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TAMBRANDS DETAILS AGGRESSIVE WORLDWIDE MARKETING STRATEGY

 WHITE PLAINS, N.Y., Jan. 13 /PRNewswire/ -- Tambrands Inc. (NYSE: TMB) today detailed the aggressive global marketing strategy for Tampax tampons that will drive its growth in 1993 and beyond. Speaking before financial analysts at the Second Annual Goldman Sachs Consumer Products Conference, Charles J. Chapman, Tambrands' president and chief operating officer, said the company had completed its restructuring period and will now focus forcefully on a worldwide marketing offensive.
 Chapman emphasized Tambrands' proven ability to achieve strong growth in its established markets and described the huge opportunities currently awaiting the company in less developed markets like Central Europe, the former Soviet Union and China. He said, "The combined opportunities of our established and less developed markets will more than fulfill our long-term earnings objectives." Chapman remarked that the company has set a goal of over 15 percent compound annual growth in earnings per share.
 Global Growth
 Tambrands is currently focused on four specific strategies aimed at achieving its objectives in major global markets. The strategies are: building the tampon category and the Tampax market share, creating closer relationships with the company's trade customers, improving margins through technology and developing new markets for long-term growth.
 In discussing the tampon category, Chapman noted that Tampax tampons currently represent almost half of the global tampon market. He attributed this success to the company's strong commitment to consumer education at the teenage level, new product development and sound pricing strategies.
 North America and Europe
 Tambrands expects 1993 to be a year of aggressive marketing in North America and Europe. Once again this year, Tambrands will increase its investment in education. Its education programs will reach 50 percent of the target group of young women in the United States and 35 percent of the target group in Europe.
 Chapman announced several new product introductions:
 -- In the United States and Canada, a breakthrough product named Satin Touch, with the comfort features of a plastic applicator, but the flushability and biodegradability of a paper applicator;
 -- In Europe, a unique non-applicator tampon called Tampets; and
 -- Also in Europe, Compak tampons, with a telescoping all-plastic applicator for a discreetly small product size.
 Describing Satin Touch tampons, Chapman explained that the key to the product was the development of a new applicator material. The material looks and feels like plastic, but is completely biodegradable. "This technological advance has the potential to make the use of plastic applicator tampons obsolete for many consumers, an important goal for today's environmentally concerned woman," he said.
 Chapman noted that new product introductions are also "an important part of the company's European plans for 1993, including a Tampax entry in the non-applicator market, which accounts for 62 percent of the sanpro category in Europe." Tampax Tampets will be introduced in selected European markets before the end of the year, and Compak tampons will expand into other European countries as a premium-priced Tampax line extension.
 "We see aggressive product development as an important element of our strategy to build category and share," Chapman said. "We also think it is appropriate for Tambrands, as the worldwide tampon market leader, to spearhead product innovation in the tampon field."
 Worldwide Restaging
 In regard to pricing, Chapman noted that Tambrands is nearing the conclusion of a three-year, worldwide "restaging" initiative to align its package sizes and pricing with the general tampon market structure. Prices per tampon have been increased, while the company has maintained its position as the best per-tampon value on the market.
 Chapman announced that the company is adding a new 20-count package to its line in the United States. It will be the only leading tampon package with a price in the popular $2.99 - $3.29 retail price range, and will give Tampax the lowest package cost in the category. While the unit price of the tampons in the 20-count package will be lower than the competition, the unit price will be about 10 percent higher than the price for Tampax tampons sold in 32-count boxes.
 In Europe, where Tampax is the only tampon sold under a single brand name, Tampax was also restaged in 1992. Sales were up 16 percent in the first nine months of 1992, but a declining economy and growth of private label tampons in the United Kingdom reduced volume.
 Customer Focus and Technology Advancement
 Tambrands is making a major investment to install modern integrated information systems on a global basis. These have been designed to strengthen alliances with customers by streamlining the ordering- shipping-billing cycle. Customized programs have also been developed with the company's customers. A significant benefit has been increased inventory turnover by some key customers.
 Restructuring of manufacturing processes and automation programs have improved worldwide efficiencies and reduced overhead. Although the significant margin increases of the past few years can be traced primarily to price increases and plant rationalization, Chapman said, "In the near future we expect the impact from our automation program to be just as significant."
 Developing Markets
 Impressive advances were achieved during 1992 in less developed markets, including the former Soviet Union, China and Latin America. Near-term opportunity in the former Soviet Union is constrained by the lack of a smoothly functioning retail infrastructure. For this reason, Tambrands is developing a strong distribution system within the top six cities in Russia and Ukraine in 1993, and will build from there. "We can sell all the Tampax we make at Western price levels," Chapman said, "and we feel we are in a strong position in this market."
 In China, Tambrands in 1992 established sales offices in Beijing, Guangzhou, Shenyang and Shanghai to market product manufactured in its plant in Shenyang. Tambrands' share in its joint venture was increased from 60 percent to 80 percent. In 1993, a marketing test will be conducted in Shanghai to learn how fast growth can be accelerated.
 Initial 1993 emphasis in Latin America will be on building the business in
Brazil and Mexico. Market-building efforts will include increased product distribution; a new, more powerful advertising program; an expanded educational package; and a major sampling and public relations campaign.
 "Tambrands knows what it takes to develop leadership positions in sanitary protection markets around the world," Chapman said. "We have been at it a long time, and we are totally focused on that process. The key is to do well in the future what we have done well in the past."
 Tambrands manufactures Tampax(R) tampons and markets them in over 135 countries around the world.
 -0- 1/13/93
 /CONTACT: Paul E. Konney, senior vice president of Tambrands, 914-696-6688/
 (TMB)


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

GK-AH -- NY059 -- 4547 01/13/93 16:05 EST
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Date:Jan 13, 1993
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