Kimberly-Clark’s New (KMB) (PG)

Zacks

GoodNites, a brand of Kimberly-Clark (KMB) has announced the start of a promotional campaign wherein it is going to update the mothers of 4-6 years old kids on usefulness of GoodNites brand underwear for tackling the problem of bedwetting at night.

The management reported that it was found that mothers of several growing kids used training pants for their child during night to combat the problem of bed wetting. The GoodNites pants would be a better alternative to the leading training pant, providing an outstanding fit and more absorbency as well as boost the kids confident.

As a part of the promotional campaign, Kimberly has used a TV advertisement as one of its marketing weapon. In the advertisement the growth of a child is depicted with visuals that show a child getting bigger overnight.

GoodNites Diapers are manufactured by Kimberly Clark and sold under the Huggies brand, designed for children and teenagers who experience bedwetting. The GoodNites brand offers trusted night time protection and has been a market leader for more than 17 years. As of 2009, more than 2.2 million families used the GoodNites brand.

Kimberly Clark, which offers brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend holds the leading position in more than 80 countries. However, the company faces intense competition from other well-established players in the industry, such as Procter & Gamble Co. (PG). Holdings Inc. Consequently, the company is under severe stress to retain its outstanding operating performance.

Currently, we maintain a Neutral rating on the stock on long term basis. Kimberly holds a Zacks #4 Rank, which translates into a short-term Sell rating.

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