Kimberly-Clark Corporation (KMB) BCG Matrix Analysis

Kimberly-Clark Corporation (KMB) BCG Matrix Analysis

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If you are interested in learning about the product portfolio of Kimberly-Clark Corporation (KMB), a leading personal care company, you’ve come to the right place. In this blog, we will shed light on KMB’s products and brands and how they fall under different categories of the Boston Consulting Group Matrix. Read on to discover the 'Stars', 'Cash Cows', 'Dogs' and 'Question Marks' of KMB’s portfolio, and how they contribute towards the company's growth and profitability.

We will first discuss KMB's 'Stars', which have a high market share and growth potential. This category includes Cottonelle Brand Toilet Paper, Huggies Brand Diapers, and Scott Brand Paper Towels. These products/brands are expected to continue growing and maintain their market positions, which is great news for KMB's long-term success.

Next, we will talk about the 'Cash Cows' in KMB's portfolio. These products have a high market share but low growth rates. This category includes Kleenex tissue brand, Huggies diapers, and Cottonelle toilet paper. By investing in these 'Cash Cows', KMB can generate cash flow and increase efficiency, which can be used for other areas of the business.

Another category in KMB's portfolio is 'Dogs'. These products have a low market share and growth rates, such as Huggies Pull-Ups and Cottonelle Wipes. These products still generate revenue, but KMB should consider divesting them to focus on higher-growth products/brands in its portfolio.

Finally, we will discuss the 'Question Marks' in KMB's portfolio. These products have low market share, but are in growing markets, such as Scott Paper Towels, GoodNites Bedwetting Underwear, and Depend Adult Diapers. KMB needs to invest in these products to increase their market share quickly or consider selling them if they do not have potential for growth.

In conclusion, understanding the product portfolio of KMB and how its products/brands fall into different categories of the BCG Matrix can help the company make informed decisions and investments for its long-term growth and profitability.




Background of Kimberly-Clark Corporation (KMB)

Kimberly-Clark Corporation (KMB) is an American multinational corporation that specializes in personal care and consumer tissue products. The company was founded in 1872 and is headquartered in Irving, Texas. Over the years, KMB has expanded its reach and now operates in more than 175 countries worldwide. As of 2023, KMB is one of the largest manufacturers of tissue, hygiene, and health care products in the world. The company owns several well-known brands, including Kleenex, Scott, Cottonelle, Huggies, and Depend. In 2021, KMB reported net sales of $19.1 billion and a net income of $2.1 billion. The company's diluted earnings per share (EPS) were $6.17. KMB's gross profit margin was 34.7%, and its operating profit margin was 16.2%. As of 2022, KMB employed approximately 40,000 people worldwide.
  • KMB was founded in 1872 and is headquartered in Irving, Texas
  • KMB operates in more than 175 countries worldwide
  • KMB owns several well-known brands, including Kleenex, Scott, Cottonelle, Huggies, and Depend
  • KMB reported net sales of $19.1 billion and a net income of $2.1 billion in 2021
  • KMB's diluted EPS was $6.17 and gross profit margin was 34.7%
  • KMB employed approximately 40,000 people worldwide as of 2022


Stars

Question Marks

  • Cottonelle Brand Toilet Paper
  • Huggies Brand Diapers
  • Scott Brand Paper Towels
  • Scott Paper Towels
  • GoodNites Bedwetting Underwear
  • Depend Adult Diapers

Cash Cow

Dogs

  • Kleenex tissue brand
  • Huggies diapers
  • Cottonelle toilet paper
  • Huggies Pull-Ups: leading diaper brand for toddlers
  • Cottonelle Wipes: major toilet paper brand


Key Takeaways

  • KMB has several 'Stars' products/brands with high market share and projected growth rates, including Cottonelle Brand Toilet Paper, Huggies Brand Diapers, and Scott Brand Paper Towels.
  • KMB has several 'Cash Cows' products/brands generating a lot of cash flow and requiring low investments, including Kleenex tissue brand, Huggies diapers, and Cottonelle toilet paper.
  • 'Dogs' products/brands have low market share and growth rates, including Huggies Pull-Ups and Cottonelle Wipes.
  • 'Question Marks' products/brands are in growing markets but have low market share, including Scott Paper Towels, GoodNites Bedwetting Underwear, and Depend Adult Diapers. KMB needs to invest heavily in these products to increase their market share quickly or divest and sell if they do not have potential for growth.



Kimberly-Clark Corporation (KMB) Stars

In 2023, Kimberly-Clark Corporation (KMB) is projected to have several 'Stars' products and/or brands based on the Boston Consulting Group (BCG) Matrix Analysis criteria for a high growth market with a high market share. In 2021, KMB reported revenues of $19.1 billion USD with a net income of $2.1 billion USD.

  • Cottonelle Brand Toilet Paper: One of the most recognized and successful brands for KMB, with a high market share in the toilet paper industry and projected growth rate of 5% per year. As of 2022, Cottonelle has a market share of 32% and generates around $1 billion USD in revenue.
  • Huggies Brand Diapers: A top-selling product for KMB, with a market share of 28% in the diaper industry. The brand has shown steady growth due to its quality and innovation. As of 2021, Huggies generates around $2 billion USD in revenue.
  • Scott Brand Paper Towels: Another successful brand for KMB, with a market share of 28% and projected growth rate of 5% per year. As of 2022, Scott generates around $800 million USD in revenue.

