Procter & Gamble (P&G) introduced disposable diapers in the United States in 1961. Since entering the market in 1968, Kimberly-Clark (K-C) had battled with P&G for market leadership, with P&G maintaining the lead for the majority of over three decades. In the late 1990s, however, K-C began to pull away from P&G. By August 1999, K-C held a 44 percent share of the $4.2 billion U.S. Market, while P&G's share had declined to 36%. As some retailers began dropping Pampers from their shelves, P&G executives wondered what they could do to retain distribution and reverse the downward trend in the company's share of the disposable diaper market.
