tiểu luận identify the marketing strategy of kotex of kimberly clark vietnam

These valueshave helped establish Kimberly-Clark as a leading-edge global company that producessuperior health and hygiene products used by families and professionals from allwalks of li

Subject: PRINCIPLES OF MARKETING

Identify the marketing strategy of Kotex of Kimberly-Clark Vietnam

Da Nang, June 2023

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3 History of formation and development: 5

II Marketing environment analysis: 6

III Customer-oriented marketing strategy 24

1 Target market selection strategy 242

1.1 Targeting Strategy: 24

1.2 Segmentation Strategy: 25

1.3 Positioning Strategy: 26

2 Brand positioning strategy 26

2.1 Select properties of value axes 26

2.2 Differentiating points, competitive advantages of products, brands 27

2.3 General positioning strategy 30

IV Marketing mix: 30

3.1 Distribution Channel Length Strategy 33

3.2 Distribution Channel Width Strategy 34

4 Promotion: 34

4.1 Kotex - Mini-Meow – “Colorful Party” [10] 34

4.2 Kotex - Blood and Fire Generation frankly normalizes the topic ofmenstruation [11] 37

V Summary: 39

VI References 41

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I.Overview of Company1 Introduction:

Company: KIMBERLY-CLARK VIETNAM LTD

Vietnam Head Office: Level 18, Etown Central Building, 11 Doan Van BoStreet, Ward 12, District 4, HCMC.

Tel: 0839-979639Fax: 0839-979600

Outstanding brands: Kimberly-Clark, Kleenex, Huggies, Kotex, Depend, Scott,Viva, Cottonelle, Andrex, Pull-Ups, GoodNites, Little Swimmers

Website: https://www.kimberly-clark.com.vn/en/our-company/

Founded in 1872 and based in the US, Kimberly-Clark and its well-knownglobal brands are an indispensable part of life for people in more than 175 countries.Kimberly-Clark has invented 5 out of the 8 categories it competes in, includingFeminine Sanitary Pads in the year 1920 With well-known and trusted brands,Kimberly-Clark holds the No 1 or No 2 share position in more than 80 countries Ithas five billion-dollar brands: Huggies, Kotex, Kleenex, Scott and Cottonelle.

In Vietnam, Kimberly-Clark has been present since 1991: Huggies, a trusted diapering brand and Kotex, a feminine care brand that has been providingsuperior comfortable protection to women It brings its best to the Vietnameseconsumers with the help of 650 Kimberly-Clark Vietnam associates, drawing uponconsumer insights across the World and R&E facilities in the US, Korea andSingapore.[ CITATION Kim \l 1033 ]

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Each day, around the globe, it is dedicated to inspiring each other and helpingindividuals experience more of what’s important to them.

It’s why Kimberly-Clark brings together people who think differently to leadthe world in the essentials for a better life.[ CITATION Kim1 \l 1033 ]

2.2 Mission:

“Kimberly-Clark has adhered to a set of simple yet insightful valuesestablished by our founders – quality, service and fair dealing These are the standardsof performance by which our leadership and employees are measured These valueshave helped establish Kimberly-Clark as a leading-edge global company that producessuperior health and hygiene products used by families and professionals from allwalks of life and cultures around the world.”[ CITATION Com \l 1033 ]

3 History of formation and development:

Kimberly-Clark Vietnam’s story starts in 1991 The initial operations werecarried under the name of TN VINATHAI CO LTD In 1991/92, company introducedKotex Softina to the Vietnamese consumer and it quickly became the #1 brand inVietnam market Production lines were located both in Hanoi and HCMC.

Between 1992 and 2000, it also launched Kotex Tulip and Kotex Freedom withlots of success In 2000, it became a 100% FDI company: Kimberly-Clark VietnamLtd (KCV), wholly owned by Kimberly Clark World Wide Inc.

In 2003, construction started at the Binh Duong Mill at the Vietnam-SingaporeIndustrial Park (VSIP) and all manufacturing was quickly consolidated at onelocation.

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In 2003, KCV introduced the well-known KOTEX XÌ TIN brand.

Between 2004 and 2010, together with Kotex XìTin brand, KCV hasintroduced a number of famous brands: Kotex White, Kotex White Pro, Kotex NaturalCare and imported Kleenex and Huggiesbrands In May, 2011, the first Diapermachine was installed at the Binh Duong Mill The Huggiesrange of Nappies, TapeDiapers (HuggiesDry) and Diaper Pants (HuggiesDry Pants) grew rapidly to becomeone of the leading brands in Vietnam.

