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Sanitary pads plays a major role in a woman's life. A lady's intimate friend. The quality of sanitary pads can influence ladies' emotions during period. That is why choosing a suitable sanitary pad is very important.
According to research, when blood on used sanitary pads is exposed to the air, approximately 100,000 bacteria will grow on it in a mere 4 minute. This has been a major factor of various female sicknesses such as itchiness, sensitive skin, inflammation, lower back pain, fatique, emotionally unstable and others.
Kotex is a brand that plays an undeniably significant role in the female population. With almost 60 years of experience in Malaysia, Kotex is constantly striving to develop innovative campaigns and products to help women to stay fresh and healthy.
End of 2010, Kotex launched the world's first and only pad that combines superior technology with stunning design, excitingly named as the KOTEX Luxe* Ultrathin Design Pads.
Kotex is a brand of feminine hygiene products, which includes the Kotex maxi, thin and ultra thin pads, the Security tampons, and the Lightdays pantiliners. Most recently, the company has added U by Kotex to its line of feminine hygiene products. Kotex is owned and managed by Kimberly-Clark, a consumer products corporation active in more than 80 countries.
The modern, commercial, disposable pads seem to have started in the late nineteenth century with the Hartmann company in Germany and Johnson & Johnson in the United States In the United States, Kotex became well known in the 1920s, when Kimberly-Clark placed adverts in Good Housekeeping magazine. Although some readers were offended by the ads, the products' success led to more advertisements. Kimberly-Clark also promoted Kotex in Good Housekeeping by using intimate advice columnist Mary Pauline Callender.
In August 2009, Kotex launched a premium subbrand called Kotex Luxe in Singapore. It launched U by Kotex Tween, products aimed at girls aged eight to twelve, in the US in 2011.
In 2009, Kotex has been conducting research in Asia BodyLife IQ Study to determine the level of body awareness and knowledge among women in the region. As a result, we found that many girls in Asia are not equipped with accurate information about their bodies and this gave rise to the myth among many cultures in Asia.
Accordingly, Kotex has launched iKnowMovement - so that all women can learn the truth about their bodies. After that let them tell the truth on the other girl to make the Origami Girl - the symbol of this movement and spread it on other girls. iKnowMovement has spread to more than 1 million women across Asia through school programs, initiatives, web, outdoor events and social sites like Facebook and Twitter ... all for one purpose, to spread the truth to women in Asia.
Introduction & Company Background
Kimberly-Clark is a leading global health and hygiene company employing nearly 53,000 people worldwide and posting sales of $19.4 billion in 2008. Headquartered in Dallas, Texas, with operations in 35 countries, Kimberly-Clark’s global brands are sold in more than 150 countries. Every day, 1.3 billion people trust Kimberly-Clark products and the solutions they provide to make their lives better.
Kotex’s success was more than just a great product, but the result of a clever marketing program as well. At the time, most drug stores carried every item behind the counter, and these drug stores were virtually 100% staffed by men. Most women of the time found it very embarrassing to ask for feminine hygiene products from the men behind the counter. Kimberly-Clark urged these stores to move the items from behind the counter to in front of the counter, so that women could simply pick the products up and surreptitiously buy them from the cashier. Following Kotex, Kimberly-Clark launched Kleenex in 1924 as the world’s first disposable handkerchief using the same cellu-cotton material. Together, the Kotex and Kleenex brands provided the company with a solid financial foundation to see it through the great depression, when many competitors of the time failed. (“Kimberly-Clark,” n.d., History section; Heinrich, 2004, pp. 1-2)
Early History
Kimberly, Clark & Company was founded in Neenah, Wisconsin, in 1872 as a partnership of four men: John A. Kimberly, Charles B. Clark, Frank C. Shattuck, and Kimberly's cousin, Havilah Babcock. The company began the first paper mill in Wisconsin. Its initial product was newsprint made from linen and cotton rags. Within six years the company expanded by acquiring a majority interest in the nearby Atlas paper mill, which converted ground pulpwood into manila wrapping paper. The business was incorporated in 1880 as Kimberly & Clark Company, with John Kimberly as president. In 1889 the company constructed a large pulp- and paper-making complex on the Fox River. The community that grew up around the factory was named Kimberly, in honor of John Kimberly.
