Preview

Henkel

Good Essays
Open Document
Open Document
666 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Henkel
1.Strongest pressure for the brand harmonization was due to the consolidation of European retailers. Retailers are focusing on internationalizing with increasing activity of acquisition and mergers after getting consolidated at variable rates within markets. For instance: combinations of Carrefour and Promodes, of Intermarche and Spar. Products that those retailers are selling should become international also parallel to their evolution, at least those big(heavy buyer) retailers will have greater preference over international branded products over locally known ones. They gained the awareness of the internationalization which is going to be their future in Europe.
On the other hand, what counts most for the consumer is the local effect of the product because laundry and home cleaning are cultural related activities in which preferences are passed down through generations. The main difference is demographics ; Southern Europeans prefers less powerful detergents combined with bleach washed in low temperatures whereas Northern tradition involved with powerful detergents without bleach combination washed in hotter water. Packaging differs also; north people want compact product but in south people want big boxes. Henkel implemented different strategies for different markets relying on those differences like; ``whiteness with care`` for northern market like Germany and France but to catch the large green customer segment in Netherlands an environmentally friendly label named ``Persil Grune`` is launched.

2. Unilever and P&G did an outstanding job harmonizing their brand portfolio internationally. Unilever was to reduce its portfolio from 1600 brands to 400 which they believed would allow to save on production from reduced stock-keeping units, concentrate their marketing support and the leaner, more powerful portfolio would give the company leverage with retailers. P&G followed suit as they decided to internationalize the management of brands by category.

You May Also Find These Documents Helpful

  • Better Essays

    MKT 571 Week 3

    • 1689 Words
    • 5 Pages

    Unilever is an international conglomerate consisting of over 400 brands in several different markets. From creating brands to mergers with other companies, Unilever is dominating many markets by offering thousands of products to different consumers. This research will discuss the history, market segmentation, and the target markets of Unilever.…

    • 1689 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    3. Does Unilever need to develop a new brand with a new value proposition or can it reposition its existing brands or use a brand extension?…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Canyon Ranch Case Study

    • 2434 Words
    • 10 Pages

    Moore, J. (1993). Building brands across markets: Cultural differences in brand relationships within the European Community. In D. Aaker & A. Biel (Eds.), Brand equity and advertising. Hillsdale, NJ: Lawrence Erlbaum Associates.…

    • 2434 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    As shown in Figure 1, P&G has had a steady increase in market share over the last several years while Unilever has been on the decline. Unilever drastically increased their advertising budget in 2006 likely in an attempt to recapture market share. The tactic worked. As shown below, it resulted in recapture of market share for Unilever, at the expense of P&G.…

    • 1156 Words
    • 5 Pages
    Good Essays
  • Good Essays

    International Business

    • 748 Words
    • 3 Pages

    Q: List elements of the national business environment that influence the standardization-versus-adaptation decision. Standardized is just one of a number of strategies with which firms successfully enter the international marketplace today. Standardization may not always be the most appropriate strategy, even. Smaller companies may also be better off adapting to local cultures and exploiting their international image to gain market share locally. Consumers in different national markets often demand products that reflect their unique tastes and preferences. Cultural, political, legal, and economic environments have a great deal to do with the preferences of both consumers and industrial buyers worldwide. A culture’s aesthetics involves, among other things preferences for certain colors.…

    • 748 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Proctor And Gamble

    • 739 Words
    • 3 Pages

    First, P&G boasts an enviable stable of successful products. With a clear focus to capture its market share, each brand…

    • 739 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Phase 5 (Ip)

    • 3223 Words
    • 13 Pages

    Procter and Gamble (P&G) throughout its journey of many years is one of the world’s largest consumer goods company with sales of nearly 80 billion dollars and a net profit of about 10 billion dollars. P&G exists in more than 180 countries with its brands that calculate up to 25 billion dollars. The company P&G is well known for its high quality brands such as Pampers, Tide, Gillette, Downy, Pantene, Olay, Dawn, and etc. All of these brands are items that we as human beings use in our everyday life. P&G needs to keep up effective strategies in order to maintain a competitive advantage for its competitors due to the company’s renowned brands. The strategy that P&G uses that gives them a competitive advantage, P&G rebrands the line of its products and selling them at a lower price. Another option for P&G is expanding in the markets by collaborating with local businesses many geographical regions. Overall, P&G provides its consumers with healthy products as well as providing specialized products for me.…

