K-C has hired as VP-customer development Don Quigley, a 22-year Pepsi veteran who helped develop the "Power of One" strategy of jointly promoting in-store the marketer's beverage and snack brands. The company also developed such novel retail events as a concert last year featuring Pepsi-pitching pop diva Britney Spears broadcast exclusively on Wal-Mart's in-store TV network.
The goal is to make retail promotions for such K-C staples as Huggies diapers and Pull-Ups, Scott paper towels, Cottonelle toilet paper and Kleenex tissue focus less on price-driven "pile it high and watch it fly" strategy and more on sexier ways of differentiating brands in-store.
"That's why we made it a priority to bring in Don's experience," said Bruce Paynter, who previously held Mr. Quigley's post and who now moves to president-North American Baby Care. "He's clearly one of the leaders in the industry."
While K-C has had promotions that go beyond price and display-such as retail tie-ins with its current "Kleenex Moments" efforts tied to the Olympics-Mr. Paynter said "We're looking to do this on a more sustainable level and more frequently."
His analysis found that while K-C was good at collaborative planning with retailers, it needed work in other areas, including incorporating insights gleaned from research with shoppers into promotion and broader brand marketing plans.
Mr. Quigley believes that K-C can find more ways to move its in-store message more often beyond simply price. "I'll be searching for ways to dial up the impact," he said. "At PepsiCo, we did that not just with Britney Spears and Wal-Mart TV but with Jeff Gordon and Nascar and other retailers or Major League Baseball and All-Star balloting at Kroger. It's about taking the properties you have and assembling them to create unique marketing opportunities."
"I think it's a great move," said Ken Harris, partner with the consulting firm Cannondale Associates, Evanston, Ill. K-C wasn't necessarily deficient, but while retailers rank it consistently among the top 10 package-goods marketers in developing in-store programs, they rank PepsiCo in the top five.
K-C already has integrated marketing executives into its sales teams and will assign more marketing firepower to the teams in the future, a move Mr. Quigley will also help oversee, Mr. Paynter said.