• HIGHLIGHTS
• Introduction
  • Product Definitions
  • Disposable Diapers
  • Wipes/Towelettes
  • Bodycare
  • Feeding Accessories
  • Play & Discovery (Infant Toys)
  • Pacifiers/Teethers
  • Scope
  • Retail Channels
  • Methodology
  
  
• The Market
  • Babycare Supplies Bump Up to $6.9 Billion in 2007
  • Value Foreseen at $7.2 Billion in 2012
  • Table 1-1 U.S. Retail Dollar Sales of Babycare Supplies, 2003-2012 (in million $)
  • Disposable Diapers Dominate Market
  • Table 1-2 Category Share of U.S. Retail Dollar Sales of Babycare Supplies, 2003, 2005 and 2007 (%)
  
  
• Factors in Future Growth
  • Why Do Babycare Sales Fluctuate So Much?
  • America’s Changing Ethnic Makeup
  • Yoga Moms No Longer Cutting-Edge, Yet Still a Force
  • Positive Influence of the Natural and Prestige Channels
  • Product Markets Related to Babycare Supplies
  • Competitive Scenario
    • Up to 300 U.S. Babycare Marketers, But Just 130 Significant Ones
    • Baby Bodycare Has Biggest Population of Notable Marketers in Mass
    • Table 1-3 Number of Significant Mass Marketers of Babycare Supplies, by Category/Segment, 2004-2007
    • Five Key Acquisitions in 2007
    • Overview of Strategic Possiblilities
    • Commodity vs. Premium or Prestige Price Positionings
    • Channel Strategies Now Cover Mass, Specialty, Prestige, Natural and Direct
    • Use of Licensed Characters vs. Original Characters
    • Multicultural and Ethnic-specific Marketing
    • Use of So-Called New Media
    • Acquisition and Consolidation Is Pressuring Competition
    • Margins at Mass Retail: The Thin, the Fat and the Fatter
    • Table 1-4 Supermarket Retailers’ Average Gross Profit Margins on Babycare Supplies and Baby Foods, 2005-2007 (five-point ranges)
    • Babycare Aisles Become “Baby Centers”
    
    
  • The Consumer
    • Number of Births Over 4 Million per Year
    • Hispanic Births Break 1 Million in 2006
    • Table 1-5 Number of U.S. Live Births by Race/Ethnicity, 1940-2006
    • Powder Is Most Commonly Used Babycare Product
    • Table 1-6 U.S. Households Using Babycare Supplies, by Category/Segment, 2007 (in thousands)
    
    
  • Regulation
    • Babycare Products, Ingredients Barely Regulated by Feds
    • Cosmetics vs. Drugs, and the FTC
    • Toy Industry Seeks Global Safety Standards
    
    
  • Natural, Organic and Eco-Friendly Products
    • Controversial Ingredients
    • Parabens
    • Phthalates
    • Polycarbonates
    • Propylene Glycol
    • SLFs
    • Still No Standards in Effect for Natural Personal Care
    • Bits of Natural/Organic Regulation That Remain in Force
    • OASIS Formed by Frustrated Marketers to Establish Own Standards
    • The Disposable Diaper vs. Cloth Diaper Issue

Chapter 2 Trends and Opportunities

• Low End or High End—Add Value!
• Retail Scene Fragmenting, to Marketers’ Benefit
• More Than One Kind of Experience with Baby
• Ride Out Birth Rate Peaks and Valleys
• Go With the Yoga Mom Wave as It Evolves into Something New
• Pay Attention to the Childless Household
• DINKS and Parents Who Want Reminders of Life Before Kids
• Grampa and Gramma, Opa and Oma, Nonno and Nonna, Bubby and Zeidy …
• Licensing

Chapter 3 The Market

• HIGHLIGHTS
• Market Size and Growth
  • Babycare Supplies Bump Up to $6.9 Billion in 2007
  • A Surprisingly Volatile Market in 2003-2007
  • Table 3-1 U.S. Retail Sales of Babycare Supplies by Category, 2003-2007 (in million $)
  • Disposable Diapers Fall to $4 Billion
  • “Regular” Disposable Diapers Always Outsell Training Pants
  • Wipes/Towelettes in Good Progress to $1.1 Billion
  • Wipes/Towelettes Ratio Still Tilts to Wipes
  • Baby Bodycare Pushes to $687 Million
  • Baby Bodycare’s Leading Segments = Soap and Ointments/Creams
  • Table 3-2 Share of IRI-tracked Retail Sales of Baby Bodycare Products by Segment, 2001, 2004 and 2007* (in thousand $)
  • Feeding Accessories Jump to $577 Million
  • Play & Discovery Rockets to $343 Million
  • Pacifiers/Teethers Slip to $114 Million
  
