Kimberly-Clark 2007 Annual Report Download - page 13

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in the indexes, we are particularly honored by this recognition. We know sustainability delivers
business value, and we are leveraging our strong legacy and foundation in this area to support
our brands and operations.
Now let’s take a look at some of the highlights of each of our four business segments:
Driving Growth in Personal Care Through Innovation
In 2007, our Personal Care brands benefited from fresh marketing approaches supported by a
continuing stream of innovations. We strengthened our leadership position in baby and child
care and adult care, one of our targeted growth initiatives. In fact, sales and operating profit
grew at a double-digit rate for Personal Care.
In Europe, we supported the diaper and baby wipes businesses by creating an innovative
marketing strategy that included teaming up with our customers’ moms-and-babies clubs,
allowing us to create a dialogue with expectant and new mothers. In North America, we
supported the Huggies brand with alternative media, including on-demand video programming
and customized in-store promotions, as well as traditional advertising. Our marketing was
underpinned by improvements in the shape and fit of our premium-tier Huggies diapers,
which, together with strong performance in baby wipes, helped drive high single-digit volume
gains across these businesses in North America and Europe.
In adult care, innovations that enhance discretionŸ by increasing protection, the category’s
No. 1 consumer needŸ have been made to both the Poise and Depend brands. That helped
K-C improve its competitive position in this $2 billion global category, with the North American
business recording mid-single-digit volume growth.
Progress against two other targeted growth initiativesŸ accelerating growth in D&E markets and
strengthening our regional positions in feminine careŸ also contributed to Personal Care’s
strong performance. D&E Personal Care sales climbed almost 21 percent in 2007. Among those
countries we identify as BRICITŸ Brazil, Russia, India, China, Indonesia and TurkeyŸ China’s sales
grew the fastest, with growth exceeding 40 percent. K-C has a presence in more than 30 major
cities there, and our focus on the premium diaper segment is reaping benefits, with leading
market shares in the key cities of Beijing and Shanghai.
In Russia, Personal Care sales increased more than 30 percent in 2007. Growth there and
throughout Eastern Europe for branded health and hygiene products supports investment in
production capacity, and K-C began construction of its first manufacturing facility in Russia in
September 2007. The facility is slated to open in 2009.
We continue to focus on creating value in feminine care in D&E countries, leveraging successful
strategies across regions. For example, product development teams in Latin America and
Southeast Asia collaborated to create a highly innovative ultrathin product with greater
absorbency for greater comfort. Backed by an insight-driven marketing campaign emphasizing
feminine aesthetics and packaging, the new product was launched under such brand names as
Kotex and Intimus in nine countries in South America and contributed to double-digit volume
growth for K-C's feminine care business in Latin America.
11