Introduction to Marketing Company
Kimberly Clark is an American multinational personal care company that produce paper supported consumer products. The company was founded by Neenah, Wisconsin in the year 1872. Currently 43000 employees are working in the company. The company is listed among the Fortune 500. The company has a relationship with the Midwest airlines and also traded in NYSE. The company having headquarter in Irving, US and Texas (Babin and Zikmund,2015). In 2013, company generate the revenue of $21.152 billion and net income of $2.142 billion. The personal care product line is selected which includes goodnites, huggies, kleenex, kotex, poise and pull ups as these products generate higher revenue in order to capture greater number of market share that is 42.85% in 2016.
Product Analysis Of Kimberly Clark
BCG matrix has planned to help the organisation for long term planning in order to consider the growth opportunities by analysing the portfolio of products to decide whether to continue, incest or discontinue the developed products. The matrix is divided into four quadrants and strategies are adopted to maintain the products of the company, these are as follows:
- Stars: These products have high growth market and high market share. In 2009 Kimberly Clark have generated 44% of revenue from personal care products. These are goodnites, huggies, kleenex, kotex, poise and pull ups. The company adopt market development strategy where they target new market for maximising their sales and profit.
- Cash cow: The products has low growth markets but having high markets share. Kimberly Clark products that generate high revenue from low market are consumer tissue and professional products, these are Kleenex and Scoot, Wypall and Kimetch, Kleenguard and Jackson Safety, Air Filetration, Cottonelle and wiping Substrates used in medical, industrial. They generate 33% of revenue from consumer tissue and 16% from professional products.
- Question marks: These products having high growth market but low market share, they are at moderate state. They are analysing that whether that products will move towards star or dogs. These products are health care which generate only 7% of revenue in 2009, these are Kotex, kotex white, anydays, goodfeel, litimus and camelia.
- Dogs: These products having low growth and low market share, that is not preferred by the consumer and generate no sales for the company. Corporate products yield 0% revenue in 2009. These includes depend, poise and plenitud. The company should stop manufacturing these products.
Kimberly adopt BCG matrix to identify the star products which have higher growth and higher market share. The category under star is personal care which includes goodnites, huggies, kleenex, kotex, poise and pull ups. In 2009 they have generated 44% of revenue form personal care products and having 35.8% of market share. The company adopt market development strategy where they had expanded their business in UK, USA and India which leads to increase in their market share that is 42.85% in 2016.
Products Of The Kimberly Clark
- GoodNites: It is undergarments which is disposable manufactured mainly for babies and teens who wet their bed at night and day too (Kerven, 2016).
- Huggies: It is disposable nappies which is used by for infants and toddlers. The additional that includes products like Huggies Clean Team, shampoo, handsoap and wash mitten for toddlers.
- Kleenex: Brand names for the facial tissue paper includes lotion that are the softest ever (Kumar, 2015). In the time of 70's Dr. Cody Sweet, who was the colour psychologist was hired by the company to represent the new style and colour of designed boxes of the product.
- Kotex: It is a feminine hygiene products which includes sanitary napkins, panty liners and tampons
- Pull-ups: Brand for toddlers pants used during the training period, they are marked together with the huggies and baby products (Chon, 2015).
Target Market Of Kimberly Clark
The company produces personal and household products under the FMCG line. These are the products which are used for daily needs. Target market means selecting the particular group of customers to which the company will sell its products. The Kimberly Clark provides a wide range of products which is best known of household brands that involving huggies, Kotex, poise, Goodnites and Kleenex (Chon, 2015). For this, they categorise the overall UK market into small segments on the basis of their similar characteristics. Therefore, the cited Company bifurcated whole market on the basis of age, gender, income to deliver this product into the potential target market.
Demographic Market Segmentation
It is that market segmentation that are divided on the basis of age that involves children, middle aged group, teenage and older population. It has been analysed that the kids under age group of 0-5 required a baby care products such as huggies, infection control products and diapers.
The product line of the company is specially designed for all age groups but some of their products are specific according to the age groups as labels are mentioned on each and every products in order to find the best suitable product according to the different age groups. Kotex are offered by this entity for all adult members as these can't be used for infants as their skin is very delicate that can be hurt by the artificial chemical used in the napkins (Kumar, 2015). Kleenex is used in exchange of face washes as this can be used by both male and female members but the company will target more to the female members as female are beauty obsessed who uses various cosmetics or creams in order to improve their skin tone which can be affected due to sun tan. Facial tissues are comes in fragrance form and softest ever with inbuilt lotion to facilitate all their female clients to use all these facial tissue in order to improve their skin tone.
