Elaborative SWOT Analysis of Pampers – The Best Baby-Dry Disposable Pants

Quick Stats on Pampers

Founder	Victor Mills
Year Founded	1961
Origin	Miami Valley, Ohio
No. of Employees	2,000+
Company Type	Subsidiary
Market Cap	N/A
Annual Revenue	$10 Billion
Net Income/ Profit	$2.71 Billion

 

Products & Services by Pampers 

• Diapers
• Training Pants
• Baby Wipes
• Lumi by Pampers

Competitors of Pampers

The top 5 competitors of Pampers are

• Huggies 
• Johnson & Johnson
• Mamy Poko Pants
• Himalaya Total Care
• Snuggles Comfy Pants

So as we got to know about the business of SRF, now we will discuss the SWOT analysis of SRF.

SWOT Analysis of Pampers 

A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Pampers to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Pampers.

To better understand the SWOT analysis of Pampers, refer to the infographics below:

Below is an explicit guide to the SWOT analysis of Pampers.

Strengths of Pampers

Pampers has numerous strengths that help it to thrive in the marketplace. Some of the strengths of Pampers are

• Vast Customer Base: According to research, about 35 million newborns use Pampers daily around the world, giving the brand a huge customer base. It’s also been observed that diaper brands have a high level of brand loyalty.
• Targeting Pain Point: The demand for diapers is not a natural one, and mothers were used to having cloth nappies for their babies in the past. However, Pampers’ success is also a narrative about how a need for disposable diapers arose, reducing the need for frequent nappy changes and the cleaning of multiple nappies.
• Pregnancy Tools: Pampers provide pregnancy tools that mothers can use from the day of pregnancy till the baby has grown. The idea of connections of mothers with such tools has made Pampers stay not limited only to the selling of products. These implementations of such ideas are helping the brand to increase customer retention. 
• Connected with Good Hygiene: Pampers are connected with hygiene and health and they portray themselves as an important part of every child’s development. Longer hours of undisturbed sleep are promoted by eliminating the need for frequent nappy changes, reducing the possibility of infection from sleeping in a wet nappy, and reducing cases of nappy rash, among other benefits.
• Innovations: The brand Pampers is always frequent to innovations such as recently the brand launched Pampers aloe wipes which was a bang on innovation in the baby sanitary market.
• Strategy for Advertising: Pampers has traditionally relied on emotions to promote sales, and their commercials have always emphasised the emotional relationship between a newborn and its mother. These advertisements have served to raise awareness about the importance of cleanliness and sanitation in addition to promoting the product and successfully reducing the common misunderstanding.
• Invention: Though one may think that the space for innovation in a product like diapers is restricted, Procter & Gamble is proving people incorrect with their Pampers brand. Pampers is an example of product innovation because it has gone through several revisions, from a basic disposable diaper to a three-layer rectangular pad design to the potty training trousers that it offers for children.
• Support of Parent Company: Pampers get support both financially and advisory from its parent company named Procter & Gamble which is one of the biggest players in the MNC sector. 

Weaknesses of Pampers

Some of the weaknesses of Pampers which they can work upon are

• Lack of Awareness in Rural Areas: People in rural regions are still unaware of what a diaper can mean for their children’s health and hygiene, although customers in urban areas are fairly comfortable using diapers. Pampers has been unable to successfully increase product awareness in the nation’s rural marketplaces.
• Investment in R&D: Investment in research and development is below the rapidly growing players in the industry. Even though Pampers is consuming above the industry average on research and development, it has not been able to compete with its competitors like Huggies and J&J in the industry regarding innovation.
• Costly: A box of 24 Pampers Diapers costs roughly 320 INR, which is not cheap by any stretch of the imagination. As a result, the diaper is out of reach for the majority of poor in various countries.
• Uneven Revenue Distribution: Approximately 50% of Pampers revenue comes from the pharma sector. And around 32% from the immunology sector. Much of the company’s revenue depends on a few products and these products are vulnerable to expiry. This is one of the weaknesses of Pampers.
• Negative Attitudes Towards Diapers: In parts of countries, people are wary of using diapers, believing that they are unsanitary and that they delay toilet training by making children dependent on them. Pampers has had little success in dispelling these myths, and they make no mention of them in their commercials or promotions.
• Less Investment in New Technologies: As the brand embarks on its next phase of expansion, it needs to invest in new technologies that can help it achieve its goals. Currently, investment in technology is good but it will not meet the goals that a brand has.
• Prioritise Current Customers: Pampers focuses on current consumers and mostly relies on repeat sales. They either overlook new sectors or make little effort to attract business from those who have erroneous perceptions of the product.

Opportunities for Pampers

Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for Pampers are

• Changes in Customer Preferences: Unlike in the past, individuals today do not want to waste energy changing nappies regularly, and mothers want their babies to sleep undisturbed. This combined with more disposable cash has raised the demand for products like diapers, which are mostly used for convenience. So, Pampers should use the individual pain points in its marketing to target more market segments.
• Price Drop: Diapers market is going to see a price drop on baby care essentials through tax-free invasion on brands like Huggies, Pampers and other diaper brands. This drop in price will help Pampers to attract the rural market which it was previously not able to due to the costliness of its products.
• Acquisitions with Parent Support: Pampers can enter the market of acquisitions with the support of its parent company – P&G so that the brand can get even stronger in the market. 
• Technological Advancements: The new technology in the baby sanitary industry provides an opportunity for Pampers to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal customers with great products and lure new customers through other value oriented propositions.
• Tie-Ups: Pampers can think of tie-ups with baby and kids toys companies like FirstCry so that Pampers will get an allowance to display and sell its products in the stores of FirstCry. As both the brands commence their work in the same segment that is baby and kids, the tie-up between both will provide immense growth opportunities to both the brands.

Threats to Pampers

Threats are environmental factors that can be harmful to a company’s growth. The following are some of Pamper’s threats:

• Competitors’ Technological Advancements: New technological advancements by a few competitors within the sector constitute a threat to Pampers since customers who are drawn to this new technology may switch to competitors, reducing Pampers’ overall market share.
• Negative Feedback: The parent company of Pampers had faced lawsuits based on the injuries allegedly caused by the diapers. Many parents reported rashes and chemical burns on their baby’s sanitary part as a result of using the new diapers. Such allegations and lawsuits have significantly reduced the reputation of the brand.
• Local Players Playing Globally: Pampers sells its products in the market where local players are offering cheap baby essentials products in the market causing such local players to get ahead in the market capturing and customer acquisition if compared to Pampers.  

This ends our elaborative SWOT analysis of Pampers. Let us conclude our learning below.