Luvs diaper feasibility to enter in Pakistan

1. GLOBAL
MARKETING
Muhammad Shaban
MBA
Superior University Lahore
shabanmirza85@gmail.com

2. Project: To Introduce a New
Brand of Diaper in Pakistan
 Our company is interested to introduce a new Diaper brand in Pakistan “LUVS”.
This brand is owned by Procter & Gamble, PAMPERS is an existing brand of Procter & Gamble, most
selling diaper brand amongst the people, which are more conscious about their baby’s health & their
mental satisfaction as well. But the important thing is that all the customers for diapers in Pakistan not use
Pampers due to some higher prices, they have to compromise quality keeping in front their budgets, even
in most of the areas mainly rural, still people are using old style, traditional cloth nappies & economical
plastic panties, which obviously are not good for baby’s health, cause rashes & some other skin diseases.
So our target is to capture that class, as LUVS diapers are low price diapers with better quality.
Areas Studied
 Product Introduction
 Market Size
 Existing Brands & Their Market Share
 Current Marketing & Advertisement Activities of Different Existing Brands
 Distribution Channel
 Product Life Cycle
 Taxation Structure
 Packaging Requirement
 Quality Standards
 Legal Requirements

3. PRODUCT INTRODUCTION
 New diaper brand “LUVS”
 Brand owned by Procter & Gamble
 Budget friendly
 Alternative of any premium brand somehow
without sacrificing quality.
 Currently covers main mediocre markets in
USA

4. MARKET SIZE OF PAKISTAN
 P & G covers 73% of Pakistan market (our main
competitive edge)
 0 to 7 years babies are 30% of the population
 15% of these use different brands of diapers
 We have to grab customers who can’t afford other
premium diapers
 Those who don’t use diapers could be attracted towards
this product “LUVS” due to low price value.
www.euromonitor.com

5. BRAND & THEIR MARKET
SHARE
Brands of diapers in Pakistan & their market share
VOLUME SHARE
 Pampers 250 (M) Units 58%
 Other Branded 94 (M) Units 22%
Diapers
(Baby Care, Hapi Napi, Baby Master)
 Other Non-Branded 86(M) Units 20%
Diapers www.pbs.gov.pk
www.slideshare.net (By Brand Academy)

6. BRAND & THEIR MARKET
SHARE
Brands of diapers in Pakistan & their market share
VALUE SHARE
 Pampers 3270 (M) Rupees 62.80%
 Other Branded 1234 (M) Rupees 23.69%
 Diapers
(Baby Care, Hapi Napi, Baby Master)
 Other Non-Branded
 Diapers 525(M) Rupees 13.50%
 There is space available to sell product to non-user of diapers, by
educating them & providing low cost diapers in replacement of Plastic and
Cloth nappies.
www.pbs.gov.pk
www.slideshare.net (By Brand Academy)

7. CURRENT MARKETING &
ADVERTISEMENT ACTIVITIES OF
DIFFERENT BRANDS
Existing brands are advertising for their products
in different ways, Awareness to parents about
benefits of the product for their babies through
 TV 68%
 Magazines 6.7%
 Radio 2.3%
 Social Media 5%

8. CURRENT MARKETING &
ADVERTISEMENT ACTIVITIES OF
DIFFERENT BRANDS
 Stall 10.5%
 Boards & banners 2.5%
 Newspapers 5%
 Boards & banners 2.5%
We’ll also use these modes of marketing &
advertisement for our product & we’ll mainly
focus on our low price competitive edge with a
better quality product, we’ll also strongly target to
customers who buy local, poor quality brands &
people who don’t use diapers.
www.slideshare.net (By Brand Academy

9. DISTRIBUTION CHANNEL
 Companies are using different distribution channels all over in
Pakistan; they are using big & small all functional distributors
for their products which help them to spread their product in
markets of Pakistan.
 Z & J Corporation Karachi is distributor of “Baby Master”,
“Hapi Napi” & “Baby Care”.
 PAN Industry is distributor of ‘Diapy’.

10. DISTRIBUTION CHANNEL
 Procter & Gamble for Pampers using their own distribution channels,
massive & systematic Supply Chain setup e.g.
1. More than 300 distributors in Pakistan responsible for the distribution of
pre-defined geographical areas.
2. TOP Stores (TSP’s), high profile outlets e.g Al-Fateh, Akbari, HKB.
3. Direct Delivery (Key Accounts), Institutional buyer, who directly sale the
product to consumer, e.g. METRO, HYPER STAR.
 We’ll use these existing distributors at first stage of our marketing
plans by offering them competitive profit share, some lucky draws,
some incentive plans etc.

11. PRODUCT LIFE CYCLE
 The market for our product is ever green, as Pakistan is a
populated country,
 Population is increasing day by day,
 People are getting awareness about their baby’s health,
 Literacy amongst the people is increasing day by day,
 Their purchase power is also increasing significantly,
 At the moment Pakistan is 18th largest country with maximum
middle class people 55%. Predicted population of Pakistan till
2030 will be 250 (M) due to high birth rate.
 Hence this product has eternally enduring market.
www.euromonitor.com
www.tribune.com.pk
Dr. Javaid Abdul Ghani (Karachi School of Business & Leadership)

12. PRODUCT LIFE CYCLE –
EXISTING BRANDS

13. TAXATION STRUCTURE
 We’ll have to import our product from USA at this stage, as we
have some later future plans for production facilities in Pakistan,
so we have to pay duty & taxes according to below mentioned
structure,
 HS Code 9619.0020
 Custom Duty @ 20%
 Sales Tax @ 17%
 Income Tax @ 6%
 Additional Sales Tax @ 3%
 This diaper will cost after even paying all duty & taxes 6.50/Pc.

14. PACKAGING
Packing of LUVS Diaper
Size 1 264 Pcs Box
Size 2 240 Pcs Box
Size 3 222 Pcs Box
Size 4 192 Pcs Box
Size 5 168 Pcs Box
Small Packing for all sizes 40 Pcs Package
According to local regulations, at the time of import there must be
proper marking on packages e.g.
 Country of Origin
 Weight
 Product life time
 Printed price
 Product life on each packet
www.ebay.com/luvsdiapers

15. QUALITY STANDARDS
 There must be certifications of some reputable quality
assurance company in exporting country about quality
measures of product,
 We have to get this certified from local quality
assurance company e.g. Bureau Veritas, SGS etc. &
submit to relevant Government Health Care department
for further approvals/certifications.
 Product must be certified from PSQCA.

16. LEGAL REQUIREMENT
 According to country’s regulation at the first stage, we
have to get registered the Brand “LUVS” in P & G
territory.
 Have to get product analysed from PSQCA/PCSIR.
 Have to get Government Health Department
registration.
 There will be low costs of registration required as P & G
has already registered & regular tax payer in country.
Company will also hire a legal consultant for their
corporate & lawful matters.