Marketing Strategy and Consumer Behavior

This assignment delves into the realm of marketing strategy and consumer behavior. It examines various theoretical frameworks and applies them to real-world scenarios using provided case studies. The analysis encompasses topics such as market segmentation, target audience identification, branding, product positioning, and the influence of social responsibility on marketing decisions. Students are tasked with evaluating the effectiveness of different marketing strategies and their impact on consumer choices.

MARKETING

Executive summary
This report is all about marketing strategies adopted by the company to increase their
market share of their product Scott. The strategies are product development and market
development where the company do innovative changes to satisfy needs customer needs and
attract new market to increase market share. They target the market on the basis of demographic
that induces age and gender as well as sectoral which includes households and businesses class.
They basically focus on innovating their existing products and go globally where they are
expanding their market in USA, UK and India.

Table of Contents
INTRODUCTION...........................................................................................................................1
Product analysis of Kimberly Clark.......................................................................................1
Products of the Kimberly Clark..............................................................................................2
Target market of Kimberly Clark...........................................................................................3
Swot analysis of Kimberly Clark ..........................................................................................4
Marketing objective of Kimberly Clark.................................................................................6
Marketing strategy of Kimberly Clark...................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
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 Scott, 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
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 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 Malaysia which leads to increase in their
market share that is 42.85% in 2016. In order to have effective business expansion in the
Malaysian market the company will specifically focus on Scott.
Products of the Kimberly Clark
 Scott: These are brand names for paper towels and napkins, bath tissue and wipes. It is
disposable napkins which is used by for children’s and adults. The additional that
includes products like Scott small roll tissue. In addition to this, it can be said that Scott
can be chosen to have better expansion in the Malaysian market. As per market research,
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Illustration 1: BCG matrix

there are very few competitors in Malaysian market who provides napkins or tissue for all
age groups. By having an effective consideration of such product the business firm can
have sustainable development in the global market.
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 brand that involving Scott (Chon, 2015).
For this, they categorise the overall Malaysian 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
Age
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 and different age group products such as Scott tissue, infection control
products.
This specific product of the company is specially designed for all age groups but some of
their products are specific according to the specific age groups as labels are mentioned on each
and every products in order to find the best suitable product according to the different age
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groups. Scott tissue is offered by this entity for all age groups and different class people as this
helps in protecting their skin which is very delicate (Kumar, 2015).
Swot analysis of Kimberly Clark
Strengths:
 The company has strong portfolio with the leading products like Scott, 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 than 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.
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 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.
Weakness:
 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.
Opportunities:
 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, Malasiya
Threats:
 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.
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.
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 Specific: Increase in market share where they had expanded in Malaysia
 Measurable: Market share have increased to 42.85% in 2016
 Achievable: Previously in 2015 market share was 35.8% in 2015 but after expansion the
market share has increase up-to 42.85% in 2016
 Realistic: It exists in real environment that's why company have achieved the target
 Time bound: The company has 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 tissue product to
introduce in different market by providing protective paper that can be used to maintain
hygiene factor. Along with this, regular changes in Scott 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 Scott tissue. The company
creates the strategies to innovate these brands and make the powerhouse in the company
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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
Scott small roll tissue for the different age groups and lifestyle and ensure that needs of
customers are fulfilled.
 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 Mix
 Product: Company will offer Scott small facial tissue to its target segment in order to
have better opportunities in the Malaysian market. In this regard, Kimberly Clark will
also develop new facial tissue product with some natural fragrance so that better
protection can be offered to segmented class. It will protect skin of users and improve
hygiene factor which lead business to better success.
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 Price: In order to have better customer base the company will offer its product at
economic pricing so that segmented market can have better access. Malaysian people are
more price concern so such kind of pricing will also benefit to the firm. It will assist in
advancing profit margin for sustainable opportunities.
 Place: Distribution of products will be taken into account with a help of local retail stores.
It means the franchise can be offered to local retailers in order to meet the standards of
place. Along with this, online sales is also a better option which can assist Kimberly
Clark.
 Promotion: By having an effective use of diverse promotional tactics the business will
promote its product. Use of social media advertising and direct sales will facilitate
business entity to meet its goals and objectives. Along with this, celebrity endorsement is
also essential in order to promote product.
Marketing strategy of Kimberly Clark
 Innovation: 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. 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.
 Win global: The Company is growing its strong position with the higher margin
transaction by investing its powerful product Scott in Malaysia.
 Target growth and margin improvements in the consumer tissue: Company make
differentiation and value added innovation to increase and strengthen its product Scott
tissue while focusing on the net realised revenue, improving product mix and reduction in
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cost (Weinstein and Pohlman, 2015). In order to advance the margin the company can
also have tie up with hotels so that they can have better opportunities. For example,
guests in hotels are used to of facial tissue during their stay so alliance with hotel can
improve sales of Scott facial tissue.
 Rapid growth throughout international: Company is basically focusing on Malaysia that
will enhance target expansion and growth plans for the company (Luxton, Reid and
Mavondo, 2015) Malaysia is major target as business have vast opportunities in
developing nation. By having a sponsorship of international events organised in Malaysia
the company can also promote its product Scott facial tissue in appropriate manner. 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 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. It is also one of key reason that
company can have better opportunities in segmentation by having improved focus on
Scott tissue. Quality raw material will be used by company in order to have better
production of Scott facial tissue.
 Go Online: 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 Scott facial tissue
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
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help each other at all the levels by providing relevant data. Company can brand Scott
facial tissue by use of 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 Scott facial tissue so they can also arrange a free
distribution at the hotels and public places. It will also assist in attracting more customers.
CONCLUSION
Kimberly Clark multinational is a personal care company that produces 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 Malaysia so they can be 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 adopted product
development strategy to cover large number of market share in Malaysia in order to create brand
awareness of the Scott, product so that they can able to have competitive advantage over its
competitors P&G.
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REFERENCES
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Conference (pp. 480-482). Springer International Publishing.
Levek, A. R. H. C., 2017. A responsabilidade social e sua interface com o marketing social.
Revista da FAE.5(2).
Voorhees, C. M and Ramirez et. al., 2016. Discriminant validity testing in marketing: an
analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing
Science.44(1). pp.119-134.
Cross, J. C., Belich, T. J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer International Publishing.
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Conference (pp. 132-133). Springer International Publishing.
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Fan, S., Lau, R. Y. and Zhao, J. L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research.2(1).pp.28-32.
Engle, C. R., Quagrainie, K. K. and Dey, M. M., 2016. Seafood and aquaculture marketing
handbook. John Wiley & Sons.
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Jussila, I and Hair et. al., 2015. Individual psychological ownership: concepts, evidence, and
implications for research in marketing. Journal of Marketing Theory and Practice.23(2).
pp.121-139.
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Online
Kimberly Clark products, 2016. Available through
<http://www.kcprofessional.com/sustainability/greenharvest-products>[Accessed on 13th June
2017].
Kimberly Clark products, 2016. Available
through:<http://www.kimberly-clark.com.au/>[Accessed on 13th June 2017].
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