PJL-25

More brilliant solutions for private label products!

With More, Kimberly-Clark suggests a new positioning for PL products on the market. Massimo Nicosia, Retailer Brands Europe Director, explained the basic philosophy behind this new concept.

Perini Journal


PERINI JOURNAL – HOW AND WHEN WAS THE IDEA OF MORE BORN? WHAT DOES IT REPRESENT FOR K-C?

MASSIMO NICOSIA: Mainly, two are the considerations that have led to the creation of MORE: K-C’s commercial strategy and attentive market observation. Indeed, K-C’s commercial strategy is based on the value growth of the product categories in which K-C operates and is embodied in our way of working in partnership with customers, considering K-C products and retail brands in an integrated manner. This is K-C’s “MORE” that starts with the in-depth study of the consumer both as a buyer and end-user of the products, and leads to the most effective segmentation within the categories themselves, proposing solutions oriented towards value growth, solutions in which both the commercial brands and retail brands co-exist, maintaining their respective roles.

Market observation has led us to a careful reflection on the product. Even in a context that is certainly not very lively consumption-wise, we feel there should not be a sole answer in terms of price discounts, lowest-price products or discount product lines. We feel there is enough space to qualify the product offering by adding value to the product itself. MORE (the word says it all) is Kimberly-Clark’s answer and is the synthesis of K-C’s positioning in the realm of private labels which, in our opinion, best underscores the claim of MORE ideas, MORE quality, MORE value, MORE service, MORE solutions. All those elements necessary to successfully answer to consumer and retailer demands.

And K-C has recently made all the above features available also to retail products, as well as to its own branded products like Kleenex®, Huggies®, Scottex®, Andrex®, Hakle®, Pull-Ups®, Kotex®, Depend®, distributed and appreciated in over 150 countries worldwide for their superior quality, innovation and aesthetics.


PJL: WHAT IS MORE’S MAIN SCOPE?

MN: A further consideration needs to be made regarding partnerships. Today, also retail products must answer in an increasingly efficient and focused way to the requests of an expert and demanding consumer, all the while keeping in mind the managerial complexities of the world of retailing. Kimberly-Clark wants to make its vast expertise available to all retailers who have brand development as their main strategy focus: knowledge of the consumer/buyer and of worldwide market trends, innovative technology, its production and distribution network able to guarantee high-level service and constant collaboration in order to increase the value of the categories in which Kimberly-Clark is active. And all this without losing sight of the necessary cost competitiveness that is a fundamental must today in order to effectively operate in the tissue market.


PJL: WHY HAVE YOU DECIDED TO DEVELOP THE POSITIONING FOR PLS ?

MN: We believe that the answer is implicit in the MORE claim and in our daily effort to distinguish ourselves and translate the promises of our positioning as a superior quality offer in the realm of retail brand products into concrete fact.


PJL: THE SUPPLY OF HIGH ADDED VALUE PRODUCTS FOR RETAILING REPRESENTS A RISK OR AN OPPORTUNITY?

MN: For many retailers, PL products have assumed a strategic importance and constitute an integral part of their positioning in the eyes of the consumer. For this reason, many have already developed their brand by adding products with a high quality profile and with characteristics that are very near – if not totally similar to and sometimes even higher than – the offers of the branded products. All you have to do is observe the shelves of many supermarkets, hypermarkets and even discounters in Europe. Kimberly-Clark recognizes the role of the private label in the scenario of category offer, and proposes itself as qualified partner, in particular for those retailers more greatly interested in the value of the categories present at their sales points.


PJL: WHAT ARE THE MAIN CHARACTERISTICS OF MORE?

MN: As I mentioned, it is the synthesis of our positioning within the retail brand products range: more ideas, more quality, more value, more service, more solutions for successful PLs.


PJL: WHAT IS YOUR RELATIONSHIP WITH RETAILING?

MN: Very good and growing. With some important retailers both on a local and international level, we have started an active collaboration for the development of the offer, integrated with K-C-branded and PL products. This is done through careful reading and segmentation of the market, carried out together with our partners to develop category sales in-line with retailers’ objectives.

It is important to underscore that all this is more easily attainable and successful when the relationship between K-C and the retailer is continuous and consistent in time. Sharing of reciprocal knowledge and the work done in close contact are important ingredients in order to obtain a recipe for success on the market.


PJL: FOR THE TISSUE PRODUCTS RANGE, WHICH DO YOU THINK CAN BE THE MAIN INSTRUMENTS FOR DEVELOPMENT?

MN: Today, we cannot neglect paying attention to the price aspect: for K-C, it is unthinkable to operate differently in a market such as the tissue one, which is becoming increasingly more global and competitive.

Through a careful reading of the market itself, made possible thanks to a large quantity of information relative to consumption, purchasing habits, values and category trends, in the main countries of the world K-C is able to segment the offer with greater value — MORE value. To this, we must add a continuous research for the improvement of the intrinsic (quality and functionality) and extrinsic (presentation, packaging) aspects of the products. Printing and embossing are important factors (as well as lotions, colorings, essences) even if, for a constantly more attentive and expert consumer, they must necessarily go hand-in-hand with technology, research, innovation and product quality.

In this context, we must also pay attention to the environmental issue (K-C’s worldwide policy concerning the environment as well as the FSC product certification), the collaboration in developing packaging solutions and solutions for specific promotional activities, as well as the improvement of logistic aspects in order to offer a better service, more effective and efficient, in answering the increasing managerial complexities in the world of retailing.


PJL: HOW ARE YOU PROMOTING MORE?

MN: Researching and proposing differentiated and differentiating offers is our way of presenting ourselves at meetings with customers and, as mentioned, it is the synthesis of our market offer. It is also the theme of our presentation brochure and the object of advert pages published in retail trade magazines. But it is the facts and the results obtained by our partners, in Italy and abroad, that best speak for themselves and give consistency to our way of working.


PJL: DO YOU THINK THAT THE EXPONENTIAL GROWTH OF PL PRODUCTS HAS CAUSED PROBLEMS FOR K-C BRANDED PRODUCTS?

MN: Both branded and PL categories have a fundamental role in the category’s assortment. PLs constitute an important reality which is growing in basically every market in the world. Especially in those markets where the concentration and globalization of retailers is increasing, all the more so PL products are becoming among the main components of retailers’ strategies for their customers and for conquering and maintaining their loyalty. K-C recognizes this, and decided a long time ago to collaborate through its know-how with those retailers interested in developing the profile of their PL offer. And all this with the professionalism and the effort that have allowed – and still allow today – K-C to continue to develop and consolidate its leadership in the world of its branded products: Kleenex®, Huggies®, Scottex, ®, Andrex, ®, Hakle ®, Pull-Ups®, Kotex ®, Depend ®.

It must also be emphasized that there is usually a time delay between the launch of innovations on K-C branded products and the proposal on the market as PLs.


PJL: HOW IMPORTANT DO YOU THINK THE PRICE FACTOR IS FOR TISSUE PRODUCTS? AND WHAT ABOUT ADVERTISING AND COMMUNICATION?

MN: The price factor is certainly important and in the present consumption scenario, it seems to be all the more so.

But we do not feel that it is correct to think that the consumer perceives only this factor.

In order to be able to come away from the undifferentiated or commodity product, the price must always be tied to quality and innovation. For this reason, K-C is constantly working to improve quality and thus differentiate its products, both branded and PL. Communication plays a key role: the higher the quality and the product’s profile, the greater the need to communicate all this to the consumer through packaging and advertising materials present at the points of sale. For this reason, too, research and development in packaging and POS materials are featured among K-C’s offer also for what concerns PLs. •

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