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In this tutorial, the process of inserting a watermark into a Microsoft Word document is demonstrated. The purpose of this feature is to add a layer of security, such as for confidential information or secret recipes. The tutorial explains how to insert a preset watermark and also how to customize it. The steps include selecting the "design" option on the top ribbon of Word, then choosing the "watermark" option on the right-hand side. The tutorial emphasizes that it is a simple and effective way to enhance document security.