  
• Market Share
  • Disposable Diapers Dominate Market
  • Table 3-3 Category Share of U.S. Retail Dollar Sales of Babycare Supplies, 2003, 2005 and 2007 (%)
  • Mass Still Rules, Despite Action in Other Channels
  • Table 3-4 Retail Channel Share of U.S. Retail Dollar Sales of Babycare Supplies, 2007
  • Price Index for Mass Channel Tells the True Story
  • Table 3-5 IRI-tracked Retail Dollar & Unit Sales of Babycare Supplies and by Category, 2005-2007 (in million $) and 2007 Price Index
  • Regionality of Sales: Southwest Is the Hot Spot
  • Table 3-6 Use of Babycare Supplies by Category and Region, 2007 (households in thousands)
  
  
• Market Context
  • Past vs. Much-Improved Present: Sales in 2001-2005 vs. 2003-2007
  • Table 3-7 Total and Annual Growth Rates for U.S. Retail Sales of Babycare Supplies by Category, 2001-2005 and 2003-2007
  • Related ITP Markets: Babycare Supplies Ranks Third
  • Table 3-8 U.S. Retail Sales of Infant, Toddler and Preschool (ITP) Non-Food Products by Market, 2003-2007 (in million $)
  
  
• Factors in Future Growth
  • Number of Births vs. Birth Rate
  • Number of Live Births
  • The Crude Birth Rate
  • The Fertility Rate
  • Why Do Babycare Sales Fluctuate So Much?
  • America’s Changing Ethnic Makeup
  • Yoga Moms No Longer Cutting-Edge, Yet Still a Force
  • Green, Sustainable, High-Tech and Fun
  • Marketers Extend Brands Younger and Younger—or Older and Older
  • Positive Influence of the Natural and Prestige Channels
  • Direct Sales: The Babycare Mother Lode?
  • Marketers Still Overlook Licensing Opportunities
  • Nostalgia Licenses Are “Parent-Flatterers”
  • Other Novel Approaches to Licensing
  
  
• Projected Sales
  • Babycare Supplies Valued at $7.2 Billion in 2012
  • Disposable Diapers to Crawl
  • Wipes/Towelettes Expected to Brush $1.4 Billion
  • Bodycare Forecasted in Strong Climb
  • Feeding Accessories to Post Good Growth
  • Play & Discovery in Giant Step to $542 Million
  • Small Rally Foreseen for Pacifiers/Teethers
  • Table 3-9 Projected U.S. Retail Sales of Babycare Supplies by Category, 2007-2012 (in million $)

Chapter 4 The Marketers

• HIGHLIGHTS
• The Marketers
  • Up to 300 U.S. Babycare Marketers, But Just 130 Significant Ones
  • Baby Bodycare Has Biggest Population of Notable Marketers in Mass
  • Table 4-3 Number of Significant Mass Marketers of Babycare Supplies, by Category/Segment, 2004 and 2007
  • Ethnic and Natural/Organic Marketers Slowly Become More Visible in Mass
  • Babycare Specialists Compete with Firms in Other Industries
  • Five Key Acquisitions in 2007
  
