Kimberly-Clark and Procter & Gamble are increasing prices on diapers and baby wipes. Though one survey showed that only 10% of shoppers are switching to less-expensive brands, a price increase of 7% for P&G's Pampers and 3% to 7% for Kimberly-Clark's Huggies carries risk for the companies.
Kimberly-Clark Corp. has signed a sponsorship agreement with social-networking site Meetup for an initiative to promote its baby brands to young mothers. American Express also has signed an agreement with Meetup to sponsor live meetings of small-business owners.
Kimberly-Clark's Scott brand hit $1 billion in U.S. sales in 2006, perhaps marking the first time a value brand reached that number. A Kimberly-Clark executive and consultant offer marketing tips to take from Scott's example.
Kimberly-Clark Corp. announced on Monday that it will raise the price of its Huggies brand diapers by 4.6%, matching a recent increase by rival Procter & Gamble.
Private label brands have made even larger price increases lately -- 7%
-- all reflecting a hike in raw material costs, primarily petroleum.
The Huggies and Pampers brand names are set to appear on toiletries for babies and children, with new products to include shampoo and disposable washcloths. One brand consultant questioned the move, but a Kimberly-Clark marketing manager responsible for the Huggies line said the company already has seen success with the brand extension.