QUESTIONS: Based on the case suggested below, please answer to the following questions:
Q.1)
(a) Based upon the facts given above, what are the pro and cons of you entering into the adult diapers market in India?
(b) If you decide to enter into the adult diapers market (domestically), what kind of a growth strategy would this be for you? Explain.
Q.2)
(a) Based on Dawar’s (2013) conceptualization of upstream versus downstream innovation, what kind of innovation you think would be more appropriate for you. Why?
(b) Suggest & justify a positioning strategy for your new brand. Medical reports reveal that at least one out of 10 Indian adults above 65 years of age suffer from the problem of urinary incontinence or loss of urinary bladder control.
It is estimated that in India more than 50 million adults suffer from urinary incontinence. It is twice more common in females as compared to males. People with urinary incontinence are frequently depressed and regressed; have a manifest reluctance to talk about this problem; and often curtail their social activities and prefer to stay at home. This is despite the fact that nearly all types of urinary incontinence can be treated and often cured at all ages.
Contrary to common sense, ageing does not cause urinary incontinence and it is not a sign of the natural ageing process. However, ageing can decrease bladder capacity, as also urinary stream and increase the frequency of urination. Urinary incontinence may be transient or permanent.
"Normally people are reluctant to talk about this problem and keep on avoiding social activities. But this only affects their personal and social life despite the fact nearly all types of urinary incontinence can be treated and often cured at all ages," he said.
There are different types of urinary incontinence. Stress urinary incontinence in which urine leakage occurs because of sudden pressure on lower stomach muscles during coughing, laughing, sneezing, weightlifting, or exercise. Urge urinary incontinence occurs when the need to urinate comes on too fast usually seen in elderly. Overflow urinary incontinence occurs as result of constant dribbling of urine due to overfilled bladder because of obstruction or blockage to urinary flow as in prostatic enlargement or urethral structure. Functional urinary incontinence occurs when there is lack of mobility in reaching bathroom in severe arthritis or bedridden cases.
To counter incontinence many types of disposable incontinence products are used, which include urinary bags; urinary catheters; and adult diapers. Adult diapers are made of medical-grade nonwoven fabrics, which have high absorption capacity and create a barrier to block any odour.
The adult diaper market is expected to witness significant growth, owing to improved healthcare infrastructure, rapid development in nonwoven and woven production technology, and a rise in the geriatric population supplement. The factors hampering the market growth are the presence of reusable incontinence products, the threat from substitutes, and the adverse effects of disposable waste in the environment.
Globally, the disposable incontinence products market is expected to grow from USD 10.42 billion in 2019 and to reach USD 18.59 billion by 2027, growing at a CAGR of 7.5% during the forecast period 2020-2027.
Market facts:
- Urine incontinence segment dominated the market and held the largest share of 40.6% in the year 2019. (Application wise, the global disposable incontinence products market is segmented into urine incontinence, faecal incontinence, and dual incontinence.) This growth is attributed to the growing demand and adoption rate of disposable incontinence products and the rise in the number of people suffering from urinary incontinence problems.
- Stress segment dominated the market and held the largest share of 32.5% in the year 2019. This growth is attributed to the growing number of stress incontinence cases due to physical activity and unexpected urine leakage caused by sudden bladder muscle contractions. The urge segment is anticipated to witness significant growth, owing to the rising prevalence of urge incontinence in men than in women.
- Super absorbent segment dominated the market and held the largest share of 24.6% in the year 2019. (Material wise, the global disposable incontinence products market is segmented into plastic, cotton fabrics, super absorbents, latex, and others.) This growth is attributed to the increase in the use of super absorbent material in disposable incontinence products as they deliver enhanced absorption qualities. The cotton fabrics segment is anticipated to witness significant growth, as they are cost-effective and reduce the amount of waste and deliver health benefits.
- Female segment dominated the market and held the largest share of 56.4% in the year 2019. This growth was attributed to the increase in feminine health issues and the rising prevalence of urinary incontinence in females.
