Hooking Up: KIMBERLY-CLARK LINKS WITH WEBVAN FOR ONLINE CONNECTION.
Looking to tap into new sales and marketing avenues on the Internet, Kimberly-Clark last month struck a deal giving it a direct pipeline into online grocer WebVan Group, San Francisco. The Internet-based grocer collects orders online, then delivers perishable and non-perishable goods from a 50,000-SKU selection.
The deal has two major components. First, Kimberly-Clark will conduct research, gather data, and test new interactive promotional offers via WebVan’s site. Second, the company will act as “category captain” for WebVan’s feminine care, facial tissue, bath tissue, and adult-care sectors. As such, the packaged goods giant will team with WebVan to develop new merchandising and marketing strategies and tactics.
“We are focused on being a leader in the online arena,” says Jane Boulware, Kimberly-Clark’s vp-marketing services and e-business. The company is betting the deal will help it remain a brand leader by “understanding and effectively marketing to the consumer in every important channel.”
Dallas-based Kimberly-Clark is one of many traditional companies that are taking dot-com supermarkets seriously. (Retailer Royal Ahold bought 51 percent of struggling Peapod, Inc. for $73 million as promo went to press.) Net grocers have infinite aisles stocked with virtual product, plus expanding customer bases that could eventually cut into store shopping. Packaged goods makers are also finding that, in addition to the merchandising benefits, there are viral marketing and data-mining opportunities to be exploited as well.
Linking with online grocers gives brand marketers a way to test offers and products online (in real-time) before rolling them out in-store. It also lets them use targeted e-mails to cross-promote.
Sales of groceries online are projected to skyrocket to $7.5 billion by 2004, according to Jupiter Communications, New York City.
