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opportunities and left the diaper

Inside the basket, nappies is one of the categories you have done well this past year. How is this market? What trends do you have? Where is is heading?

By Claudia Paan

Now more than a million Peruvian children are wearing a diaper. Sean these small, medium or jumbo, with maximum protection or regular, with a picture of someone or simple cloth or disposable. There is something for everyone. Unlike what happened decades ago, the diaper market in recent years has been growing baby step, but quite the opposite. is a 'child' which weighed approximately S/.458 million in 2010. According to the RCC consultant, this is one of the most dynamic categories in the basket of care, with an 8% increase in sales volume last year compared to 2009.

• Moreover, according to World Panel Kantar figures in the second half of 2010, a home with baby diapers consumed 110 more than in the first half of 2010 What is this?

• might think that a higher birth rate, but Augustine Tantaleán, Ransa business manager, explains that it is not.

• "People are changing their consumption habits to have greater purchasing power. Have access to supermarkets and looking to buy new products " said.

• With the inclusion of more women into the labor market, household income began to improve and has been ignoring the use of cloth diapers and disposables.

• But also, as indicated by Rafael Belmont, executive vice- Perufarma practical recommendation and parents are opting for this presentation.

• is why in past ten years, disposable diaper market has been increasing its participation in the home, coming-today-about 85% penetration, according to Martin Barua, category manager Infant Care P & G Peru.

• "In about 15% of households where there is a baby diaper stage, we use cloth diapers and disposable diapers are not. Ten years ago, that number was almost double, "he remarks.

• But with these results, producers can not rest on its laurels, as in rural areas the presence of cloth diaper is very strong.

• According to Miguel Cillóniz, line manager Child Care Kimberly-Clark, consumers buy cloth diapers disposables for special occasions: when they want to have a quiet night or leave.

• HIGHER QUALITY
• César Buelot, Kantar World Panel consultant, explains that the main attributes or more prominent in priority order are the mark and then the size.

• "The mother who comes to the category, is left with a brand if it works and would not risk to change, since the user is the baby," explains .

• But, as the specialist, the price factor is not very relevant to the purchase option, because the opportunity cost of an election that does not favor the baby is very high.

• regard, Belmont says in cities moms seeking better quality products and presentations no longer economic.

• This is well aware of Kimberly-Clark, brand from this year decided to withdraw from this segment to bet on its portfolio of value-added diaper. A move that may be hazardous to one of the market leaders (has nearly 62% stake) but so far they are bringing good results in sales.

• Miguel Cillóniz says in the last 4 years, the share of premium products has tripled at the expense of the segments and economic means.

• "Most modern channel penetration has helped make the presentations more value with this growth. About 90% or 92% of the market is concentrated by means and premium products " indicated.

• The commitment of the producers, "says the executive, has been that the poorest sectors can access these products. But how did they do? In 2004, Kimberly-Clark launched their unit presentations, which he notes, began to thrive not Huggies sales only, your product, but also the sector in general.

• César Buelot notes that smaller packaging (1 and 3) grow, since in the lower sectors see in them the easiest way to access the category without much cost and, thus, " generates a constant frequency of purchase and even larger expense. "

• This also sees Martin Barua Procter & Gamble, who believes that having more confidence in disposable diapers, innovations are very important.

• is why we have recently invested $ 15 million in our country to a new plant in diapers, as well as its commitment to new product niches, for people with different income levels can afford diapers regularly, according to their needs.

• But Kimberly-Clark does not want to be left behind. Also derive its efforts to make innovations in the category, increasing the consumption of value-added products in all segments and not lose its market share.

• HEAVY PACKAGE
• In the past two years, there has been a worldwide increase in the use of diapers, so that the price of raw materials also rose, which has impacted-to time-in the price of diapers.

• But, as indicated by Rafael Belmont, this increase has been mitigated by the volume of production that are increasingly high, the entry of new competitors and the various options that producers have given parents of different segments.

• "Of course, compared with 20 years ago, the price of diapers has fallen. Before it was a luxury use " he recalls.

• But how much families are spending on these products? According to World Panel Kantar, spending per occasion in a foster home is S/.10 Lima, while in one province, S/.6, 20.

• César Buelot explains that this is due to the high penetration in the capital has the modern channel and the increased purchasing power of its inhabitants. However, households in the provinces are often higher consumption for Lima (was every 6 days during 2010, while the capital was 9 days).

• And, as noted Cillóniz, to buy more in the traditional channel, consumers purchase the unit presentations which can cost about S/.0, 80.

• Thus, as in other categories, inside the consumer thinks about the day-to-day purchase option.

• But Not only that, despite the growth that is taking more inside, still looking for cheaper presentations unlike Lima, according to Belmont.

• "The consumer chooses Lima highest quality products and price, since it is a connoisseur," he says.

• A NEW DIAPER
• face of a more affluent consumer and looking for better quality, producers are hoping that this year the market continues its growth path.

• Miguel Cillóniz Kimberly-Clark expects this category to grow by 10% in 2011 and in equal proportion to the company.

• For his part, Martin Barua Procter & Gamble Pampers confident that grow above the market (whose level-expected growth, will be lower than GDP) thereby enhancing its market share significantly.

• Meanwhile, Rafael Belmont said that projections for growth this year Zaimella-Ecuadorian company which are represented Perufarma 15%.

• To this end, the company that markets diapers Panolini plans new launches of increasingly sophisticated products to meet the demands of discerning consumers.