- 40 to 59 years segment dominated the market and held the largest market share of 24.7% in the year 2019. (Demographically, the global disposable incontinence products market is segmented into 20 years, 20-39 years, 40-59 years, 60-79 years, and more than 80 years.) This growth is attributed to the increasing incontinence cases that are extremely common in 40 to 59 age and an increasing number of aging population. 60-79 years segment is anticipated to witness significant growth, owing to the increasing incidence of bladder control problems and growing risk factors for urinary incontinence like smoking.
- Retail stores segment dominated the market and held the largest share of 62.7% in the year 2019. (Distribution channel wise, the global disposable incontinence products market is segmented into retail stores and e-commerce.) This growth is attributed to the large availability of disposable incontinence products in drug stores, supermarkets, and medical supply stores. The e-commerce segment is expected to witness significant growth, as they offer various advantages like reduced product costs, availability of a comprehensive range of benefits, and lesser time travel.
- Hospital segment dominated the market and held the largest share of 29.36% in the year 2019. (Based on end-users, the global disposable incontinence products market is segmented into hospitals, ambulatory surgical centres, nursing facilities, long-term care centres, and others.) This growth was attributed to the all-time availability of registered medical practitioners and increased disposable devices admission.
Assume you are an established, mid-sized Indian manufacturer & marketer of sanitary napkins in the domestic market of India, targeted at menstruating women. You have a plant in Maharashtra and your brand has a limited recognition across India, largely as a value-for-money brand. Your distribution network covers Tier-1 and Tier-2 Indian towns. You retail only through pharmacies/medicine stores and depend a lot on the store salespeople to push your brand in the face of international brands, which dominate the Indian market.
Answers:
Adult Diapers – Q&A
Q.1 (a) Based upon the facts given above, what
are the pro and cons of you entering into the adult diapers market in India.
Ans) Adult Diaper is a growing industry with increase in
aging population in the country, and with a low-cost manufacturing base and
initiatives in place from government to support this product segment addressing
elderly population, it’s easier to penetrate existing markets with Price Based
Strategy. Ansoff’s grid suggests to follow market penetration strategy for the
adult diapers in current domestic market and provided the market for adult
diapers in India is relatively underdeveloped, it provides fair chance to
develop new brands getting into this business.
However, A stigma or a feeling of uncomforting is
associated with adult diapers in India, which makes it difficult to convince
potential customers. Not just that, since market for adult diapers is highly
fragmented, with limited distribution channels in place and also a high price
sensitive type. There are additional limitations due to infrastructure issues
related to transport of goods to remote areas.
We have provided few points outlining the same;
PROS:
Growing Market /Growth in demand:
Medical reports indicate that urinary incontinence, which
is the loss of bladder control, affects at least 10% of Indian adults aged 65
and above. The estimated number of adults experiencing this condition in India
exceeds 50 million. Furthermore, the market is expected to experience
significant growth due to improved healthcare infrastructure, advancements in
nonwoven and woven production technologies, and a growing elderly population.
This presents an enticing business opportunity for companies seeking to enter
this industry.
Limited competition: The adult diaper market in India is
relatively new and has limited competition, which offers a chance for new
players to establish themselves. The growing prevalence of urinary incontinence
among elderly adults is projected to fuel the demand for adult diapers, making
it a promising growth opportunity for businesses. However, established players
may use their expertise and resources to maintain their dominance and prevent
new entrants from gaining traction.
Government
Initiatives: The adult diapers market in India may benefit from the Indian
government's initiatives to support the elderly population.
Government measures such as healthcare and social welfare
programs may indirectly increase demand for adult diapers, while incentives or
subsidies could aid in the growth of the market.
Cost-effective manufacturing: The adult diapers market in
India has the potential to benefit from the country's low-cost manufacturing
base, which could help to reduce production costs. This, in turn, could make
the products more affordable for consumers.
Differentiated product segments: In India, the adult
diapers market is categorized into various product segments based on
incontinence type (urine, faecal, or dual), reasons for incontinence (stress,
urge, overflow, functional), material used (plastic, cotton fabrics, super
absorbents, latex, etc.), and demographics (gender, age group). This enables
customization and differentiation of products to cater to the specific
requirements of consumers, which can result in targeting diverse market
segments for maximum benefit.
