Wednesday, January 28, 2009

Toilet paper goes digital

Kimberly Clark’s CMO Tony Palmer announced today that in an effort to save dollars in this down-trodden economy, while helping consumers gain easier access to their products and helping the green effort at the same time-that Scott brand paper, better known as toilet paper, is going digital.  

Kimberly Clark’s move seems to be more financially driven than consumer driven.  Palmer admits that turning Scott brand toilet paper digital will significantly cut down on production and distribution costs.  “You know, we’re spending millions of dollars a year on production, distribution, inventory space-and by going digital we’ll be able to realize more profit of our $3.6 billion sales.”

As an afterthought, Palmer also admitted “Oh, and this is good for the environment too, and meets the government standards for waste disposal.”

Scott brands (a subsidiary of Kimberly Clark) would not be the first company to go digital. 

The February 2009 issue of PC Magazine is going to be completely digital.  According to the company’s website,  the decision to go digital is because of the enormous benefits:  portability once downloaded, immediate delivery, searchability and most importantly-the green factor.  The Mayo Clinic went digital in 2004, storing all records electronically.  The Mayo Clinic sites the ease of availability for electronic/digital records.  And yes, even the IRS has gone digital, giving you the option to file your taxes online.  Although, Scott would be the first paper waste brand to go digital.

This move is in line with Scott’s corporate history.  In 1983, Scott CEO Phillip E. Lippincott reduced costs by $25 million a year by using scrap wood and pulp waste generated from Scott’s mills.  Furthermore, Palmer boasted that Scott, being one of the best-selling brands in the world, is a leader in the industry and is simply moving forward by embracing technology before any of Scott’s competitor’s. 

Procter & Gamble’s CEO Alan G. Lafly, a direct competitor of Scott with their Charmin brand, announced, “It’s stupid.  What Scott makes up in savings, they are going to lose in sales.”

A trucker, known only as “The Bulk”, was less flattering in his remarks about the change, “How the hell am I supposed to wipe my a** with a computer?  What the f***?!”

Shannon O’Brien, a homemaker from Boise, Idaho and  devoted Scott consumer also expressed her concerns “I have two children that are potty training in my family of five, and we only have one computer at home.  I’m not sure how this is going to work.”

Whether Scott’s decision to go digital was a wise one for the sales of the brand, it will certainly help the greening of America, and the browning of American’s underwear.