Company will not differentiate among male or female members in terms of offering all their products but some products offered by this entity can't be used by male members (Kumar, 2015). Kleenex offered by this entity will capture the female clients as this is daily requirement of a female. On the other hand, male members can use any kind of Kotex according to their need.
Swot Analysis Of Kimberly Clark
- The company has strong portfolio with the leading product like Huggies, Kleenex, Kotex.
- They use Kaizen approach that is continuous improvement, investment and innovation
- The company has strong performance of personal care products which provide them to grow at top line (Levek, 2017).
- They have more that 40000 employees and they are listed among the Fortune 500 and have presence in 175 countries
- They do corporate social responsibility such as providing product donations, corporate contribution and do volunteer efforts at the time of disaster like landslide and earthquake (Voorhees and Ramirez et. al.,2016).
- They provide fund to those families who have been destroyed in the earthquake and have no money to have fool and cloths.
- The company also provide fund to small scale industries so that they company can have capital to do heavy investment to increase their profitability
- Acquire small scale industries: The company do so, to increase the condition of small scale industries where the people are willing to do work but due to low capital they are not able to do investment (Cross, Belich and Rudelius, 2015). The company too has profit while acquiring those small company that due to acquisition, competition will reduce and they can able to gain large competition
- They company regularly adopt the new technology and develop the staff in such a way that they can able to work according to the new technology
- The company take care of environment as well. They do such activities like use of suitable wood fibre, recycling of packing, reuse of wastage, generating the electricity in the industry from use of water which does not harm the environment.
- The company has strong research and development where they can able to identify the needs of the consumer.
- The research representative directly communicate with the customer to know the wants of customer and ask them about their problem and try to solve them on the spot.
- The company has good competition in the market where competitor capture the market share of the Kimberly Clark (Weinstein and Pohlman, 2015).
- Company sold fake products that reduce the brand name.
- The company can grow in online store because there is strong potential to sell the products.
- The company can move towards the organic and natural care products which will generate high profits to them (Luxton, Reid and Mavondo, 2015).
- The emerging market are china and Russia, company can improve their importance by making awareness about the products to that countries.
- Alliances and acquisition helps the company to expand their portfolio in the different market.
- Expansion in UK, USA and India
- Continue recession will affect the company to generate revenue and sales because these are premium products and in recession period income of the individual decrease then the customer will not able to afford the products.
- There are huge completion in the market and its major competitors are P&G, Unilever Plc and Johnson & Johnson.
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Marketing Objective Of Kimberly Clark
Company decides the goals which promote its products and services to the target market what should be achieve in specific time frame.
Increase in market share where they had expanded in USA, UK and India
Market share have increased to 42.85% in 2016
Previously in 2015 market share was 35.8% in 2015 but after expansion the market share has increase up-to 42.85% in 2016
It exists in real environment that's why company have achieved the target
The company have achieved their specific objective within 1 year.
Financial discipline and suitable cost saving
Mark.A. Bhthman, who is chief financial provide the objective is to create the balance between the growth and profit to increase the return. The company is focusing on the entire organisation for the return on capital invested. They had made a goal to improve the ROI measure by 40 to 50% per year. The company was at the good start where in September 2016 return on capital has increase up-to 14.6 % by 13.2% in year 2015 (Fan, Lau and Zhao, 2015). The company is making changes in structure for reduction in annual cost. The company's new goal is to save $500 to $600 in coming three year where in company is focusing FORCE(Focus On Reducing Cost Everywhere) strategies to gain the level of saving.
New product development and innovation
Chery A. Perkins, who is technical officer of the company plans objective that company should re-engineered its research and development activity to accelerate innovation and growth that is lead generation, turning customer need into purchase. They link customer, supplier, manufacturer and shopper into the single value chain (Fan, Lau and Zhao, 2015). The company had invested 25% of their revenue to research and development to identify the clients that includes customer and business needs and wants. They are planning to innovate their Scott product to the softer and more absorb tissue. They are regularly making changes in kotex and Kleenex according to customer need so that they can able to attract large market share.
Powerhouse in personal care
Steven R. Kalmanson, who is vice president of the company discussed its objectives related to the growth in personal care. The company has the largest and highest margin business in the segment of Huggies, Pull-ups, Poise and Kotex. The company creates the strategies to innovate these brands and make the powerhouse in the company itself so that cost of production decreases and proper quality check can be done so that superior goods can be produce (Engle, Quagrainie and Dey, 2016). These all factor provide satisfaction to the consumer and living standard of the will enhance.
