Henkel Marketing Strategy

* The strategic problem is whether to globalize the brand portfolio in Italy and/or Spain in order to get a market share value of 29,87M Euros by 2002 (Exhibit 1) * Our strategic opportunity is to standardize its brand portfolio in Europe Market. It will impact on: 1) greater savings on unit variable costs up to 15-20% by doubling the production of existing plants, and 2) 22% potential increase on market share. * Business is becoming more complex because of conflicting marketing targets and conflicting marketing factors. Rationalization of the brand portfolio allowed our competitors to increase revenues by 50%, margins by 100%, and strengthen its positions on the market. We are facing the need to change in order to be able to keep up with the competitors. * Our strategic alternatives are: 1) to internationalize the brand portfolio 2) to stay in differentiation strategy 3) to adjust with adaptive strategy (Think Global, Act Local) * Our strategic recommendation is to follow the approach taken by the company and to retain the portfolio of national and international brands which will lead to increase in market share value in Italy by 29,87M Euros.

* The strategic problem is whether to globalize the brand portfolio in Italy and/or Spain in order to get a market share value of 29,87M Euros by 2002 (Exhibit 1) * Our strategic opportunity is to standardize its brand portfolio in Europe Market. It will impact on: 1) greater savings on unit variable costs up to 15-20% by doubling the production of existing plants, and 2) 22% potential increase on market share. * Business is becoming more complex because of conflicting marketing targets and conflicting marketing factors. Rationalization of the brand portfolio allowed our competitors to increase revenues by 50%, margins by 100%, and strengthen its positions on the market. We are facing the need to change in order to be able to keep up with the competitors. * Our strategic alternatives are: