Persil

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TABLE OF CONTENTS
TABLE OF CONTENTS…………………………………………………………………………..I 1. BACKGROUND…...…………………..…………………………………………………….....1 2. BRANDING STRATEGIES……………………………………………………………………2 3. PRODUCT MIX…………………………………………………………………………….......4 4. ALTERNATIVE STRATEGIES……………………………………………………………….5 5. PRODUCT INNOVATION……………………………………………………………….……7 6. PERSIL PEN……………………………………………………………………………………8 7. CONCLUSION………………………………………………………………………………..10 LIST OF REFERENCES…………………………………………………………………………11 APPENDIX……………………………………………………………………………………....12

1. BACKGROUND
Henkel is a multinational company founded in Germany in 1876. Henkel is a leading firm with international recognition and is ranked among the Fortune Global 500. The organization produces many leading products and brands such as Persil, Schwarzkopf, Loctite, Pritt, Sellotape and Right Guard. It operates in three business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. As shown in Figure 1. (see Appendix), Adhesive Technologies represent 48% of total sales, followed by Laundry & Home Care with 29% and Cosmetics/Toiletries at 22%. In 2010, Henkel achieved annual sales of €15,092 million and a net income of €1,143 million. (Henkel 2011)

The company operates in over 125 countries, in five continents. Henkel employs over 48,000 staff, 80% based outside of Germany. Figure 2. (see Appendix) shows that most sales are to Growth regions (41%) followed by Western Europe (36%) and then Northern America (18%) (Henkel 2011). Henkel targets both industries and households, aiming some campaigns at organizations such as laundries, hospitals and parlours and others towards households. Henkel states that “For a large proportion of our cosmetic products, our laundry and home care products and our consumer adhesives, women count among the direct or indirect target user group” (Henkel 2011). Henkel’s strategy consists of three priorities: achieve full business potential, focus more on customers and strengthen the global team. The ultimate purpose of Henkel’s strategy is the further improvement of the company’s competitiveness and to permanently establish a winning culture. (Henkel 2011)

Persil is one of Henkel’s leading brands. First introduced in 1907, Persil is renowned as being the first commercially available "self-activated" laundry detergent. Persil had huge success and captured the majority in the German market share. Nowadays, Henkel sells Persil products in numerous countries; mainly Germany, France, Spain, Mexico, China. Persil has also adopted local names such as LeChat in France, Dixan in Greece, Italy and Cyprus and Wipp in Spain and China. The success of Persil was due to two main factors. Firstly, for being the pioneer in changing the whole detergent market, making itself discernible from the competition. The second, was Persil’s product presentation and packaging, making the European people feel identified. These competitive advantages have brought a large following of loyal customers throughout the different countries Persil is sold in. In this paper we will analyze Henkel’s strategy for the Persil brand and make recommendations.

2. BRANDING STRATEGIES
Brand strategies are a very important part of the marketing strategy process. There are three aspects within the idea of brand strategy: brand reach, brand positioning, and brand architecture (Homburg, Kuester, and Krohmer 2009, p.141). Brand reach is about the geographical and vertical reach of the company. Brand positioning is the act of designing the company’s brand to a distinctive place in the minds of the customers. Brand architecture looks at the structure of the brands in the company and the relationships between those different brands.

Brand reach has two different aspects, geographical reach and vertical reach. The geographical reach refers to the scope the brand reaches over an area. Henkel’s redesign of the brand will reach all of the different countries they are selling in. The vertical...
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