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In this tutorial, the presenter demonstrates how to insert a watermark into a Microsoft Word document to protect sensitive information, such as a secret recipe. The video covers both preset and customizable watermark options. To insert a watermark, the user should go to the "Design" tab in Word and select the "Watermark" option on the right side. The presenter uses a chocolate chip cookie recipe as an example, emphasizing the importance of watermarking to prevent unauthorized sharing. Additionally, the tutorial showcases various preset watermark categories, including confidential and disclaimer options.