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TAMBRANDS CEO REAFFIRMS COMPANY'S DIRECTION

 WHITE PLAINS, N.Y., March 4 /PRNewswire/ -- In a presentation to analysts this morning, Martin F.C. Emmett, chairman and chief executive officer of Tambrands Inc. (NYSE: TMB), stated that 1992 results confirmed that the company's global marketing strategy is on track. Speaking at the annual Merrill Lynch analysts seminar on cosmetics and household products, Emmett said, "1992 was a very good year for Tambrands. Business results around the globe provided strong evidence that the company's strategy is sound." In his presentation, Emmett also looked ahead at the global market potential of Tampax tampons and reviewed the key strategies the company has put in place to realize that potential.
 1992 Performance
 Commenting on Tambrands' 1992 performance, Emmett pointed out that sales reached an all-time high of $684 million and that, excluding one-time charges, earnings per share increased 24 percent from 1991 to 1992. Emmett said that the gross profit margin reached 66.7 percent, 3.4 percentage points higher than the 1991 margin. He said the net profit margin for 1992 was an impressive 17.7 percent.
 Discussing the feminine protection category in the United States, Emmett indicated that tampon retail sales overall were up 11 percent to almost $700 million, while sales of sanitary pads and panty shields declined slightly. The tampon share of the total feminine protection category reached 41.3 percent, the highest level since the 1970s.
 Emmett described Tampax tampons as the U.S. sales leader of the feminine protection category, with total retail sales higher than any other individual tampon or pad brand and higher than all shields combined. Additionally, he said, Tampax tampons were the third highest selling health-and-beauty-care brand in the country, after Tylenol and Crest. "Tampax tampons continue to enjoy very high brand loyalty," Emmett said.
 Global Potential
 Turning to the company's worldwide potential, Emmett analyzed the current tampon market and compared it to the market projected for the year 2000. Today, worldwide retail sales of tampons stand at about $1.5 billion, or about 23 percent of the feminine protection category. Tambrands has a 48 percent share of this market. In the year 2000, Emmett explained that Tambrands expects the total worldwide tampon market to grow to just under $3 billion, or about 29 percent of the feminine protection category. The Tampax worldwide market share should be about 50 percent.
 Emmett discussed three of the company's primary strategies to execute its global plan for the 1990s: building the tampon category and the Tampax market share, improving margins through technology, and developing new markets for long-term growth.
 Building Category and Share
 Emmett said, "Tambrands plans to build the tampon category and the Tampax share around the world through consumer education and aggressive strategies in product development, pricing and marketing." Supporting this global marketing effort, Tambrands has a single trademark and package design worldwide, 12 strategically located manufacturing centers and a strong sales organization, said Emmett.
 Emmett illustrated the company's commitment to building the category and share by describing the substantial increase in worldwide marketing spending. Since 1989, the company's spending per unit of volume has risen at a cumulative annual rate of 14.3 percent.
 He also pointed to a current marketing initiative in the United States designed to highlight Tampax tampons as the best value in the category. The company's new 20-count package will be the only leading tampon package with a price in the popular $2.99 to $3.29 retail price range. The new package will have the lowest cost in the category, while providing a 10 percent per-unit increase in realization to Tambrands over the 32-count box.
 Margin Improvements Through Technology
 Discussing margin improvements, Emmett reviewed Tambrands' manufacturing restructuring and automation programs. He indicated that capital expenditures had increased from about $15 million in 1989 to over $55 million in 1992. Profit margins also increased during this period, with most of the increase tracing to price increases and plant rationalization. Emmett pointed out that current technology improvements are expected to push margins even higher in the future.
 Emerging Markets
 Emmett said that the company had made important strides in new, emerging markets, such as China, Central Europe and the former Soviet Union. Tambrands' overall strategy is to be preemptive in these markets by developing effective distribution channels and utilizing education to expand the tampon category and to gain early brand loyalty to Tampax.
 The Tampax market share now stands at 70 percent in China, which Tambrands entered through a joint venture in 1988. The Tampax unit sales volume in China exceeds the volume in any other country in the Asia-Pacific region. In 1992, Tambrands established sales offices in Beijing, Guangzhou, Shenyang and Shanghai to market product manufactured in its plant in Shenyang, and Tambrands increased its share of the joint venture from 60 percent to 80 percent.
 Emmett said the population base and growing purchasing power of the developing areas, combined with Tambrands' long-standing experience in building tampon markets, would provide the basis for long-term success.
 Emmett concluded by remarking that the company was now entirely focused on the powerful Tampax franchise. He said the company would continue its aggressive marketing offensive in established markets, while using proven marketing techniques to establish Tampax as the leader in developing markets. "I believe that we are well-positioned to drive our growth in 1993 and beyond," said Emmett.
 Tambrands manufactures Tampax(R) tampons and markets them in over 150 countries around the world.
 -0- 3/4/93
 /CONTACT: Paul E. Konney, senior vice president of Tambrands Inc., 914-696-6688/
 (TMB)


CO: Tambrands Inc. ST: New York IN: HOU SU:

GK-AH -- NY081 -- 8225 03/04/93 15:24 EST
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Date:Mar 4, 1993
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