In 2016, KCV celebrates 25 years in Vietnam For the past 25 years Clark have been providing the essentials for a better life for Vietnam consumers and itpromises to continue to do so in the future.[ CITATION Kim2 \l 1033 ]

Kimberly-II.Marketing environment analysis:1 Microenvironment:

1.1 The company

1.1.1 The marketing departments:

Its marketing department is responsible for developing and executingmarketing strategies that promote the company's brands and products, reach targetaudiences, increase brand awareness, and drive sales.

The marketing department of Kimberly-Clark may be organized into differentteams, each responsible for a specific product category or brand These teams mayinclude product development, advertising, public relations, market research, digitalmarketing, social media, and promotions.

The marketing department of Kimberly-Clark may also work closely with otherdepartments such as sales, finance, and supply chain to ensure that the marketingstrategies are aligned with the company's overall goals and objectives

Overall, the marketing department of Kimberly-Clark plays a critical role indriving the company's growth and success by developing and executing effectivemarketing strategies that engage customers and build brand loyalty.

1.1.2 The finance departments

The finance department of Kimberly Clark is responsible for managing thecompany's financial operations and ensuring that its financial goals are met This

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department oversees various areas, including accounting, budgeting, treasury, tax, andfinancial analysis.

Accounting: They record and report all financial information accurately andensure that the books are balanced This information is used to prepare financialstatements that provide insights into the company's performance.

Budgeting: They work with other departments to set financial targets andallocate resources accordingly This helps the company plan for the future and makeinformed decisions about investments and expenditures.

Treasury: They ensure that there is enough money available to meet thecompany's obligations, such as paying suppliers and employees They also manage thecompany's investments, making sure that they are safe and profitable.

Tax: They file tax returns and manage tax payments They also provide adviceon tax-related matters and help the company minimize its tax liability.

Financial Analysis: They analyze data to identify trends and patterns, and theyprepare reports that help decision-makers understand the financial implications oftheir choices This information is used to guide strategic planning and inform businessdecisions.

1.1.3 The sales departments

The sales department of Kimberly Clark is responsible for selling thecompany's products to customers across the world They work with other departmentsin the company to identify customer needs, develop strategies to meet those needs,and close deals Their goal is to build strong relationships with customers, increaserevenue, and ensure customer satisfaction by providing high-quality products andservices.

1.2 The suppliers

Kimberly Clark works with many suppliers around the world to get thematerials and parts it needs to make its products The company has high standards forquality and sustainability, so it carefully selects its suppliers based on things like theirfinancial stability and their environmental and social responsibility practices.

To ensure a reliable supply chain and promote innovation, Kimberly Clarkoften builds long-term relationships with its suppliers By working closely withsuppliers, the company is able to make sure that it has access to the latest technologies

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and materials, and can produce high-quality products while maintaining responsiblebusiness practices Overall, Kimberly Clark values its suppliers as important partnersin its business success.

1.3 Marketing intermediaries

Marketing intermediaries are third-party companies that facilitate thedistribution of products from the manufacturer to the customer Kimberly Clark workswith several types of marketing intermediaries to help get their products into the handsof consumers around the world.

Here are a few examples of marketing intermediaries that Kimberly Clarkworks with:

- Retailers: Kimberly Clark sells many of its products through retailers, suchas supermarkets, drugstores, and convenience stores

- Wholesalers: Kimberly Clark works with wholesalers to distribute itsproducts to smaller retailers who may not have the resources to buy directlyfrom the company.

- Distributors: Kimberly Clark works with distributors to help streamline thedistribution process and make sure that its products are available in a widerange of locations.

- Online Marketplaces: Kimberly Clark also works with various onlinemarketplaces, such as Amazon and Walmart, to sell its products directly toconsumers

Overall, by working with a variety of marketing intermediaries, KimberlyClark is able to ensure that its products are widely available to consumers around theworld It allows the company to focus on product development and production whileleaving the distribution and sales aspects to these intermediaries.

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1.4 Competitors1.4.1 P&G

P&G targets young and easy-going consumers, which represent 45% ofVietnam's population under the age of 25 Once they use P&G products, they will beintroduced to more products that will follow them throughout their lives.

