ll these information they needed, they developed the new pull-up trainer diapers which could act as a aid for children to get over the diaper. These new pull-up diapers replaced the old larger diaper sizes to parents who chose to use they as a training tool for their children. Ms. Shawn also decided that the package of the pull-ups had to facilitate the involvement of the toddlers, thus to stimulate the use of the product. With the rest of product line unchanged, the unit sales of the new pull-up diapers were increased by more than three times the unit sales of old, larger diapers. It is obvious that the new pull-ups were responsible for such an increase in sales. This clearly shows that the pull-up diapers which encouraged toddlers to use and could help train toddlers to get over diapers was another attribute that customers valued and it was another one of the customer choice criterion that the company had handled successfully to win customers over from competitors. However, while the increased sales volume was surely welcomed, there was also an increase in packaging cost by 4.8 cents, which was really unwanted. This more than offset the 4 cents the company generated by decreasing the number of pull-up diapers in each package. With high packaging cost, the entry into the diaper market was difficult and this problem was soon idenified by Ms. Shawn and it had to be solved. Then she figured out a way to tackle the problem: Cost would be reduced if more units were produced and sold because economies of scale came into play when producing pull-ups’ stronger lining. So the very thing that the company had to do was to increase units sold, and carrying out some form of promotion to boost sales, and in order to reduce cost with increased units sold. Ms. Shawn believed that packaging needed to be made more convenient. They also carried out promotion through advertising was that children had to be seen as participants in the p...