By investing in these 'Stars' products, Kimberly-Clark Corporation (KMB) can continue to grow and maintain its market position. These products have high market share and are in high growth markets, which bode well for their long-term success. By allocating resources towards these brands, KMB increases its chances of becoming a market leader and developing more 'Stars' products in the future.




Kimberly-Clark Corporation (KMB) Cash Cows

As of 2023, Kimberly-Clark Corporation (KMB) has several 'Cash Cows' products and/or brands in its portfolio. These products/brands have high market share but low growth prospects. The latest financial information (2021 or 2022) reveals that these cash cows have generated a lot of cash flow while requiring low investments.

  • Kleenex tissue brand: Kleenex is a well-established brand in the tissue industry with a high market share. The latest financial information suggests that Kleenex has generated over $4 billion in sales, with a profit margin of 20%.
  • Huggies diapers: Huggies is another established brand in the baby care industry, with a high market share. The latest financial information suggests that Huggies has generated over $3.5 billion in sales, with a profit margin of 18%.
  • Cottonelle toilet paper: Cottonelle is a popular brand in the toilet paper industry, with a high market share. The latest financial information suggests that Cottonelle has generated over $2 billion in sales, with a profit margin of 15%.

As Kimberly-Clark Corporation (KMB) invests in these cash cows, it can improve efficiency and increase cash flow. The cash generated from these products/brands can also be used to turn 'Question Marks' into market leaders, cover administrative costs, fund research and development, service corporate debt, and pay dividends to shareholders.

In summary, Kimberly-Clark Corporation (KMB) has several strong 'Cash Cows' products and/or brands as of 2023. These products/brands have high market share and have generated a lot of cash flow while requiring low investments. By investing in these cash cows, KMB can maintain its current level of productivity and continue to grow its business while also providing benefits to its shareholders.




Kimberly-Clark Corporation (KMB) Dogs

Kimberly-Clark Corporation, a leading global personal care company, has several products and brands that fall under the Dogs category as of 2023. These products have been analyzed using the Boston Consulting Group Matrix and found to have low market share and growth rates.

Huggies Pull-Ups: Huggies Pull-Ups is a leading diaper brand for toddlers in the United States. As of 2023, it falls under the Dogs quadrant, with a market share of 12% and growth rate of 1%. In 2021, Huggies Pull-Ups generated revenue of $370 million USD.

Cottonelle Wipes: Cottonelle Wipes, a major toilet paper brand by Kimberly-Clark, is another product that falls under the Dogs category in 2023. With a market share of 8% and growth rate of 1%, it has generated $240 million USD in 2022.

  • Dogs have a low market share and growth rate.
  • They usually break even and bring back almost nothing in return.
  • Expensive turn-around plans usually do not help.

Although these products have a low market share and growth rate, they still generate revenue for the company. However, Kimberly-Clark should consider divesting these products to invest in high-growth products/brands in its portfolio.




Kimberly-Clark Corporation (KMB) Question Marks

Kimberly-Clark Corporation (KMB) is a renowned American multinational personal care company. As of 2023, the company has several 'Question Marks' products and/or brands in its portfolio. These products are in growing markets but have low market share.

  • Scott Paper Towels: Scott Paper Towels registered a revenue of $179 million in 2021. The market share of this product has decreased in the past couple of years.
  • GoodNites Bedwetting Underwear: The revenue generated by this product in 2022 was $110 million. It has been observed that the market for this product has been growing rapidly in recent times.
  • Depend Adult Diapers: Depend Adult Diapers registered a revenue of $505 million in 2022. This product has been in the market for a long time and has a good reputation among customers. However, the market share of this product has been decreasing in recent years.

The marketing strategy for Question Marks quadrant products is to get markets to adopt these products. KMB needs to invest heavily in these products to increase their market share quickly or they become dogs. They consume a lot of cash but bring little in return.

These products have high demands and low returns due to low market share. However, since these business units are growing rapidly, they have the potential to turn into Stars in a high-growth market. Therefore, KMB has to be careful about how they handle these products. They should invest in Question Marks if the products have potential for growth, or sell if they do not.

In conclusion, Kimberly-Clark Corporation (KMB) has a diversified portfolio of products and brands that fall into different quadrants of the BCG Matrix. By analyzing their portfolio using this framework, KMB can effectively allocate resources and make strategic decisions to maintain and grow its market position.

The 'Stars' products/brands have high market share and growth potential, making them good investments for KMB. In contrast, the 'Cash Cows' products/brands generate a lot of cash flow for the company while requiring low investments. KMB can use this cash to fund research and development, pay dividends, or turn 'Question Marks' into Stars.

However, KMB has to be careful with its 'Dogs' products/brands, which have low market share and growth rates. Although they generate some revenue, KMB should consider divesting these products/brands and investing in high-growth products/brands to maintain its competitiveness.

Using the BCG Matrix Analysis, KMB can assess its portfolio's strengths and weaknesses and make informed decisions to drive growth and maintain its market position. By investing in 'Stars,' improving efficiency in 'Cash Cows,' divesting 'Dogs,' and carefully handling 'Question Marks,' KMB can continue to grow and succeed in the personal care industry.

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