Marketing strategy

On June 1, 2012, a kindergarten was opened in Minh Phuong village, which isabout 50 miles from Hanoi At first glance, this kindergarten was no different frommany others.

However, inside the classroom, everything is completely different Each classhas a silver sign near the entrance with rare words that seldom appear in textbooks:"Gillette is the best"; "Pampers brings peaceful sleep" or "Pantene shines smoothly".

All of the signs bear the brand of products that the Procter & Gambleconglomerate is selling in Vietnam The company's employees have contributed about80% of the total cost of building the school at a cost of $100,000 The world's largestconsumer goods manufacturer is using all means, from fundraising to advertising ontelevision or banners calling for clean hand washing to gain Vietnamese customers.

Winning with all customer segments

P&G launched a series of advertising campaigns on TV, the most influentialmedia channels In 2011, P&G representatives traveled across Vietnam on a colorful

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truck with the Rejoice super smooth shampoo logo, Olay skin care cream, Gilletterazors to recruit contestants for the first season of Vietnam's Got Talent, which P&Gwas the sole sponsor The company also took a boat to reach consumers in theMekong Delta region, selling low-priced disposable products such as Downy fabricsoftener.

P&G has opened two factories in Vietnam, the latest being a diaper productionplant with over 900 employees in 2010 Like many other global companies operatingin Vietnam, P&G organizes many charitable activities to provide education andhealthcare services to impoverished communities

1.4.2 Johnson & Johnson

In Vietnam, both the company and its products have been awarded the"Outstanding Enterprise" and "Top 100 Best Products for Families and Children in2015" prizes

Johnson & Johnson's products are popular and widely sold throughout thecountry, appearing in many retail locations from small stores to supermarkets andmajor shopping centers.

Johnson & Johnson operates over 265 active companies in more than 60countries worldwide, with a workforce of over 126,000 full-time employees

The company has established a modern production system and equipped itsfactories and workshops with state-of-the-art machinery to meet the global demand ofconsumers.

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1.4.3 Diana Unicharm

Established in 1997, Diana Unicharm is a leading company in themanufacturing of women's and children's care products in Vietnam, with famousbrands such as Diana, Bobby, MamyPoko, Moony, Caryn, Care, and E'Mos Byutilizing advanced technology from Japan and striving to deliver the best qualityproducts to customers, its brands have always been well received by consumers

Unicharm Corporation strives to serve all customers around the world, frominfants to the elderly, with a range of products and services that provide care not onlyfor their physical well-being but also their emotional well-being, helping themalleviate the burdens of everyday life and achieve their dreams

It strives not only to support its customers through its business operations butalso to enhance the company's value by promoting standard management to providevalue for all related parties, including shareholders, joint venture partners, affiliates,and the entire community.

1.5 Publics

1.5.1 Financial publics

With the constant growth of Kim Berly-Clark, numerous large and professionalinvestors worldwide have visited and conducted research on the company, with manythen becoming shareholders In addition, there are many banks that are also financialpublics of the enterprise.

1.5.2 Media publics

The main purpose is to provide information about consumer products primarilybased on paper through various media such as newspapers, magazines, television…

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- Ministry of Finance: This is the management agency for finance and taxationin the country, and as a large company with a high volume of business, Kimberly-Clark will have to comply with the regulations of the Ministry of Finance regardingtaxation, finance, and accounting.

- Ministry of Industry and Trade: Kimberly-Clark manufactures many dailyconsumer products such as toilet paper, tissues, and sanitary napkins, so the Ministryof Industry and Trade will play an important role in managing, monitoring, andevaluating the quality of the company's products.

- Food and Drug Administration: This is the management agency for food anddrug safety, and as Kimberly-Clark produces many products related to this area, thecompany must also comply with the regulations of this agency.

=> These government publics will have an impact on the business activities ofKimberly-Clark, and the company must comply with the regulations and laws of thesegovernment agencies to ensure sustainable and favorable business operations.

1.5.4 Citizen - action publics

Citizen-action publics (CAPs) are groups of individuals who organizethemselves around a social issue and take action to address it In the context of KimBerly-Clark, a company that produces personal care and hygiene products, CAPsmight form around concerns related to the environmental impact of the company'smanufacturing processes, the safety and transparency of its ingredient sourcing, or thelabor practices of its suppliers.