  
• Marketer and Brand Shares
  • Disposable Diapers/Training Pants: K-C and P&G Tied in 2007
  • Table 4-3 IRI-tracked Sales of Disposable Diapers/Training Pants by Marketer and Brand, 2004 and 2007
  • Disposable Diapers Alone: P&G Clearly the King
  • Table 4-4 IRI-tracked Sales of Disposable Diapers by Marketer and Brand, 2004 and 2007
  • Training Pants Alone: K-C Controls Two-Thirds of Sales
  • Table 4-5 IRI-tracked Sales of Disposable Training Pants by Marketer and Brand, 2004 and 2007
  • Baby Wipes: K-C, P&G, Private Label Are Champs
  • Table 4-6 IRI-tracked Sales of Baby Wipes by Marketer and Brand, 2004 and 2007
  • Moist Towelettes: K-C Widens Lead
  • Table 4-7 IRI-tracked Sales of Moist Towelettes by Marketer and Brand, 2004 and 2007
  • J&J Dominates in Six out of Seven Baby Bodycare Segments
  • J&J’s Baby Lotions Overwhelm Rivals’ Versions
  • Table 4-8 IRI-tracked Sales of Baby Lotions by Marketer and Brand, 2004 and 2007
  • J&J Commands Baby Oil Field
  • Table 4-9 IRI-tracked Sales of Baby Oils by Marketer and Brand, 2004 and 2007
  • J&J Displaces Pfizer at Top of Ointments/Creams Segment
  • Table 4-10 IRI-tracked Sales of Baby Ointments/Creams by Marketer and Brand, 2004 and 2007
  • Petroleum Jelly: Unilever and Private Label Have Stranglehold
  • Table 4-11 IRI-tracked Sales of Petroleum Jelly by Marketer and Brand, 2004 and 2007
  • Baby Powder: Surprise! J&J Rules
  • Table 4-12 IRI-tracked Sales of Baby Powder by Marketer and Brand, 2004 and 2007
  • Shampoo Leader J&J Gives Up a Little Share to K-C, Private Label
  • Table 4-13 IRI-tracked Sales of Baby Shampoo by Marketer and Brand, 2004 and 2007
  • Baby Soap: J&J Still Rules, But K-C Leaps Upward
  • Table 4-14 IRI-tracked Sales of Baby Soap by Marketer and Brand, 2004 and 2007
  • Feeding Accessories: Energizer/Playtex Leads the Crowd
  • Table 4-15 IRI-tracked Sales of Nursing/Feeding Accessories by Marketer and Brand, 2004 and 2007
  • Play & Discovery Marketers Led by Mattel, Kids II
  • Table 4-16 IRI-tracked Sales of Play & Discovery Infant Toys by Marketer and Brand, 2007
  • Gerber, Sassy Rule Pacifiers/Teethers
  • Table 4-17 IRI-tracked Sales of Pacifiers/Teethers by Marketer and Brand, 2004 and 2007
  
  
• The Competitive Situation
  • Overview of Strategic Possiblilities
  • Commodity vs. Premium or Prestige Price Positionings
  • Channel Strategies Now Cover Mass, Specialty, Prestige, Natural and Direct
  • Use of Licensed Characters vs. Original Characters
  • Multicultural and Ethnic-specific Marketing
  • Use of So-Called New Media
  • Acquisition and Consolidation Is Pressuring Competition
  
  
• Competitive Profile: Clorox Co./Burt’s Bees, Inc.
  • Net Sales of $4.8 Billion in Fiscal 2007
  • True North and the Acquisition of Burt’s Bees
  • Burt’s Bees’ Down-Home Image—and Cutting-Edge Retail Stance
  • Burt’s Cuts Red Tape, Sets Own Natural/Organic Standards
  
  
• Competitive Profile: Energizer Holdings, Inc./Playtex Products, Inc.
  • Net Sales of $3.4 Billion in Fiscal 2007
  • Playtex Acquired in October 2007
  • Will Playtex Find a Real Home in Energizer-Land?
  
  
• Competitive Profile: The Hain Celestial Group, Inc.
  • Net Sales of $900 Million in Fiscal 2007
  • Straddling Mass and Natural Channels Since 1959
  • Hain Celestial’s Personal Care Brand Roster Tripled in 2004-2007
  
  
• Competitive Profile: Kimberly-Clark Corp.
  • Net Sales Jump to $18 Billion in 2006
  • K-C Banks on Baby’s and Parents’ Feelings
  • K-C’s Global Strategies
  • The full five points of GBP:
  • K-C Reshapes Media Spends
  • K-C Schedules Price-Hike
  
  
• Competitive Profile: Nestlé SA/Gerber Products Co.
  • Sales of CHF98 Billion in 2006; Indications of Strong Growth in 2007
  • Gerber Acquired in September 2007
  • Gerber’s Stance in the Marketplace
  • How Nestlé May Reposition Gerber
  