Material innovation: The materials used in adult diapers in
India are typically medicalgrade nonwoven fabrics with high absorption capacity
and odor-blocking properties. However, there have been advancements in material
technology, such as the use of super absorbent materials, which offer improved
absorption capabilities. This presents a chance for businesses to utilize
innovative materials to enhance product performance and attract customers.
Leveraging such material innovations can provide a competitive edge in the
market, particularly as the demand for adult diapers continues to grow due to
an aging population and an increase in urinary incontinence cases.
CONS:
Social stigma: Many people in India may feel embarrassed or
ashamed to discuss or use adult diapers even though urinary incontinence is
common. This may affect the demand and acceptance of adult diapers in the
market.
Competition: India's adult diaper market is growing
rapidly, but it's very competitive. New companies need to spend a lot on
marketing, branding, and distribution to succeed. People may also prefer
reusable incontinence products if they're better for the environment and
cheaper.
Price sensitivity: Consumers may prioritize affordability
over brand recognition or product features, giving edge to price sensitivity
factor. Pricing strategies must balance competitiveness and profitability to
succeed in the market.
Distribution challenges: It is difficult for new companies
to enter the adult diaper market in India because of competition from
established retailers and logistical problems in ecommerce. However, they can
overcome this by using creative marketing techniques and forming strategic
partnerships to gain a share of the market.
Regulatory challenges: When you make adult diapers, there
are rules you have to follow to keep people safe and make sure the labels are
correct. Following these rules can be expensive and hard to do for new
companies that are just starting out. They might have to spend a lot of money
to follow the rules, and it could take up a lot of time to do all the
paperwork.
Environmental concerns: Incontinence products that are disposable, such as adult diapers, create a significant volume of waste, which can lead to harmful environmental consequences. This could impact consumer behavior, prompting competitors to invest more initially in infrastructure and make the industry more environmentally sustainable.
Q.1 (b) If you decide to enter into the
adult diapers market (domestically), what kind of a growth strategy would this
be for you? Explain.
Ans) Entering the adult diapers market domestically,
considering assumptions provided in the article of being a mid-sized Indian
manufacturer & marketer of sanitary napkins in the domestic market of
India, targeted at menstruating
women, it can be a diversification growth strategy for a
company seeking to expand its product portfolio and reduce risk. The adult
diapers market is rapidly growing, driven by various factors such as rising
awareness of incontinence issues, increasing disposable income, and the growing
aging population.
Q.2 (a) Based on Dawar’s (2013)
conceptualization of upstream versus downstream innovation, what kind of
innovation you think would be more appropriate for you. Why?
Ans)
Dawar's (2013) conceptualization of
upstream versus downstream innovation describes two different ways that
companies can innovate to stay competitive and grow their business. Upstream
innovation involves creating entirely new products or technologies, while
downstream innovation involves improving existing products or processes.
Upstream innovation is often risky
and expensive to that of downstream innovation, it requires more investment in
research and development. However, it can lead to breakthrough in products or
technologies and disrupt market creating a competitive advantage.
Whereas, downstream innovation is focused on improving existing products or processes through small, incremental changes. This can be a more cost-effective approach, as it does not require significant investment in new research and development. It can also be a way to differentiate a company's products from those of competitors.
In the context of the adult diapers
market in India, we believe that downstream innovation would be more
appropriate for a company looking to enter this market. Downstream innovation
would involve improving existing products or processes in the adult diapers
market, rather than creating entirely new products or technologies.
One reason why downstream
innovation would be more appropriate is that the adult diapers market in India
is relatively underdeveloped and still in the early stages of growth. While
there is certainly room for upstream innovation in this market, there is also a
significant opportunity to improve the existing products and processes.
We can certainly work on
inclusiveness of bio degradable fabric balancing it with comfort for the
customer, additionally we could showcase intention of using 100% renewable
energy for production. This may help us providing this with a value proposition
of environmental wellbeing.
For example, a company that enters
the adult diapers market in India could focus on improving the comfort,
absorbency, and overall quality of the existing products. This could involve
developing new materials or designs that make the products more comfortable and
effective, or improving the manufacturing processes to make the products more
affordable and widely available. Also advertising it with mid aged models may
add to the normalcy of its use in the society and it also widens the target age
group.
