Huggies Pull-Ups Distribution Analysis Essay
Huggies Pull-Ups Distribution Analysis
Huggies Pull-Ups are distributed in the market by the Kimberly-Clark Corporation that specializes in the production of disposable paper products. Among the products that this company manufactures is single use Pull-Ups which are pants meant for training and general use facial tissue. Another kind of product they make is children diapers. Other products in this category include lotions, shampoo, washcloths that are for single use. All the products under the Huggies brand are customized for the sake of providing utmost comfort to end users.
According to a study on the US market for disposable paper products done in 2008 that was based on the past five years, marketing of the concerned goods is basically done through retail sales. For the sale of goods in the category of baby consumer products the retail channel that they use comprise of supermarket, discount store, hypermarkets. Another channel of distribution they have adopted is the internet which they use to display their products for customers who access the web. The products of the company are put into intensive distribution in the category of the retail market.
The use of the distribution channels helps the producer of the commodity in several ways. Some of
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The Huggies manufacturer also uses an alternative sales strategy. This is done by direct line distribution channel that involves selling the goods to institutions that consume the product in bulk. This varies from the indirect method where they depend on intermediaries such as wholesalers, supermarkets, shops among others.
Products in the industry such as facial tissues are sold through retail outlets such as convenience stores, in clubs, groceries to be resold to individual consumers. The packaging done on the tissue in this case is attractive and aims at satisfying the customers aesthetic needs. This product is packaged in neat packages for convenient use.
The alternate channel of distributing the facial tissue is through selling the products to distributors who in turn sell them to institutions such as hospitals or offices where the tissues are needed for employees use. This kind of tissue is packaged in less appealing packets compared to the retail one.
Hence, the two products that serve the same use are packaged distinctly from one another. They are put into the market via different channels of distribution and are priced differently. In the industry producers market these products separately and there is usually no competition of the two kinds of products in terms of prices or sales.
For the Huggies diapers marketing is done through retailers and this enables the company to reach out to majority of American homes with babies. The manufacturers sell the product to smaller outlets such as the supermarkets or corner shops that in turn resale the goods to individual consumers. Only a small percentage of the product is sold to corporate consumers. Like in the category of facial tissue the pricing of the product for the corporate market does not impact on the pricing for the individual customers’ product.
Pull- Up products from the Kimberly Clark Company got to the win the top position of marketing from the Procter and Gamble Company with which it competes. The strategy the company used is that of deviating from the normal testing of its product in the market so as to be the first seller of the commodity in the market and using a distribution chain that targets regions. Competitive goods like diapers there is usually a competition advantage when a company is the first product mover. The intermediaries that the Huggies producer took have helped in setting up a wide customer base as they are strategically placed (Thomas, 1995 p130).
The area of retail channel distribution is more challenging than institutional distribution. Distribution of the products is has to target specific niches in the market as the modern market is grossly segmented. This has the result of keeping product manufacturers on their toes and ensuring that they produce customized products for solving specific needs.
One of the advantages of selling the product directly to institutions is that the producer avoids the disadvantages of using wholesalers. When there are wholesalers in the chain of distribution the producer is obliged to sell his product at a lower price than the retail price to them and this reduces profits.
The Kimberly-Clark Company is a big business enterprise and so as to adequately reach out to the market to date has been using the internet. The pull-Ups and Huggies products are placed in their internet site for the purpose of advertisement. With this kind of e-commerce the customer orders the product from their homes or offices and the goods are delivered to them from the company. This arrangement is suitable for the institutional customers who buy the goods in bulk. The use of the internet for advertisement has helped Huggies and Pull-Ups to find new markets in and outside of the United States.
Due to the bulkiness of disposable products from paper the retail outlets such as supermarkets that have the capacity to hold the product are preferred to smaller holdings such as corner shops. The products are well displayed in the supermarkets for better marketing. The product is also offered at its rightful price since there are convenient economies of scale in the supermarket (Kotler & Keller, 2009).
The sale of Huggies Pull-Ups products through a distribution channel involving several intermediaries is beneficial. The intermediaries are crucial as they ensure that sales of the products are achieved. The supply channel acts as an intermediary between the production and the market and helps the production company to realize more sales than it could have done alone.
The internet adverts on Huggies Pull-Ups are helping the Kimberly-Clark company realize more sales as this adverts capture the interest of customers and they lead to instant purchases that are hassle free. The method of purchasing commodities in ones comfort is welcome to many consumers of the product.
The distribution channel for Huggies Pull-Ups products is very vibrant and has been enhanced to adequately cover the market needs and as well as to maximize sales.
Kotler, P., & Keller, K. (2009). Marketing management (13th Ed.), Upper Saddle River, NJ: Pearson Prentice Hall.
Thomas, R. (1995) New Product Success Stories: Lessons from Leading Innovators. New York: John Wiley and Sons