  
• Competitive Profile: The Procter & Gamble Co.
  • Net Sales Jump to $76.5 Billion in Fiscal 2007
  • Pampers the Strongest of P&G’s 23 Billion-Dollar Brands
  • P&G in Disposables War With Kimberly-Clark
  
  
• Three Marketers to Watch
• California Baby
  • Reckitt Benckiser Group PLC/Coty, Inc./Del Laboratories
  • Royal Philips Electronics N.V./Philips Avent
  • Product Trends
    • Every Year, Hundreds of New Babycare Supplies
    • Table 4-18 Number of New Babycare Supplies Product Introductions, 2003-2007*
    • “Sophistication” Translates as Plain Old “Added Value”
    • Prestige Baby Bodycare
    • Play & Discovery Toys
    • Private Label Covering Both Commodity and Hot Product Segments
    • Licensing Momentum Builds Slowly
    • Table 4-18 Selected New Introductions of Babycare Supplies, 2006-2007
    
    
  • Consumer Advertising Positioning
    • Think “Love,” “Cute,” “Soft and Gentle”
    • Stress-Relief and Safety
    • Baby’s Development
    • Natural Stuff Inside—Or the Product Just Acts Natural
    • Stretchy and Dry
    • Growing Old—All the Way to 3 or 4
    • Medical Cachet Overruled
    
    
  • Consumer Promotions
    • Two Perspectives on Ensuring Brand Loyalty
    • Couponing
    • An Old Fave: The Baby Photo Contest
    • Advice on Pregnancy and Child Health/Development—Even Names
    • Targeting Pregnant Moms, New Mothers with Newsletters, Sample Kits
    • Good Deeds
    • Huggies in Your Preschools
    • Table of Marketers and Brands
    • Table 4-2 Leading Marketers of Babycare Supplies and Their Representative Brands, 2008

Chapter 5 Distribution and Retail

• HIGHLIGHTS
• Distribution
  • Three Product Paths: Traditional Four-Step, DSD and Direct Sales
  • P&G Makes Supply Chain Leaner and Meaner
  
  
• Retail
  • Margins at Mass Retail: The Thin, the Fat and the Fatter
  • Table 5-1 Supermarket Retailers’ Average Gross Profit Margins on Babycare Supplies and Baby Foods, 2005-2007 (five-point ranges)
  • Babycare Aisles Become “Baby Centers”
  • Baby Centers Often Arranged by Lifestage
  • Baby Clubs Foster Retailer Loyalty Online and Offline
  • Gift Registries Help Move Some Babycare Supplies
  
  
• Retail Focus: Toys “R” Us, Inc./Babies “R” Us
  • Sales Top $13 Billion in Fiscal 2007
  • TRU: Brief History
  • BRU: Appealing to Everybody’s Economic Level
  
  
• Retail Focus: Wal-Mart Stores, Inc.
  • Sales of $345 Billion in Fiscal 2007
  • A History of Steamrolling Other Retailers
  • The Biggest Babycare Retailer Mounts “Operation Rattle”

Chapter 6 The Consumer

• HIGHLIGHTS
• About Simmons Data
  • What They Are …
  • … And How to Use Them
  • The Survey’s Overall Household Gauge
  • Regions Defined
  • Table 6-1 Projected Total Number and Percentage of U.S. Households by Simmons’ Respondent Demographic Factors of, 2007 (in thousands)
  
  
• Births and Birth Rates
  • Over 4 Million Live Births per Year
  • Hispanic Births Break 1 Million in 2006
  • Table 6-2 Number of U.S. Live Births by Race/Ethnicity, 1940-2006
  • Crude Birth Rate Has Trended Downward Since 1950
  • Table 6-3 U.S. Crude Birth Rate, 1940-2006 (births per thousand population)
  • Fertility Rate Inches Upward
  • Table 6-4 U.S. Fertility Rate, 1940-2006 (births per thousand women
  • age 15-44)
  • More of Us Expecting Grandchildren Than Children
  • Table 6-5 Birth of First or Second Child or Grandchild (Last 12 Months and Next 12 Months), 2007 (in thousands)
  • Pregnant Households Exhibit Diverse Skews
  • Table 6-6 Demographic Characteristics of Households with Pregnant Women (Past 12 Months), 2007 (in thousands)
  
