Battle for Baby's Bottom: Diaper Wars Heat Up

"We do this every day,'' said Hailey. "So much so that in the past year we tested with over 40,000 consumers around the world."

A Diaper Surprise for Pampers

So when dozens of mothers complained on Facebook about Pampers' new Dry Max diapers, claiming extreme diaper rash, including reports of chemical burns, the folks at Pampers were shocked.

"There's been no data to link the Dry Max to diaper rash," said Hailey. "Dry Max has been tested on over 20,000 babies."

The Internet swirled with theories about what was going on. Some speculated that either Pampers' competitors or environmentalists in favor of cloth diapers were behind some of the accusations.

Meanwhile, the diaper war between Pampers and Huggies intensified with Huggies' launch of a little shock-and-awe: a limited edition diaper that looks like blue jeans.

Huggies' Promise: 'The Coolest You'll Look Pooping Your Pants'

The company's commercial showed a toddler in a button-down shirt and jeans diapers, strutting down a foreign street as all eyes are on him.

"When it's number two, I look like number one,'' the boy says in an accented adult voice over electronic music.

The commercial quickly went viral. Its tag line was: "The coolest you'll look pooping your pants."

"Over one million consumers have actually gone onto YouTube to play the commercial for themselves," said Robert Thibault, president of Kimberly-Clark's North American Infant, Baby & Child Care business, maker of Huggies.

Huggies said sales skyrocketed upwards by 15 percent, almost overnight.

Pampers quickly fought back, releasing its special Cynthia Rowley designer diapers available at Target.

What every diaper company knows is that if they can get mom excited about about a new product, she'll switch brands. That is no easy task. Diapers buyers are extremely brand loyal -- starting from day one.

Studies show that if a mother is given a particular brand in the hospital, she is likely to use that brand for as long as her baby is in diapers.

So, both companies regularly sell their diapers to hospitals at a discount, hoping to hook customers early. Pampers claims it has contracts with about 95 percent of hospitals.

To win the diaper wars, companies know they have to win the hearts and minds of mommies. Billions of dollars are riding on those adorable bottom lines.

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