Overall, CAPs play an important role in holding companies accountable fortheir actions and promoting responsible practices that align with the values andinterests of their stakeholders.

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1.5.5 Local publics

Kimberly-Clark has several local publics, including:

1 Customers: Both consumer and business customers of Kimberly-Clark arelocal public They play an important role in determining new products and servicesand provide feedback on product quality and user experience.

2 Suppliers: Kimberly-Clark's suppliers are also important local publics,providing raw materials and components for products Collaboration and goodrelationships with suppliers are essential to ensure a stable supply and good productquality.

3 Community: The community is an important local public of Kimberly-Clark,especially in the areas where the company operates production facilities The companyneeds to ensure that its activities do not harm the environment and the health of thecommunity.

4 Employees: Kimberly-Clark employees are important local publics, playinga crucial role in producing and marketing products The company needs to ensure thatemployees are treated fairly and supported to effectively perform their jobs.

5 Government agencies and other interest groups: Government agencies andother interest groups are also important local publics of Kimberly-Clark, playing arole in determining regulations and policies related to products and related activities.The company needs to interact and collaborate with these groups to comply withregulations and make appropriate business decisions.

1.5.6 Internal publics

The internal publics of Kimberly-Clark include:

1 Employees: As a large company, Kimberly-Clark has thousands ofemployees worldwide The company needs to focus on providing a safe, attractive anddevelopment-oriented work environment for employees.

2 Related partners: Kimberly-Clark needs to maintain relationships with itspartners, including suppliers, distributors and affiliated companies.

3 Shareholders: Investors and shareholders play an important role indetermining the company's development direction.

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4 Customers: Kimberly-Clark's customers are the end consumers of itsproducts and services, so the company must provide products and services that meetcustomer needs.

5 Community: Kimberly-Clark must maintain a good relationship with thelocal community, including sponsoring activities and charitable programs.

1.6 The customer

1.6.1 Consumer market

The consumer target audience of Kimberly-Clark consists of individuals andhouseholds who use everyday products such as toilet paper, tissue paper, diapers,personal care and hygiene products These products are widely distributed worldwide,but mainly focused on developed markets such as Europe, North America and Asia.

1.6.2 Business markets

Business and organizations: Kimberly-Clark provides hygiene, protection, andhealthcare products for businesses and organizations such as hotels, hospitals, schools,factories, offices, etc.

Kimberly-Clark also offers training and support services to help governmentorganizations effectively use its products and comply with relevant regulations andstandards.

Overall, Kimberly-Clark's focus on innovation, quality, and sustainability hasmade it a trusted supplier of personal care and hygiene products to governmentsaround the world.

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1.6.5 International markets

Kimberly-Clark is one of the world's leading companies in the production anddistribution of consumer goods and health protection materials Kimberly-Clark'sproducts are sold in over 175 countries worldwide, including emerging markets suchas China, India, Brazil and Russia.

Kimberly-Clark has a wide sales network, including retailers worldwide as wellas online and offline distribution channels The company has invested heavily inemerging markets and has developed many marketing strategies to strengthen itsbrand power worldwide.

An overview of Kimberly-Clark's international market shows that the companyis growing strongly worldwide and has great potential for future growth

2 Macroenvironment:

2.1 Political

The factors that can affect Kimberly-Clark Corporation's long-term profitabilityin a particular country or market are heavily influenced by political factors Kimberly-Clark Corporation is operating in Personal Products in more than dozen countries andexposes itself to different types of political environment and political system risks.Before entering or making an investment in a particular market, Kimberly-ClarkCorporation can carefully consider the following factors.

2.1.1 Political stability

A stable and welcoming business climate with predictable market growthtendencies is provided by high political stability Political turmoil, however, scaresaway investors and undermines stakeholders' trust in the economy, which has a

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negative impact on organizational performance Currently, Kimberly-Clark hasoperations in a number of nations, each of which is experiencing political unrest.Growing political tensions and instability on a worldwide scale may have an impacton the growth of the gold industry and reduce Kimberly-Clark's prospects forexpansion.

Sanitary napkins are a type of goods sold by the government of the SocialistRepublic of Vietnam The Vietnam Socialist Association allows circulation and is notincluded in the list of prohibited goods Women's sanitary napkins can be classifiedunder tax code 4518402000, tax rate Import duty is 22%, VAT rate: 10% However, inorder to be circulated, sanitary napkin products must be tested and certified to be safefor the health of the user Kolex pad products do not face any major legal obstacleswhen joining the Vietnamese market.

