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mba652CASE STUDY DRYPERS

mba652CASE STUDY DRYPERS - Problem statement a $10 million...

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Problem statement: a $10 million decision Drypers Corporation needs to decide if it should spend $10 million on a national television advertising campaign. Strengths, Weaknesses, Opportunities and Threats As the chart below will demonstrate, the most important internal strengths for Drypers include its recent growth in terms of market share, its product quality and exclusive licensing agreement with Sesame Street for use of the well-recognized characters. While focusing on those strengths, Drypers needs to find ways to address its weaknesses. Major weaknesses include lack of brand recognition, lack of sales representatives, and lack of a formal plan for how to execute and evaluate a proposed $10 million television ad campaign. Internal Factors Strengths Weaknesses Management Ambitious business growth plan based on six key elements; ready to take the brand to the next level. Unsure of how to focus a $10 million national television advertisement campaign. Product Quality High quality is equivalent to higher priced competitors, but prices are lower. Quality differentiation is unknown to most customers. Product Innovation Focus on skin care, diaper fit and absorbency makes great differentiating factors. Customers don’t know that these are differentiating factors for Drypers. Marketing Significant research data available for decision makers. Brand also partnered with Sesame Street in a pull strategy to increase grocery story penetration levels. Limited marketing budget compared to major competitors; have never advertised on national television and don’t have a plan for evaluating the television ads. Finance Company has 48.7 million in working capital at end of 1997. Company plans to spend $10 million on an advertising campaign with no clear evaluation plan.
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Sales Strong, consistent sales revenue increase over past 3 years; good relationships with retailers because of cooperative advertising; joint ventures increasing sales internationally. No dedicated sales representatives in the U.S.; lack of production facilities makes it impossible to increase sales on a large scale. External Factors Opportunities Threats Consumer / Social About half of all diaper purchases are made through mass merchandisers; Drypers needs to work on getting its product on their shelves Drypers does not have strong production capability that can keep up with the demands of mass merchandisers; could lead to quick failure. Distribution
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mba652CASE STUDY DRYPERS - Problem statement a $10 million...

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