The toiletry and disposable paper business sector was undergoing various challenges during the past five years because of a fast developing price competition and a high penetration of households. (Euromonitor International, The World for Disposable Paper products, 2005)
Table of Contents
1. Introduction
2. Segmentation as a response to deep market penetration
3. Rising level of price consciousness
3.1 Germany as an example
4. Conclusion
Objectives and Topics
This paper examines the influence of marketing strategies on consumer behavior within the disposable paper sector, specifically investigating how product innovation and market segmentation affect purchasing decisions amidst varying economic conditions and price sensitivities.
- Impact of marketing on consumer demand for disposable paper products.
- The relationship between market penetration, product innovation, and segmentation.
- Consumer price sensitivity and the rise of private label alternatives.
- Analysis of value growth and premium segment trends using the German market as a case study.
Excerpt from the Book
Segmentation as a response to deep market penetration
In response to a deep market penetration, manufacturers invested in product innovation through ‘research & development’ and added more value to their products. Marketers soon realised the rising level of hygiene consciousness among consumers and reacted by targeting this group with innovative and new products like antibacterial wipes or sanitary women’s protection. Manufacturers specified their product range and segmented the market to respond more individually on consumer demands. However, it is questionable if the more specified segmentation was a reaction of consumer needs or if marketers themselves created this demand. The crucial question that we have to ask ourselves is; do we really need toilet paper with ‘a touch of aloe Vera’ or panty liners which are designed in numerous shapes, colours and surfaces in order to fit a specific type of underwear? If we narrow it down and keep the use of these products in perspective, it seems ‘ridiculous’ that they even exists in these various forms and it is hardly to believe that people desired these products before they existed.
Summary of Chapters
1. Introduction: Outlines the challenges faced by the disposable paper sector, including intense price competition and high household penetration.
2. Segmentation as a response to deep market penetration: Analyzes how manufacturers use innovation and market segmentation to address consumer demands and hygiene awareness.
3. Rising level of price consciousness: Explores the impact of economic performance and unemployment on consumer price sensitivity, with a specific focus on the German market.
4. Conclusion: Summarizes the findings that while price sensitivity is high, consumers remain influenced by marketing and continue to demand high-quality, value-added products.
Keywords
Disposable paper, Marketing influence, Market segmentation, Product innovation, Price consciousness, Consumer behavior, Private label, Retail sales, Hygiene awareness, Premium products, Economic performance, Value-added, Procter & Gamble, Market penetration, Brand loyalty.
Frequently Asked Questions
What is the core focus of this paper?
The paper investigates whether and how consumers in the disposable paper sector are influenced by marketing strategies despite economic pressures.
What are the primary themes discussed?
Key themes include market segmentation, price sensitivity, the balance between private label and premium branded products, and the role of innovation in driving consumer choice.
What is the primary objective of this study?
The objective is to critically assess the effectiveness of marketing in the disposable paper industry, particularly in light of increased consumer price consciousness and the prevalence of private label goods.
Which research methodology was applied?
The author utilizes a descriptive and analytical approach, incorporating industry reports, market statistics (Euromonitor International), and corporate financial reporting to evaluate market trends.
What is addressed in the main body of the work?
The main body examines the drivers of product innovation, the tension between consumer needs and manufactured demand, and provides a comparative look at the German retail market for toilet paper.
Which keywords best characterize this research?
Key terms include disposable paper, market segmentation, price sensitivity, brand innovation, and consumer behavior.
How did market penetration affect manufacturer strategies?
Deep market penetration forced manufacturers to move beyond standard offerings by investing in R&D to create more specialized, value-added products that target specific hygiene and lifestyle needs.
What does the example of Germany demonstrate?
The German case study illustrates a clear divide between premium-product consumers and those who prefer private label goods due to economic factors, while still showing overall value growth driven by innovative marketing.
Are consumers today more or less influenced by marketing?
The conclusion suggests that while an increasing number of consumers are becoming price-conscious and resistant to purely superficial marketing, a significant portion still remains influenced by brand reputation and premium product innovation.
- Quote paper
- Miriam Mennen (Author), 2007, Critique on statement: Customer in the disposable paper sector are still influenced by marketers, Munich, GRIN Verlag, https://www.grin.com/document/145647
