Pampers PESTLE Analysis

Published in Companies category by MBA Skool Team, Last Updated: April 04, 2020

Here is a detailed PESTLE analysis of Pampers which examines political, economic, social, technological, legal & environmental factors.

Political Factors:

The political factors in the Pampers PESTLE Analysis can be explained as follows:

Pampers is one the leading diaper brands for children. Many countries have stringent policies regarding waste disposal. There have been many strict regulations that have been formed in order to reduce the disposal of solid waste. Many acts have been formed to deal with the problem of solid waste. Solid waste management act is one of the few acts which deals with the better production as well as proper management of solid waste.

Many countries have passed a variety of laws around the problem of dealing with proper disposal of waste especially solid waste. Management is required to adhere to these political laws in order to ensure survival of its business. The government in India made it mandatory for companies who were manufacturing diapers like Pampers or napkins to provide a separate pouch or a wrapper with them in order to ensure proper disposal of waste. These measures have to be carefully accounted for while making business decisions.

Image: Wikimedia

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Pampers:

A number of economic factors such as devaluation of the domestic currency, increase in the costs of raw materials, reduction in sales due to introduction of substitute products and rising competition in the market can act as a hindrance for successful operations of business. Pampers has global operations.

Since the brand is American, any increase in the value of dollar against the value of other currency would have a negative impact on the revenues from countries that have a weaker currency. Since Pampers is a FMCG product, any increase in the price of raw materials would affect the profits of the company directly. The country in which the cost of production is low or labor is cheap is a profitable investment avenue for a brand like Pampers which produces products in bulk quantities.

Social Factors:

Following are the social factors impacting Pampers PESTLE Analysis:

Pampers has a unique way of connecting to its customers. The company released a new product line which featured all-natural ingredients without any chlorine bleaching, parabens, fragrances or latex. The scientist Sara Giovanni who was part of the development team of the product stated that the collection had a personal impact as it was created while she was pregnant. Soon she became a mother which helped the brand to establish a personal connect with the customers as the customers can easily relate to the product developed and tested by a mother. The company also took deliberate steps towards adopting sustainable practices on account of growing consciousness among customers particularly for products which are non- biodegradable.

Technological Factors:

The technological factors in the PESTLE Analysis of Pampers are mentioned below:

The global market for diapers is a very competitive one. The need of the hour is constant innovation by the vendors of such diapers in order to exist in the market and keep up with the growing pace in the market. It is imperative that the companies constantly redesign in order to improve efficiency of the products. Pampers invested in research and development in order to identify the pee points in both boys as well as girls to improve absorbency of the diapers. The goal was to build diapers that have zero leakage, greater dryness and ultimate comfort for an improved experience to its customers. The further focus of the R&D investments is to improve the structure of the diapers.

Sensory chips were used in the diapers which would inform the parents of the children on their mobile applications, whenever their diapers would sense humidity.

Following are the legal factors in the Pampers PESTLE Analysis:

Pampers diapers brand came under the public scrutiny after a French study was released. The findings of the study revealed that the nappies of the brand allegedly contain small traces of toxic chemicals that were cancerous. The chemicals or the carcinogenic, can become a cause for skin, bladder, lung and stomach cancer. These products are used in order to moisturize the sensitive skin of the babies and are used to prevent irritation. Although the level of hydrocarbons that were traced in the nappies of the brand were very low, the brand was questioned upon its morality status for using such chemicals. The study suggested that since the nappies are usually in contact with the most the intimate part of the children for most of the day, Pampers could have avoided the use of such chemicals. Such allegations can have negative implications upon the brand image of the firm and can hamper the sales of the firm.

Environmental Factors:

In the Pampers PESTLE Analysis, the environmental elements affecting its business are as below:

The company introduced a new collection known as “Pampers Pure Collection”. The collection is sustainable as well as focuses mainly upon improving the environmental footprint of the brand. The focus is to achieve sustainable supply chain management, sourcing fluff pulp which is chlorine free and initiating their operations largely around the Programme for Endorsing Forest Certification forest management standards.

Pampers has had a long history of abiding by the rules and taking initiatives for the benefit of the society. They have pledged before to eradicate MNT also known as maternal and neo-natal tetanus, in the developing nations. In 2016, the company announced about the impact that their partnership with the UNICEF had eradicated the problem of MNT throughout 17 countries, saving around 500,000 newborns and protecting the lives of over 100 million women.

To conclude, the above Pampers PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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