Monday, January 25, 2010

Kimberly-Clark CEO: People Want Value, Innovation

ABC News and the Associated Press report that Kimberly-Clark Corp. CEO Thomas Falk did things most executives ran from during the recession: He plunged money into innovation and marketing, and raised prices. But just as Falk went against traditional means of running a large corporation during a recession, ABC reports that Falk's paid off.

Part of Falk's success lies in how he conveyed value to shoppers:

Q. You said that a lot of consumers are focusing on value right now. How do you convey the message of value to them?

A. I was in the Philippines not long ago, where we do some advertising to consumers on how a Huggies diaper would last 10 hours. A mom who was buying a very low-tier diaper in a market like that would know that a private-label or a low-tier brand wouldn’t last 10 hours. You communicate it that way as a perception of value.

If you look at marketers around the world across all categories, you see more marketing dialing up value messaging. We are all trying to communicate to the consumer that we are a good value relative to their other alternatives.

For more of Falk's interview, please click here.

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