The remaining 24% of the market was made up of private label brands for retailers such as Target, and K mart. .
Competition in the diaper market. Johnson & Johnson (J & J) was forced to pull their line of diapers off the market in 1981 due to stiff competition. J & J only held 8% of the market at this time and felt that they could not compete effectively with such a small market share. This is a position that RMM does not want to find itself in. If they are going to invest the time and the money on their new product, TenderCare , then they will have to be certain that they can compete with a company that already holds over half the market. .
EVALUATION OF ALTERNATIVES.
At this point, RMM needs to make a choice of great importance. It really comes down to two options. Get in the market or stay out.
1) Get in the market. RMM had reached a formal agreement with a marketing consultant by the name of Alan Anderson. Anderson had exceptional credentials in the advertising business. The agreement was that Anderson would spend 25% of his time on TenderCare the first year and 12% the next two years. This would give RMM time to train their own marketing personnel under the training of Anderson. .
Just about every baby will, at some point, wear a diaper. The use of disposable diapers was growing at a fast rate and expected to be 90% disposable to 10% cloth diapers by 1990. After that point, the growth of diaper usage will approach the national birth rate. Imagine the number of babies born every year in the U.S. That is quite a few diapers. The numbers in the diaper market are promising if you can compete. .
If RMM decides to get in, they must be able to capture a considerable share of the market. After talking to relatives and friends who have children, I found that many parents wouldn't even try a new brand of diapers if they have not had problems with their current brand. This would take some careful planning from RMM's advertising team.