  
• Psychographics and Media
  • About Half of Households Claim to Indulge Kids
  • Table 6-7 Strong Agreement with Statements About Indulging Kids, 2007 (in thousands)
  • Much Smaller Sector Enjoys Shopping with Kids
  • Table 6-8 Strong Agreement with Statements About Shopping with Kids, 2007 (in thousands)
  • Parents Is Most Widely Read Child-Rearing Mag
  • Table 6-9 Household Readership of Magazines About Child-Rearing (Past 6 Months), 2007 (in thousands)
  
  
• The Baby Bodycare Products Household
  • Almost 29 Million Households Use Baby Oil or Lotion, But Most Don’t Use It on Baby!
  • Use Skews to Less Affluent Lifestyles
  • Table 6-10 Demographic Characteristics of Households Using Baby Oil/Lotion, 2007 (in thousands)
  • No Surprise: Johnson’s Is Most Popular Brand
  • Table 6-11 Household Use of Baby Oil/Lotion by Brand, 2007 (in thousands)
  • Baby or Children’s Shampoo Used in 25 Million Households
  • Young and Elderly Both Influential
  • Table 6-12 Demographic Characteristics of Households Using Baby/Children’s Shampoo, 2007 (in thousands)
  • Baby/Children’s Shampoo, 2007 (in thousands)
  • Johnson’s the Most Popular Brand by Far
  • Table 6-13 Household Use of Baby/Children’s Shampoo by Brand, 2007 (in thousands)
  • Baby Wash and Other Bath Products: An Audience of 19 Million Households
  • Data Indicates Relative Lack of Affluence
  • Table 6-14 Demographic Characteristics of Households Using Baby Wash and Other Bath Products, 2007 (in thousands)
  • Johnson’s, Again, Is Most Widely Used Brand
  • Table 6-15 Household Use of Baby Wash and Other Bath Products by Brand, 2007 (in thousands)
  • Baby Powder a Staple in 40 Million Households, But Mostly Used by Adults
  • Low Earners are High Users
  • Table 6-16 Demographic Characteristics of Households Using Baby Powder, 2007 (in thousands)
  • Johnson’s and Shower to Shower Lead Baby Powder Use
  • Table 6-17 Household Use of Baby Powder by Brand, 2007 (in thousands)
  
  
• The Baby Wipes/Moist Towelettes Household
  • Baby Wipes/Moist Towlettes Households Estimated at 31 Million
  • Use High Among Households of Mid-Level Affluence
  • Table 6-18 Demographic Characteristics of Households Using Baby Wipes/Moist Towelettes, 2007 (in thousands)
  • Huggies, Wet Ones Are America’s Favorite Brand
  • Table 6-19 Household Use of Baby Wipes/Moist Towelettes by Brand, 2007 (in thousands)
  • Over 10 Million Households Just Throw Away Those Diapers
  • America Uses at Least 32 Billion Disposables Annually
  • Table 6-20 Household Use of Disposable Diapers/Training Pants by Number Used Daily (Past 6 Months), 2007 (in thousands)
  • Use Favored by Upper and Lower Classes
  • Table 6-21 Demographic Characteristics of Households Purchasing Disposable Diapers/Training Pants (Past 6 Months), 2007 (in thousands)
  • Disposable Diapers/Training Pants (Past 6 Months), 2007 (in thousands)
  • Huggies Is the Brand to Beat
  • Table 6-22 Household Use of Disposable Diapers/Training Pants by Brand, 2007 (in thousands)
  
  
• The Play & Discovery/Infant Toys Household
  • Almost 15 Million Households Purchase Infant Toys
  • Most Households Spend Less Than $50 on Infant Toys
  • Infant Toy Expenditures Buy Some Toddler Toys, Too
  • Table 6-23 Household Expenditures for Infant Toys (Past 12 Months), 2007 (in thousands)
  • Education Breeds Education—Literally
  • Table 6-24 Demographic Characteristics of Households Purchasing Play & Discovery Infant Toys (Past 12 Months), 2007 (in thousands)
  
  
• Household Patronage of Kids’ Specialty Chains
  • Toys “R” Us Leads the Trio in Customer-Households
  • All Three Chains Share Advantaged Clientele
  • Table 6-25 Demographic Characteristics of Households Patronizing Children’s Specialty Retail Chain Stores (Past 3 Months), 2007 (in thousands)

Appendix: Selected Company Addresses