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In this tutorial, the presenter demonstrates how to insert a watermark in a Microsoft Word document, particularly to protect sensitive information like a secret recipe. The tutorial covers both preset and customizable watermark options. The presenter uses a chocolate chip cookie recipe as an example, emphasizing the need to keep it confidential to protect their billion-dollar company. To insert a watermark, users must go to the "Design" tab in the top ribbon and select "Watermark." The available options include various preset categories, including confidential watermarks and disclaimers. This process ensures added security for sensitive documents.