Profits are Casualties of Diaper Wars

Discussion
Jan 28, 2003
George Anderson

By George Anderson


Kimberly-Clark, manufacturer of Huggies, Pull-Ups and Goodnites, reported flat sales and lower profits for the fourth quarter due, in part, to the company’s battle with Procter & Gamble for the US disposable diaper and training pants market.


Reuters reports that “Heavy promotion (coupons and retailer incentives across the company’s consumer brands) cut Kimberly-Clark’s selling prices by about 2 percent, offsetting a 2 percent gain in unit volume, a measure that factors out price and currency fluctuations.”


Moderator’s Comment: What is your take on the diaper
war?


Product innovation and performance wins the day in this
category. Take it from those that know, there is no amount of discounting that
can overcome diapers that leak.
[George
Anderson – Moderator
]

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