Baby diapers are a product that is entirely made out of paper, but in order to be reliable and absorbent, the highest quality paper possible on the market is needed. Because the process of pressing the paper and creating multiple layers is very complex and completely automated, the production of baby diapers requires a high degree of technology. For a company to stay competitive, the latest technology innovation is required. The United States is a country that is innovative in terms of technology and adoption of new ideas.
The Finnish market on the other hand is also highly developed and receptive to innovations. The consumers there are brand- driven and will only buy products that are leaders in the international arena. In regard to baby diapers, the most popular brand on the Finnish market is the American Kimberly- Clark's Huggies , followed by another American brand by Procter and Gamble- Pampers. There are two local companies (Swedish SCA with the Libero brand and Finnish Delipap with the Luxus Muumi brand) that are competing on the market as well.
The market size is determined by the population in the age group from 0 to 3 years old. According to the Finnish census, the number of the population in these age groups is distributed as shown in Table 1.
[...] To achieve the goal of capturing 10% market share in Finland, our company will deliver free samples (one 18- pieces pack) to the 6 biggest hospitals in Finland to distribute to the mothers of newborn babies (estimated at 10,000 sample packages). In addition to that free samples will be provided to The Breastfeeding Support Association in Finland6 that will further increase the brand awareness and position on the Finish market. Additional of our sales will be spent on both in- store demonstrations at the retail stores and advertising in coupon books and weekly special store offers as these are the most widely used promotional tools in Finland and it will ensure promotional support for the retailers. [...]
[...] Annual consumption of baby diapers in Finland (estimated, 2005) If the product is sold in packages of 18 pieces, the total number of packages consumed will be packages. (we will round that number for ease to 30 million a year). Problems and Opportunities A major problem on the Finnish market is the competition and consumers' preferences. Because there are already two American brands that are well established and because Finnish consumers are brand- loyal, a new brand will be hard to establish. [...]
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