Among the company's early innovations was the paper used for rotogravure, a procedure for printing photographs with a rotary press. In 1914 researchers working with bagasse, a pulp by-product of processed sugar cane, produced creped cellulose wadding, or tissue. During World War I this product, called cellucotton, was used to treat wounds in place of scarce surgical cottons. At that time field nurses also discovered that cellucotton worked well as a disposable feminine napkin. The company later recognized the commercial potential of this application and, in 1920, introduced its Kotex feminine napkin.
In 1924 the company introduced another disposable tissue product, Kleenex, to replace the face towels then used for removing cold cream. A survey showed, however, that consumers preferred to use Kleenex as a disposable handkerchief, prompting the company to alter its marketing strategy entirely. Nationwide advertisements promoting Kleenex for its current use began in 1930, and sales doubled within a year. Uncomfortable marketing such personal-care items as feminine napkins, Kimberly & Clark had created a separate sales company, International Cellucotton Products, which it contracted to manufacture Kotex and Kleenex.
Expansion from 1920s to 1960s
During the 1920s the company built a Canadian pulp mill and power plant called Spruce Falls Power and Paper Company in Kapuskasing, Ontario. In 1925 the company formed what would become Canadian Cellucotton Products Limited, for marketing cellucotton products internationally. The following year Kimberly & Clark, in partnership with the New York Times Company, added a newsprint mill to the Spruce Falls complex and expanded its pulping capacity.
The company was reorganized and reincorporated in 1928 as Kimberly-Clark Corporation. That same year, as shares of Kimberly-Clark were being traded on the New York and Chicago stock exchanges for the first time, John Kimberly died. He was 90 years old and still president at the time of his death.
In the 1930s Kimberly-Clark concentrated on marketing its new products. During World War II the company devoted many of its resources to the war effort. The company also contracted Margaret Buell, creator of the cartoon strip "Little Lulu," to promote Kleenex. Buell and Little Lulu continued to promote Kleenex for Kimberly-Clark into the 1960s.
After the war, Kimberly-Clark initiated a growth program to handle revived consumer product demand. Facilities were built or acquired in Balfour, North Carolina, and Memphis, Tennessee, in 1946, and in Fullerton, California, and New Milford, Connecticut, in the late 1950s. Pulp production at Terrace Bay, Ontario, was launched in 1948, and in 1949 the company, along with a group of investors and newspaper publishers, began the large Coosa River Newsprint Company in Coosa Pines, Alabama. Kimberly-Clark acquired the Michigan-based Munising Paper Company in 1952, Neenah Paper Company in 1956, Peter J. Schweitzer, Inc.--which had mills in France and the United States--in 1957, and the American Envelope Company in 1959. International Cellucotton Products Company formally merged with its parent company in 1955, as did Coosa River Newsprint Company in 1962.
Throughout the 1960s the tampon, first manufactured by Tampax, gained favor among women and ate into Kotex's market share. Kimberly-Clark turned its attention to new products. In 1968 the company introduced Kimbies, a disposable diaper with tape closures. Initial sales were strong despite competition from Procter & Gamble's Pampers. While Kimberly-Clark tended to its diverse operations, however, it failed to keep up with early disposable diaper improvements and market innovations. As a result of continued poor sales and leakage problems, Kimbies were withdrawn from the market in the mid-1970s. Competition in the infant-care product industry caused Kimberly-Clark to reevaluate the balance between its consumer products and lumber and paper products divisions.
Restructuring in the 1970s
Darwin E. Smith, who was elected president of Kimberly-Clark in 1971, took on Procter & Gamble's challenge. Smith decided that to compete properly in consumer product markets Kimberly-Clark had to prune its coated-paper business. Within one year of taking control of the company, Smith initiated changes that included the sale or closure of six paper mills and the sale of more than 300,000 acres of prime northern California land. With cash reserves of more than $250 million, primarily from the land sale, Smith then inaugurated an aggressive research campaign. He assembled a talented research and development team by hiring specialists away from competitors. The company's advertising budget was increased substantially, and plans were made for the construction of additional production facilities.
