This marketing plan evaluates Sunbeam Toilet Tissue Company's entry into the moist tissue market with its proprietary Waterfall brand. The analysis includes a comprehensive industry assessment using SWOT and Porter's Five Forces frameworks, identifying key competitive advantages (proprietary disinfectant formula without alcohol, integrated deodorant feature) and market opportunities driven by aging demographics and increased public restroom usage. The plan targets families with young children, elderly consumers, and frequent travelers, positioning Waterfall as a premium yet affordable alternative to existing alcohol-based competitors like Cottonelle and imported brands.
Moist toilet tissue has been marketed in the United States since 1988, when it was initially positioned as a product suitable for so-called "problem" conditions (Antonides and Van Raaij 1999). Since that time, a number of comparable products have entered the marketplace. Such problem conditions targeted by this product can range from mothers with young children who are being potty trained to the elderly who may suffer from various age-related conditions that involve incontinence, as well as to virtually anyone who is compelled to use a public restroom which may lack a supply of toilet tissue.
The new product developed by Sunbeam Toilet Tissue Company (hereinafter "Sunbeam" or alternatively, "the company") is also a moist toilet tissue, but with an important difference. While most moist toilet tissue brands use an alcohol and water mixture, the product developed by Sunbeam, named "Waterfall Moist Brand Toilet Tissue," uses an innovative proprietary process that does not rely on alcohol but rather uses an equally effective disinfectant ingredient that also provides a valuable deodorant quality. Taken together, the company believes that its product provides a superior alternative to existing brands on the market and will rapidly gain valuable market share among the targeted market segment, which is described in the sections that follow.
According to Cravens (2000), the general purpose of strategic analysis is to help identify key issues that will allow an informed strategic approach. To achieve this goal, comprehensive industry assessment must examine the internal strengths and weaknesses of the company as well as the external opportunities and threats present in the market environment. This section applies two complementary analytical frameworks—SWOT analysis and Porter's Five Forces model—to evaluate Sunbeam's competitive position and the viability of the moist tissue market for the Waterfall product.
According to Cravens (2000), the general purpose of SWOT analysis is to help identify key issues that will allow an informed strategic approach. To this end, the SWOT analysis seeks to identify the strengths, weaknesses, opportunities, and threats related to the market environment in which the product is presented. Strengths and weaknesses are comprised of positive and negative aspects that are internal to the entity, respectively; opportunities are positive aspects that are external to the entity, and threats are regarded as negative aspects that are external to the entity.
The Sunbeam product is considered to be highly competitive with existing market offerings, particularly in view of the fact that an alcohol-and-water mixture is not used but rather a proprietary ingredient that functions equally well while also providing a highly desirable deodorant quality. Moreover, toilet tissue is a utilitarian product that people will simply not do without, and it is sufficiently inexpensive that even premium products will be cost competitive. In this regard, one industry analyst emphasizes that, "You had better not come back from the store without it, or your roommates will be mad. Toilet paper is right there on the list along with the usual milk and bread" (Brewer 2001, p. 2).
Rather than purchasing inferior dry toilet paper, moist toilet tissue is a superior alternative that is available for just a few cents more per roll and provides multiple advantages, including portability when purchased in the handy box version, a disinfectant quality, and a highly desirable deodorizing quality that are simply not provided by dry paper alternatives.
The leadership team at Sunbeam does not have prior experience in marketing toilet tissue products. This lack of industry-specific expertise represents a significant internal constraint that will require external consultation or strategic hiring to overcome.
Research has shown that a majority of consumers already use some type of moisture to facilitate the cleansing process besides using dry toilet paper, with many consumers resorting to inferior alternatives several times a day (Brewer 2001). Research has also shown a receptive market for moist toilet tissue and related hygiene products (Brewer 2001). According to Tollefsrud (2002), "Obviously, toilet paper hasn't been around forever... the innovation of the roll of toilet paper is a very modern product and convenience, which today has arguably become a household commodity" (p. 2). This suggests that consumers are open to innovations that improve upon established toilet tissue products.
The Sunbeam brand is currently an unknown in a marketplace that already has several strong competitors with established brands, including Andrex and Hakle Moists in the United Kingdom (Antonides and Van Raaij 1999), as well as Kimberly-Clark's Cottonelle Rollwipes (Brewer 2001) in the United States. These established competitors have significant brand recognition and consumer loyalty that Waterfall will need to overcome through superior product performance and effective marketing.
Kermally (2003) advises that by using Porter's Five Forces framework, an improved analysis and understanding of competition in a particular industry can be achieved. This author notes that, "In order to construct a competitive strategy, an organization needs to know what is likely to happen in the markets in which the organization delivers its products and services. It also has to know who its competitors are in a particular industry structure" (Kermally 2003, p. 58).
The Waterfall product is priced only slightly higher than its dry-paper counterparts, making it an attractive alternative for almost all buyers. Despite economic fluctuations, consumers will continue to purchase certain essential items including utilitarian products such as toilet tissue (Strahilevitz 1999). This reduces buyer bargaining power and supports stable demand.
The proprietary ingredient that substitutes for the alcohol-and-water mixture used by most competitors is readily available and is low in cost. Likewise, the paper component needed for the manufacture of the Waterfall brand is competitively priced and readily available. The ready availability of inputs diminishes the power of suppliers to command premium prices and will contribute to Sunbeam's ability to market its product at a reasonable price.
There are countless generic toilet tissue alternatives available that will indirectly compete with the moist version being offered by Sunbeam. Moreover, there are several established brands on the market that many consumers may prefer based on past experiences with them. As Porter points out, "All five forces jointly determine the intensity of industry competition and profitability, and the strongest force or forces are governing and becoming crucial from the point of view of strategy formulation" (quoted in Kermally 2003, p. 60). The availability of substitutes represents a moderate threat to market penetration.
The costs of entry are relatively high for this industry, and the threats of entry will likely be limited to existing toilet paper manufacturers which do not currently have moist tissue options available. Foreign manufacturers of moist toilet tissue such as Andrex and Hakle Moists may seek to gain market share in the United States in the future, but high manufacturing and distribution barriers limit immediate competitive threats from new entrants.
While Waterfall faces competition from established moist tissue brands, Sunbeam can differentiate through its proprietary formula and unique deodorant properties. The intensity of rivalry is significant but manageable given the expanding market driven by demographic trends favoring moist tissue adoption.
Based on the rapidly aging segment of American society, this market segment is viewed as poised for expansion in the future. Consistent sales of toilet tissue indicate that this market will continue to enjoy healthy sales, with particular growth potential in the moist tissue category as consumer awareness and acceptance increase.
The Waterfall Moist Brand Toilet Tissue represents a premium offering in the moist tissue category, distinguished by its proprietary disinfectant formula that eliminates the need for alcohol while providing enhanced deodorant properties. The product will be offered in both home-dispenser and portable versions, addressing diverse consumer use cases from residential bathrooms to travel situations.
The Waterfall product will be affordable by most income levels except for price-sensitive consumers who prioritize cost over comfort and cleanliness. The modest price premium over standard dry tissue makes the product accessible to middle and upper-income households while remaining competitive in the premium segment.
While virtually all living environments are suitable target markets, those involving parents with young children, schools, and assisted living facilities for the elderly are considered especially suitable target markets. These environments have specific hygiene requirements that align with Waterfall's disinfectant and deodorant features.
"Historical development from ancient methods to modern roll format"
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