Kimberly-Clark Competition
Now Viewing Kimberly-Clark's competition in: Personal Care Products Manufacturing (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's major customers? - Typical customers are department stores, mass market retailers, direct sales, specialty retailers, and professional hair and beauty salons.
How does the company reach customers? - Large companies use an in-house sales force, and their own product distribution. Large and small companies use independent distributors.
What marketing vehicles does the company find most effective? - Major marketing vehicles include TV, magazine, and newspaper advertising; direct mail; and instore promotions.
How much does the company invest to advertise its products? - Because brand awareness is critical to the success of many personal care products, the industry spends heavily on advertising and promotions.
Does the company focus on prestige or mass market brands? - Prestige brands are premium-priced products found in high-end department stores. Mass market brands tend to be lower priced and are found in wide distribution in chain drugstores.
What trend has the company seen in pricing for its products? - Strong competition and powerful retailers has kept price increases low for personal care products.
Competitive Landscape
Demand is driven by population growth and consumer preferences. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. The industry is capital-intensive: average annual revenue per worker exceeds $600,000.
Full Industry Overview For Personal Care Products Manufacturing
Business Challenges
CRITICAL ISSUES
Volatility of Raw Material Prices - Raw material price increases and competitive consumer price pressures squeeze margins for personal care products manufacturers. Suppliers pass price increases for surfactants, palm oil, chemical additives, plastic packaging, and other raw materials to finished goods manufacturers. At the same time, strong competition within the cosmetics industry forces manufacturers to absorb higher costs rather than increase retail prices.
Demand Tied to Economic Cycle - Sales of high-end personal care products are susceptible to decreased consumer spending. Luxury items within the industry, such as high-end perfume, makeup, or skin care products, are particularly vulnerable to economic downturns. Consumers tend to reduce discretionary purchases and may switch to less expensive beauty products during tough economic times. Overall personal care products industry production declined during the last recession.
Industries Where Kimberly-Clark Competes
- Consumer Products Manufacturers
- Personal Care Products(primary)
- Health Care
- Health Care Products
- Industrial Manufacturing
- Paper & Paper Product Manufacturing