Marketing was central to Smith's strategy for growth, as Kimberly-Clark emphasized its commitment to consumer products. Research and development efforts enlarged the company's technological base from traditional cellulose fiber-forming technologies to lightweight nonwovens utilizing synthetic fabrics.
A new premium-priced diaper in an hourglass shape with refastenable tapes was introduced in 1978 under the name Huggies. By 1984, Huggies had captured 50 percent of the higher quality disposable diaper market. The sudden popularity of the product caught Kimberly-Clark by surprise, and it was forced to expand production to meet consumer demand.
Diversification in the 1980s
Facial tissue and feminine-care products were also part of Kimberly-Clark's growing consumer product operations. In 1984, it was estimated that the company's Kleenex brand held 50 percent of the tissue market. A chemically treated virucidal tissue called Avert was test-marketed that same year, but the higher price and limited utility of the product prevented it from gaining widespread popularity. Aimed at health care institutions and at companies as a product to reduce absenteeism, Avert never really got off the ground, and in 1987 Kimberly-Clark decided not to mass market the product.
The 1980 toxic shock syndrome scare caused a slump in tampon sales. Kimberly-Clark began an aggressive advertising campaign on television for Depend incontinence products in the early 1980s. At the time, incontinence products were as unmentionable as feminine-care products had been some 60 years earlier. The promotion resulted in Depend gaining a profitable share of the incontinence products market, and it quickly became the best-selling retail incontinence brand in the United States. In an effort to broaden its position in therapeutic and health care products, Kimberly-Clark acquired Spenco Medical Corporation in Waco, Texas, that same year.
Although sales from primary growth operations--personal-care products--were increasing, approximately 25 percent of Kimberly-Clark's sales continued to come from the pulp, newsprint, and paper businesses. The company further diversified its operations in 1984 by converting its regularly scheduled executive air-shuttle service into a regional commercial airline.
The company's foray into aviation was initiated by the purchase of a six-seat plane in 1948 to shuttle executives between company headquarters in Wisconsin and Kimberly-Clark factories around the country. With six planes in 1969, Smith, then an executive vice-president for finance, suggested that company air travel be converted from a "cost center into a profit center" by offering corporate aircraft maintenance services. K-C Aviation, as the subsidiary was called, later remodeled three DC-9s and in June 1984 initiated flight service between Appleton and Milwaukee, Wisconsin; Boston; and Dallas, Texas. The fledgling airline, operated under the name Midwest Express, got off to a rocky start with a 1985 crash in Milwaukee, planes flying 80 percent empty, and large operating losses. By 1989, however, the operation was in the black, with planes at 66 percent capacity; a $120 million expansion increased the number of destinations to 15 cities and the airline boasted a fleet of 11 DC-9s.
In 1985, stating that the state had a bad climate for business, Smith relocated Kimberly-Clark's headquarters from Wisconsin to Texas. Just before this move Kimberly-Clark was sued by Procter & Gamble, who claimed that Kimberly-Clark had unlawfully infringed on its patented disposable diaper waistband material. Huggies had increased its market share to 31 percent, upsetting Procter & Gamble's Pampers. After nearly two years of litigation, a federal grand jury ruled against Procter & Gamble. Kimberly-Clark enjoyed further successes in its ongoing diaper rivalry with Procter & Gamble later in the decade when it introduced the extremely popular Huggies Pull-Ups disposable training pants in 1989. This product extension helped Kimberly-Clark trim Procter & Gamble's market share lead, as well as propel Huggies into the number one position in the disposable diaper market.
1990s and Beyond
Starting in the late 1980s, Kimberly-Clark began another diversification program--this time geographically, targeting Europe--although the company's largest international growth would come in the early and mid-1990s. To keep the company growing at a healthy pace, Smith began to increase Kimberly-Clark's presence in Europe in 1988. From that year to 1992, the company invested nearly USD1 billion in European plants. Although revenues from its European operations increased steadily, the huge investments (totaling USD700 million in 1993 alone) and restructuring charges that went along with them began to affect the company's profits. Net income of USD435.2 million in 1991 fell to USD150.1 million in 1992 before recovering slightly to USD231 million in 1993.