Moreover, partnering with
hospitals, Pharmacy, old age homes and doctors may help us making it feasible
for introducing the product of our brand to customer on large scale and that
too generating a degree of trust.
Another reason why downstream innovation would be more appropriate is that it can be more costeffective and less risky than upstream innovation. Developing entirely new products or technologies can be expensive and time-consuming, and there is no guarantee that these innovations will be successful in the market. In contrast, downstream innovation is focused on improving existing products or processes, which can be achieved through incremental changes and improvements. Also, it is less risky and more relevant as they are already market proven and incremental changes would be either an improvement or can easily be rolled back in case any downside is observed.
Overall, we believe that downstream innovation would be more appropriate for a company looking to enter the adult diapers market in India. By improving the existing products and processes in the market, the company can create a competitive advantage and establish a foothold in this rapidly growing market.
Q.2 (b) Suggest & justify a
positioning strategy for your new brand.
Ans) Positioning strategy is
crucial for any brand to establish itself in the market and differentiate from
its competitors. In the case of entering adult diaper market in India, the
positioning strategy should be based on target audience, benefits, and competitor
analysis.
Target Audience:
The target audience for the adult
diaper market is mainly urban elderly population, people with medical
conditions like incontinence, bedridden patients, and people with disabilities.
The brand needs to understand needs and preferences of target audience and
develop a positioning strategy accordingly.
Benefits:
The brand can focus on the benefits
of using adult diapers such as comfort, convenience, hygiene, and protection
against leakage. The brand can also focus on the emotional benefits such as
dignity, independence, and self-esteem that come along with using adult
diapers.
Competitor Analysis:
The adult diaper market in India is
dominated by multinational companies, These companies have established themselves in the market with
their brands like liberty, friends, and dignity. The new brand needs to differentiate
itself from the existing brands by offering unique benefits and features.
Competitive brands in segment
|
Best Overall |
Liberty |
|
Best Fit |
Super Life |
|
Most Absorbent |
Kare-In |
|
Best Value |
Friends |
Based on the above factors, the
positioning strategy for the new brand can be as follows:
Positioning Statement:
“We bring you the most comfortable
diapers that adds up your confidence. With best of manufacturing practices not
limited to using 100% renewal energy and bio degradable fabric for its
production, we ensure to provide you with best of fabric and maximum absorption
enabling you for longtime comfort.”
The brand can focus on the
following key benefits to differentiate itself from its competitors:
Comfort: The brand can offer adult
diapers made of soft and breathable material that provides superior comfort to
the user. It could focus more on adding cotton sides for additional comfort.
Confidence: The brand can focus on
leakage protection and offer a higher absorption rate compared to its
competitors. The brand can also offer features like odor control and wetness
indicators. Moreover, it can work on marketing to build confidence within
community of target customers to use the product and the value in terms of
quality customers will receive under your brand name.
Dignity: The brand can focus on
promoting dignity by offering discreet packaging and design that looks and
feels like regular underwear or better using mid age models to represent it to
represent normalcy of usage.
Quality: The brand can focus on
offering high-quality products made with premium materials that are safe for
the skin and provide maximum comfort for an additional price showcasing its
benefits to the customer. Taking applicable certifications may also help it to
be marketed as premium class product.
The brand can also focus on
eco-friendly and sustainable features, which is a growing trend in the market.
The brand can use biodegradable materials for the products and promote its
commitment to the environment.
In conclusion, the positioning
strategy for the new brand should focus on the target audience's needs, unique
benefits, and competitor analysis. The brand can differentiate itself from the
competitors by offering superior comfort, protection, dignity, and quality
while promoting its commitment to the environment. By establishing a strong
brand positioning, the new brand can gain market share and establish itself as
a leader in the adult diaper market in India.
#AdultDiapers #IndiaMarket #BusinessStrategy #MarketEntry #ProductPositioning #Innovation #ConsumerHealth #ElderlyCare #HealthcareMarket #SustainableProducts
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