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Marketing strategy of Kimberly Clark corporation

1328 words (5 pages) Essay in Marketing

02/05/17 Marketing Reference this

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Kimberly-Clark Corporation has incorporated in Delaware in 1928. The Corporation is a global health and hygiene company focused on product innovation and building its personal care, consumer tissue, K-C Professional & Other and health care brands .The global brands are Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise, Hakle, Page, WypAll, Kimtech, KleenGuard and Kimcare. A number of the Corporation’s products, such as diapers, training and youth pants, incontinence care products, disposable wipes and various health care products as Nonwovens, Surgical Drapes and Gowns, Infection Control Products, Face Masks, Digestive Health, Pain Management and Other Disposable Medical Devices.

The Corporation is organized into operating segments based on product groupings. These operating segments have aggregated into four reportable global business segments: Personal Care; Consumer Tissue’s-C Professional & Other; and Health Care. Personal care products group is a leading business group. The products are sold under a variety of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names. This group contributed 44 % revenues by business and leaded revenues in 2009.

Corporate responsibility:

VOLUNTARILY PERFORMING SOCIAL RESPONSIBILITY ACTIVITIES

At the core of Kimberly-Clark’s values lies a commitment to caring for the communities where the corporation lives and works . From 25 North American hometowns to the 35 countries in which the corporation operate, the employees are steeped in the traditions and activities of each community. Through the philanthropic efforts and partner organizations, K-C is committed to creating a better life for families around the world, strengthening the communities and being a responsible steward of the environment. In 2009, K-C and the employees donated a total of $22.7 million in cash and product to causes worldwide and more than $900,000 to match time volunteered by U.S. employees as part of the Community Partners program.

THE CHALLENGE OF SUSTAINABILITY

K- C changes to reduce product packaging in 2009 in Korea and U.S and Europe

In Korea:

With the Korean Ministry of Environment’s policy to reduce packaging, Yuhan-Kimberly has signed a voluntary pact to reduce secondary packaging between 2008 and 2012. In 2009, Yuhan-Kimberly changed the packaging of feminine sanitary napkins to a lighter material by using a plastic bag instead of paper.

In U.S. and Europe:

Kimberly-Clark Professional launched new refill packs for Scott facial tissues. The innovative refill packs contain 14 percent more tissues than existing cartons at no extra cost to the customer, and with no added storage space.

CLIMATE CHANGE

With goal is to achieve a year-on-year reduction of carbon dioxide equivalent emissions per unit of global production for manufacturing and emissions related to U.S. product transportation.Kimberly-Clark is committed to reduce its greenhouse gas emissions by increasing energy efficiency at manufacturing sites and finishing product distribution. Many strategy have done such as :

Developing a Global Climate Change Management Strategy for K-C in 2008.

Using units report their growth plans through 2015 to project emissions for each business and for the company as a whole to set a corporate greenhouse gas (GHG) emissions reduction target. GHG emissions from manufacturing decreased more than 7 percent between 2005 and 2009

The Global Sustainability Strategy Team helps business units to implement measures and report their progress .

THE COMPANY ENGAGES WITH EXTENAL STAKEHOLDER

The company engages with a wide range of stakeholders – investors, consumers, employees, communities, non-governmental organizations .

Customers, shoppers and users :

Environmental campaigns, e.g. recycling stations in Wal-Mart stores in Costa Rica and consumer education in Taiwan

Product labeling , including environmental labels such as the Forest Stewardship Council (FSC) logo

Online information – e.g. ANDREX sustainability zone and HUGGIES sustainability website

Suppliers :

Sustainability guide for suppliers

Communication of our fiber policy

Supplier Sustainability Summits

Governments and Non-governmental organizations

Meetings between mill staff and local government officials, e.g. on discharge permits to air and water, incentives for energy reductions

World Business Council for Sustainable Development work including Sustainable Forest and Paper Initiative, Future Leaders Team, water, and ecosystems

Contribution to industry initiatives such as industry body, EDANA’s sustainability reports

THE CRISIS MANAGEMENT :

The world faced the largest global economic downturn in more than 70 years which brought extraordinary challenges and opportunities for Kimberly-Clark.Global economic conditions could continue to adversely affect the Corporation’s business and financial results.Unfavorable economic conditions, including the impact of recessions in the United States and throughout the world, may continue to negatively affect the Corporation’s business and financial results.Significant increases in prices for raw materials, energy, transportation and other necessary supplies and services could adversely affect the Corporation’s financial results.Increases in the cost of and availability of raw materials, including pulp and petroleum-based materials, the cost of energy, transportation and other necessary services, supplier constraints, an inability to maintain favorable supplier arrangements and relations or an inability to avoid disruptions in production output caused by events such as natural disasters, power outages, labor strikes, and the like could have an adverse effect on the Corporation’s financial results.

Kimberly-Clark team reacted quickly and focused on cost reduction, margin improvement and cash flow..At the same time, the corporation has continued to take steps to build for the future and drive sustainable, long-term growth for our shareholders while leading the world in essentials for a better life. Kimberly-Clark Corporation delivered all-time record cash flow. This outstanding cash generation allowed Kimberly-Clark to invest more than $750 million in strategic acquisitions in targeted growth initiatives and organic sales about 3 percent and improved corporation’s profitability, which translated into a 12 percent increase in earnings per share.

STRATEGIES

Company strategies

• Manage portfolio to balance growth, profitability and cash flow

• Invest in brands, innovation and growth initiatives

Business Unit Strategies

Win globally in personal care: K-C will grow its strong positions in this high-margin business by leveraging its powerful brands and providing winning innovations.

Targeted growth and margin improvement in consumer tissue: K-C will bring differentiated, value-added innovations to grow and strengthen its brands while focusing on net realized revenue, improving mix and reducing costs.

Drive rapid growth throughout K-C international (KCi), with a particular focus on china, Russia and Latin America: K-C’s business in Asia, Latin America, the Middle East, Eastern Europe and Africa will continue to execute targeted expansion and growth plans, take advantage of attractive market opportunities and deploy K-C’s strong brands and innovation capabilities.

Grow in higher margin segments in K-C professional (KCp) and health care: K-C will continue to shift mix to faster-growing, higher-margin segments within KCp and health care, including safety and wiping in kcp and medical devices in health care.

Leveraging the power of K-C’s brands: K-C has increased strategic marketing spending by nearly $300 million over the last five years and plans to continue to accelerate spending faster than sales through 2015 to support product innovation, growth in KCI and to further improve brand equity and market share.

Innovate: K-C has a strong legacy of innovation. In fact, we have created five of the eight major consumer product categories in which we compete. K-C’s innovation philosophy is based on identifying insights into what consumers and end-users want and need and then translating those insights into innovative solutions that generate growth. Innovation investments going forward will focus on improving existing brands, enhancing margins and exploring new category opportunities.

VISION, MISSION, GOAL

Vision

“To enhance the Health, Hygiene and Well Being of People Everywhere, Every day.”

Mission

“To enhance the Health and Hygiene of people in Africa through quality, trusted and intelligent solutions that clean, care and protect.”

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