2.1.2 Changingpolicies

Frequent changes in government policy exacerbate uncertainty and aredetrimental to business growth Studying current political trends in the nation iscrucial for Kimberly-Clark since shifting political power could affect the government'spriorities for the growth of various industries.

2.1.3 Protests/pressure groups and governance system

Kimberly-Clark should closely examine protests by pressure organizations,social/environmental activists, and labor unions, as such protests have a significanteffect in policymaking Close collaboration with such groups may enhance theKimberly-Clark.’s ability to collaborate with the community and achieve long-termcorporate goals Furthermore, a well-developed governance system with a democraticpolitical atmosphere improves the business environment for international corporationslike Kimberly-Clark.

2.1.4 Bureaucracy and corruption

Bureaucracy and corruption negatively influence the business environment.Operating in countries with high corruption levels and weak law enforcement makesthe business environment increasingly unpredictable for Kimberly-Clark Due tocompromised public trust on business entities and broader political and economicframework A number of corporate procedures, such as contracting, licensing,engaging in dishonest business practices, and filing many lawsuits, can be affected bycorruption If Kimberly-Clark decides to join markets with a corrupt economic and

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political system, it would risk the organization's long-term development bydestabilizing society, undermining the justice system, and jeopardizing the rule of law.

2.2 Economic

2.2.1 Economic/business cycle stage

Growing economies provide Kimberly-Clark with numerous prospects forexpansion Similarly, it is critical to comprehend the industry life cycle stage.Kimberly-Clark's business performance is determined by the amount of moneyinvested by the host country government on essential infrastructure development

In Viet Nam, it is estimated that GDP in 2022 will increase by 8.02% (in thefirst quarter, by 5.05%; in the second quarter by 7.83%; in the third quarter by13.71%; in the fourth quarter by 5.92%) over the previous year due to the economy.The economy recovered and experienced the highest growth rate between 2011 and2022.

The service sector recovered and expanded rapidly, with the 2022 growth ratereaching 9.99%, the highest in the period 2011-2022 A variety of market servicebusinesses expanded rapidly, significantly contributing to the overall economy's totaladded value growth rate, as seen below: Wholesale and retail climbed by 10.15% yearon year, accounting for 0.97 percent of the total score.

The GDP scale in 2022 is expected to be VND 9,513 billion, or USD 409billion, at current values At current rates, GDP per capita in 2022 is anticipated to be95.6 million VND/person, or $4,110 USD, a rise of 393 USD from 2021.[ CITATIONTổn \l 1033 ]

2.2.2 Inflation/employment/interest/exchange rates

The rate of GDP growth will impact Kimberly-Clark's ability to pursue term growth strategy A high GDP also suggests that consumers are more prepared topay more for the goods and services available High unemployment may indicate thatcheaper labor is available in excess Operating in such a market can lower theproduction cost of Kimberly-Clark The firm should also carefully evaluate interestrates and their impact on borrowing ability and investment attitude The high interestrate will promote an attitude of investment and expand Kimberly-Clark's chances forgrowth Finally, currency rate fluctuations can have an impact on profitability and

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international trade The high fluctuation on local currency can be a cause of seriousconcern for Kimberly-Clark.

In Viet Nam, the work force aged 15 and over was anticipated to be 52.1million in the fourth quarter of 2022, a 0.3 million rise over the previous quarter and a1.4 million increase over the same period last year Generally, in 2022, the labor forceaged 15 and over is 51.7 million people, an increase of 1.1 million people compared tothe previous year.

In general, the working-age unemployment rate in 2022 is 2.32% (estimated inthe fourth quarter of 2022), with the urban region accounting for 2.79% and the ruralarea accounting for 2.03% The youth unemployment rate (from 15 to 24 years old) isestimated at 7.72% (the fourth quarter of 2022 is 7.7%), with urban areas accountingfor 9.7% and rural areas accounting for 6.68% The underemployment rate of laborersin working age is 2.21% (in the first quarter of 2022 it is 1.98%), of which theunderemployment rate in urban areas is 1.7%; the underemployment rate in rural areasis 2.51%.[ CITATION Tổn \l 1033 ]

2.2.3 Labor market conditions

Wage rates and the availability of skilled workers are determined by labordemand and supply Kimberly-Clark must research and forecast labor marketdynamics in order to understand how to attract outstanding employees and harnesstheir abilities to boost business success When labor markets are flexible, Kimberly-Clark can take advantage of higher labor productivity On the other side, operating inconstrained labor markets may result in labor wage and other issues raised by stronglabor unions.

