Tampax, Tambrands’s only product, is the best-selling tampon in the world, with 44 percent of the global market. In the overseas market, Tambrands officials talk intensely of a huge opportunity. Only 100 million of the 1. 7 billion eligible women in the world currently use tampons. Tambrands has divided the world into three clusters with cluster three being the most difficult to market tampons due to culture and religious beliefs. Therefore, Tambrands has approached Proctor and Gamble about a buyout and announced a $1. 85 billion deal. This deal has put P&G back on the market for selling tampons since 1980.
This was a positive step because not only does P&G get to market this product with feminine hygiene products already being sold, they are a company that has grown drastically with the production of other incontinence pro
...ducts such as diapers. “Becoming part of P&G—a world-class company with global marketing and distribution capabilities—will accelerate the global growth of Tampax and enable the brand to achieve its full potential. This will allow us to take the expertise we’ve gained in the feminine protection business and apply it to a new market with Tampax. ” This is a statement made by the marketing analyst for Tambrands.
As mentioned before, the idea was to divide the world into three clusters with the same goal in mind while marketing the product to the female public. Marketing to each cluster in a similar way is completely necessary because this brand is solely being marketed towards women who all face the same situation no matter what country you live in. Yes, some countries will need more attention than others, but the idea behin
the product is still the same and addresses the same need. Because there are those countries that have religious and culture concerns, they are simply uneducated about the products and its usage.
Tambrands had first decided to offer an educational program so that each young female completely understands the reasoning for this product and that there is myths that are simply not true. This educational program will only produce profit for Tambrands and P&G but it will make all females aware of the comfort that they can experience as well as the importance of getting an education. The three clusters that are defined are: cluster one is women in the U. S. , U. K. , and Australia, cluster two consists of women in France, Israel and South Africa, and cluster three consists of women in Brazil, China and Russia.
Most women in cluster one already use tampons, women in cluster two about 50% use tampons, and cluster three nearly none use the product. The cultural resistance mainly resides in cluster three where women in these countries listed are fearful that they will lose their virginity if they use this product, which is simply not true. Again, a positive way to get around this issue would be an educational class due to the fact that young girls are not offered a sexual education class and have no way of learning about the product.
Also, information sessions and school visits can be beneficial as well if the schools are not financially able to create another educational class due to the low attendance of young girls in these schools. In regards to opening a similar market in Brazil relating to
the one that has opened in Mexico, I would recommend it because like the Mexican model, Brazil is another hot climate area where women are comfortable in little clothing. The Mexican model has seen such a high profit within the last 12 months that it would be beneficial to share this model in Brazil which is a similar culture.
If you believe the makers of Tampax tampons, there’s a direct link between using Western feminine protection and achieving higher education, good health, clean water and longer life. ” This comment simply means that if young females are educated about this product and they use it, they will be able to stay in school and will not have to worry about embarrassing moments during the month. The brand is also suggesting that te product will keep the females sanitary and in good health as well. Tambrands is a company that uses single-product strategy to advertise their product known as TAMPAX.
This product is the best selling product with 44% of the global market share. Out of this 44%, approximately 90% of its sales come from North America and Europe. One of the main reasons for tampax being successful only in North America and Europe is because tampons still have not gained popularity as a result of various cultural resistance, religious resistance and/or myths associated with using a tampon. This case study discusses the various issues that Tambrands had to overcome in order to create a global demand for its product. Question: What are the Problems in the case? What are the decisions to be made?
Despite being the best selling tampon in the world, the companies earnings dropped by
12 percent in 1996. Even though ups and downs in profits are part of any business, this 12 percent drop was a serious concern as the company uses a single-product strategy, also they compete against rivals such as Playtex Products and Kimberly-Clark, this makes the stakes high. At the same time, it's difficult to get new users as already 70% of Women in the North America already use Tampons.
This indicated a need to expand globally; upon research Tambrands officials viewed the global market as a huge opportunity as only 100 million out of the worlds 1. billion women use tampons. In the process of expansion, Tambrands adopted a strategy of dividing the global market into 3 clusters, these clusters were not formed based on geography, but on how popular the brand is in various global markets. This would help them figure out; in what part of the world the women are most resistant to using this product and in what part of the world our women increasing their use of tampons. In cluster 1 (United States, Europe and Australia), a large portion of the women already use tampons and have enough product knowledge, however other issues sprung up here such as is it safe to go.
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