Produce total family care products
Robert P. Van, who is the group president of the company who have planned the objective to focus on full household care products. The company and track record that sales is growing faster than category rates because of the strength of brands, continuous improvement, technology improvement and customer development initiatives (Engle, Quagrainie and Dey,2016). The company has launch Kleenex Anti-Viral tissue for the whole family that includes infants, tenants, toddlers, females and males.
Target growth in developing and emerging market
Robert E. Van, group president of the company, make the objective to sell their products in developing countries whose GDP per capita is continuous growing. The company goal is to grow and improve their profitability in these market. They reduce their prices so that customer can adopt the products.
Growth opportunities in business to business
Kimberly Clark has global objectives to target business. The company is focusing on the delivering health and hygiene products away to the home environment that is in organisation premises (Levek, 2017). The company gains the superior insights about the needs of the end user and converting that insights into the brand product solution that provide the company profitable growth. The company group portfolio objective is growing in the health care business, maintain its market position and share, improving return and perusing selected growth according to country.
Marketing Strategy Of Kimberly Clark
Strategies adopted by the company are as follows:
From than a century the company has changing technology and insights into the advanced services and products that leads to improve the living standard of nearly a one third of population. In past years of innovation that start with their founders who established a culture that enhances entrepreneurial spirit, experiments in product development and innovation and creating creative marketing (Voorhees and Ramirez et. al.,2016). The company strategy is to create better living standard everywhere by providing the eight major products facial tissue, paper towels, feminine sanitizers, disposable training pants and toilet paper on roll. The company innovativeness will continue till the company become the most responsive to their shopper, customer and end user anticipated needs. Every new day the organisation will explore innovative ways to their speed-to marker with new-to-world product solution. Company strategy is to develop and adopt the new technologies that is to find the customer need by analysing the consumer database that helps the organisation to satisfy their desires. The company also learns how to be open for innovation approach.
The company is growing its strong position with the higher margin transaction by investing its powerful products that is facial tissue, paper towels, feminine sanitizers, disposable training pants and toilet paper on roll into the world.
Target growth and margin improvements in the consumer tissue
The company make differentiation and value added innovation to increase and strengthen its brand products while focusing on the net realised revenue, improving product mix and reduction in cost (Weinstein and Pohlman, 2015).
Rapid growth throughout international
The company is basically focusing on china, Russia, Latin America, Europe, India, Africa will create target expansion and growth plans (Luxton, Reid and Mavondo, 2015). The company can take advantage by attractive market opportunities and communicate strong brand and innovation techniques.
Grow in higher margin segment
The segments in which company generate the highest revenue are health care and babies product. The company plans to make in-house production where they continuously keep eye on the quality and inventory, the organisation properly analysis the inventory level, proper use of raw material, man power and machinery and reduction in spoilage of inventory which will reduce the cost of production and available of products at low rate and high quality to the consumer.
The company are doing re-targeting on the online basis because the entity want to clearly identify the opportunities for the interested segment. The organisation is again targeting the market on the basis of their personal products needs (Cross,Belich and Rudelius, 2015). They want to go online because the consumer visit the products on the brand site and 20% of customer's act on the advertisements done on the web and there is 50-60% is conversion rate. The entity has a multinational approach that is chosen social as a digital marketing strategy, they use social channels as a means to communicate to the customers and create a platform for building relation and drive participation. Social platforms facilitates conversation between the client and company to provide the content that they are interested.
The organisation is willing to share ideas and help each other at all the levels by providing relevant data. The brand products of the company are communicated by twitter, tumbler, Facebook and YouTube. The company provides the ads on mobile where female can easily access to add and they know about the products. As the company provide the baby products like huggies and training pant, mother is only one who purchase these products for their baby so she should be aware about the innovative products offered by the company.
Kimberly Clark multinational personal care company that produce disposable consumer products. The company adopted kaizen approach that is continuous improvement and uses new technology to train their staff in such a way that they also adopt change in technology. The organisation strategy is to expand their business in emerging and developing countries whose GDP is increasing like USA, UK and India so they can able to generate awareness among the customers. The entity target market on age basis which include infants, teenagers, toddlers and young and gender basis which includes female and males. The company adopt market development strategy to cover large number of market share in order to create brand awareness of the goodnites, huggies, kleenex, kotex, poise and pull upsproducts so that they can able to have competitive advantage over its competitors Procter and gamble.
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