2.2.4 Financial markets efficiency

The global expansion strategies of the Kimberly-Clark are influenced byfinancial market efficiency since operating in highly efficient financial markets leadsto enhanced liquidity and increased ability to penetrate new markets Kimberly-Clark'scapacity to raise money at reasonable prices will be determined by the health andefficiency of financial markets.

Vietnam's financial market component index was at 0.103 points, just higherthan Laos, Cambodia and lower than other countries in the region such as: Indonesia(0.259); Philippines (0.381); Malaysia (0.617); Thailand (0.612); Singapore (0.695);China (0.747) Vietnam's financial intermediaries component index is better than the

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TTTC index and shows higher development than Laos, Cambodia and Indonesia, butlower than other countries in the region (Malaysia, Thailand, Singapore, China)[ CITATION BộT \l 1033 ]

2.2.5 Economic structure

The business practices of the Kimberly-Clark are influenced by the prevailingeconomic structure The economic and regulatory environment under a monopolisticor oligopolistic structure will differ from that of monopolistic and perfect competition.

2.3 Social

2.3.1 Demographic trends

For global commercial enterprises like Kimberly-Clark, changes indemographic patterns including the aging population, migration trends, andsocioeconomic characteristics are of the utmost importance When selecting themarket segment or market segments with the highest growth potential, Kimberly-Clark can benefit from researching the demographic features

Vietnam's population is flooded with young, rapidly growing population, thepopulation pyramid is triangular in shape potential and rapidly growing market Thestandard of living of the Vietnamese population is below average, but this this doesn'thave much of an impact on Kotex's customer segment.

2.3.2 Equality and power distance

Within any culture, the power distance demonstrates the acceptability ofhierarchy and wealth disparity When entering markets with high or low powerdistance, Kimberly-Clark must alter its business management techniques Inequality ischanging the political structure in many nations, which has major ramifications formultinational commercial firms like Kimberly-Clark.

2.3.3 Gender Roles

Kimberly-Clark must research previously ascribed gender roles in order toharmonize its marketing and communication methods Marketing and human resourcetactics will differ in a conventional, patriarchal culture with well defined gender rolesfrom ones with fewer gender stereotypes.

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2.3.4 Societal norms and class distribution

In Vietnam, there is no official classification of society into classes However,the society also recognizes a number of different classes of the population.Consumption habits of people in the same class are frequently comparable People ofthe upper class do not eat at popular restaurants They buy expensive consumer goods,live in large houses, play tennis, and ride luxury cars

2.3.5 Online shopping

Recent years, Vietnam's e-commerce market has been increasingly expandedand has become a popular business method With the diversity of object activitymodels, the process of providing goods and services, together with the support ofInternet infrastructure, and the application of modern technology, e-commerce hasbecome an important pillar of digital economic development.

In Vietnam, according to reports from Google, Temasek and Bain & Company,the scale of e-commerce is currently worth 21 billion USD and is expected to increaseto 57 billion USD by 2025 The report also records up to 8 million new digitalconsumers since the outbreak of the COVID-19 pandemic

In the context of COVID-19, Vietnam's e-commerce market has achievedremarkable growth, becoming one of the fastest growing and most attractive e-commerce markets in Southeast Asia In 2020, the growth rate of Vietnam's e-commerce will reach 18%, the scale will reach 11.8 billion USD and is the onlycountry in Southeast Asia with double-digit growth

While global retail decreased due to COVID-19, e-commerce retail salesincreased Statistics and forecasts from 2019 to 2024 show that cross-border e-commerce continues to grow impressively Total retail sales increased by 3.8%annually on average; growth in retail sales via e-commerce increased by 15%; Theproportion of e-commerce in total retail sales increased by 23.4% [ CITATION eCo \l1033 ]

2.3.6 Spending patterns and behavior

The buying power of money influences consumer spending habits It is criticalto understand customers' preferences and spending habits by studying and anticipatingtheir purchasing power based on pertinent economic factors Consuming the supplied

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product is considered a status signal in certain communities, whereas others consumethe same things for utilitarian reasons

2.4 Technology

The Kimberly-Clark Group has a unique competitive advantage in terms oftechnological advancement and the business continues to leverage and engage ininnovative processes to enhance the business and operations cycle.

