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In this tutorial, the presenter demonstrates how to insert a watermark in a Microsoft Word document, specifically for protecting sensitive information like a secret recipe. They start by explaining the process for inserting a preset watermark and then move on to customizing it. Using a secret chocolate chip cookie recipe as an example, the presenter emphasizes the importance of keeping such information secure by adding a "top-secret" watermark. To insert a watermark, they instruct users to click on the "Design" tab in the top ribbon and select the "Watermark" option on the right side, where various preset categories like confidential and disclaimers are available.