“Tips for Success”What Ogilvy & Mather has learned about launching packaged goods brands October 1996 This presentation is designed to help local K-C and O&M teams build enduring brands in new markets. We have summarized our learning from many global packaged goods brands to provide “Tips for Success” in fast moving consumer goods categories. Purpose Since Ogilvy & Mather introduced Brand Stewardship, it has become an integral part of our daily work on Kimberly-Clark around the world. Brand Stewardship is a process that helps us better understand the unique relationship between the product and the consumer. All of the following recent “Tips for Success” demonstrate how this process has helped us in Building Global Brands. Background 1. Know The Market 2. Know The Consumer 3. Position Your Brand For Optimal Results 4. Make Your Advertising As Compelling As It Can Be 5. Use Media For Brandbuilding 6. Be Creative In Product Distribution 7. Maximize Consumer Value 8. Know Your Enemy 9. Plan, Plan, Plan! Agenda Tip: Before entering the market, make a careful assessment of category and brand volume potential. Identify volume sources: will sales come primarily from category growth or stealing share from competitors? which market segment has the greatest potential? Note: Answers to these questions help indicate marketing strategy and advertising directions. 1. Know The Market Example of a calculation of category potential for disposable diapers: User population (annual births, length of time using diapers) Use-up rate (number of diaperings per day) Disposable penetration (percent of diapering versus cloth) Note: Current usage levels and trends determine how much a new  brand can realistically expect to grow the category. If growth potential is lower than your brand’s volume objectives, significant share will need to be taken from existing brands.  This is very difficult if competing brands are well established. 1. Know The Market - Category/Brand Volume Potential How this Tip for Success helped us launch Huggies in the U.S.: When Huggies was introduced in the U.S. in 1979, immediate category growth was limited. annual birth rate: -3%, declining slowly length of time using diapers: about 24-28 months, stable average diaperings per day: averaged 7+ per day, no special trends. disposable penetration: about 60% of total diaperings, growing 2-3% annually Decision: Target Huggies to take share from the  category leader, Pampers. 1. Know The Market - Category/Brand Volume Potential