2.4.1 Internet penetration

High penetration of the internet used for personal and social life along withprofessional responsibilities Most people own a smartphone to access the internet andalso have access to other devices According to a survey by Statista, there are about61.3 million smartphones in use in Vietnam and are in the top 10 countries with thehighest number of smartphones.[ CITATION VOV21 \l 1033 ]

The Kimberly-Clark Group has also leveraged the high penetration of theinternet to reach consumers as well as marketing and advertising strategies to be ableto interact directly with consumers and gather feedback.

As a result, higher internet penetration has helped the Kimberly-Clark Groupimprove quality and distribution, as well as enable it to participate in strategiccommunications and marketing processes.

2.4.2 Use social media

Today, the percentage of young and middle-aged people widely using socialmedia to connect is increasing, as of June 2021, the total number of Facebook users inVietnam is nearly 76 million, accounting for more than 70 % of the nationalpopulation So businesses like Kimberly-Clark Corporation use it to collect data andinformation of consumers.[ CITATION HR121 \l 1033 ]

The Kimberly-Clark Group also interacts, collects feedback, and communicatespromotions to customers through official social media channels recruitment purposes,which highlights the changing trend in the business community towards socialnetworking.

2.4.3 Invest in R&D

Kimberly-Clark has started using the Marketing Cloud that allows the companyto talk to consumers, identify influencers, set standards, and build communities The

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company's products receive thousands of mentions on social platforms, and itleverages the Marketing Cloud to build R&D reports from social data to identifyproduct issues and generate information in detail.

2.5 Environment2.5.1 Recycling

Consumers in Vietnam are more and more aware and require a way to handlerecycled products, so they demand recycled products for consumption.

Kimberly-Clark Corporation has launched specific locations to dispose ofrecycled products Kimberly-Clark Corporation, like many other companies, is alsointroducing a new line of recycled products to satisfy consumers.

2.5.2 Waste management

The Kimberly-Clark Group should be affiliated and registered with wastemanagement agencies and organizations so that it can comply with regulations,maintain inspection and avoid any future problems.

The Kimberly-Clark Group, from an environmental sustainability point ofview, has a controlled and regulated waste management process and treats waste in anenvironmentally friendly manner.

2.5.3 Green consumption

Consumers in the country and across all markets in Vietnam are increasinglyfavoring green products and services, i.e produced and marketed in environmentallyfriendly and sustainable ways and methods

Kimberly-Clark Group regularly participates in environmentally friendly CSRactivities The Kimberly-Clark Group has also introduced a line of green products – avariation on existing products The company plans to gradually add weight to its greenproduct line to increase its role in environmental sustainability such as Huggies Pure& Natural, KC Green and Scott Naturals.

In addition, the Kimberly-Clark Group also contracts with suppliers anddistributors in its post-integration chain who adhere to strong principles regardingenvironmental sustainability.

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2.5.4 Invest in renewable energy

The country as a whole and all its industries are gradually turning to renewableenergy for their operations and business processes to reduce the carbon effect.

The Kimberly-Clark Group and related industry players are increasingly usingsolar and hovercraft for business process and operations management purposes.

The Kimberly-Clark Group has a company-controlled hydroelectric plant – ona small scale – to support its production operations.

2.6 Legal

2.6.1 Health and safety law

Kimberly-Clark must ensure the laws of health and safety for consumers, asshown by the careful testing of cotton wool, desiccant, and fragrance particles used inits products It also must ensure safety for the skin in sensitive areas, do not causeirritation, itching when used.

2.6.2 Environmental Protection law

In Article 72 of Vietnam's environmental protection law, the generalrequirements for solid waste management are specified as follows:

Waste that meets the standards and technical regulations of rawmaterials, fuel and materials in accordance with the law on product andgoods quality shall be managed as products and goods and allowed to beused directly as raw materials, fuels and materials for productionactivities

The owner of hazardous waste and ordinary industrial solid waste isresponsible for reusing, recycling, treating and recovering energy fromthe waste or transferring it to an establishment with appropriateenvironmental functions and permits suitable for processing.