    • 3223 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    The sense that Unilever is on the up, whereas P&G is in trouble, is the latest swing of a pendulum that only five years ago saw Unilever struggling as P&G soared. The slow economic recovery in America and the deteriorating economic situation in Europe have hit P&G harder, because it earns a greater share of its revenues in those developed markets and its brands tend to be more expensive than Unilever’s—and thus more likely to be sacrificed by consumers who are being forced to count the pennies.…

    • 2151 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    By the 1980’s, product categories changed, and required more differentiated functional activity; brands could no longer be “ran” as differentiated units but as “bigger categories”. P&G adapted and upgraded its organizational structure in a way that optimizes the use of resources and expertise of the organizations manpower.…

    • 1072 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Study Guide

    • 827 Words
    • 3 Pages

    In 1987, P&G US made a drastic shift away from the brand-management structure to a Matrix structure in which brands managed as an element of category portfolios by category general managers. The decision to switch to the US Matrix structure was because product categories were beginning to require more differentiated functional activities but simultaneously, P&G US needed to retain its functional strengths.…

    • 827 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Sociocultural— Americans are increasingly worried about better products in their industry. They are high-end consumers when it relates to consumer products. They wish to get better innovative products and are willing to pay for them. People are concerned about their quality of life, hygiene, and being able to pamper themselves with luxury. The consumer products industry is based primarily on brand name, and brand loyalty. A consumer will forgo buying a product if it is unfamiliar to them. For example, in Germany, Jager changed the brand name to American style Dawn from the brand name of Fairy. This caused a…

    • 1544 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Dove Case

    • 979 Words
    • 4 Pages

    In February 2000 Unilever embarked on a five-year strategic initiative called “Path to Growth.” This initiative winnowed more than 1600 brands down to 400. And a small number would be selected as “Masterbrand”, and mandated to serve as umbrella identities over a range of product forms. There would be a global brand unit for each Masterbrand. The company embarked this initiative because of following reasons. (a) Global decentralization brought strengths through diversity,…

    • 979 Words
    • 4 Pages
    Good Essays
  • Good Essays

    UNILEVER ORG STRUCTURE

    • 426 Words
    • 2 Pages

    Unilever has undergone various organizational structure changes since its inception. It initially started with a decentralized structure from 1950- 1980.Decentralization gave the company an advantage as they had the flexibility to change according to local consumer demand. They appointed managers who were local to that place so that the company had a good understanding of local market. The local managers were responsible for everything from marketing, sales and distribution. But Decentralization led Unilever to not have any common corporate culture or vision. It also led them to duplication of products, resulting in high costs. Moreover, they had less focus on globalization and couldn’t create global brands. In 1990 the company changed its structure based on business groups. The company became more centralized. They streamlined their operations so that they could get the products onto the market quickly. This structure too failed as they were no coordination between head office, regional and national groups. The decisions were made by regional heads and local managers had no power to change them to suit to local markets. Finding a right balance between centralization and decentralization was their major problem. In 1999, Unilever decided to adopt a “Path to Growth Strategy”. They realized that they had a broad range of products and never had any focus on ones in which they were one among the top in market. So they switched to a structure based on global product divisions. Unilever was split into two separate global units namely Food and HPC headed by two executive directors. But they still had problems as the company had 2 separate chairmens in different countries which led them to operate as separate entities (Unilever NV and Unilever PLC.). In 2005 as part of “one Unilever” Programme they scrapped this management structure by naming Patrick Cescau as single chief executive of Unilever. The company started to operate with matrix structure with multiple lines of…

    • 426 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Unilever

    • 790 Words
    • 3 Pages

    In the 2000s Unilever has switched to a structure based on global product divisions. What do you think is the underlying logic for this shift? Does the structure make sense given the nature of competition in the detergents and food business?…

    • 790 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Henjink

    • 1005 Words
    • 5 Pages

    How do we move from place to place? Students will most likely say by driving a car, but this lesson will focuses on how the forces helping the vehicle to move. I will ask questions about something that moves more simply, such as an cheetah. What does it mean for a cheetah to run 70 miles per hour? I will show the students a short clip of a cheetah running. The cheetah has an obvious direction and speed. But we are curious as to how the cheetah is creating the speed and how that speed is slowed down when the cheetah needs to stop. The lab will investigate further into how the relationship between speed and direction can be represented graphically.…

    • 1005 Words
    • 5 Pages
    Good Essays