Kimberly-Clark partners CSIRO, small business for fight back nappy NPD

Kimberly-Clark Australia will launch a new Huggies nappy product created in a collaborative innovation effort to ward off erosion of market share at the hands of private label brands.

The new product, created in partnership with government research body CSIRO and family-owned textiles company Textor Technologies, introduces a new high-absorbency fabric to the category and represents a move towards open innovation for the multi-national FMCG brand.

Created to provide the extra absorbency required for newborns, Kimberly-Clark hopes the innovation will fortify its market leading position in the $500 million nappy category, which was shaken up when Aldi’s Mamia product entered the market several years ago. Aldi’s product’s lower price point and comparable performance saw many mothers switch away from branded manufacturers.

The ‘3D UltraAbsorb’ layer in the new Huggies Newborn and Infant Nappie is the most revolutionary innovation developed for Huggies so far, Kimberly-Clark general manager of baby and child care, Alison Holland, says.

“This is an innovation so unique that we truly believe it will change the game of what a nappy can deliver. We’ve experienced fantastic results from mums who tested the new nappy, which tells us just how much this innovation will mean to them and their babies,” Holland says.

Funding from CSIRO (Commonwealth Scientific and Industrial Research Organisation) was invested to help develop the material as part of the government body’s ongoing strategy of open innovation and working hand in hand with industry in Australia.

The organisation’s Research in Business (RIB) program is designed to help Australian companies compete locally and abroad through innovation, CSIRO group executive, manufacturing, materials and minerals, Dr Calum Drummond, explains. “Our ongoing partnership with Textor and Kimberly-Clark is an example of the benefits long-term collaboration and engagement in R&D can bring.”

“The project is a perfect example of how the innovation process works by linking researchers, such as CSIRO through the RIB program to small to medium enterprise to develop the concept, then linking in multi-national enterprises so the concept can be taken to market via the multinationals’ supply chains,” director of Textor Technologies Phillip Butler adds.

Insights around the challenges managing the bowel movements of newborn babies sparked the idea for the new product, which seven in 10 test mums said performed better than the old material. It targets first-time mothers – over 40% of the market.

NSW Premier, the Honourable Barry O’Farrell, officially launched the $28 million production line at Kimberly-Clark’s Huggies nappy plant in South West Sydney last month. Due to hit stores in the coming weeks the product will launch with an integrated marketing campaign including TV, print, online, sampling and in store activity encouraging parents to see and feel the difference.

Huggies commanded 68% of the nappy market in January, excluding sales from Aldi, according to Aztec National data.

WiFi patent oversight a harsh lesson in intellectual property protection

The Hill’s hoist, cochlear implant, plastic money, invitro-fertilisation and dual flush toilets are among Australia’s great innovations. But who knew that five pioneering scientists from the CSIRO were responsible for the invention of wireless technology? By the time its patents expire, WiFi will be used in an estimated five billion devices.

The CSIRO first sought to patent its wireless technology in the early 1990s. Since that time it has embarked upon two landmark court cases for patent infringement in the United States.

The first trial settled a few years ago for just over $205 million. This week it was reported that the CSIRO and Commonwealth Government settled the second of those cases, this time against several laptop makers, mobile carriers and wireless chip makers for $220 million.

While the CSIRO and government are reportedly satisfied with the $400 million they have recouped thus far from commercialising their intellectual property, around 40% of the world’s WiFi-using devices will not be covered by the patent because CSIRO neglected to protect the invention in emerging markets including Russia, Latin America, China and India.

Patent protection comes at significant cost and every business must make strategic decisions about where to direct scarce resources. As one entrepreneur colleague noted, “With unlimited funds one might patent anything, everywhere but this is not likely to be good commercial practice.”

Whether CSIRO made a commercially sound or costly decision back then is for others to debate. However, the latest court settlement does serve as a reminder to those that have a product, device, business method, apparatus, or computer-based software or process worth protecting of the  importance of an IP strategy.

In Australia there are two different types of patent:

1. Standard patents provide 20 years protection and are appropriate for inventions that are manufactured, novel, useful, and possess a sufficient level of inventiveness, and

2. Innovation patents provide eight year protection and are available for inventions that do not meet the higher inventive threshold required for standard patents. To register an innovation patent, the invention must be different from what is already known, and that difference must make a substantial contribution to the working of the invention.

Patent protection should be applied for in each additional country of interest. An application can be filed in each country, or in multiple countries under a single application under the Patent Cooperation Treaty and European Patent Convention.

The best advice is to seek legal advice.

 

The ABCs of water management

Background

With the drought taking a toll on Australia’s water supply, ABC Innovation sought to educate the Australian public about water management and saving, with a focus on school students.

As part of National Science Week, the ABC intended to launch a website and online game to attract and hold public attention while educating on environmental sustainability and enviro-economic issues.

Brand: ABC Science
Clients: ABC Science/ABC Local Radio, CSIRO and eWater CRC
Agency: Moon Communications Group

Objective

  • Educate Australians of all ages about water management, and
  • Create an online engagement suitable for the general public as well as teachers and students.

Strategy

To engage such a broad target audience in science education it had to be made fun. A simulation game was designed that would put players in charge of the entire catchment for a town.

The game would receive cross-media promotion from ABC Radio and through National Science Week.

Execution

Building on the CSIRO’s simulation engine, Moon developed an engaging Flash game whereby users were challenged to balance environmental and economic needs in a set number of moves. The custom environment focused on ease-of-use, education and user enjoyment. The game mirrored real-life conditions by demonstrating the impact of player decisions on the environment and the social and economic wellbeing of the town. Players could decide what activities to undertake: to plant crops, log forests, build factories or set up national parks. The aim for players was to avoid environmental problems and to provide food and wealth for the population.

In addition, unexpected events, such as rainfall, reflected the unpredictable nature of the Australian environment.

To ensure maximum engagement, the gameplay was intuitively designed and information presented only when necessary.

The game was housed within a greater website containing further educational information on water management through video, audio and in-depth articles. A dedicated ‘Teacher Resource Centre’ on the site gave guidance to teachers, providing them with help on the game, ideas on how to introduce it to students and detailed background information on water management in Australia.

Results

The campaign brought the environmental impact of our day-to-day existence to the mind’s of the Australian public by pitting people against a digital unpredictable environment. Awareness raised is demonstrated in the game’s popularity:

  • 250,000 games played to date, and
  • 5,000 continuing to be played each week.

The campaign generated significant involvement from the general population and school groups. ‘Catchment Detox’ was also promoted exceptionally during National Science Week, with a competition between radio celebrities featured on air and the website.

The campaign was awarded an Australian Interactive Media Industry Association award for Best Science, Health, Environment Campaign.