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Kimberly Clark

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KIMBERLY CLARK LEVER PRIVATE LTD.
Background
Kimberly-Clark Corporation (KCC, a Fortune 500 company), incorporated in 1872, is engaged in manufacturing and marketing a range of health and hygiene products around the world. Most of these products are made from natural or synthetic fibres using advanced technologies in fibres, non-wovens and absorbency. Kimberly-Clark Corporation manufactures and markets facial and bathroom tissues, paper towels, wipers and napkins for away-from-home use, healthcare products, respiratory products, other disposable medical products, printing and correspondence papers. It has manufacturing facilities in 42 countries and its products are sold in more than 150 countries. Its products are sold under brands such as Kleenex®, Scott®, Huggies®, Pull-Ups®, Kotex® and Depend®. With over 60,000 employees, it had revenues of US$ 14.3 billion in 2003-04. Kimberly-Clark Lever Ltd. (KCLL) is a 50:50 joint venture formed in September 1994 between Kimberly-Clark Corporation, of USA and Hindustan Lever Ltd. The plant and the registered office of the company are located at Sanaswadi, 30 km from Pune. KCLL markets feminine pads under the brand Kotex® and manufactures and markets diapers under the brand Huggies® in India.

A leading baby hygiene product manufacturer
The US$ 14.5 million Indian disposable diaper market has exhibited steady growth as manufacturers are correcting the price-value equation and have been offering customers superior technology products. KCLL’s Huggies® diaper brand is the market leader in its category with a market share of around 70 per cent. The following were the key challenges, which KCLL faced in India: • Absence of market for diapers • Value and price-sensitiveness of the product

by offering “a good quality product that protects consumers at an accessible price”. The latest national launch is a product called Kotex® Style, which has a “film cover” offering superior dryness at a very affordable pack price of US$ 0.4.

Consumer education and support
Media such as television is the main channel of communication and KCLL continues to use the same for increasing brand awareness and product information. Additionally, both in infant care and feminine care, supporting local activities are carried out targeting the consumer, which help them experience the benefits of the products. KCLL has a strong programme across India to communicate to consumers and paediatricians the benefits of “dry and healthy skin” ensured by usage of diapers. KCLL also continues to engage in supporting activities educating the consumers and addressing the concerns of mothers. One such example is the “Huggies® Happy Baby” book. The book addresses the concerns of young mothers and provides guidelines for dayto-day baby care. KCLL is fully committed to providing the best possible diapering solutions. In the feminine care segment, KCLL undertakes a lot of one-to-one consumer contacts at colleges, homes and stores to explain the benefits of its products.

The Huggies® Dry Diaper currently manufactured in India is a product specifically designed by KCC for inducting new users in emerging markets. The product relies on high technology super absorbent materials (SAM) to deliver superior absorbency and dryness to the user, which results in “dry and healthy skin” for the baby. The super absorbent materials can absorb fluid up to 100 times their weight. In addition to SAM, the product relies on special “high-leg cut design” customised for the hot climate of India. KCLL pioneered the peripheral seal design pads in the Indian market under the Kotex® brand name in 1996. Since then, KCLL has extensively relied on the technical capabilities of global KCC resources (pioneers in the feminine care category in the world) to offer products with leading edge features like the Blue Safety zone based on BFDL (bi-component fluid distribution layer) and all around channels to deliver consumer benefits at an affordable price point.

Factors for success
Understanding the Indian market
Kimberly-Clark Lever has introduced products in both diaper and the feminine pad segments that cater to consumers’ everyday needs. The diaper category in India is in its nascent stage and is marked by poor penetration. This is predominately due to high attitudinal barriers towards disposable products and high ‘perceived price’ of diapers vis-à-vis cloth nappies. KCLL has addressed both these areas and has diligently built this category singularly in India. The company has combined its in-depth consumer understanding with technology driven innovation to deliver consumer relevant products and propositions. Quite uniquely to India KCLL has introduced a product called Nappi-PadTM, which is in line with the local usage and habits and is priced 60 per cent lower than diapers. In the feminine care category, KCLL has introduced consumer-relevant products in the economy segment

Leveraging the India Advantage
Kimberly-Clark has a positive outlook towards India due to its vast consumer market potential. The Indian diaper (KCLL’s main product) market is currently valued at nearly US$ 14.5 million and is estimated to grow by 5-10 per cent.

Technology leadership
KCLL uses contemporary technology based on global research and engineering of the parent Kimberly-Clark Corporation (KCC) to satisfy local consumer needs with specifically designed products suited for the Indian markets in both, feminine pads and diaper categories. It also effectively leverages the state-ofthe-art wide-reaching distribution system of Hindustan Lever and makes its products available to all consumers throughout India.

US COMPANIES IN INDIA

Kimberly-Clark is spending heavily on advertising to create a bigger market for diapers in India. KCLL understands that India has a significant market potential for future growth and is well poised and prepared to invest in these categories for long-term growth.

Future plans
India’s vast consumer market offers lot of challenges to KCLL. The company will continue to harness KCC’s technology edge and local consumer understanding to offer consumer-relevant products in both categories. KCLL is committed to bringing additional categories from the KCC stable, based on their relevance to the Indian consumer. KCLL is planning to invest in both technology and market to further increase its consumer understanding and grow current categories. It is also planning to introduce new categories by leveraging KCC’s core technologies, as and when viable, and develop key competencies as a regional (SAARC) centre.

Kimberly-Clark Lever Pvt Ltd: AT A GLANCE
• Huggies: Leading diaper brand with 70 per cent market share • Factors for success: Understanding the Indian market. Consumer education and support. Technology leadership • For Kimberly-Clark, India is: A vast consumer market with immense potential • Future plans, India: Harness KCC technology edge and local consumer understanding. Bring more KCC brands into India. Invest in both, technology and understanding markets to grow market share. Introduce new products leveraging KCC’s core technologies

US COMPANIES IN INDIA

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