Prices and quality both important to mothers
Some products, like for example diapers, are essential in baby care. According to Ildikó Kardos brand manager of Libero, the history of disposable diapers goes back to the 1950’s. While liquid absorption capacity had been the most important criteria for diapers in the beginning, flexibility has become the recent trend. The latest flexible Libero products with more flexible velcro and waistband were launched in June 2008. Pampers Active Baby with Strech is another product intended to achieve a more flexible fit. In the opinion of Judit Tóth, brand manager of Huggies, this market is special, as all customer are replaced within 3 years, which means new customers have to persuaded to buy these products. The importance of playfulness is also growing. As a result, leading manufacturers redesign their products on a regular basis, like the Libero collection has been redesigned for 2008 by Karolina Kling. The two major segments within this category are diapers with velcro and more expensive panty diapers. Specialised products also exist, like those used for swimming. Wipe tissues can be segmented according to thickness, or skin type. Disposable liners for changing diapers are a new segment. Libero has launched a product of this type this summer, packaged with Up&Go panties as gifts. According to Judit Sándor, trade marketing manager of SCA, private labels already account for one third of total sales, with the two leading brands accounting for the remaining two-thirds. The combined market share of drugstores and hyper markets is over 80 per cent. Since sales are highly concentrated, wide assortments of even specialised products should be stocked. Caution is needed in determining the respective proportions of different sizes. As most babies belong to the size 4 category, this should be available in even small stores. Diapers are not cheap, especially when 7-8 are used every day. Many consumers only use more expensive diapers, when these are sold under a promotion. Price promotions are a favourite topic among mothers. Demand for brand products is expected to drop owing to the growing popularity of premium quality private labels. The importance of POS tools for promoting brand products is increasing. Price promotions and multi-packs are the most popular such tools and prize games are also frequently used. Building loyalty and enhancing consumers’ knowledge are priorities in the marketing strategy pursued by Libero. For several years, Libero Klub has been an effective tool for building loyalty. The www.libero.hu web site and events are also useful marketing tools. According to Zita Radajkovics, trade marketing manager of Sara Lee Hungary zRt, shampoos, body lotions, bath gels, creams and powders are the main segments in the baby care category. The target group is larger, as the age limit is 6 years in this category. Johnson&Johnson is the market leader, with Gabi in second place. Gabi has been present in the market for 40 years, keeping up with the latest trends. Gabi has developed close co-operation with Heim Pál Children’s hospital in product development. Sensitive wipe tissue is an example of this co-operation.
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