Meanwhile, the company further reduced its commodity papers operation in 1991 when it sold Spruce Falls Power and Paper. The following year, Smith, the architect of Kimberly-Clark's restructuring and diversification efforts since 1972, retired as chairman and was succeeded by Wayne R. Sanders. The new chairman had worked his way up the ranks and had spearheaded the risky endeavor of developing Huggies Pull-Ups. The year 1992 also saw the introduction of Huggies Ultra Trim diapers.
Under Sanders's leadership, it appeared as if the company would divest itself completely of its commodity papers roots. Kimberly-Clark announced in late 1994 that it would explore the sale of its North American pulp and newsprint operations. The following year, however, the company decided not to sell because pulp and newsprint prices rose so high it no longer made economic sense to do so. Kimberly-Clark did divest its cigarette papers business in mid-1995 by spinning it off into a company called Schweitzer-Maudit International Inc. after shareholders initiated a proxy fight in 1994, concerned about the potential costs of liability lawsuits against tobacco, which were then beginning to gain strength.
In 1995 Sanders engineered the deal that would usher in a new era for the company: the merger of Kimberly-Clark with the Scott Paper Co. The deal was the logical culmination of Kimberly-Clark's international expansion, since Scott was globally strong and held the number one position in tissue in Europe. The USD9.4 billion deal led to a 1995 charge of USD1.4 billion for Kimberly-Clark to consolidate the merger, which led to the layoff of 6,000 workers and the sale of several plants. To pass antitrust muster, Kimberly-Clark had to sell the Scotties facial tissue operation, two of four tissue plants in the United States, and its Baby Fresh, Wash-a-Bye Baby, and Kid Fresh brands (which it sold to Procter & Gamble).
The late 1990s would be a period of transition for Kimberly-Clark as it worked to integrate the Scott Paper operations into its own. The company hoped that its newfound international clout, however, would make it a more formidable rival of the industry leader, Procter & Gamble, for years to come.
Today, Kimberly-Clark has many well-known household brands in its roster. In addition to core product mainstays like the previously mentioned Kotex, Kleenex, and Huggies, Kimberly-Clark’s brands include: Depend, Scott, VIVA, Cottonelle, and others that are mainstays outside the American market. For the fiscal year 2009, Kimberly-Clark had revenue of USD19.1 billion, and a net income of USD1.88 billion. The company employs about 56,000 people, and is currently headquartered in Irving, Texas. (“Kimberly-Clark,” n.d., History Section)
SWOT analysis to find out how effective KOTEX is operating and what internal factors may influence its success. A SWOT analysis analyses the internal factors that may influence the success of a business. The initials SWOT stand for:
STRENGTH - KOTEX have many product lines, so, the customer can choose the suitable for themself. Kotex also well-known product. As a result, many retailers and intermediaries sell this product; easily to found. They also have creative packaging for their existence and new product such as slim pad (soft & smooth) that have new package and U, the creative and unique packaging for new product.
WEAKNESSES – if you watch the advertisement, they always use teenagers and young model, so, it makes the consumer and customer thinks their focus on teenagers only not for the adult people. Their competitor, LIBRESSE uses Adibah Noor (adult) as their model will attract the adult customer. Kotex also not provide enough information on packaging on their certain product such as KOTEX STYLE.
OPPORTUNITIES – KOTEX can use media such as YouTube to market their product.
THREATS - KOTEX have successful and also well-known brands as competitors make the market more competitive. E.g. LIBRESSE, STAYFREE AND WHISPER. Their competitors also bring out similar product (feature and characteristics). The competitors also use marketing tactics cut price to snatch away KOTEX customer.
