Uni-Charm bids to persuade rural mums to use diapers

Uni-Charm is continuing its strategy of increasing sales of MamyPoko disposable diapers by penetrating provincial markets where there is still room to grow, while Bangkok is likely to stay flat.
Director Damrong Piyanitdamrong said yesterday the company had been working on making inroads upcountry since last year. Rural mothers still don't use many diapers or even none at all, he said.The company plans to build awareness on the benefits of using disposable diapers and its brand through product samples and advertisements. It doesn't intend to arrange many marketing activities. The company has already gained some acceptance as its share of the provincial market has risen by 5 percentage points. A specific marketing budget has not been allocated for the provincial market. The total marketing budget of Bt200 million to Bt300 million for the whole country is 3 per cent higher than last year. The company expects its sales mix between Bangkok and upcountry to change from the present 50-50 to 35-65 in two years. For Bangkok, it expects to increase sales by stimulating existing customers to increase frequency of use. Damrong said consumption in Bangkok was still 50 per cent lower than in developed countries such as Japan, South Korea and Singapore as well as in an emerging country like China. Only 5 per cent of customers here use the same amount as people in those countries. The provincial market accounts for 30 per cent of demand in those countries. People in those countries use 100 to 120 pieces per month while Bangkok uses only 50 pieces per month. Damrong said Uni-Charm is the leader of a market worth Bt4 billion with a 66-per-cent share, which rose 10 percentage points from last year. The company brought diapers to Thailand in 2000. Uni-Charm expects to boost its share to 70 per cent by late this year, which will be the highest ever for any player in Thailand. Damrong said the economic situation did not have a big impact on spending for diapers, as the product is a necessity for small children. The children's diaper market this year is estimated to grow 15 per cent, he said. The company has two other major products - Sofy sanitary napkins, with a 43-per-cent share of the Bt3.6-billion market, and Lifree adult diapers, with 21 per cent of the Bt500-million market. Damrong believes the sanitary napkin market will expand only 2 per cent while the adult diaper market could see an increase of as much as 20 per cent. Nitida Asawanipont, The Nation
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