Why are major company, like Kimberly-Clark, moving toward relationships in which the supplier managers inventory levels at the retailer? 2. When should Kimberly-Clark handles its logistic needs in-house, and when should external source be used? 3. What other types of business partnerships that Kimberly-Clark can be used to improve supply chain performance? 4. Can pressure such as in the Kimberly-Clark case be used to Kimberly-Clark’s advantage? Traditionally, the retailer handles the replenishment process, and the supplier has no clear information on the demand side or advance warning about out-of-stock situation.
As a result, the supplier tends to maintain a certain level of safety stocks as a “buffer” in order to facilitate sales and the customer would also keep some safety stocks in case of none-supply that causes long supply chain and lacks of flexibility. Through supplier managed inventory programs, suppliers get to know the actual supply and demand and thus can deploy better logistic plans to response the fluctuating market situation. The Cross Media Optimization Study (XMOS) The XMOS study answers the question “What is the optimal media mix to achieve marketing goals? ” Marketers and advertising agencies can now begin to understand which advertising vehicles, at what frequency, optimally support campaign objectives. Using a research methodology endorsed by the Advertising Research Foundation and recognized by ESOMAR (European Society for Opinion and Marketing Research), the XMOS study measures online advertising alongside offline advertising to determine the optimal mix and weight of each medium. The Campaign Kimberly-Clark introduced the Kleenex Soft Pack with television, print, and online.
Advertising. The objective of the campaign: build awareness and drive trial. The target: previously hard-to-reach consumers. The Challenge Kimberly-Clark wanted to measure the ability of online advertising to reach segments of their target market that their television and print ads just were not covering. How They Did It The company allocated 75% of its overall advertising dollars to television, 23% to print, and 2% to online. Then they analyzed each medium’s effectiveness in boosting aided brand awareness, brand image, purchase intent.
And bundled trial intent. What They Found Online complements offline advertising and delivers the 42% of the audience that is only lightly reached – or not reached at all – by television. The synergy of magazine and online advertising was the most effective combination for reaching this audience and boosting major key metrics including aided brand awareness, brand image, bundled trail intent and purchase intent. As an integral part of the overall media mix: • Online advertising could potentially deliver 26% of the targ