The Marketing Mix (4 P’s) of KOTEX Brand
Product
KOTEX is an internationally feminine hygiene products, which includes the Kotex maxi, thin and ultra thin pads, the Security tampons, and the Lightdays panty liners brand of Kimberly-Clark. Though manufactured in Malaysia for the local market by Kimberly-Clark Malaysia, as an international brand, it maintains an international quality for the product. Formula given by Research and Development departments in foreign countries. KOTEX are made mostly of wood cellulose fibers the same raw materials paper is made from ("fluff" these fibers to make the material absorbent and soft.) The outer cover and the moisture-proof shields are made with a moisture proof plastic such as polypropylene or polyethylene, to help minimize leakage. In Malaysia, KOTEX is offered in several different types which are: Kotex® Slim Pads, Kotex® Maxi Pads, Kotex® Style Overnight Pads, Kotex® Overnight Pads (38cm), Kotex® Luxe* Ultrathin and etc. Taking into account the convenience of its customers, the company manufactures all types of LUX in two different sizes, such as 10pcs/bag, 20pcs/bag. Kotex U, the dynamic black packaging really stands out at shelf and demonstrates a more forthright approach to the category.
Price
Though Kimberly Clark Malaysia gives its KOTEX customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Sanitary pad is a product with a vulnerable demand among women in Malaysia. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitors. If we compares KOTEX’s price with its major competitor. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessity of changing price.
Place
Kimberly-Clark Malaysia has a huge distribution channel for KOTEX all over the country as its sales reach more than 10 million pieces a year. The company has a warehouses in Petaling Jaya, where the product goes after they are manufactured at Kluang Johor factory. The company does not use its own fleet of transport for distributing its product. However, it has out sourced its distribution process to various third party distributors, exclusively dedicated to Kimberly-Clark Trading Malaysia. These distributors then supply the product all over Malaysia to a huge number of retailers. Even though KOTEX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Malaysia because of a recent increase in demand of its product to all segments of the population.
Promotion:
Kimberly-Clark Malaysia is giving more concentration on its promotional activities to market its brand. It spends a lot for promotional activities for KOTEX. They promote KOTEX in Malaysia using beauty teenagers, it also promotes the brand by using famous female celebrity Liyana Jasmin for their advertising campaign. Kimberly-Clark Malaysia spends a huge amount of money for promoting KOTEX through TV commercials, newspaper advertisements and billboards. Moreover it also undertakes small promotional campaigns at different schools, colleges, universities, recreational parks and shopping mall with variety of Contests.
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Recommendations
In this assignment some recommendations to Kimberly-Clark Malaysia to adopt more successful operation in Malaysia. Since a huge portion of the rural poor people is demanding KOTEX in recent days, Kimberly-Clark Malaysia should expand their target market also towards the rural people. They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness. Because KOTEX has different type pads soap so now if they provide different types of beauty soaps for male and female soap under the same brand name i.e. LUX it might increase their sales and
• Company should spend 60% budget on promotion and 40% on advertising in order to leaver up the brand
• Company should increase the number of warehouses for the purpose of in time delivery
• Company should conduct research through focus group to know the new ideas regarding brand amendments
• The design of the pads should can be changed on the behalf of customers design
Conclusion
The sanitary pad industry of Malaysia consists of a few producers in the industry. The demand for this product is very much attractive in terms of pricing. Kimberly-Clark Malaysia is providing KOTEX at a price which is affordable to most of the people in the country. Sanitary pads is an uprising product in Malaysia as a greater portion of the population, both adults and teenagers female, are now getting more consumer consciousness. As a multinational company Kimberly-Clark Malaysia with heavy promotional activities, has been able to penetrate the market.
With many different types, two different sizes, international standard and high quality design, as a product, KOTEX has been highly successful over the years. Its distribution process is highly efficient. Its promotional activities, like contest and membership club has been a milestone in attracting a huge number of customers. Overall with its marketing activities KOTEX has been a successful brand.
The only place where rival companies are progressing is in giving customers redemption offers. Research revealed that Malaysian customers are highly attracted to this sort of offers. These offers are not sustainable in the long run but still it takes away a considerable part of KOTEX’s sale in the short run. 