• What happens next? Although not expected a significant increase in the birth rate over the next three years, the consulting firm Euromonitor International believes that the growth of this category is driven by the increased purchasing power of parents and a different lifestyle. In short: this child will grow strong and healthy.

Denise Milani Marriage

When they screw

By: Evan Davis

big bet ... and lost.

Even larger companies can make big mistakes. And when they do, the result is usually a commercial disaster.

• companies constantly strive to improve products and profits. But modifying an existing product can be a failed experience that leads to customers protest and left the firm in crisis.

• A bad marketing coupled with clumsy public relations can make the most experienced companies seem incompetent.

• And the costs, both financial and in terms of reputation, can be enormous.

• Unilever, Coca-Cola and the British Motor Corporation have provided some of the most extreme examples.

• Stain (destructive) of Unilever
• The detergent market can be a fierce battle between manufacturers.

• When in the early '90s Unilever brand announced the launch of a new formula, Persil Power, its creators will bet on the British market dominance with a detergent able to remove any stains .

• For a short time, the product was able to beat his main rival, Ariel, Procter and Gamble.

• Many consumers were excited until they began to realize that the detergent not only removed the stains ... but also destroyed the clothes.

• Persil Power The manganese contained an ingredient called "the gas."

• accelerated What was the wrath of consumers when began appearing in the press photos, posted by the competition, wearing underwear with holes.

• Vikki Orvice journalist dedicated to consumer issues, remember the phrase: "When using this product, your clothes will be shredded to the point of indecency."

• Analysts estimate that the debacle could cost him at Unilever to over U.S. $ 400 million.

• But the company quickly and introduced the New Generation Persil, without the manganese accelerator.

• Persil regained its position as market leader four years later with Persil tablets.

• The taste (again) from Coca-Cola
• Despite being the soft drink sold in the world, Coca-Cola always afraid of his rival, Pepsi, that his heels.

• When Pepsi introduced its famous Pepsi Challenge, a blind tasting test that suggested that most customers preferred the sweeter taste of the number two, Coca-Cola shook.

• Its executives were convinced that the taste of his product had become a problem, so it tried to develop a new one that will win the game at Pepsi.

• Coca-Cola changed the flavor to the Pepsi Challenge.
• The new and supposedly better Coca-Cola was introduced to the press in New York in April 1985.

• Surprisingly, not only changed the taste of Coca-Cola but the original was discontinued.

• journalist for The New York Times Pamela Hollie, who was at the launch, recalls his amazement.

• "It was like saying that it was changing the American flag" he recalls.

• Consumers were horrified, mounted noisy campaigns and staged protests.

• A "militant" said at the time: "My daughter is 22 years. His first word was Coca-Cola. His second word was mama ...".

• Ultimately the Coca-Cola executives reviewed their market research and realized that they had committed a fundamental error.

• The blind tasting test did not take into account the associations involved the brand and consumer loyalty.

• After only 79 days, Coca-Cola has reversed its decision and announced that the original recipe occur again.

• (great) error Mini
• The Mini was the most successful car in British history, with more than five million units sold. But their success lay a story surprising that most benefits the consumer went to the company.

• Its low price, the Mini became a commercial success.

• When it was introduced in 1959, Leonard Lord, head of the British Motor Corporation, decided that the car was sold for 500 pounds sterling (about U.S. $ 816 today), in order to undermine his closest competition, the Ford Anglia , which cost 610.

• That price turned the Mini into an instant success and, with the support of celebrities like John Lennon, Peter Sellers and Spike Milligan, became the vehicle of the moment.

• Ford bosses were perplexed and decided to remove one of the cars piece by piece to access the secret of lower production.

• Former director of Ford Planner Bob Howe recalled that analyzed the cost of each component.

• "Our analysis found that Ford's auto production would have cost 35 pounds above their cost in the market."

• Apparently the Mini costing 535 pounds and sold at 500.

Figurine With Crossed Swords On Bottom

giants McDonald's, "a symbol of a modern lifestyle and urban?

Justin LaHart

Contrary to what the documentary Super Size (Super Size Me, its original title) might suggest, McDonald's might be good for those who live in Europe.

• 's right, eat there may not be very good for your health. However, living somewhere in Europe with a high concentration of McDonald's can also mean that in a culturally diverse area where ideas and innovation thrive, research suggests economists Ceren Ozgene and Peter Nijkamp University of Amsterdam and Jacques Poot University of Waikato, New Zealand.

• Economists say McDonald's is different in Europe, not only because in France it is called Royal Cheese the Quarter Pounder with Cheese. "Unlike North America and other parts of the world, McDonald's restaurants are regarded in Europe as a symbol of cosmopolitanism and a modern lifestyle and urban young people, rather than just a fast food service led low-income sectors, "they explain.

• also argue that image means that in areas where there are McDonald's restaurants there is probably also a large number of immigrants with high qualifications. And because McDonald's is a major source of employment for low-skilled immigrants are likely to be concentrated there also a large number of people with that profile.

• The researchers speculate that the number of McDonald's for a million people would be a good indicator of migration flows, allowing them to test the idea that areas with large concentrations of people from different cultural backgrounds are more likely to generate of ideas, entrepreneurship and economic growth. addition to the figures on the location of McDonald's, for their analysis, economists used data on immigration and patent applications, as a measure of innovative activity.

• Research suggests that the concentration of immigrants in an area alone does not seem to drive innovation. However, areas with large numbers of immigrants from countries with high levels of training, and those with a large population of diverse cultural backgrounds tend to be more innovative.