Moms Still Rule

In the increasingly competitive disposable infant/toddler products segment, mothers are the chief demographic.

Moms who shop for baby care items have priorities that, if met, will build loyalty to a particular store, according to a study performed by Procter & Gamble and Mead Johnson Nutrition — and cited in a report from global market research firm Mintel, "Disposable Baby Products — US — March 2012." Those priorities include well-stocked shelves, integration of social media such as smartphones, at-shelf product codes and integration of "mom blogs" into the shopping experience.

And although the declining birthrate has adversely impacted the overall diaper and training pants category, Mintel says the growing U.S. Hispanic population "could help to decelerate future sales declines, as Hispanic households are far more likely than other ethnic households to have children younger than 6, and the 15.8 percent growth rate among Hispanics between 2011 and 2016 will likely mean more children in need of baby care products. "

Social media influence

Social media has helped consumers search for the best products, both in terms of performance and price, and that's especially true in the baby care market, reports Chris Ferdock, vice president of marketing for Associated Hygienic Products (AHP), Duluth, Ga.

"Our demographic is 'mom.' She's leading the charge on social media," Ferdock explains. "We've seen in our category a barrage of moms talking to each other over the computer" about which products they prefer, comparing notes on price, product performance, comfort and fit. "That's really eroding brand loyalty."

In helping each other get more bang for their buck, moms are leading other moms to the retailers that can be the price leaders, building "outlet loyalty," Ferdock adds.

Innovations build brands

Consumers can buy diapers anywhere, Ferdock says, advising retailers to "build a good brand that your consumer can't buy anywhere else." In product selection, he says, focus on leak protection and fit. Treat product design as a springboard, and "market accordingly."

Don't discount the importance of social media in communicating to moms.

Features such as fit, performance and absorbency are paramount in store brand diapers and pants, agrees Kyle Tucci, senior vice president of Valor Brands LLC, Alpharetta, Ga.

"The consumers' expectation is that store brands have the fit and performance" of the leading brands, and "the same features, such as stretch-to-fit and absorbency like Pampers Baby Dry or Huggies Snug and Dry," he says. Otherwise, Tucci warns, they will not purchase store brand versions, or at least not more than once.

Still, Ferdock believes product innovation is the secret to success for store brand managers. Provide a product design platform that meets your customers' needs, with features that can be marketed, he advises.

Product improvements and updates in this segment need to be frequent to meet consumer demand and because the consumer base turns over frequently as new parents come into and leave the market, Tucci points out.

Garment-like diapers and pants that are thinner, just as absorbent and fit better under clothes are driving product development now, he says, adding that thinner disposables provide better shelf-space utilization for retailers. Thinner disposables also benefit the environment by reducing packaging material and creating better freight efficiencies.

Bigger is (mostly) better

Packaging should be the next major consideration for store brand managers after product development. The shift in the diapers category is toward boxed packs and, in some cases, very large poly bag packs, Tucci says.

Ferdock agrees.

"Larger packages are the biggest trend," he says. "Consumers kind of treat diapers like toilet paper. They want to put it in the pantry and forget about it for a couple weeks."

That said, it's very important in marketing store brands to give consumers a price-point option that promotes trial, Tucci says. Larger packages of diapers can be priced in a range as wide as $14 to more than $30.

Retailers will have difficulty hooking a first-time mom on a product she hasn't yet tried at that price, Ferdock adds. Offer a smaller pack priced at under $10 in the planogram, he advises.

On the package design front, Ferdock recommends employing the "10-second rule." Because consumers don't spend a whole lot of time in each aisle, the package needs to look "as premium as possible," even better than the national brands' packaging.

But keep the package design simple, Tucci advises.

"Have a product that clearly shows size, weight-range and all the key benefits to the consumer," he says. "This is a very busy consumer. They are making that decision at the shelf, so the easier you can make that, the more likely you are to get the [sale]."

Price to sell

When it comes to store brands, price is always relevant, but even more so now, Ferdock says. Consumers of baby care products also tend to be younger and on tight budgets because of the costs of child-rearing, he notes, and diapers can constitute a significant household expense.

What's more, the national brands are packing fewer diapers into packages while selling the packages at the original price, Ferdock says. The practice aims to make up for the increased costs manufacturers are paying for raw materials.

Store brand diapers and training pants usually represent a cost savings of about 20 percent over the national brands, Tucci notes.

Don't forget to offer a smaller pack size, too, to help build trial of store brand diapers and wipes.

Do invest in diaper and training pant innovations that allow you to build a real brand moms cannot buy anywhere else.

"When a consumer finds a product that meets their needs at a price they find acceptable, they are likely to stick with that product," he says.

Smart merchandising can help draw attention to the cost-savings of store brand diapers, training pants and baby wipes, Tucci says. The shelves should be arranged to make it easy for consumers to compare the private label offerings to a national brand in terms of price and features. "Compare-and-save

messages are great," he says.

"That helps the consumer make the decision."

To encourage trial of store brand diaper and training pants, AHP put together a social media department. Its "First Impressions" campaign, designed to drive trial for first-time moms, engages with mothers to generate confidence in the company's products. Advertising themes for the retailer and point-of-purchase materials help the campaign communicate the benefits of the brand in-store, Ferdock reports.

"We hold Twitter parties for retailers," he says. "We go out and talk to consumers. We're telling them what the benefits of our products are."

Do court the growing U.S. Hispanic population, as Hispanic households are much more likely than other ethnic households to have children under the age of 6.

Don’t discount the importance of social media in communicating to moms.

Do invest in diaper and training pant innovations that allow you to build a real brand moms cannot buy anywhere else.

Don’t forget to offer a smaller pack size, too, to help build trial of store brand diapers and wipes.

Look what's new

Milwaukee-based Roundy's Supermarkets debuted a Roundy's Baby Wipes Refill Pack. The

unscented wipes are said to be thick, cushiony-soft, alcohol-free and dermatologist-tested. They contain aloe and vitamin E to moisturize a baby's bottom and retail in a carton containing 360 wipes.

Delhaize America, Salisbury, N.C., introduced My Essentials Ultra Absorbent Diapers for Boys & Girls. The diapers are said to have stretchable grip tabs, comfort stretch waists and advanced leakage protection. The diapers also contain ingredients from popular rash ointments, including vitamin E, aloe and zinc oxide. They retail in a flexible package with the count varying by size.

Source: Mintel's Global New Products Database