The Disposable Diaper Industry in 1974

The disposable diaper industry began in the mid-1950s when P&G was asked by the nun at Cincinnati Catholic hospital to invent a disposable diaper to eliminate the sanitary problems associate with cloth diapers which were prevailed in those days. Consequently, P&G began national expansion of its Pampers brand and it could establish of the foundation of the growth of the disposable diaper industry in 1966. The disposable diaper products …

…and the others just focus on assembling the product. However, one of the biggest portions of the cost was caused by the transportation amounted to approximately over 10% of the total selling price and just only P&G could get the benefits of economic of scale transportation. The key element of the success of P&G can be found on their large-scale of overall of the process from making product to promotion.