sales
literature. We intend to spread the word about our business through
the following:
1. Personal Selling. Undoubtedly customer solicitation face-to-
face will be our most powerful form of promotion mainly due to the
fact that our products are mainly ordered by individuals in
organisations and institutions. Its flexibility will enable us to give
our customers concise details of what we have to offer and the
benefits of using our products. Another important determinant in
utilizing personal selling is the fact that we are relatively new on
 the market. As such potential customers/clients will to a certain
degree be skeptical towards our products and their efficacy.

2. Advertising. In view of the fact that we are new on the market

we intend to undertake adequate advertising of our name and
products we offer. This is to instill awareness and knowledge of
our existence in the market place, which hopefully shall convert
into market share. A constant look out will be made of any special
editions in the local newspapers, which may provide an
opportunity for us to advertise our products and business name.

3. Direct Marketing. This will be used to a limited extent in the

form of telemarketing and informing potential customers and
obtaining referrals where possible. In the case of telemarketing it
will involve our targeting potential customers of our products and
informing them of our existence. We may then arrange for an
appointment with the respective decision-maker/order-maker, with
the intention being to encourage them to order our products.

4. Events. We intend to attend trade shows and exhibitions to

increase awareness of our products and services. These events
will also enable us to interact with potential clients who may
decide to order our products. Trade shows that instantly come to
mind include Botswana International Trade Fair (BITF) and
BITEC, though the latter might not be as important as the former.

Distribution Strategy

Our products shall initially be mainly sold through personal selling

and referral business, with relationships and customer experience
being, by far, the most important factor. Relationships in this regard
means establishment of links with the various wholesalers, hospitals
and clinics which often order or require our products for their
customers. Invariably the experience a customer has with our
products will go a long way toward influencing the intermediary to
continue to order our products, and whether they should refer their
friends to order our products. To this end we intend to ensure we
provide a quality product with superior absorbency and comfort.
Hence we initially intend to use the following channels: (discussion
omitted).

Positioning Statement

We intend to position ourselves as a desirable alternative source of

high quality disposable baby nappies, geriatric/adult diapers and
sanitary pads. This shall be undertaken through use of high quality
raw materials and production processes so as to ensure the efficient
delivery of quality products. The product strategy will also be based
on quality, combined with making the product easily available to the
customers. An important competitive edge will be our assembly
strategy, which will be based on good quality, such that production
and delivery are not only a pleasure, but also a feature that enhances
the sense of quality and perception by clients. Our faster delivery,
relative to our South African counterparts, will also serve as an
important competitive advantage on the market.
Through our lower prices, made possible by reduced local delivery
charges, we intend to attract a large portion of the market, both
directly and indirectly through referrals.

Sales Strategy

For the short term at least, the selling process will depend on
personal selling/networking and advertising to inform potential
customers about the products we offer and the benefits of utilizing our
products. Our marketing does not intend to affect the perception of
need as much as knowledge and awareness of the product category.
 Implementation

Baby Nappies World will start by obtaining trial orders from several
wholesalers and institutions with the objective being to impress them
regarding our products' quality. This will see us obtaining long-term
contracts that will ensure we grow in the right direction. We will
prepare our sales literature, including business cards mainly through
engaging a reputable printing organisation. In undertaking the above
we intend to ensure that the goals of the organisation are achieved as
well as delegation of responsibility for maximum effectiveness.3